The Role Of Public Charities

By Charles Anderson


People helping people is one wonderful thing that has been a constant all through history. Remember the good Samaritan in the Bible, the women who helped Jesus during his ministry, and the man who gave up his tomb after the crucifixion. There are many philanthropic organizations today. Among them are hundreds of public charities that operate throughout the world.

A charity is an organization that works for the common good. Today there is usually no gain in return for these services, but this was not always the case. Although the earliest charities created in London in the 18th century asked for nothing in return, some later organizations did much good while earning a return on investment for their supporters. The first recognized groups operating outside the church sought to help the poor in London, such as abandoned children and girls forced into prostitution in order to survive.

Many had the idea of improving the lot of the poor by education or vocational training. Others supported giving small plots of land to poor families so they could augment their meager wages with garden produce. This 'teach a man to fish' philosophy is regarded as superior to merely giving handouts to the needy. Most of the efforts were freely given, although some programs were created to be like investments. Donors got monetary returns while also gaining the satisfaction of doing good deeds.

Today there are many private and public organizations that help the poor, save endangered species, provide clean water, succor the sick, or feed the homeless in the city. Whether they are classified as public or private depends on government definitions and tax codes. These requirements are different in every country; there is information online about the various regulations.

In the US, the IRS sets the qualifications of an organization that makes it public. Such a charity will have many donors, rather than one (like one wealthy philanthropist or a corporation). It will fulfill its mission directly rather than funding other groups. Its mission could be preserving open space, helping women start businesses, employing the handicapped, supporting libraries, endowing colleges and universities, or helping drug addicts to recovery.

All the money that a public charity requires does not necessarily come from citizens. The government provides funding for many of them, and they can qualify for grants from private groups. There is some fraud, greed, and mismanagement among the many entities that solicit support, but the majority of these groups do a great deal of good.

There are IRS guidelines and regulations that seek to make sure that this system is not used as a tax dodge. Some non-profits are agencies that evaluate charitable groups so donors can be assured that their gifts are being used properly and efficiently. If too much is spent on administration, kept inactive in bank accounts, or wasted in inefficient efforts, the examiners will not award a high rating.

A charity may work in a certain area, like the Appalachian Mountains where many live in poverty or among the Native American tribes. Others are international, like Feed The Poor or the World Wildlife Association. Some are targeted to certain segments of the population, like those that provide scholarships, while others, like the Salvation Army, serve all who are in need. Some have political clout, while others work in obscurity.




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