Article 129 Power of unincorporated charities to spend capital: general

This Article applies to any available endowment fund of a charity which is not a company or other body corporate.

But this Article does not apply to a fund if Article 130 (power of larger charities to spend capital given for particular purpose) applies to it.

Where the condition in paragraph (4) is met in relation to the charity, the charity trustees may resolve for the purposes of this Article that the fund, or a portion of it, ought to be freed from the restrictions with respect to expenditure of capital that apply to it.

The condition in this paragraph is that the charity trustees are satisfied that the purposes set out in the trusts to which the fund is subject could be carried out more effectively if the capital of the fund, or the relevant portion of the capital, could be expended as well as income accruing to it, rather than just such income.

Once the charity trustees have passed a resolution under paragraph (3), the fund or portion may by virtue of this Article be expended in carrying out the purposes set out in the trusts to which the fund is subject without regard to the restrictions mentioned in that paragraph.

The fund or portion may be so expended as from such date as is specified for the purpose in the resolution.

In this Article “available endowment fund”, in relation to a charity, means—