Part 1: Purposes, Powers and Governing Documents Section 6: Cy-près powers
Section 61 of the CA 2011 imposes a duty on trustees, where the case permits and requires that property or some part of it be applied cy-près, to secure the effective use of the property for charity by taking steps to enable it to be so applied. Section 62 sets out the occasions on which the original purposes of a charitable gift can be altered to allow it to be applied cy-près.
	When donors respond to a fundraising appeal by a charity for a particular purpose (such as a fund for the victims of a particular natural disaster, or a fund for building a new church hall), and those purposes cannot be carried out, there is an "initial failure" of the charitable purposes. That is to be contrasted with a "subsequent failure", which arises where a surplus remains after the particular purposes of the fundraising appeal have been achieved. In the case of an initial failure of the charitable purposes for which a gift is given, the gift is only applicable for other purposes (that is, applicable "cy-près") if the donor had a "general charitable intention". When a gift is given for particular charitable purposes in response to a fundraising appeal, the donor will not have a general charitable intention. The default position, therefore, is that the donations must be returned to the donors.
	Section 6(1) inserts section 63A into the CA 2011 to replace the previous regime (in sections 63 to 65) to allow certain donations given for particular purposes which have failed to be applied cy-près rather than having to be returned to the donors (or paid in to court if the donors cannot be found). Provisions concerning particular forms of "disclaimer" to be executed by donors, and concerning particular statements to be included in fundraising literature by charities, are repealed. They are replaced by four circumstances in which a donation to a failed appeal can be applied cy-près.