Charities

Charities are defined as a charitable organization (자선단체/慈善團體) or charitable works (자선사업/慈善事業) which a charitable organization is largely engaged in.

A charitable organization is a non-profit organization (NPO) devoted to non-profit and philanthropic goals as well as social well-being (e.g. charitable, educational, religious, or other activities serving the public interest or common good).

The legal definition of charities varies according to the country where the charities operate. The regulation, tax treatment, and the way in which charity law affects charitable organizations also varies.

Key words
charitable organization, non-profit organization (NPO), donation, tax benefit, financial sustainability

Statutory ground
In Korea, an association or foundation relating to science, religion, charity, art, social intercourse, or otherwise relating to enterprises not engaged for profit or gain, may be formed as a juristic person subject to the permission of the competent authorities. Article 32 of Civil Act.

But it does not mean a charitable organization shall be a non-profit juristic person. It may operate as an unincorporated association. It depends on tax benefit, regulatory supervision, social understanding, and so on.

Dwindling Tax benefit
Until 2012, the donation to foundations, charities, churches and other causes had been tax-exempt under the Restriction of Tax Reduction and Exemption Act (조세특례제한법).

Starting from January 1, 2013, however, the Act has limited tax deductions on charitable donations by putting the cap on tax deductions in seven areas including charitable donations at 25 million won. Thus the Act is under protest staged by 205 nonprofit organizations (NPOs), including the humanitarian group Good Neighbors.

The National Council of NPOs, Korea, which represents 31 nonprofit organizations, said it sent a petition to the National Assembly requesting a revision of the deduction cap, which it says will dampen people’s charitable donations.

Financial indicators
Financial figures such as tax refund, revenue from fund-raising, revenue from sale of goods and services or revenue from investment are important factors to assess the financial sustainability of a charity. This kind of information directly impacts the charity because donors often look at both the objective and financial indicators in order to decide whether to donate to a non-profit organization.

Thus, to fulfil commitments toward the society might help the charity receive a better reputation as well as a higher standing in the community. The fact that the charity becomes more attractive would bring it more financial gains.

Community-based Charities
Community Chest of Korea (CCK) is a national network of 16 local chapters that work to create lasting positive changes in the communities and people’s lives. Since its establishment in 1998, CCK has grown to become Korea’s largest community-impact charity. CCK seeks to engage the participation of individuals, businesses, and local organizations to cultivate a culture of sharing in the community. Also CCK has organized the Honor Society to which only donators of over 100 million won to CCL are admitted. CCK, reknowned for three small red balls on the chest meaning "fruits of love", has strengthened the role of civil society in the welfare system. It stands for efficient, effective and transparent fund-raising management subject to the Community Chest of Korea Act (사회복지공동모금회법). CCK is a member of United Way Worldwide, a global network of non-profit fund-raising organizations with membership in approximately 40 countries and territories, including the United States and Australia
 * Community Chest of Korea (사회복지공동모금회) 080-890-1212

Religion-oriented Charities

 * Yeson (번동코이노니아) 02-985-3609
 * Child Fund (초록우산 어린이재단) 02-775-9122
 * Korea Salvation Army (구세군) 02-6364-4000

Globally operated Charities

 * World Vision (월드비전) 02-2078-7000
 * Good Neighbors (굿네이버스) 02-6717-4000
 * Compassion Korea (컴패션 코리아) 02-740-1000
 * A Better World (NGO 더 멋진 세상) 02-2271-2246
 * Korea Food for Hungry International (KFHI, 기아대책) 02-544-9544
 * Save the Children (세이브 더 칠드런) 02-6900-4400