Difference Between Charity and Nonprofit By Country

Both charities and nonprofits make a difference in our communities

Posted on 2022-05-29 13:18:50
Each country can have a different definition of a charity and nonprofit. See the difference by country.

Charity vs Nonprofit


What is the Difference by Country

WikiCharities lists charities and nonprofits on our platform to allow them to become searachable by topic and location. .  We welcome both charities and nonprofits to our community as they create purposeful missions within a community. 

  

Those who are happiest are those who do the most for others.

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Charity vs Nonprofit by Country

This list will expand as WikiCharities grows globally. 

In short, "A common source of confusion in both the United States and other countries is the difference between a nonprofit organization and a charitable organization. While these terms are sometimes used interchangeably, they have different meanings under U.S. tax law. Generally, nonprofit status is a concept of state corporate law, and charity status — or what is charitable — is a concept of federal tax law." - Reference: NGOSource.org

Nonprofit Definition: "A nonprofit corporation is based on the simple premise that none or the corporation’s net profit from donations, membership fees, or any kind of business activities will benefit any individual. There are many different types of nonprofit organizations. Many homeownership associations, clubs, and other various organizations are nonprofits; often, though, these types of organizations are formed as mutual benefit nonprofit corporations, as they do not benefit the general public. Those nonprofits that do benefit the general public are typically the best known type of nonprofit—we call them charities. (Read Full Article)

Charity Definition: "A charity is a nonprofit whose purpose is to, in some way, benefit the general public. A charity’s goals are philanthropic and aim to improve the quality of life for the community and beyond. Below, you’ll find examples of organizations that generally fall under a charitable definition:

  • Churches or associations of churches.
  • Educational organizations.
  • Hospitals and medical research organizations.
  • Organizations that provide support for state colleges or universities.
  • Governmental units of the United States.  

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"Registered charities and non-profit organizations (NPOs) both operate on a non-profit basis, however they are not the same.

Charity Definition: Registered charities are charitable organizations, public foundations, or private foundations that are created and resident in Canada. They must use their resources for charitable activities and have charitable purposes that fall into one or more of the following categories:

  • the relief of poverty
  • the advancement of education
  • the advancement of religion
  • other purposes that benefit the community

Nonprofit Definition: Non-profit organizations are associations, clubs, or societies that are not charities and are organized and operated exclusively for social welfare, civic improvement, pleasure, recreation, or any other purpose except profit."

Here are a few types of non-profit organizations and examples of each:

  • social, recreational, or hobby groups (bridge clubs, curling clubs, and golf clubs)
  • certain amateur sports organizations (hockey associations, baseball leagues, and soccer leagues)
  • certain festival organizations (parades and seasonal celebrations)  

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Definition of charity 

This information is take directly from Here - Charities in England and Wales are principally governed by the Charities Act 2011. Section 1 of the Charities Act provides that a charity is an institution which both:

  • Is established for charitable purposes only.
  • Falls under the control of the High Court in the exercise of its jurisdiction with respect to charities.

A charitable purpose is one of the following purposes which is for the public benefit:

  • The prevention or relief of poverty.
  • The advancement of education.
  • The advancement of religion.
  • The advancement of health or the saving of lives.
  • The advancement of citizenship or community development.
  • The advancement of the arts, culture, heritage or science.
  • The advancement of amateur sport.
  • The advancement of human rights, conflict resolution or reconciliation, or the promotion of religious or racial harmony or equality and diversity.
  • The advancement of environmental protection or improvement.
  • The relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage.
  • The advancement of animal welfare.
  • The promotion of the efficiency of the armed forces of the Crown or the efficiency of the police, fire and rescue services or ambulance services.
  • Certain further purposes, including any that may reasonably be regarded as analogous to or within the spirit of those listed above.

Non-profit organisations that are not charities

A non-profit organisation that is not a charity cannot claim the beneficial tax treatment associated with charitable status, but has greater freedom and flexibility in not having to comply with charity law. Such organisations include:

  • Non-charitable social enterprises (businesses with social as well as commercial objectives).
  • Community interest companies (CICs) which benefit a particular community and whose profits are reinvested in the CIC for this purpose.
  • Non-governmental organisations which campaign for specific changes in UK law.
  • Community benefit societies.
  • Non-charitable housing associations.

Read More Here

As we start to move into Africa, here is some information about nonprofits in South Africa.  

Guide to the Nonprofit Organization (NPO) Act

Nonprofit Law in South Africa