Also known as: charitable organizations · charity · 501(c)(3)
Written by attorneys · grounded in primary & secondary sources — see below
An organization that qualifies for tax-exempt status because it is organized and operated exclusively for religious, charitable, scientific, literary, educational, or similar purposes, does not distribute net earnings to private individuals, and refrains from political campaign activity and substantial lobbying.
Cecilia Cabrera's will left the residue of her estate to her grandchildren who reach age forty or, if none qualify, to Coastal Shipping, a charitable organization devoted to maritime education. The class of grandchildren remains open for decades. The limitation is tested against the rule against perpetuities.
Curtis Cannon, domiciled in State X, left a large sum to a charitable organization operating only in State Y. State X caps the portion of an estate that may pass to charity while State Y imposes no such limit. A court weighs the purpose of each state's property rule and the parties' connections to determine which law governs the validity of the gift.
Select any source to read its text and confirm it supports the definition.
A federal officeholder wishes to raise funds at a dinner for a charitable organization that also engages in voter-registration drives. The candidate may solicit only limited individual contributions that comply with federal caps because broader solicitations on behalf of the charity would violate the prohibition on soft-money fundraising.
A university classified as a charitable organization maintains a policy that denies admission to students in interracial marriages. The IRS revokes the university's tax-exempt status because the policy contravenes established public policy against racial discrimination, even though the school otherwise satisfies the organizational and operational tests.
A charitable organization seeks to provide training in international law and human-rights advocacy to members of a designated foreign terrorist organization. Federal law prohibits the provision of material support, including expert advice, and the organization's proposed activities fall within the statutory ban even when the training is intended for peaceful purposes.
A state statute provides salary supplements to teachers at religious schools that qualify as charitable organizations. The program is challenged as an establishment of religion because the supplements create excessive entanglement between government and religious institutions and risk advancing religious instruction.
No. A charitable organization that supplies equipment for use in its own programs or joint enterprises must still exercise reasonable care to discover dangerous conditions and warn foreseeable users. Failure to inspect or warn can result in negligence liability even though the transaction is gratuitous.
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A limitation in favor of a charity is exempt from the rule against perpetuities when the conveyor is itself a charity and no noncharitable interest is created. The exception preserves the validity of options and future interests that would otherwise violate the perpetuities period.
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Courts consider the purpose of each state's property rules and the relationship of each state to the property and the parties. A state where the land is located has a strong interest in rules limiting alienation, while the state most connected to the testator and the charity may have greater interest in rules capping charitable gifts.
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…peace, the happiness, or safety of society. And that it is the mutual duty of all to practice Christian forbearance, love, and charity towards each other." Committee Draft of the Virginia Declaration of Rights, 1 Papers of George Mason 284-285 (R. Rutland ed. 1970) (emphasis added). Mason's proposal did not go far enough…