What is a Charitable Organization?


Charitable organizations are a kind of business that fits within the nonprofit organization (NPO) category. In general, this type of entity is sometimes referred to as a charity or foundation, which can be run publicly or privately. Some charities may be centered around religious, educational or other public interest activities that are philanthropic in nature. Depending upon the location of the charity, the legal definition of what constitutes a charitable organization may vary according to its country of origin.

Kinds of charitable organizations that are considered organized for public benefit can include those which offer relief for the poor, distressed or underserved, and those with religious, educational or scientific affiliations. Some charitable organizations are engaged in the creation and management of monuments, public buildings or works. Many charities work to enhance society by offering social services, lessen government burden and combat community deterioration. The defense of public safety, children, civil rights, and elimination of prejudice and discrimination are some other social centric activities that charities concern themselves with.

So what does that mean in laymen’s terms?

Basically, any company that works with or helps fund a charity, on their own behalf, is considered charitable in nature. Usually this charity relates to their business in some way, and these charities can do just about anything, as long as it is positively impacting something or someone in some way. Simple enough, right? As long as a sum of their profit is given to charity, they are deemed chartiable (even though there is no certification for that, except tax forms). Other than that, most information written on this subject is legal, business jargon that no one cares to peruse for their own pleasure on the internet.

If you do want to read up on it though (no judgement, I did it), look at the source I used: Chron.com.

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