Charities

Charities are non-profit organizations dedicated to advancing a public benefit by alleviating need, supporting communities, or promoting social goods. They typically rely on voluntary donations, grants, and volunteering, and reinvest any surplus in their missions rather than distributing profits to private individuals. Charities operate in sectors such as health, education, humanitarian aid, environment, arts, and research.

Charities take various legal forms, including foundations, trusts, associations, and non-profit corporations. They are usually governed by a board of directors or trustees responsible for strategic oversight, financial stewardship, and complying with applicable charity law. In many jurisdictions, charitable status confers tax advantages and public recognition, subject to ongoing reporting requirements.

Funding derives from private gifts, legacies, philanthropic grants, government contracts, service fees, and fundraising activities. Charities may hold endowments to fund long-term programs, and they often collaborate with other organizations to scale impact. Programs are delivered directly or via grants to partner groups.

Regulation and accountability vary by country but commonly include registration with a national charity regulator, disclosure of financial statements, annual reports, and adherence to governance standards. Donors and beneficiaries have rights to information about how funds are used, and auditors may assess effectiveness and compliance.

Despite aims of efficiency and transparency, charities face scrutiny regarding overhead costs, fundraising practices, and outcomes. Critics argue for stronger impact assessment, anti-fraud measures, and clearer reporting. Proponents emphasize the importance of independent oversight, accreditation schemes, and evidence-based approaches to improving social outcomes.