Private Benefit
/ˈpraɪvət ˈbɛnɪfɪt/
Definitions
- (n.) A gain or advantage that inures directly to a particular individual or entity rather than to the public or general welfare.
The court held that the nonprofit organization's funds were improperly used for a private benefit.
- (n.) In trust and tax law, a benefit conferred on a specified individual that may disqualify a trust or arrangement from favorable tax treatment or charitable status.
The trust was found invalid because it conferred a private benefit to the settlor's family members.
Forms
- private benefit
Related terms
See also
Commentary
Private benefit often appears in charitable and trust contexts where the distinction between benefits to the public versus individuals affects legal status or tax treatment.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.