I understand religion and spirituality as being largely synonymous, since both refer to humanity's efforts to understand and follow the will of its Creator. Spirituality is a means by which one becomes closer to the divine source of the soul — and becomes a better person in the process.
Religion is a specific (often predetermined) path one takes to reach that goal; it usually lays out a system of faith and worship as part of an organized structure. In my view, religious institutions should be configured in a manner that helps people reach their spiritual goals and achieve their full potential.
A central component of religion is being part of an organized, supportive community that engenders both benevolence and accountability.
Establishing spiritual goals together with others creates a sense of responsibility through a system of accountability that is essential to proper spiritual growth. A religious organization also provides an opportunity to receive help from other people and assist those who may need support. And finally, a religious congregation offers opportunities for fellowship with others who share similar values.