However, many disappointed beneficiaries prefer to approach the charity concerned for an ex gratia payment, rather than pursue costly legal proceedings. Delegation to a committee of the trustee body would exclude the other trustees from the decision, which would be inconsistent with our view that s. 2. Ex gratia payments not connected with property left in a will are likely to be less common and very individual in nature. What is an ex gratia payment? Ex gratia payments not connected with property left in a will. Ex gratia payments made out of property left in a will. In re snowden mentioned above, the judge said that the power to authorise an ex gratia payment was.

We consider that this ground cannot justify a payment except in the most exceptional circumstances. All applications for authority to make an ex gratia payment are to be made to us rather than to the court or the attorney general. To compromise a claim based on "promissory estoppel" or "proprietary estoppel" as it is also sometimes known in this context. Authority or me ans of authority already exists. Making an ex gratia payment: ex gratia payments are intended to cover small losses. Payments made to settle legal obligations. The trustees have no power under the governing document of the charity to make the payment; and.

A payment which can be authorised as being expedient in the interests of the charity under s. 2. Of the 1993 act, the trustees must believe themselves that they are under a moral obligation to make a payment or waive an entitlement to property. A payment is not ex gratia if it is made in order to settle or compromise a legal claim against the charity. These cases are exceptional and turn on their own facts. A payment made for example, by an employer to an employee where there is no contractual requirement to do so. There is no specific budget heading for this item as the payments concerned would normally be too small and infrequent to warrant specific provision.

Other payments needing authority or advice. What is not an ex gratia payment? Meaning of words and expressions used. A proposed payment is an ex gratia payment where the trustees. Funding: in the case of schools with delegated budgets, funding to make ex- gratia payments is included within the general delegated budget.

If trustees make unjustifiable payments on either of these grounds they are at risk of personal liability. As this can sanction only the use of an existing power; it cannot confer a power the trustees do not already have. What is not an ex gratia payment?An ex gratia payment would not be appropriate.

If trustees are unsure whether or not a particular proposed payment is an ex gratia payment, we recommend that they consult us. If such a payment is judged to be expedient in the interests of the charity, it may be authorised by a s. 2. Who may authorise an ex gratia payment?Other payments needing authority or advice. Junior exec back to contents. Mortgage for bad credit. Believe that they are under a moral obligation to make the payment.