Charities and Economies

Introduction :
Feed the hungry, shelter the homeless and care for the sick The charity. Charities is a
humanitarian practice which means the voluntary giving to those who need help. Charities usually
provide a image for the generation that they are functioning as a helping hands to impoverished and
non-authority, rendering any kinds of support, namely financial, counsel and medicinal. In a
common understanding , charities do not only distribute the resource evenly in the society between
the wealth and the poor, but also achieve economic in different aspects. Despite, charities usually
gain a positive image from the public, but, currently, many studies indicate that the contribution
from charities achievement is overestimated ,because some of those are not functioning as a charity,
but a business . Therefore, in this research pager, our group are going to indicate and analysis the
contribution and drawback form the charity's activities with economic explanation.

2. An operating charity:

2.1 Explanation in mission

Before anything start, charities have to clarify their process which would bring their goal fulfilled. It
is important for charities to carry out and explain their mission clearly and be convincing, because
confidence and common goal is the key for donor and organization to support the charities. That is
the reason why charities operate many promotion and issue advertisement.

2.2 Charities resources collection:

Charity is different from business, they collect their operation fund serval method. They usually are
non-profit organization, which do not aim at earn profit from consumers. Therefore, most of the
resources come from donation and government subvention.
2.2.1 Donation income collection
Some charities, for example, one of the biggest poverty alleviation charities in Hong Kong, Tung
Wah, would like to raise their resources as donation income directly by Tung Wah Charity Show,
a live TV show regularly broadcast in every December.
2.2.2 Material collection
Some charities, for example, Oxfam and Food bank, would like to run exchange carnival and
collecting box, directly collect material, such as clothing and necessities, which they need from
their donor directly.
2.2.3 Governed subvention and funding:
Due to reason that charities play an important role in sustain and benefit the lower and middleclass
of the society. Government are most likely would willing to give subvention and support to the local
charities.
According to the Hong Kong Home Affairs Bureau, there are total nine charitable trust funds to
which members of the general public or specific groups in the community for relief and assistance.
On average, every finding provided around 2,500,000 HKD.
Furthermore, Take Tung Wah as an example again, according to their annual report, there are almost
2, 691,4 million funding are distributed from the government. Take up 34% of their total funding
and donation.

2.3 Carry out achievement

Since charities cover a broad range of missions we have found that it is helpful for us to explain
about the achievement when categorize different types of charities
Charities could mainly dividend in six major categories. Namely Animal, Environmental,
International, Health, Education and Culture.
Mainly, all the charities carry out their achievement through different events, and relative actions.
There is no general format for those to achieve the goal. Yet, the purples is obvious, they also aim to
raise the public recognition and participation, in order to find out the potential donor, raise fund and
carry out their achievement.

Charities contribute economic in employment rate :

Voluntary sector contribute economic by employing. According NCVOs research on charities in
England, in 2015, project find out that charities made a substantial contribution to the recovery from
the destruction brought by financial crisis. By estimating from the survey, over 793,000 person were
being employed by the charities in the recession period, when no firms willing to employ workers,
charities take up 2.403% employment rate in the whole labor market.
With the above information which indicate charities play a important role in the employment rate.
With the explain through figure x, The contribution help slowing down the unemployment rate,
when the employment numbers rise (6%) greater than the raise in the total labor focus (1.2269%) in
England.

Year
Total Labor force

2012
32,600

2015
33,000

Growth rate
1.2269%

Employed person

28,300

30,000

6%

Source form Statistics - GOV.UK (Data present in thousand)

Employment is the key for growing economic

FULL ANSWER emplyment

If a person is unemployed, he is unable to pay debts such as credit card balances,

mortgages and car loans. The more debt a person has, the less money he has to put back
into the economy. Too much debt also makes interest rates go up. High interest rates
prevent people from borrowing, which prevents the economy from thriving.
Paying taxes is also hard for the unemployed. There are federal and state taxes that are in
place to keep the economy running smoothly. When the number of citizens paying taxes
decreases as unemployment increases, this creates a financial deficit for the government
in many ways. Without enough money being paid into taxes, there is no funding for things
such as law enforcement, courts and government programs. This results in an economic
downturn.
If someone is unemployed, he has less money to spend on discretionary items. Most of his
money is spent on necessities such as rent, food and utilities. Less spending can lead to
overproduction and less profit in many markets of the economy.
Unemployment
Unemployed people contribute less to the economy because they are spending less. They
do not participate in paying tax due to lack of jobs. Consequently, the government ends up
borrowing money because of low revenues and high spending. Rise in employment rates
also affects other areas, such as quality of health services and living standards. This
affects the society in general. In an economy with high unemployment rates, the hours lost
by the unemployed are usually unrecoverable.

Charities react to poverty :

Importantly, 75% percent of charities carry out their work at local level.
- Creating job & providing low-cost service to needed.
Conclusion: Benefit the poverty is depends on how many and how much charities do their work to
their community. ( Some charities are not service the local but the foreign, they just raise fund)
Charities release potential resource :
Charities also play a key role in helping people become economically active.
By helping house-wife part-time job. (Like Uber)

Retaining homeless people (develop new skill) (Included in work force) ( Low the unemployment
rate) (Work-ready)

Charities contribute to wealth balance in a society :

Gino-Ratio : Income gap (explain)
Expenditure of Charity
(especially dealing with local service)
: How charity benefit the society in lowering the