Charitable organization
Charitable Organization
A Charitable Organization (pronunciation: /ˈtʃærɪtəbəl ɔːrɡənaɪˈzeɪʃən/) is a type of non-profit organization (NPO) that centers on philanthropic goals as well as social well-being (educational, religious, or other activities serving the public interest or common good).
Etymology
The term "charitable organization" comes from the Old French charité which was derived from the Latin caritas, originally from carus, which means "dear".
Definition
A charitable organization is a type of non-profit organization that is focused on advancing a particular social cause or advocating for a shared point of view. In economic terms, it is an organization that uses its surplus of the revenues to further achieve its ultimate objective, rather than distributing its income to the organization's shareholders, leaders, or members.
Types of Charitable Organizations
Charitable organizations can be grouped into either public charities or private foundations. Public charities generally derive their funding or support primarily from the public, receiving grants from individuals, government, and private foundations. In contrast, private foundations usually derive their principal fund from an individual, family, or corporation, which is then invested and the income is distributed to various charitable organizations.
Related Terms
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