Case Studies

Reorganisation of a dormant charitable trust

Hundreds of thousands of pounds earmarked for charitable purposes are lying dormant in inactive charitable trusts. However, thanks to new charity reorganisation regulations, the Scottish Community Foundation has made it easy to release these funds for the benefit of Scotland’s communities.

Everyone has heard of great Scottish philanthropists like Andrew Carnegie, William Quarrier, and modern day equivalents like Sir Tom Hunter, but these are only the best known of thousands of Scottish men and women who over the years have established charitable trusts to support good causes.

In 1774, Edinburgh saddle-maker Joseph Thomson set up a trust to distribute oats to poor households in Edinburgh. The trust continued to help people until the 1980s, but fell dormant when trustees struggled to distribute funds through the traditional route of local churches and independent grocers. 

The trust fell under the care of law firm Morton Fraser. Solicitor George Clark (pictured left) contacted the Foundation to find a way to reorganise the trust – now worth approximately £250,000 – to start benefiting disadvantaged people living in Edinburgh again.

Following an application from the Foundation, the Office of the Scottish Charity Regulator allowed the original trust to be closed, and the assets to be transferred to the Foundation. The Foundation revitalised the fund that now supports Edinburgh-based groups dealing with 21st Century issues.

The Joseph Thomson Mortification Fund has been renamed Live Well Edinburgh. To remain faithful to Joseph Thomson’s original wishes, the Foundation is particularly keen to support projects offering food or food education. In November 2010, George Clark visited Broomhouse Health Action Strategy Group, the first recipients of a grant from the Live Well Edinburgh fund.

Giles Ruck, chief executive of the Scottish Community Foundation, said: “Trusts often fall dormant when trustees can no longer identify suitable beneficiaries, or the original intention of the fund is no longer relevant. Thanks to the new regulations, we can continue the legacy of Joseph Thomson with meaningful grants rather than oats.”