Charities - Charitable Societies And Institutions

To determine whether an institution is charitable, the test is whether its major purpose is to aid others or to make a profit.

Charitable corporations are nonprofit corporations that have been created to minister to the physical needs of the indigent or to advance a particular goal, such as the aid of a particular religious group or country. In order to receive a tax-exempt status, such organizations must meet certain criteria.

Ordinarily, charitable corporations have no capital stock and they obtain their funds primarily from private and public charity. These funds are held in trust to serve the charitable objects of the institutions.

Beneficial associations also exist mainly for a charitable purpose and not for financial gain.

Religious organizations, such as the Young Men's and Women's Christian Associations and the Salvation Army, are also considered to be charitable societies.

The test for determining whether or not an educational institution is a charitable organization is the question of whether it exists for a public purpose or for a private gain.

While charities may charge a nominal fee for some of their services and still be considered charitable societies, they are organized primarily for the public good and not for profit.