
Charitable purposes
The characteristics of the institution of trust and its flexibility can provide entities operating in the so-called Third Sector with solutions adaptable to the needs of individual charities and their beneficiaries. A trust set up by a charity offers potential donors peace of mind as to the segregation and destination of the donated assets. For its part, the charity, by setting up a trust, obtains an efficient result adaptable to the individual situation in which it operates, without having to resort to more rigid and complex segregation structures. Compared to a foundation, which can be used for similar purposes, the trust is a leaner and more flexible instrument, is not subject to governmental control, can also be open-ended, and does not require a high minimum amount of capital to set up.