 Hello. Today we are going to talk about what charitable means under U.S. tax law. In the U.S., the word charitable has a broader meaning than it typically has in other countries. It is not limited to activities benefiting the poor and needy, for example, but rather it describes activities that serve a public benefit in a non-commercial manner. Charitable activities may also entail earning revenue, such as through the sale of educational products or services, conferences, artistic events, and many others. However, charitable activities do not include political campaign activity, even if they are undertaken in furtherance of the organization's purposes. Charitable activities may include lobbying as long as there remains an insubstantial part of the organization's activities. Here are a few examples of charitable purposes and activities. As you can see, they span educational, scientific, religious, cultural, medical, environmental, and they also include activities that are aimed at defending human and civil rights, among others. A very common charitable purpose is the advancement of education. This concept incorporates a broad array of activities from operating traditional schools to engaging in activities that educate either the general public at large or a subset of the general population. Many charities advance education in unique ways as a part of their operations. So, what do we mean when we say that an activity must serve a public benefit? U.S. tax law tells us that a public benefit is served if either the activity benefits a charitable class or if it benefits a large enough subset of the population to be unnamed and unlimited. For example, charitable classes include the needy, students, the sick, and the elderly. However, an organization aimed at serving all women or all ethnic minorities or even people within a particular region will also serve a public benefit such that group is large enough to be unnamed and unlimited. On the other hand, if an activity is aimed at serving only a particular family or a particular business, then that activity does not count as a public benefit since the beneficiary is neither a charitable class nor is it a large enough subset of the population to be unnamed and unlimited. As I noted earlier, a charitable activity does not stop being charitable just because it earns income. Schools, zoos, museums, theaters, and research institutions are all examples of income-earning charities. However, an activity will never be deemed charitable if it includes political campaign activity, which is also known as electioneering, commercial activities that are indistinguishable from what a for-profit business might undertake, or if the activity is aimed at generating a profit for private parties like shareholders or members. If you are looking for more resources on charitable, please read our articles on this topic. Take our quiz or reach out to the NGO source team with your questions.