By law any charity has to fit certain specification to prove that they are a genuine charitable organisation. Although some would not agree with who should be considered a charity and who should not, there are important reasons why only genuine charities should be given charity status. It is crucial that bogus charities are not allowed to be given the status and kudos of genuine ones.
There are a number of criteria that those wishing to receive charity status need to meet. The most obvious is that they must show they have a charitable purpose. They must fit within one of several categories of charity that include the following: -
Promoting the Relief of Poverty
Promoting Human Rights
Promoting Animal Welfare
An Educational Organisation
Promotion of / Education about Religion
Health Services
Involved in Art, Heritage or Science
These organisations must also be able to show they are working for the public benefit. If they are unable to do this they will not be deemed a charity, even if they have a charitable purpose. If they are not working in the public interest (in the UK or internationally) then they are not considered to be achieving something important enough to be given charity status.
One important reason why charities need to reach the criteria is that they are more likely to receive donations if they are a registered charity. Due to the rise in bogus charities more and more people are double checking charities are registered as such before they give donations. It is therefore crucial non-charities are unable to get away with claiming they are one. Charities with small incomes do not have to prove their charitable existence but many are choosing to do so for this very reason; that they are more likely to receive support from the public.
Other reasons why it is important for charities to prove they are genuine is because there are tax benefits and they can receive legal aid
Tax breaks mean that charities are able to put more of their income towards the causes they exists to help or promote. It is though, important non charitable organisations are not able to benefit from this same assistance. If organisations that should be paying the full amount of tax are not doing so the general public are affected. Less people and organisations paying the normal rate of tax, means that the average person will have to pay more to compensate, or there is less available for the government to spend on public services.
There is only a certain amount of legal aid that is put aside for charities to use. Therefore it is important only genuine charities are able to receive these funds. If non-charities are getting this aid then there is less to be split amongst the charities who need it.
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information presented herein intended to substitute for the advice provided to you by any health care or other professional
or organization.
