How Charity Organisations work
This is an institution whose work is donating in nature. They are non-profit making organizations concerned with providing charity and charity work to the less fortunate. Their critical areas of concern usually revolve around poverty alleviation, education, religion, healthcare and other areas of public interest. All charitable organizations must be registered in the countries they operate in, and each country has its own set of laws that governs the activities of these institutions. They usually enjoy different forms of tax exemptions from the relevant governments and their activities are restricted to charity only. Their aim is not to make profit, and any profit or surplus accrued is supposed to be channeled into more charity work and not to benefit its members. Charities usually rely on funds from donors and well-wishers. These can be individuals or companies and other corporate bodies. They can also get involved in income generating activities and use the proceeds for their charity causes.
Prosperous individuals can start their own charitable organizations in the form of foundations or trusts. A good example is the Bill and Melinda Gates Foundation set up by the creator of Microsoft and his wife. It is through these foundations that they channel their donations, usually to specific causes that they are interested in. Under a trust, the donor gives money (or assets) that are then held by a trustee. The trustee is charged with finding the relevant beneficiaries and administering the donations accordingly. Religious institutions also run charities all round the world in line with their religious beliefs and teachings. A good example is the Catholic Church which has set up schools and hospitals to benefit communities in areas they operate in. Religious institutions also regularly give donations to affected parties during natural disasters like floods, earthquakes, disease outbreaks and famine.
First world countries also set up charitable organizations which operate mainly in the third world countries. The United States have USAID, Japan have JICA and Sweden have SIDA, just to mention but a few. They aid in setting up improvement projects and empowering the citizens of third world countries. There are also international organizations doing charity work in many countries all over the world. These charitable organizations receive their funding from both private individuals and donor countries. Examples include The Red Cross and Red Crescent, Oxfam of Britain and The United Nations Organization through its agencies like UNICEF and UNDP.
Charitable organizations must be run effectively and transparently to maintain donor confidence. A good reputation can only be built if their good work is easily seen by the general public. To continue enjoying the special privileges from host countries they must comply with all the rules and regulations governing them. At the end of the day, public confidence is principal and so they must always guard their reputations jealously. This can only be achieved through proper management, transparency and tangible results.
In summary, there are a lot of charitable organizations which aim to help the needy. However, there are good deal of people who do not receive the benefits as there are much greater number of people than the charity organizations can sustain. You can do your bit by contributing generously to charity organizations and volunteer to help them in their activities.
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