Charity Organizations in Nigeria
Charity Organisations in Nigeria is quite different from NGOs, that is to say Non-governmental Organisations (NGOs). In the previous posts we’ve discussed the meaning of NGOs and also lists of NGOs in Nigeria wasn’t not left undiscussed.
What is Charity organization?
Charitable organizations are a kind of business or organisation that is part of non-profit organization (NPO) category.
Charity organisation may be defined as a kind of entity or organisation focused on religious, educational or other public interest activities (such as Human Right Activist) that are philanthropic in nature.
It is patinent to know that, Charity organisations in Nigeria are sometimes regarded as charity or foundation, which can either be public or private.
The legal definition of what constitutes a charitable organisation varies according to its country of origin, depending on the location or country in which the charitable organization operates.
- Private charities or Non-Operating Foundations
As said earlier, some charity organizations in Nigeria operate as private foundations that obtain their principal funding and finance through a corporation, family, individual or other single financial source that does not seek or request public funding.
Private foundations usually use endowment funds to provide grants to outside or affiliated organizations that support the foundation objectives.
- Public Charities or Operating Foundations
Public, operating foundations or charities usually receive grants from the government, private foundations and individuals, they are financed and managed by the government and its agencies
Although some public charities may engage in grant making activities, the majority of them are concerned with tax-exempt activities.
- The procedures for forming the various kinds of charity organizations in Nigeria vary from state to state, as well as other countries and regions within them.
- Registration and filing requirements for entities that engage in charitable activities and solicit contributions are also determined by its originating state or region.
- Charitable organizations must comply with federal tax relief guidelines, as specified by the Federal Inland Revenue Service (FIRS) and State Internal Revenue Service (SIRS).
- For a charitable organization to qualify as tax exempt in Nigeria, it must refrain from certain activities, such as political campaign and candidate fundraising, and earnings may not benefit any individual.
- Mind you, charity organizations in Nigeria are not profit Oriented. That is, they are not set up for profit making purpose.
Activities of Charity Organizations in Nigeria
Kinds of charitable organizations engage in activities such as;
- Offering relief for the poor, distressed or underserved
- Religious enhancement
- Educational funding
- Creation and management of monuments, public buildings or works
- Offering social services
- Lessening government burden
- Combating community deterioration
- Also, the defense of public safety, children, civil rights, and elimination of prejudice and discrimination are some other social activities that charities concern.