A Charitable Organization Acquiring Charity Status

Running head: CIVIL ENGAGEMENTS
Civil Engagement
Name of the Student
Name of the University
Author Note

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CIVIL ENGAGEMENTS
To
The Organization
Acquiring charitable status
A charitable organization signifies an organization whose purpose is not to make profit at all
and only indulge in the process of doing charity. The organization with respect to its constitution
is required to direct all of its personal and real property towards achieving the purpose of charity.
The only exception to this rule is that the organization may direct its money towards the
maintenance and operation of the organization this also includes the expenses borne by the
organization towards the payment of superannuation and remuneration to the employees of the
organization (Henderson et al. 2015).
Where the organization is a religious organization than money can be used for the care and
accommodation of the members of the organization. Under the Charities Act 2009 the
organization for being a charity has to promote a charitable purpose and where there is any
excess profit it should be directed towards public benefits or the beneficiaries of the charity and
not private gain. Section 3(1) of thee Act defines a charitable purpose. As per the section any
purpose will be a charitable purpose if it is in relation to a public benefit and for the relief or
prevention of poverty or economical shortcomings, the enhancement of education, promotion of
a religion or any purpose which is for the benefit of the community. Any organization which
wants to carry on operations and activities in the state has to be registered with the Charities
Regulatory Authority. The Authority may refuse to register any organization by giving proper
reasons. The registration as a charity can be done online. If the body which wants to operate as a
charity is an organization it is mandatory for it to get registered irrespective of its income. The
members of the organization may provide through the registration form that they are aware of
their roles and responsibilities as the managers of a charitable organization. For the purpose of
registration the charity has to provide certain information on registration which are as follows.
 Names of trustees and addresses at which they ordinarily reside

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CIVIL ENGAGEMENTS
 Particulars of all bank accounts
 Supply constitution of charity
 Gross income of charity
 Name and principal place of business
 Places where charity operates or carries on activities
 Kinds of activity carried on by charity
 Amounts of money raised in last 12 months
 Manner in which charity raises money
 Details of professional fund-raising agents
Advantage and Disadvantage
This section of the paper discusses about an advantage and disadvantage of an
organization for being registered as a charitable organization
Advantage
One of the biggest advantages of establishing a charitable organization is tax relief. A
variety of tax exemptions are provided to a charity. Charities are exempted from paying
Corporation tax on profits which arise out from operations conducted with respect to charitable
provisions in form of primary purpose trading. Charities are provided with 20% discretionary
and 80% mandatory exemption in relation to business rates also known as rate relief. Charities
are also provided exemption on Gift Aid relief on donations received through individuals.
Charities are also provided with a stamp duty land tax relief with respect to free hold property