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.
Some, like the Foundling Hospital begun in 1741 in London or the Magdalen Hospital founded a few years later, sought to keep helpless children off the streets and educate them for a better life. Others gave plots of land to the poor, which allowed them to grow food for themselves. This 'teach a man to fish' approach was a practical way to offer help.
Today there are educational non-profits, ones that provide food, clean water, and shelter to the poor, others that hope to save endangered species or environmental treasures, and others that work with the homeless. The classification of 'public' or 'private' is dependent on tax codes and civic regulations. These will differ in every nation, as charities abound around the globe.
In the US, a public charity needs support from many individual donors, as well as a mission and a plan to accomplish it. It must be actively engaged in the good works it performs. Private organizations may be funded primarily by one individual or corporation. They often give grants to other organizations that actually deliver the benefits, rather than doing such works themselves.
Public groups get the money they need from individuals, from the government, and from grants given by private groups. If an entity is non-profit, as most are, it pays no taxes. Scams and greed abound in this arena, but much good is done by reputable organizations.
Even with IRS attempts to make sure that this program is not used as a tax dodge, there is much room for legal siphoning off of funds, outright fraud, and mismanagement. If people want to make sure their gifts are used effectively, they can check with agencies that evaluate charitable entities and rate them. If a large amount goes to administration rather than to the field, the entity has huge bank balances, or the benefits are small, they may choose to give elsewhere.
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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