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Organizations created for the purpose of philanthropic rather than pecuniary pursuits.

A charity is a group designed to benefit society or a specific group of people. Its purpose may be educational, humanitarian, or religious. A charity goes beyond giving relief to the indigent, extending to the promotion of happiness and the support of many worthy causes.

The law favors charities because they promote goodwill and lessen the government's burdens. They are therefore ordinarily exempt from paying income or property taxes.

Charitable Gifts and Trusts

A charitable gift is something that is donated by an individual or organization with the intent to benefit the public or some segment of it as a whole. It is meant for use by an indefinite number of people. Similarly, charitable trusts or public trusts are trusts of religious, political, or general social interests, or for the relief of poverty or the advancement of education.

Charities are ordinarily supported by gifts from donors and most states have set forth statutes controlling the manner in which funds are solicited for charities. In addition, the state will generally require charities to disclose their financial structure and condition.

Charitable gifts are often testamentary, or created by will. If there is a problem in determining the actual donative intent of the testator, the court might have to pass on his or her intent.

Cy Pres is a doctrine applied by a court so that it can carry out a trust made by will for charitable purposes even when the testator's charitable purpose can not be accomplished in the precise manner specified by the testator. For example, if a testator wished to donate money to a certain hospital whose name had changed, for example, this would not defeat the gift. With cy-pres the court would interpret the donor's intent to be to give money to the hospital in spite of the change of name.

Charitable Societies and Institutions

To determine whether an institution is charitable, the test is whether its major purpose is to aid others or to make a profit.

Charitable corporations are nonprofit corporations that have been created to minister to the physical needs of the indigent or to advance a particular goal, such as the aid of a particular religious group or country. In order to receive a tax-exempt status, such organizations must meet certain criteria.

Ordinarily, charitable corporations have no capital stock and they obtain their funds primarily from private and public charity. These funds are held in trust to serve the charitable objects of the institutions.

Beneficial associations also exist mainly for a charitable purpose and not for financial gain.

Religious organizations, such as the Young Men's and Women's Christian Associations and the Salvation Army, are also considered to be charitable societies.

The test for determining whether or not an educational institution is a charitable organization is the question of whether it exists for a public purpose or for a private gain.

While charities may charge a nominal fee for some of their services and still be considered charitable societies, they are organized primarily for the public good and not for profit.

References in classic literature ?
1821 the only officially supported charitable organization in New York City was the City Dispensary -- municipal aid to others having been cut off in 1817 on the grounds that charity to the poor only made them lazy and improvident}
the New York-based charitable organization established by the founders of HNA Group in 2016, has announced the appointment of Dr.
Taxation would increase the burden on the charitable organization, making it costlier for the entity to advance the community's interest.
The Palestinian delegation was also briefed on the efforts and activities carried out by the Omani Charitable Organization since its establishment in 1996 by a royal decree.
He added that the Oman Charitable Organization is planning to process the first batch of aid to Gaza next week which includes thousands of food parcels, 80 tonnes of medicines and 50 tonnes of other items.
14 (Saba)- Minister of Planning and International Cooperation Mohamed al-Sadi confirmed on Monday the ministry's readiness to ease tasks of any charitable organization so as to serve the society in Yemen.
The combination of two or more types of political activities increases the probability that a charitable organization will be found to have participated or intervened in a political campaign.
A bargain sale is the sale of an asset to a charitable organization at a price below the asset's fair market value (FMV).
charitable organizations and to reduce the risk that grants made to grantee organizations would not reach their intended charitable organization and would finance terrorism around the world.
Lastly, any unreimbursed expenses incurred while providing services to a charitable organization are normally deductible.
The Long Island Real Estate Group, the recently formed charitable organization established by members of the region's real estate industry and allied trades, has donated $16,000 to two area charities.
The DAV is committed to maintaining the highest ethical standards as a charitable organization through which our society can express its gratitude to the men and women who continue to pay the price of our nation's freedom," said Wilson.

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