The Probert Encyclopaedia of Money

CHARITY

In Britain, a charity is defined in law as a business which provides 'a public good' until 2006 there was a presumption that all charities based around education, health or religion were providing a public good, and as such they had no need to prove their public benefit. This allowed private schools to charge enormous fees to the elite children of society to attend them, and at the same time claim charitable status. The public perception of a charity is of an organisation operated to relieve need or suffering in other people. However, a charity can pay its staff and directors (known as 'trustees' any salary it wishes, providing an ideal opportunity for a business to generate a large income for itself from public donations, while passing on very little if any tangible benefit to those it claims to assist. Zoos are recognised in law as being charitable, while some people might view them as simply businesses which provide entertainment, the legal status of a charity affords the business a greatly reduced tax burden and other benefits.
Research Charity