Charitable organization

A charitable organization, often called a charity, is a group focused on philanthropy. Philanthropy is the practice of promoting the social well-being of others. These groups serve the public interest through activities like education or religious work. Most charities must follow strict legal rules to remain valid. They are not allowed to use their funds to create profit for individuals. Instead, all income must be used for the common good.

To remain sustainable, charities rely on several different financial mechanisms. They collect revenue through fundraising, donations from businesses, or the sale of goods. Some organizations also earn money through investments or hold funds in reserve. Charity evaluators study these financial figures to assess a group's health. This includes looking at tax refunds and total revenue. A charity's reputation with donors often depends on these numbers. If a charity spends too much on leadership salaries, it may face public scrutiny.

Charitable work has existed in many forms throughout history. Before the mid-18th century, charity was mostly handled through religious structures. Religions like Christianity, Judaism, and Islam have long traditions of giving. In Islam, Zakāt is one of the Five Pillars. Hinduism, Buddhism, Jainism, and Sikhism also practice dāna, or alms-giving. In the 10th century, King Athelstan of England founded the first recorded almshouse in York. Almshouses provided housing for the poor, the elderly, and the distressed.

The Enlightenment era brought a major shift in how charity functioned. During this time, voluntary associations and wealthy benefactors became very active. In 1741, Captain Thomas Coram established the Foundling Hospital in London. This was the world's first institution dedicated to caring for abandoned orphans. In 1756, Jonas Hanway founded The Marine Society to assist seafarers. By 1763, this society had successfully enlisted over 10,000 men. These groups often operated as voluntary associations funded by subscriptions. They used the growing popular press to raise awareness about their causes.

As societies changed, charities began to take on more political roles. Some groups campaigned for legislative changes to protect the vulnerable. They lobbied for rights for children and campaigned against animal mistreatment. One major success was the early 19th-century campaign to end the slave trade. In the 1800s, many organizations emerged to help the working class in urban slums. The Labourer's Friend Society, led by Lord Shaftesbury, worked to improve living conditions. In 1844, it became the first Model Dwellings Company. This group focused on building better housing for workers.

In the 19th century, a concept called "five percent philanthropy" became popular. This involved using capitalist returns to fund philanthropic goals. Wealthy individuals like Andrew Carnegie exemplified this large-scale giving in America. Carnegie believed that great wealth brought specific responsibilities to society. In his 1889 work, *Gospel of Wealth*, he discussed social justice. By the time he retired, Carnegie had given away over 90% of his fortune. He used his money to build public libraries and support schools and universities.

The 20th and 21st centuries have seen charities grow into massive global entities. Organizations like Oxfam, Care International, and Amnesty International became multinational non-governmental organizations. They now manage very large budgets to address international needs. Today, the internet has introduced new ways to support these causes. Platforms like GoFundMe allow for cyber-based humanitarian crowdfunding. This allows many people to contribute small amounts through social media. Modern charity continues to evolve alongside technology and global politics.