Meaning of NPO (Non Profit Organisation), Definition of Charitable Purpose

Significance of NPO (Non Earnings Organisation), Meaning of Charitable Function: In this article you may discover total information for non profit organizations definition and examples …

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Significance of NPO (Non Revenue Organisation)

Trusts, foundations, unincorporated associations and in some jurisdictions particular types of companies, may be developed for a charitable function or may get such purpose after establishment. Charitable organisations are non-profit organizations; however, not all non-profit companies are charitable companies.

The primary function of a charitable organisation is to provide advantage to the public by performing worthy causes that helps the public at large. All the operations performed by those companies are legal and their policy goes in tune with the general public policy

Charitable organisations generally have an active method to raise funds through a project or conducting programs. They generally operate as a well-being organisation and work for the improvement of the society through their charitable function.

Meaning of NPO (Non Profit Organisation)

Definition of Charitable Purpose

Public charitable trusts, by meaning, must be produced for the benefit of the public. Societies likewise might be signed up for charitable purposes.

In law, the idea of ” charitable purpose” has a meaning which is not quite the same as in regular language.

Finance (No. 2) Act, 2009 added the “conservation of environment (consisting of watersheds, forests, and wildlife) and preservation of monoliths or places or things of creative or historic interest” to the list of charitable purposes. Organizations established for and running programs for relief of hardship, education, and medical relief are not affected by the modifications of 2009 or 2010.

Section 2(15) defines the expression “charitable function” in an inclusive way. The aforesaid definition is not exhaustive and, therefore, purposes similar to the functions discussed in the aforementioned meaning will also constitute charitable functions. Even more, the words “any other object of public utility” are of large import. The item ought to not be of energy for only a few individuals.

According to Section 9( 1) of the Maharashtra Public Trusts Act, 1950, “charitable function consists of: 1) relief of poverty or distress 2) education 3) medical relief 3A) provision for centers for recreation or other free time occupation (consisting of help for such provision), if the centers are provided in the interest of social well-being and public advantage 4) the advancement of any other item of general public energy, but does not include a purpose which relates specifically to spiritual mentor or praise.”

The definition of charitable purpose is broad enough to cover activities other than direct relief of distress due to hardship or catastrophes. It includes education, medical relief, and the development of any other item of general public energy such as promotion and conservation of the arts

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Author– Dr. Rajkumar Adukia

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