{"id":6411,"date":"2023-05-31T14:44:08","date_gmt":"2023-05-31T18:44:08","guid":{"rendered":"https:\/\/www.millerthomson.com\/albertas-revised-trustee-act-implications-charities-non-profits\/"},"modified":"2025-12-24T12:44:34","modified_gmt":"2025-12-24T17:44:34","slug":"albertas-revised-trustee-act-implications-charities-non-profits","status":"publish","type":"post","link":"https:\/\/www.millerthomson.com\/en\/insights\/social-impact\/albertas-revised-trustee-act-implications-charities-non-profits\/","title":{"rendered":"Alberta\u2019s revised Trustee Act: Implications for charities and non-profits"},"content":{"rendered":"\n

Alberta\u2019s Trustee Act<\/em><\/a> was recently overhauled and revised. Bill 12, which revised the original act, received Royal Assent on April 29, 2022 and came into force on February 1, 2023 (the \u201cAct<\/strong>\u201d or the \u201cNew Act<\/strong>\u201d). The Act attempts to clarify the law and reflect modern trust practice in Alberta. The New Act is based on the Uniform Law Conference of Canada\u2019s Uniform Trustee Act<\/a>.<\/strong><\/p>\n\n\n\n

The previous version of the Trustee Act<\/em><\/a> in force in Alberta did not explicitly address charitable trusts, beyond including charitable purposes and charitable institutions in the definition of \u201cbeneficiary.\u201d The New Act contains several provisions related to charitable trusts, and also allows for the recognition and creation of non-charitable purpose trusts. These new provisions may have a number of implications for charities and non-profits in Alberta (particularly, those that accept restricted gifts) and their donors.<\/p>\n\n\n\n

Changes in law surrounding the variation of charitable purpose trusts<\/h2>\n\n\n\n

Among other changes relating the charitable purpose trusts, the New Act codifies the common law rule known as the cy-pr\u00e8s doctrine, and also provides the courts with some additional powers when it comes to varying charitable purpose trusts.<\/p>\n\n\n\n

Cy-pr\u00e8s comes from the phrase \u201ccy-pr\u00e8s comme possible,\u201d which means \u201cas near as possible.\u201d Where it has become impossible or impracticable to achieve the original purposes of a charitable purpose trust, (and assuming the trust instrument does not contain a variation clause) the court can rely of the cy-pr\u00e8s doctrine to alter the purposes of the trust to purposes that are as near as possible<\/em> to the original purposes.<\/p>\n\n\n\n

The New Act codifies this power of the court — and goes further — providing the court with an additional <\/em>power to vary the purposes of a charitable purpose trust  if such a variation would \u201c\u2026facilitate the carrying out the charitable intent, whether general or specific, of the settlor.\u201d This provision in the New Act broadens the court\u2019s powers and permits the court to make changes to the purposes of a charitable purpose trust even if the original purpose has not failed.<\/p>\n\n\n\n

Another major change that comes with the New Act is that it states that the court\u2019s powers to vary a charitable purpose trust prevail over any contrary provisions in the trust instrument; this was not the case under the previous legislation.<\/p>\n\n\n\n

Non-charitable purpose trusts<\/h2>\n\n\n\n

The New Act has provisions specific to non-charitable purpose trusts, which are purpose trusts (i.e. trusts without identifiable beneficiaries) with purposes that fall outside the legal definition of charity.<\/p>\n\n\n\n

Many charities enjoy long term endowment funding arising from charitable purpose trusts. However, endowment funding has historically been unavailable to non-profits that don\u2019t have charitable status. This is due, in part, to the fact that the range of non-charitable purpose trusts that have been recognized by the common law is very narrow. While the circumstances in which a valid non-charitable purpose trust can be created are still limited, the Act opens up some additional possibilities.<\/p>\n\n\n\n

The Act states that the non-charitable purpose must be either:<\/p>\n\n\n\n

    \n
  1. recognized by law as being capable of being a valid object of a trust,<\/li>\n\n\n\n
  2. for the performance of a function of government in Canada, or<\/li>\n\n\n\n
  3. a matter specified by regulation.<\/li>\n<\/ol>\n\n\n\n

    The first category pertains to non-charitable purpose trusts that have been recognized by the common law. Maintaining grave sites, and maintaining the care of pets are examples of valid non-charitable purposes capable of creating a trust at common law. Currently, there are no non-charitable purposes specified under regulation in Alberta. As such, the third category provides the most possibility as a source of new non-charitable purpose trusts in Alberta. This category might include trusts for the preservation and maintenance of public parks and buildings, or the support of community-based activities.<\/p>\n\n\n\n

    It will be interesting to see how the law develops in this area. As more non-charitable purpose trusts are legally recognized, it is likely that the government will create a list of acceptable non-charitable purposes in a regulation.<\/p>\n\n\n\n

    If you have any questions about charitable purpose trusts, non-charitable purpose trusts, or Alberta\u2019s revised Trustee Act<\/em>, please do not hesitate to reach out to a member of our Social Impact group<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Alberta\u2019s Trustee Act was recently overhauled and revised. Bill 12, which revised the original act, received Royal Assent on April 29, 2022 and came into force on February 1, 2023 (the \u201cAct\u201d or the \u201cNew Act\u201d). The Act attempts to clarify the law and reflect modern trust practice in Alberta. The New Act is based […]<\/p>\n","protected":false},"author":86,"featured_media":14389,"parent":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[535],"insight-format":[416],"class_list":["post-6411","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-impact"],"acf":[],"yoast_head":"\nAlberta\u2019s revised Trustee Act: Implications for charities and non-profits | Miller Thomson<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.millerthomson.com\/en\/insights\/social-impact\/albertas-revised-trustee-act-implications-charities-non-profits\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Alberta\u2019s revised Trustee Act: Implications for charities and non-profits | Miller Thomson\" \/>\n<meta property=\"og:description\" content=\"Alberta\u2019s Trustee Act was recently overhauled and revised. Bill 12, which revised the original act, received Royal Assent on April 29, 2022 and came into force on February 1, 2023 (the \u201cAct\u201d or the \u201cNew Act\u201d). The Act attempts to clarify the law and reflect modern trust practice in Alberta. The New Act is based […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.millerthomson.com\/en\/insights\/social-impact\/albertas-revised-trustee-act-implications-charities-non-profits\/\" \/>\n<meta property=\"og:site_name\" content=\"Miller Thomson\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/MillerThomsonLaw\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-31T18:44:08+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-24T17:44:34+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.millerthomson.com\/wp-content\/uploads\/2024\/10\/Insights_Social-Impact_Post-Image.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1776\" \/>\n\t<meta property=\"og:image:height\" content=\"994\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nyeisha Murray\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta 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