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Charitable and nonprofit purposes

When is an association considered charitable or nonprofit?

Katrine avatar
Written by Katrine
Updated over a month ago

Most associations have a charitable or nonprofit purpose. But what does that actually mean? Broadly speaking, a charitable or nonprofit association is a non-governmental organization that provides help or value without charging for it. It’s based on volunteer work, where all revenue stays within the framework of the association.

Charitable purposes

A charitable purpose means that the aim of the community is to make the world a better place. This could involve fighting for rights and equality or combating poverty and inequality. It might be about fighting for the climate or building bridges between people. Combating loneliness or promoting integration. Raising money for those in need or improving life for people or animals who are struggling.

Nonprofit purposes

Generally speaking, something is considered nonprofit when it benefits the public. Nonprofit associations and purposes relate to social, cultural, environmental, scientific, humanitarian, educational, religious, or national causes. For example, running sports associations and fitness clubs is considered nonprofit, as it supports public health and provides a social benefit for many people. There are also art associations that contribute culturally, political parties and support organizations that actively engage people in society, religious communities, and more. Most associations support the social aspect simply because people do something TOGETHER—in ASSOCIATION with one another.

Overlap

Charity and nonprofit work often overlap, but charity is distinct in that it is explicitly about making the world a better place. Membership fees are, for example, more common in nonprofit contexts, where the fee gives members access to something useful in return. People in need—or the climate—don’t pay fees for the help they receive. That’s pure charity :)

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