Charitable organizations are organizations that are formed to benefit the public.  These organizations are most often considered non-profit organizations (NPO).  In order to qualify for NPO status, the organization must provide documentation to the Internal Revenue Service to ensure that they fall into this category.  However, a differentiation is made between types of charitable organizations.  Charities are considered a private foundation if they qualifies as tax-exempt under Section 501(c) (3) of the Internal Revenue Code.  If the organization does not fall into this category, then the charity will generally fall into the category of a public charity which is described in Section 509(a) of the Internal Revenue Code.
A private foundation is generally sponsored by an individual, a family or a corporation. Throughout the life of this foundation there are many encounters with the IRS.  This begins with the filling for tax-exempt status, to the filing of yearly returns, or even t to make changes in its mission statement as the organization evolves.  These foundations do not solicit funds from the public. On the other hand, a foundation or public charity generally receives grants from individuals, government agencies, and other private foundations.  Public charities can participate in grant making activities; however, most conduct direct service or other tax-exempt opportunities.  Typically to receive a grant, the organization needs to be non-profit.
The rules and regulations for creating a charitable organization are dependent upon the individual state where the organization is located and operates.    The filing process can be lengthy; therefore, you will need to allow ample time.  However, once the proper paperwork has been filed and all approvals are in from the state and the IRS, the organization can begin their activities.  Typically a charity’s main goal is to raise funds for their cause. 
Charitable organizations rely heavily on their fundraising activities.  The donations received are what allow the organization to continue its operations.  Fundraising activities can run the gamut from a car wash to an expensive dinner where the cost of a plate can be upwards of hundreds of dollars.   Organizing these events can be very time consuming and involve many people.  The obvious expected outcome is that more money is raised than is spent on the event, which can be challenging.  Some events will require participants to pre-pay in order to ensure this happens.  
Without support from the public these organizations won’t survive.  More importantly, the cause that the organization represents will also not survive.  It can be difficult to determine if contributing to a cause is right for you.  Make sure to research the organization before you donate your time or money.  Also, be sure to research if there is any tax benefit associated with a cash donation.  This may assist in your decision to participate or to which organization you would like to contribute.  With the current state of the economy being so difficult, fundraising is more challenging.  The irony being that because the economy is poor, these organizations need more donations than ever before as more people are in need.