Charities & Voluntary Groups in Bridgwater

Charities & Voluntary Groups

A charitable organization is a type of non-profit organization (NPO). The term is relatively general and can technically refer to a public charity or a private foundation. It differs from other types of NPOs in that its focus is centered around goals of a general philanthropic nature (e.g. charitable, educational, religious, or other activities serving the public interest or common good).

The legal definition of charitable organization (and of charity) varies according to the country and in some instances the region of the country in which the charitable organization operates. The regulation, tax treatment, and the way in which charity law affects charitable organizations also varies.

A charity, or charitable organization, in England and Wales is a particular type of voluntary organization. A voluntary organization is an organization set up for charitable, social, philanthropic or other purposes. It is required to use any profit or surplus only for the organization's purposes, and it is not a part of any governing department, local authority or other statutory body.

All charities are voluntary organizations, but not all voluntary organizations in England and Wales are charities. For a voluntary organization to be a charitable organization or charity, its overall goals, sometimes called the "purposes" of the organization, must be charitable. All the purposes of the organization must be charitable, as a charity cannot have some purposes which are charitable and some which are not.

Charitable organizations who have an income of more than £5,000, and for whom the law of England and Wales applies, must register with the Charity Commission for England and Wales. For companies, the law of England and Wales will normally apply if the company itself is registered in England and Wales. In other cases if the governing document does not make it clear, the law which applies will be the country with which the organization is most connected.

Where an organization's income does not exceed £5,000 it is not able to register as a charity with the Charity Commission for England and Wales. It can, however, register as a charity with HM Revenue and Customs. With the rise in mandatoty registration level, to £5,000 by the The Charities Act 2006, smaller charities can be reliant upon HMRC recognition to evidence their charitable purpose and confirm their not-for-profit principles.

Some charities which are called exempt charities are not required to register with the Charity Commission and are not subject to any of the Charity Commission's supervisory powers. These charities include most universities and national museums and some other educational institutions. Other charities are excepted from the need to register, but are still subject to the supervision of the Charity Commission. The regulations on excepted charities have however been changed by the Charities Act 2006. Many excepted charities are religious charities.