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5 - Operational Restraints on Accumulation
from Part II - Charities and Accumulation Delimited
Ian Murray, University of Western Australia, Perth
Book:

Charity Law and Accumulation

Published online:

23 July 2021

Print publication:

05 August 2021, pp 128-159
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Summary

This chapter examines a range of alternative mechanisms arising from a charity’s legal form or status as a charity that potentially restrain a charity’s accumulation activities. Key amongst them are administrative (or deviation) schemes and cy-près schemes, which enable modification of the administrative machinery or charitable purpose of charities. As these mechanisms permit the rate of accumulation to be directly altered or accumulated assets to be distributed, they are explored under the sub-heading ‘directly controlling accumulation’. External administration, including winding-up or replacement of charity controllers, is a fairly drastic and indirect method of controlling accumulation that is separately considered, as well as member action in controlling accumulation. Examples are drawn primarily from the United States and Australia, but with material discussion of the United Kingdom, Canada and New Zealand also.