So, it appears that the Tolkien Trust is also a charity, assuming the link is the real Trust link and not something hacked!
If you check out the accounts page (click the View Account Documents link), you can see what monies were paid out for the last three years. The 2005 page was signed by Priscialla; you can see her signature. There is also an interesting statement about indirect royalties accruing from the movies, royalties which will not maintain their high levels post-movie.
In 2005, most of the money went to the Bodleian Library to help set up archival work and a position to preserve the Tolkien papers and drawings there. There are unpublished papers, letters, and documents mentioned.
Some money was also given to the Univeristy of Manitoba (which I assume is the Canadian one, as I find it hard to imagine another Manitoba outside Canada). The list for 2005 is long. Among recipients are Medicins Sans Frontiers, Action Contre la Faim, Campaign to Protect Rural England, Simon Wiesenthal Centre, Womankind Worldwide, plus many other charities for support of single parents, refugees, local churches, ex-prisoners, environmental causes. It is quite a wide ranging list of social activism.
There's also a mention of something called
The Grammar and Lexicon of the Gnomish Tongue by Tolkien. I've never heard of that before. Has anyone seen it?
I wonder if Peter Jackson has a trust set up and if he makes any dispersals to charities?