Charitable Trust Deed (Ghana)

A Charitable Trust Deed in Ghana conveys rights in land or assets, taking effect once executed by the parties to it.

Ghana does not have a single dedicated Charitable Trusts Act, but charitable trusts are recognised and enforced by the courts of Ghana as a category of express trust governed by general principles of equity. The Incorporated Private Partnerships Act 1962 (Act 152) provides an alternative vehicle for charitable organisations that wish to obtain separate legal personality by registration with the Office of the Registrar of Companies (ORC) under the Companies Act 2019 (Act 992). A charitable trust, unlike an incorporated body, does not itself have separate legal personality; the trustees hold the trust property in their names and are personally liable for obligations incurred in administering the trust, subject to their right of indemnity against the trust fund.

The objects of a charitable trust in Ghana must fall within one of the recognised categories of charitable purpose: relief of poverty; advancement of education; advancement of religion; or other purposes beneficial to the community in accordance with the spirit of those categories as applied by Ghanaian courts. The High Court of Ghana (General Jurisdiction) has jurisdiction to supervise charitable trusts, to remove defaulting trustees, and to order administration of a charitable trust where trustees fail in their duties. The Attorney-General of Ghana has the supervisory function of representing the public interest in all charitable trust proceedings before the courts.

A Charitable Trust Deed in Ghana must be distinguished from a Private Trust Deed, where property is held for the benefit of named private individuals rather than for charitable purposes; from a Foundation established under other instruments; and from a Company Limited by Guarantee, which is the vehicle used by many non-governmental organisations (NGOs) registered with the ORC under the Companies Act 2019 (Act 992) for structured charitable work in Ghana.

The Ghana Revenue Authority (GRA) grants income tax exemption to qualifying charitable organisations under section 10(1)(d) of the Income Tax Act 2015 (Act 896), provided the trust is established exclusively for charitable purposes and its income is applied solely for those purposes. The GRA requires the charitable trust deed to be filed as part of the tax exemption application. Donors to qualifying charitable trusts in Ghana may also obtain deductions for charitable contributions subject to limits prescribed under Act 896.

Well-established charitable trusts in Ghana include endowments supporting education in the Ashanti Region, healthcare trusts supporting rural health centres operated by the Ghana Health Service (GHS), and religious endowments supporting churches and mosques registered with the Department of Social Welfare. A Charitable Trust Deed for Ghana and an NGO Registration with the Department of Social Welfare are related instruments that philanthropists and foundations operating in Ghana should consider together when deciding on the appropriate vehicle for their charitable activities.

A Charitable Trust Deed in Ghana is required in the following circumstances.

When a philanthropist or family in Ghana wishes to endow a permanent fund for a specific charitable purpose — such as scholarships for students from a particular community, relief of poverty in a named district, or advancement of education in a specific field — a Charitable Trust Deed executed by the settlor and accepted by the trustees provides the legal framework under the Contracts Act 1960 (Act 25) to hold and apply the fund in perpetuity.

When a Ghanaian family seeks to formalise a long-standing charitable tradition — for example, a family-funded hospital, scholarship scheme, or religious institution — a Charitable Trust Deed documents the terms on which the trust property is held and protects subsequent generations from disputes about the intended application of the charitable funds.

When foreign donors or international foundations make grants to Ghanaian charitable initiatives, they typically require the recipient organisation to operate through a legally constituted charitable trust or other formal entity. A Charitable Trust Deed executed under Ghanaian law provides the documentary basis for grant compliance, financial reporting, and audit by the donor or by the Attorney-General of Ghana.

When a company incorporated under the Companies Act 2019 (Act 992) establishes a corporate social responsibility (CSR) fund for charitable work in the communities where it operates across Ghana's 16 administrative regions, a Charitable Trust Deed separates the CSR fund from the company's assets and enables independent governance by a trustee board.

When an individual wishes to create a trust for the advancement of religion in Ghana — supporting a church, mosque, or other religious institution registered with the Department of Social Welfare — a Charitable Trust Deed documents the endowment, the terms of application, and the powers of the trustees to manage the fund under the supervision of the High Court.

Parties should execute a Charitable Trust Deed and seek the GRA's income tax exemption certificate promptly, as the exemption under section 10(1)(d) of the Income Tax Act 2015 (Act 896) applies from the date the trust is constituted and approved, not retrospectively.

A Charitable Trust Deed in Ghana under the Contracts Act 1960 (Act 25) and applicable equitable principles must contain the following essential elements.

Name of the Trust: The deed must state the full name by which the charitable trust will be known. The name should be distinctive and must not be identical or misleadingly similar to another organisation registered with the ORC or the Department of Social Welfare. The name appears on the trust's bank accounts at Bank of Ghana-licensed institutions and on all official correspondence with the Ghana Revenue Authority (GRA) and other government bodies.

Settlor and Initial Endowment: The full legal name, Ghana Card number (issued by the National Identification Authority (NIA)), and address of the settlor, together with a description of the initial trust property — whether cash, land registered with the Lands Commission under the Land Act 2020 (Act 1036), shares in a company registered under the Companies Act 2019 (Act 992), or other assets — must be set out. The deed must evidence the transfer of legal title to the trustees and should be executed with the same formality required for the underlying asset type.

Charitable Objects: The objects must be stated with precision and must fall within a recognised category of charitable purpose in Ghana — relief of poverty, advancement of education, advancement of religion, or community benefit. Objects that are too wide, uncertain, or that benefit private individuals will not be recognised as charitable by the High Court of Ghana or the GRA and will disqualify the trust from income tax exemption under section 10(1)(d) of the Income Tax Act 2015 (Act 896).

Trustees: The deed must name the initial trustees (minimum two is recommended for charitable trusts in Ghana), state their full names and addresses, and set out the procedure for appointment of successor trustees. Trustees must be adults of full legal capacity under the Age of Majority Act 1972 (Act 429). The deed should specify whether corporate trustees — companies registered under Act 992 — may be appointed and under what conditions.

Powers of Trustees: The trustees' powers to invest, acquire property, open and operate bank accounts at BoG-licensed institutions, enter contracts, employ staff, and delegate administrative functions must be set out clearly. Trustees of a Ghanaian charitable trust owe fiduciary duties to apply trust property solely for the charitable objects and to act in the best interests of the trust, enforceable by the High Court of Ghana.

Accounts and Audit: The deed should require annual accounts to be prepared and, for larger trusts, audited by a member of the Institute of Chartered Accountants (Ghana) (ICAG). The GRA requires audited accounts in connection with income tax exemption applications under the Income Tax Act 2015 (Act 896), and the Department of Social Welfare may require accounts as part of any reporting obligations applicable to the trust's activities.

Dissolution Clause: The deed must specify what happens to trust assets if the trust is wound up — typically, assets must be transferred to another charitable organisation with similar objects operating in Ghana. Assets cannot revert to the settlor or be distributed to private individuals without losing the charitable character of the trust and triggering tax liability. The forms-legal.com Charitable Trust Deed template includes a cy-pres dissolution clause consistent with the equitable principles applied by the High Court of Ghana.

Governing Law: The deed must confirm that it is governed by the laws of the Republic of Ghana and subject to the jurisdiction of the High Court (General Jurisdiction), Accra. A Charitable Trust Deed for Ghana should be read alongside the trust's bank mandate and, where applicable, any grant agreement with international donors or foundations funding the trust's charitable activities.