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Distinguishing Official Charities Amidst a Sea of Charitable Causes

Although there are many worthy causes to support, not all of them are officially recognized as charities under the law. If you are looking for an organization to donate time or money to, you may want to know more about what makes a charitable cause a Charity and why.

First, what is a charity? According to the government-run Charity Commission, an organization can only be called a charity if it is set up under the law of England and Wales and is established only for exclusively charitable purposes.

Which brings up a second issue; what is a charitable purpose? Not all endeavours, no matter how community minded they are, are considered charitable purposes. In fact, the definition of such purposes is clearly defined in the Charities Act 2006. These purposes include the prevention or relief of poverty; the advancement of education, religion, health, citizenship, arts, heritage, science, amateur sport, human rights, harmony, equality, environmentalism, or animal welfare; the promotion of efficiency in community services such as police and fire services; and, the relief of those in need due to youth, age, ill-health, disability, or financial hardship.

In addition to having a charitable purpose, the organisation must also demonstrate a public benefit in order to be declared a charity.

This means that the organization must be able to identify the benefit, have such benefits be clearly recognizable to the public, have them related to specific aims, and have them balanced against any detriment. This means that organizations with individual beneficiaries are unlikely to qualify as charities. This is especially true if the organization's beneficiaries and founders are related to each other by common employment or membership of a non-charitable body.

Furthermore, in order to protect public fairness, the organization's benefit cannot be withheld from people in poverty and cannot benefit private parties unless such benefit is incidental.

Interestingly, there are several organizations that are often presumed to be charities, but which do not, in fact, qualify for recognition by the Charity Commission. Such groups include:

• Sports clubs that have a closed membership or seek to promote sporting excellence. These clubs do not promote a general benefit, as opposed to public sports facilities or facilities for special groups, such as seniors, which may qualify as charities.
• Politically-minded groups that promote a particular point of view. These groups include those established particularly for political purposes, as opposed to charities, which campaign on behalf of their issue. The distinction is that organization must have a non-political purpose, but may seek political involvement in order to fulfil that purpose.
• Organizations that promote friendship or international relationships. For example, exchanges and town twining are not likely to qualify as charities.
• Fund raising organizations, whose specific aim is to raise funds, even if it is for a recognized charity. Although charities engage in fund raising activities, this is not their charitable object, but rather a means to achieving their public benefit.
• Disaster appeals do not always qualify as charitable causes, especially when the beneficiaries are a relatively small group.

Keep in mind that the legal term "Charity" is not always synonymous with "Worthy". You should use your own judgment to determine which organizations you would like to support, since there are several very worthy groups that do not necessarily qualify as legal charities. One of the best ways to get involved and stay involved is to follow your passion - find a well run organization that reflects your personal interests and values and direct your support there.


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