Many people do not understand the principles of, and the differences between, NGO and Non-profit organizations, even though they are well-known terms in the 21st century. First of all, to clarify, NGO stands for a non-governmental organization, and a non-profit organization can also be referred to as a NPO.
Non-governmental organizations are created by legal persons who are not part of the government. Although NGO funds are mostly raised by the government, they maintain a non-governmental position, and eliminate the need for a government council. This type of organization is also known as a civil society organization. There are forty thousand international NGOs in the world, with the most organizations found in India.
In 1945, after the establishment of the United Nations Organization, the non-governmental organizations became extremely popular. Although, before this time, there were other organizations, such as the famous Rotary International, that began its operation in 1904. By the end of the year 1914, there were one thousand and eighty three NGOs in existence. International NGOs played a vital role in the anti-slavery movement, as well as in the movement for women’s suffrage. The official definition of international NGOs was defined on February 27, 1950, by the resolution 288 (X) of the ECOSOC.
Various types of Non-governmental organizations include:
BINGO ‘“ Big International NGO
CSO ‘“ Civil Society Organization
DONGO ‘“ Donor Organized NGO
ENGO ‘“ Environmental NGO
GONGO ‘“ Government-operated NGOs
INGO ‘“ International NGO
QUANGO – Quasi-autonomous NGO
TANGO ‘“ Technical Assistance NGO
GSO ‘“ Grassroots Support Organization
MANGO – Market Advocacy Organization
On the other hand, the non-profit organization does not divide its extra funds between its shareholders, or owners, but uses them for the organization’s purposes. Examples of these organizations are public arts organizations, trade unions and charitable organizations. They offer services and programs through federal, local or state entities. Non-profit organizations hire management personnel, and aim to raise substantial funds. These organizations are service organizations or charities that are established for co-operative, trust or purely informal reasons. NPOs are also known as endowments, or foundations that have huge stock funds. A supporting organization is similar to a non-profit organization, and also operates as a foundation, but they have more complicated structures.
Non-profit organizations do have legal responsibilities, and these may include:
Supervision and management provisions
Accountability and Auditing provisions
Provisions for the dissolution of the entity
Tax status of corporate and private donors
Tax status of the foundation
Provision for the amendment of the statutes or articles of incorporation
To summarize, the differences between a non-profit organization and NGOs are:
1.The NGO is a non-governmental organization. Its funds are raised by the government, but it maintains a non-governmental position, with no need for a government council. They are also known as civil society organizations.
2.A non-profit organization uses its extra funds for the purpose of the organization, rather than dividing it between the shareholders and the owners of the organization. Examples of NPOs are public arts organizations, trade unions and charitable organizations.