Most of us are familiar with the concept of charity—but what does the term mean, legally and societally? The definition of charity is “the voluntary giving of help, typically in the form of money, to those in need”. It can be used to generally refer to organizations and individuals that support public good and provide aid to those in need. In the past, it was used to refer primarily to religious organisations that provided aid to the sick and poor. But now, charities span a wide array of causes and beneficiaries, from disaster relief to education.
The Impact of Charity Around the World
The power of charity reverberates throughout society. Charitable giving empowers individuals in need by providing them with necessary assistance—such as food, clean water, education, and medical care—that they wouldn’t otherwise have access to. It also supports research and advocacy efforts that advance public health, safety, and policy reform. Across the globe, charity has improved the quality of life for countless people.
The Legal Implications of Charity
In the United States, charity is chiefly regulated by the federal government. Charitable organizations must register with the Internal Revenue Service in order to accept donations and be exempt from certain taxes. Additionally, business professionals who run or donate to charities may be eligible for certain tax deductions. The IRS has strict guidelines regulating how charities can operate and use the funds they receive from donors, to ensure their resources are properly used and accounted for.
The Benefits of Making Charitable Contributions
For businesses and individuals alike, making charitable contributions is a great way to support causes and organizations they care about. Donations can help charities continue their mission, while also creating positive PR for businesses and offering meaningful tax advantages for donors. Charitably inclined businesses might also consider making corporate matching gifts to double down on the impact of donations. Ultimately, charity is an important, multifaceted concept that can enrich society and benefit those in need.