Define: Community Trust

A Community Trust is a legal entity that holds and manages assets for the benefit of a specific community or group of individuals. It is established to provide support and resources to address the needs and interests of the community.

While both types of trusts involve the management of assets, a Community Trust is specifically focused on benefiting a particular community or group. Regular trusts, on the other hand, can be established for various purposes, such as estate planning or asset protection.

A Community Trust can be established by individuals, groups, or organisations that have a genuine interest in supporting and improving a specific community. This can include local residents, businesses, or philanthropic organisations.

Establishing a Community Trust can provide several benefits, such as a centralized platform for community development initiatives, tax advantages for donors, and a sustainable source of funding for community projects and programs.

The assets of a Community Trust are typically managed by a board of trustees or directors who are responsible for making decisions regarding the use and investment of the trust’s resources. These individuals are usually selected based on their expertise and commitment to the community’s well-being.

The accessibility of funds held by a Community Trust depends on the specific terms and conditions set forth in the trust’s governing documents. Generally, the funds are used to support community projects and programs, and access may be granted to individuals or organisations that align with the trust’s objectives.

Contributions to a Community Trust can be made in various forms, including cash donations, property transfers, or bequests in a will. Additionally, some trusts may allow for ongoing contributions through regular donations or fundraising efforts.

In many jurisdictions, donations made to a Community Trust are tax-deductible, subject to certain limitations and requirements. It is advisable to consult with a tax professional or legal advisor to understand the specific tax implications in your jurisdiction.

In certain circumstances, a Community Trust can be dissolved or terminated. This may occur if the trust’s objectives have been fulfilled, the community it serves no longer exists, or if the trust’s governing documents allow for termination under specific conditions.

Individuals or organisations within a community can benefit from a Community Trust by accessing resources, funding, or support for various initiatives. This can include scholarships, grants for community projects, funding for local organisations, or assistance in addressing specific community needs.