They just have to manage funds. Lastly, the intangible benefits are immense when it comes to serving in a charitable organization. As for the disadvantages, employee retention and recruitment is a matter of concern as the salary is low and commitment needed is high. Lastly, when charities are newly established, fund raising is a major issue as people doubt their credibility.
Charitable organizations are those companies who are working for the sole purpose of doing something good for the society. The organization has charity-oriented factors as its aims and objectives as opposed to a normal company, whose major aim is to maximize its profits. There can be many types of charitable organizations, namely trusts, foundations and associates which are working as unincorporated (Petit-Zaman, 2006). A company might start off with charitable purposes or might become a charitable organization after some time passes after its establishment.
There is a difference between a charitable organization and not-for-profit organizations. Charitable organizations are a subset of not-for-profit organizations. Not-for-profit organizations are those which are incorporated as an organization. They have a separate legal entity. They are neither working for purely charitable purposes nor for profit maximization. ...
It is actually the responsibility of the state to fulfill these traditional duties, to work for the welfare of the citizens of the state. But often the state is ignorant of these duties and that is when these charitable organizations step in and do some good work.
CHARITIES IN UNITED KINGDOM
The United Kingdom has a total number of 200,000 charitable organizations (UK Tax). This is a huge quantity and the graph is rising as the sector of charity is rapidly growing and accelerating. Many of these charities are established as limited liability companies so that the owners, i.e. the trustees, are not liable to pay more than their share of investment in the company and so that this factor results in the establishment of more charitable organizations. Charitable organizations are finding new ways to cater to the humanity. The various charitable organizations are basically registered with three regulatory bodies, namely the Charity Commission, the Office of the Scottish Charity Regulator and the Inland Revenue. These regulatory bodies are essential to supervise and take care of the activities that these charitable organizations are indulging in. these bodies make sure that these charities do not misuse the money that they collect from the general public for charitable purposes. These charities also have to report its activities to the government. This makes the government fully aware of whether these organizations are fulfilling their purposes or not, as their collections are tax free. This reporting aims to see whether any fraud is being done by an organization opened by the name of charity but eating up money for personal purposes. If a fraud is detected, the license of the