Both non-governmental organizations (NGOs) and non-profit organizations (NPOs) operate for the public good, not for profit. Because their goals and initiatives are also similar, the public is often confused about the differences between the two organizations.

What Is The Difference Between NGO And NPO

First, NGOs operate outside of government agencies but are sometimes funded by government agencies. Similarly, NGOs focus on large projects and often go international in those projects. These projects include helping needy and disadvantaged communities in developing countries. On the other hand, NGOs usually work with churches or local groups to improve local conditions.

State agencies are not involved in the management of NGOs, but often allocate part of their funds to various projects run by NGOs. In general, NGOs tend to focus on the concerns of people in developing countries, such as health, education, social protection, environmental issues, and inequality.

First, NGOs operate outside of government agencies but are sometimes funded by government agencies. Similarly, NGOs focus on large projects and often go international in those projects. These projects include helping needy and disadvantaged communities in developing countries. On the other hand, NGOs usually work with churches or local groups to improve local conditions.

State agencies are not involved in the management of NGOs, but often allocate part of their funds to various projects run by NGOs. In general, NGOs tend to focus on the concerns of people in developing countries, such as health, education, social protection, environmental issues, and inequality.

For NGOs, if you have already registered as an NGO, you can start raising funds for various projects. Likewise, they can also start applying for grants from various grant agencies. For NGOs, the situation can be quite different. Because NGOs deal with a much broader range of cases and issues than NGOs, NGO funding agencies cannot immediately reach out because they will deal with international issues that focus primarily on developing countries.

over 40,000 NGOs are internationally active, most of them from India. The issues dealt with by NGOs relate to society and the economy. Cases such as equality, human rights, and empowerment are among the categories in which various NGOs around the world are working. Other categories such as arts and culture, research, and similar subjects are mainly handled by NGOs.

Most of the big foundations you hear are NGOs. Because they cover a wider range than NPOs. NGOs focus more on improving small but still very important issues such as arts and culture. Leaders of both types of organizations should not profit from any activities or donations received. So, both still work for profit, not for personal gain, but to help many sectors of society, either locally or internationally. Both organizations are also looking for various grants to help colorize and empower proposals.

Although there are differences, grant funding agencies sometimes accept applications from both NGOs and NPOs. This is because many of the similarities may not be limited to the grants provided. When looking for grants, NGOs often turned to NGO funding catalogs and vice versa. Because many grants require the participation of both NGOs and NPOs, this is why many directories have aggregated the grants already offered. Ultimately, whether NGOs or NPOs, openness to partnership opportunities and unity within and outside of each organization are critical.

Definition of NGO

Non-Governmental Organization (NGO) is an abbreviation of Non-Government Organization and refers to an association formed by citizens who operate completely independently of the government and perform various services and humanitarian functions. This is a non-profit organization. It operates at the regional, national or international level, depending on scope and connections. You can register as a trust, society, or company. These organizations receive funding from governments, foundations, businesses, and individuals.

It carries out various activities to induce the government’s interest in civil complaints, advocate for public policy, and promote political participation through information provision.

There are many NGOs working on specific issues, such as human rights, women’s and children’s rights, environmental or health issues. The International Committee of the Red Cross, Rotary International, the International Air Transport Association (IATA), the International Chamber of Commerce (ICC), and the International Organization for Standardization (ISO) are well-known NGOs operating around the world.

Definition of NPO

A non-profit organization or NPO is a legal entity created by a group of individuals to promote a cultural, religious, professional, or social cause.

Initial funds are collected by members or fiduciaries of the NPO. Since the organization is a non-profit organization, it uses surplus funds to achieve its goals without distributing it to its members. Registered according to Article 8 of the Company Act (old Article 25). These organizations enjoy a number of privileges, such as duty-free, and do not need to use the terms “state” or “Pvt Ltd” at the end of their names.

NPOs may include charities, member groups such as sports clubs or sororities, community or entertainment organizations, public educational institutions, public hospitals, and more.

Comparison Table Between NGO and Non-Profit Organization

Parameters of ComparisonNGONon-Profit Organization
Another name:Non-governmental organizationNPO
Main GoalDevelopment of the societyTo drive any special task or objective other than profit.
Source of fundsThey have many various sources like Grants, churches, etc.From private institutions, government funds, and the general public.
ExamplesRed Cross Society, ISO, etc.Sports clubs, Charitable Organizations, etc.
DisadvantageMisuse of funds, lack of participationMaintenance expenses, the decreasing role of investors