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Charity (practice)

Voluntary giving of help to those in need

Charity is the voluntary provision of assistance to those in need. It serves as a humanitarian act, and is unmotivated by self-interest. Various philosophies about charity exist, with frequent associations with religion.

Etymology

The word charity originated in late Old English to mean a "Christian love for one's fellows",^[1] and until at least the beginning of the 20th century, this meaning remained synonymous with charity.^[2] Apart from this original meaning, charity is etymologically linked to Christianity, with the word originally entering the English language through the Old French word charité, which derived from the Latincaritas, a word commonly used in the VulgateNew Testament to translate the Greek word agape (ἀγάπη), a distinct form of love.^[3]

Charitable organization

Nonprofit organization with charitable purpose

For other uses, see Charity (disambiguation).

Not to be confused with Charites.

A charitable organization^[1] or charity is an organization whose primary objectives are philanthropy and social well-being (e.g. educational, religious or other activities serving the public interest or common good).

The legal definition of a charitable organization (and of charity) varies between countries and in some instances regions of the country. The regulation, the tax treatment, and the way in which charity law affects charitable organizations also vary. Charitable organizations may not use any of their funds to profit individual persons or entities.^[2] However, some charitable organizations have come under scrutiny for spending a disproportionate amount of their income to pay the salaries of their leadership.

Financial figures (e.g. tax refunds, revenue from fundraising, revenue from the sale of goods and services or revenue from investment, and funds held in reserve) are indicators to

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A charity’s aims have to fall into categories that the law says are charitable. These are things like preventing or relieving poverty, or advancing the arts, culture, heritage or science.
It has to be established exclusively for what is known as public benefit (see below). That means its only purpose must be charitable.
Charities can’t make profits. All the money they raise has to go towards achieving their aims. A charity can’t have owners or shareholders who benefit from it.

Charities have to state what their charitable objectives are in order to be registered with the Charity Commission, and then explain how they are meeting them in their annual reports, which are publicly available. You can read more about how charities make themselves accountable in the accountability and transparency section.

Public benefit

To be a charity, an organisation has to:

Be of benefit
It has to do positive things, and if there are negative side-effects or consequences, these must be outweighed by its positive work.
Benefit the public
This doesn’t have to mean all of the public. It