Rating Charitable Institutions.

New Zealand Tablet, Volume XXX, Issue 15, 10 April 1902, Page 4

Rating Charitable Institutions.

A case of considerable interest to charitable institutions came before an Adelaide court the other day. The Melbourne Advocate gives the following particulars : — Recently Judge Gaunt decided, in the Melbourne County Court, that Catholic school buildings used solely for school purposes were not liable to be rated. A far wider question has been brought before a South Australian Court, when, on March 17, the question considered was, ' What constitutes a charitable institution?' The Female Refuge at Fullarton, South Australia, which is conducted by the Sisters of St. Joseph, appealed against the water and sewer.rates, on the ground that the institution was used exclusively for charitable purpose*, and therefore was not liable to be rated. The Archbishop of Adelaide, one of the trustees, testified to the manner in which the institution was conducted. He stated : ' Laundry work was carried out in the institution to a considerable extent. It was supported by donations, but there were no special endowments, All the money for the extension of the institution was raised by loans. The laundry was maintained for the sole purpose of obtaining funds to carry on the charitable objects of the institution. The inmates of the institution were not compelled to work. The inmates never worked more than six and a half hours a day, and only for five days a week.'

Mr Glynn argued the case for the appellants. He contended : ' (1) That the purposes are charitable. 02) That the land* are used exclusively for charitable purposes. In support of these contentions they maintain that — (3) The meaning of the word " charity " is now much wider than the relief of poverty, and includes institutions with all manner of objects for the help of those who are unable to keep themselves maintained by settled funds and voluntary contributions ; in fact, as stated by Lord Herschell in Income Tax v. Penisel, A. C, 1891, p. 572, it includes "the relief of any form of necessity, destitution, or helplessness which excites the compassion or sympathy of men, and so appeal to their benevolence for relief,'" or, as (588) Lord McNaghten said, it comprises " four principal divisions : Trusts for the relief of poverty, trusts for the advancement of education, trusts for the advancement of religion, and trusts for other purposes beneficial for the community not falling under any of the preceding heads." (I) That the put poses to which the funds are applied, not the source from which they are du'ived, determine the character of the institution. (.") That if the put poses are charitable the receipts of subs wiptions or the proceeds ot services rendered in ;ud of the institution elo not create a lienefW ial occupation, which i.* the baMS eif assessment for other than chaiitable purports.. (_(> ) Th.it the couit, in df-cMii^; on the question of exclusive t-se, should look broadly at the qu stion, and declare that the use is. exclusively charitable if the income oT the institution, from whatever souice it comes, is applied to, and the occupation of the inmates is the fuitheranco <•£. charitable jan poses.'

The Crown Solicitor asked for an arijourr inent, po as to enable him to cms der the authorities, cited by Mr. Hljnn, and whe i the case came on for re-hearing. Mr. Stuart. KO. intimate 1 to the court tbat tho Commissioner of Waterworks and Sewers had agreed lo the appeal, and Mr. Commit-sumer Ru«seJ (.hen made an order in favor ot the apptliai ts, and the as'-e^inenf v\as struck out. This decision, following upon Mr. Glynu's I'ontenti vi, clearly shows what constitutes a charitable institution.