Key Term

What is Charity?

Definition

A charity is a non-profit organization dedicated to helping others and serving the public good without the purpose of making a profit. These organizations typically focus on specific causes such as poverty relief, education, healthcare, environmental protection, or other social issues. In legal terms, charities are usually registered organizations that must meet specific criteria and regulations to maintain their charitable status and offer tax benefits to donors.

Significance

Charities play a crucial role in modern society by addressing social needs and challenges that may not be fully met by government services or private enterprise. They serve as vehicles for philanthropic giving, allowing individuals and organizations to make tax-deductible donations that support causes they care about. Charities also create opportunities for collective impact, pooling resources and expertise to tackle complex social problems more effectively than individual efforts could achieve. Understanding charities is essential for donors to make informed decisions about their giving and ensure their philanthropic goals are met while maximizing tax benefits.