Charitable organization

A benevolent organisation, sometimes known simply as a charity, is an organisation whose major goals are to promote philanthropy and the general well-being of society.

The legal definition of a charitable organisation (and of charity itself) differs from nation to country, and even within a country, in certain cases, from region to area. The regulation of charitable organisations, the handling of charitable organisations by the tax system, and the manner in which charity legislation impacts charitable organisations are all different. It is against the law for charitable organisations to utilise any of their money for private or commercial gain in any way. (However, some charity organisations have come under fire for spending a disproportionate percentage of their money to pay the salaries of its leadership.)

Indicators that are used to measure the financial sustainability of a charity, particularly by charity assessors, include financial numbers such as tax refunds, money from fundraising, revenue from the sale of products and services, and revenue from investments. Because of the influence that this information may have on a charity's image among donors and society, as well as the charity's financial gains,

Many nonprofit groups get at least some of their funding from corporate donors. Donations of this kind made to charity organisations are a significant component of corporate philanthropy.

In order for a charity to fulfil the criteria of the exempt organisational test, it must be formed and run only for charitable purposes. A charity organisation has to adhere to the public interest in order to obtain and pass the exemption test. Additionally, all tax-exempt revenue needs to be used for the benefit of the general public. For instance, charity organisations are required to produce evidence that they are providing a benefit to the public in many of the nations that make up the Commonwealth.