Charity
From PhilanthropyWiki
Charity Definition
The word "charity" can be used to describe a type of organisation or a concept. There is also a difference between the popular definition of charity and the definition in Australian law.
In popular use the term charity is often used as a synonym for voluntary, or not-for-profit organisations, popularly understood as organisation that raise funds for or offer support to the disadvantaged in society. However, the legal meaning of the term can differ from the popular understanding.
In legal terms, a charity is an entity established for altruistic purposes that the law regards as charitable. While the Australian Tax Office endorses organisations as eligible for charitable status, the Tax Office does not set the criteria to decide whether or not an organisation is a charity. Criteria for deciding what is a charity have been established by case law.
Some organisations that would be generally referred to by members of the public as "charities" are not charities under Australian law. It is important to understand the distinction when seeking philanthropic funding, as many philanthropic bodies are limited to only funding organisations which are legally charitable - that is, those which have been endorsed as a Tax Concession Charity.