Having a charity fundraising organization is a good thing. This helps many people who are unable to make a living or enough money to sustain their daily lives. The lives of many vulnerable people are touched and become better as days go by. The most common thing done by charity organizations includes financial aid, food, clothes, and other necessities. Most of these charities are done by non-profit making organizations. Just like companies, non-profit making organizations are also required by the state to comply. The law states that they are not exempted from taxation but must comply and follow all the rules and regulations as stated by the law. Discussed-below is some of the reasons why charity organizations have to comply.
The first reason is that it is a requirement for every organization in a country whether public or private to comply. This is stated in the law and that cannot be altered unless the constitution Is changed. This becomes fair enough. When charity organizations could not be complying, many companies would start as a charity and non-profit organizations to avoid paying tax and other legal requirements. This makes it equal for all organizations In the country and no loophole for tax avoidance is created. The charity organizations should be registered when started and adhere to other rules and regulations as stated by the law. This is important as it would appear in the system of all registered companies and non-profit organizations in the country.
Secondly, it is good to comply because it keeps the name and record of your company clean. When your charity organization fails to register and comply, its name could be tarnished by the government. This has major economic consequences because no donor or shareholder would want to be associated with your charity organization. The support you get from other stakeholders to get the supplies for charity will be gone. When you comply, you protect the name of the organization. The reputation of the directors and other employees in the organization is also protected.
Thirdly, the other reason for compliance is that it is a top requirement for the board of directors in your charity organization. Being part of the duties that your board of directors is supposed to do, compliance cannot be avoided. When they comply, they get to make a follow-up of all activities taking place in the charity organization and ensure that compliance is done. This helps them even when they go and negotiate with the donor for help as they would be seen responsible.
The other reason as to why compliance is important for a charity organization is that it brings out your intentions as an organization. Not all charities are intended to help the needy and the vulnerable. Some illegal companies come out as non-profit charitable organizations that help the poor people only to cover their bad businesses like selling drugs and other harmful substances. When you register, the government and the law can follow you and ensure that you intend to do as stated in the registration and contract signed. When starting a charity organization, you should read through the importance of registration and compliance as stated above.