Difference Between NGO and Non Profit Organization (With Table)

In today’s world when people are mostly self-centred and give themselves and their close ones the preference of choosing, it’s a nice and warm feeling when there are still people around the world who think about the others, about those people whose life has not been that graceful. The workers and volunteers working at these places devote their time to making the life of the less unfortunate people better. NGOs and Non-Profit Organizations, both work in the welfare of the people and of the society in general.

NGO vs Non Profit Organization 

The difference between an NGO and a Non-Profit Organization is that even though both provide services to the society for the welfare of the people in the country, Non-Profit Organizations need some source of financial funding for them to continue once it starts. NGOs can carry on the money from the government and some other resources, but once a Non-Profit Organization starts, it needs money from various resources like Charity, Sponsors, etc.

NGO or Non-Governmental Organization is a service oriented organization that serves the general public facing any issue. Many NGOs work for various fields, and people who want certain help go into a particular one who specializes in their matter. They are of many types.

A non-Profit Organization is an incorporated organization that works for the well being of the community. The owners or the trustees do invest money in them but not for the need of profit, instead to fulfil the NPO’s goal. All of the funds that a Non-Profit Organization earns go into the expense and maintenance of the operation.

Comparison Table Between NGO and Non Profit Organization

Parameters of ComparisonNGONon Profit Organization
Other name:Non-governmental
organization
NPO
Main Goal Development of the society To drive any special task or objective other than profit.
Source of fundsThey have many various sources like Grants, Church,  etc.From private institutions, government funds, and the general public.
 Examples Red Cross Society, ISO, etc.Sports clubs, Charitable Organizations, etc.
 Disadvantage Misuse of funds, lack of participation Maintenance expenses, decreasing role of investors

What is NGO?

NGO or a Non Government Organisation is basically a group consisting of people, both employee and volunteers, who organize and help people in need. Their motive is pure service and not about profit-making. They want to develop and bring welfare to the community.

They are a private foundation, separated by the government as cleared by the name Non-government Organization. They get supported by private companies and not by the government. They do not have any legal constraints to follow and are free from any profit making activities.

They are of many types. Some common ones include:

  • Self-help group: They promote and strengthen financial savings, mostly done by a group of women.
  • Advocacy: They help the community when the person wants to support and help on an issue. They campaign on causes and issues.
  • Training NGOs: These are popularly known as “Capacity building organization”, and they help in the building of other NGOs.
  • Consultancy NGOs: These offer advice, solutions and training to the people in need. Legal Aid is a good example of this type of NGO.

Now, NGOs not only help in raising basic issues but address new age issues like water resources, severe diseases like HIV, AIDS, Drug abuse and many more topics.

But just like anything, they face some challenges as well. For example, the Need for Financial aid to survive, transparency between the members of the Organization so that they help get to the people who need it the most, etc.

What is Non Profit Organization?

A Non-Profit Organization is a group that is made for a purpose other than profit. It can be of any matter. For any startup of a Non-Profit Organization, the institutions collect money from trustees and directors. Any of the income that any NPO makes afterwards is not distributed to these managers, trustees, shareholders or investors.

Their main share of funds come from the donations that they receive. Thus, they have a greater risk of being shut down compared to other firms. That is the reason why they try a different number of ways to find a collection, mostly from fundraising activities and trying out alternative funding sources that can be used as a long term investment.

Main Differences Between NGO and Non Profit Organization 

  1. NGOs operate without the influence of government while Non-Profit Organization get securities, funds and support from the government.
  2. NGOs, generally, target more people or a group who want help in a particular issue on a larger level than a Non-Profit Organization.
  3. The level of Organizations in an NGO is rather high than an NPO. Non Profit Organizations work in mainly three sectors that are to thrive arts, sports and trade unions. NGOs have more issues to address.
  4. Since Non-Profit Organization is smaller in comparison, thus the funds decline that is given by the investors over a period of time. NGOs get more funding as they are more popular.
  5. There’s more personalization in NPOs as they consist of a shorter group of people who have the same aim. NGOs, on the other hand, are a little more professional as they more issues to resolve with a larger group of people who want help.

Conclusion 

Both NGOs and Non-Profit Organization work for the betterment and welfare of society. They play various roles in the development and help in the issues of education, social, health and many other important issues.

Their goals are quite similar, that is, the development of the community and both are free from any government legal restraints. Both of these organizations need to be clear in their goal, and it is seen that those countries which have government collaborating with them strive better.

References

  1. https://www.tandfonline.com/doi/abs/10.1080/03056249208703964
  2. https://books.google.co.in/books?hl=en&lr=&id=TnPnuwCjb6QC&oi=fnd&pg=PP2&dq=non+profit+organization&ots=tYup_mdLAV&sig=W1vGwsMswHVJi5nZQLAjRW7aXJQ&redir_esc=y#v=onepage&q=non%20profit%20organization&f=false
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