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A charitable organization or charity is a non-profit organization whose primary objectives are philanthropy and social well-being (e.g. charitable, educational, religious, or other activities serving the public interest or common good).
The legal definition of a charitable organization (and of charity) varies between countries and in some instances regions of the country. The regulation, the tax treatment, and the way in which charity law affects charitable organizations also vary. Charitable organizations may not use any of its funds to profit individual persons or entities.Financial figures (e.g. tax refund, revenue from fundraising, revenue from sale of goods and services or revenue from investment) are indicators to assess the financial sustainability of a charity, especially to charity evaluators. This information can impact a charity's reputation with donors and societies, and thus the charity's financial gains.
Charitable organizations often depend partly on donations from businesses. Such donations to charitable organizations represent a major form of corporate philanthropy.
The Organizational Test: If the organization doesn't follow the exemption organizational test, it will be under mentoring, in order to meet the organizational test it has to be exclusively organized and operated.
Serving the public interest: In order to receive and pass the exemption test, charitable organization must follow the public interest and all exempt income should be for the public interest.

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