Charitable Trust Example A - Winding up a Charitable Trust

Hamish and Morag are brother and sister who inherited their father’s charitable trust, the Galston Trust as part of his estate.  The Galston Trust was set up to support projects working with children and young people in the Highlands.   Hamish and Morag wanted to continue to make grants from the Galston Trust but as Morag lives in Spain and Hamish lives in Glasgow, this was going to prove difficult.    The Scottish Community Foundation offered an ideal solution to Hamish and Morag.  The assets of the Galston Trust could be wound up and transferred to a named Fund within the Foundation.  By drawing up a Gift Agreement, Hamish and Morag could specify exactly how they would like grants from the Fund to be made.  In this case it was agreed that the Fund would be named the Galston Fund and that awards would continue to be made as their father had intended.   

Example B – Distributing grants for an existing Charitable Trust

The MacDougal Charitable Trust was set up in 1880 by Stewart and Donald MacDougal, two brothers from Scotland who made a fortune through banking in the Far East.  The current Trustees are based in London and are direct descendants of Stewart and Donald.  Around £.5m is distributed annually to “alleviate the suffering of those excluded from society”.  The Trust Deeds state that a minimum of one tenth of the distribution must be in Scotland.    The MacDougal Charitable Trust makes an annual award to the Scottish Community Foundation of around £50k and through their grants programme the Foundation identifies projects that meet with the objectives of the Trust.  Projects are then assessed and recommendations are made to the Trustees in London who retain final approval on all awards made.  A follow up report on each award is forwarded to the Trustees a year later.           

Charitable Trust Examples