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LSDefine
Simple English definitions for legal terms
charitable organization
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A quick definition of charitable organization:
A charitable organization is a group that helps people or the environment without making a profit. They do things like teach people, help the poor, do research, protect nature, and promote health. When people give money to a charitable organization, they can sometimes get a tax break. Charitable organizations cannot do too much political stuff or they might lose their special tax status.
A more thorough explanation:
A charitable organization is a type of nonprofit organization that aims to benefit the public in some way. This can include areas such as education, poverty alleviation, scientific research, environment, diversity, religion, and health.
When an organization achieves 501(c)(3) status, individuals can deduct donations to the organization from their taxes. However, to maintain this status, organizations cannot participate in many political activities under 501(c)(3) of the Federal tax code. This means that they cannot actively promote any candidate or participate in an election in a biased way. They can only participate in limited amounts of lobbying activities or face losing their tax-exempt status.
Examples of charitable organizations include:
- The American Red Cross, which provides disaster relief and blood donations
- The Bill and Melinda Gates Foundation, which focuses on global health and education initiatives
- The Humane Society, which works to protect animals and prevent animal cruelty
These organizations illustrate the definition of charitable organizations because they all have a mission to benefit the public in some way. They are also all tax-exempt under 501(c)(3) of the Federal tax code, which means that donations to these organizations are tax-deductible.