Difference Between NGO and Non Profit Organization

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.

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
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 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 are of many types. Some common ones include:

  1. Self-help group: They promote and strengthen financial savings, mostly done by a group of women.
  2. Advocacy: They help the community when the person wants to support and help on an issue. They campaign on causes and issues.

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.

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.

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.
Difference Between NGO and Non Profit Organization


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.

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.


  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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