Re Resch's Will Trusts

A private hospital that charged fees was charitable, because it provided a benefit to the public, and it was not run for profit.

Citation
[1969] 1 AC 514
Court
Privy Council
Year
1969
Subject
Equity and Trusts
Topic
Charitable trusts

Facts

A testator left money for a private hospital in Sydney, run by the Sisters of Charity, which charged fees to patients. The hospital was not run for profit, and its income was used to run and improve it. The question was whether the gift was charitable, given that the hospital served only those who could pay its fees.

Legal principle

The Privy Council held that the gift was charitable. Lord Wilberforce said that the provision of medical care for the sick is a purpose beneficial to the community, and that a hospital is not prevented from being charitable because it charges fees, as long as it is not run for profit. The hospital benefited the public generally, by relieving pressure on public hospitals and by offering a type of care that was needed. The poor were not entirely excluded, because it was not shown that only the wealthy could use it.

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