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Charities/"Not for Profit" Organisations

The overriding objective of these types of organisations is something other than making a profit. Such organisations have a variety of objectives for example;

1. Organisations aiming to look after the "needy".

Group Charity

• the homeless eg Shelter
• famine stricken eg Oxfam
• mentally ill eg Scope
• the elderly eg Help the Aged

1. Organisations aiming to provide educational services or arts organisations.
2. Organisations aiming to protect the environment,
• Greenpeace
• National Trust
• Woodland Trust

Although "not for profit" organisations do not exist to make a profit they still need to follow business principles so that they can generate enough money to fund their activities. All charities must be registered with the Charity Commission and on the Register of Charities. In order to register, the organisation must convince the registrar that they are a genuine charity and that they are being run satisfactorily. If the registration application is accepted then the organisation will enjoy tax benefits and can claim "gift aid" on donations.

Once registered, the charity will be given a registered number and its activities will continue to be monitored by the Charity Commission. Charities with annual incomes in excess of £10000 must by law, send their accounts to the Charity Commission. The Charity Commission provides registered charities with guidance and will expect them to adhere to it’s rules and regulations some of which have the force of the law.