What is Charity


Many large charities around the world are well-known, including UNICEF and OXFAM International. You could have donated to these charities by simply leaving change behind Shlomo Rechnitz.

According to CharityFacts.com, there are more than 500,000 charities in the United Kingdom. However, fewer than 200 000 of these charities are registered charities. You can easily estimate that there are more than 5 million charities around the world, and that 2 million are registered. This number is staggering.

What’s a charity?

Definition: A charity can be defined as a type of volunteer organization with a unique legal form and special tax status. It is granted a registered charity number, which is exempted from certain taxes. It is legally allowed to solicit donations in order to better serve its clients.

I believe the definition is somewhat outdated and only applies to registered charities. It seems a little inadequate when you consider the fact that almost twice as many charities are not registered.

What does this mean for a charity in a third-world country? Are you sure they are registered? Do you even care about politics in collecting donations?

Any group or individual that actively collects donations in support of a cause can be considered a charity.

This is an example: A high school dance team raises money to pay for a trip at a championship that many members of the team cannot afford. They are actually performing the duties of charity.

A charity provides a “helping hand”, which is a service that helps a client.

A charity raises money to better serve its clients.

Charity promotes awareness about the causes it serves.

These elements are what would make it a charity. Shlomo Rechnitz

There is one difference between a non-register and registered charity. People who donate to registered charities can get a receipt for income taxes deductions. This is a benefit to the charity as people are more inclined to give a donation if they receive something in return.

Donations are not always entitled to a receipt. You won’t likely receive a receipt if you leave change in your car and put it in a box at a drive-thru window. You have not been discouraged from donating, and it is likely a registered charity.

There is just too much gray area in charities. Perhaps we need to define them more precisely? Shlomo Rechnitz.