Charitable organizations are those organizations which are created with the prime objective of providing benefits to the society. The benefits to be provided can be to the society at large or to certain sections of the society. Charitable organizations are never created with the intention of making money for those who own, manage or run the charitable organization.
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Now, most charitable organizations have clear vision and mission and take steps towards fulfilment of the goals associated with their mission and vision. There can be charitable organizations aimed at providing children from underprivileged sections of the society with quality education. In order to provide the underprivileged children with quality education they may start scholarships to colleges or prestigious universities. Only underprivileged children would be eligible for those scholarships.
Now, because of the selfless benefits that the charitable organizations are expected and aimed to provide to various sections of the society they are exempt from many laws. This means that the regulatory restrictions that apply to corporations intended to make profit do not apply to charitable organizations. This exemption can be in the form of reduction or non application of payment of taxes regulations and other such regulations.
In fact, it is a well-known fact that charitable organizations or other not for profit organizations are exempt from payment of many taxes. Apart from this the Government provides the reputed charitable organizations with funds. Here, ‘reputed’ charitable organizations refer to those that are known for their services to the society. These funds are intended to give financial independence to the charitable organizations to smoothen their functionality.
Over the past few years many of the charitable organizations in the country have been making headlines for all the wrong reasons. There have been incidents of mismanagement. There have been incidents of usage of government allotted funds for personal gains or causes by the managers and owners of many charitable organizations. There always has been a clear need for making the charitable organizations more responsible in their approach and actions. These incidents made the needs more urgent and a lot more significant.
The Government brought into effect the Charities Act in 2009. This legislation has manifold usages, aims and applications. Ensuring better governance of charitable organizations and making them more accountable are among the chief aims.
The problems have been created by wrong usage of this legislation. There have also been major issues with regards to the implementation of the provisions of the Charities Act. Megabus contact number is a must if you are desirous of making use of their services.
The accountability of the various charitable organizations across the country has been a major issue. This is especially so concerning the accountability for the government allocated funds to the charitable organizations.
The Charities Act of 2009 was also aimed at promotion and increase in the amount of confidence and belief that the public has upon charitable organizations. Sadly, due to improper application of some of the provisions of the Charities Act this purpose has also not been fully fulfilled.