For charitable registration under the Charities Registration Act 2005 one has to specify a charitable purpose which is laid under the act. There are main four charitable purposes laid under the law which include relief of poverty, the advancement of education, advancement of religion or any other matter which is beneficial to the community. These four categories of purposes were laid by court in 1800’s. Since then it was made mandatory that a charity would be registered only if their purpose fall under any one of the category stated above. The courts stated that a purpose of charitable organization must be aimed at public at large. The courts ensured that any individual might not take any advantage of the benefits that are made for the charities to make personal benefits.

Any state will not allow charitable registration unless it is confident that a particular organization has been formulated for charitable purposes only. To consider an application for charitable registration under the act, the state legal authority will judge the proposed activities of the organization. If the activities lay down by the organization support a charitable purpose then only it may be considered for registration.

Relief of poverty

The first purpose of charity state in the law is relief of poverty which means relief to the poor, aged and handicapped. When a purpose is relief of financial poverty to the public at large, who are impoverished and beneficial to the community is regarded as a charitable purpose. It also includes providing help to the people who are helpless, handicapped, disabled, and physically weak and cannot support their living.

Advancement of education

A purpose that provides education to specific individuals of the society may not be regarded as a purpose of public benefit. It also does not include a purpose aimed to protect those who practice in a particular profession. A purpose of advancement of education may be considered charitable if education is provided to the children at large irrespective of their origin, financial status, caste, color or creed.

Advancement of religion

A religious purpose is not charitable if it aims to provide safety to a particular section of the society. It is considered charitable only if it is open for all to join that religion and is liable to protect anyone who seeks protection.

Purposes otherwise beneficial to the community

This purpose should be beneficial to the community in a positive manner. It includes purposes such as safety and protection of the community, protection of animals, relief of human distress, organizing recreational activities for social welfare etc.

Thus, for charitable registration one should specify its aim and purpose that should fall under one of the above category.