NGO vs Non Profit Organization: Difference and Comparison

The workers and volunteers working at these places devote their time to improving the less unfortunate people’s lives. NGOs and Non-Profit Organizations work for the welfare of the people and society in general.

Key Takeaways

  1. NGO stands for Non-Governmental Organization, while Non-Profit Organization is an organization that operates for charitable or educational purposes.
  2. NGOs can operate nationally or internationally and be involved in various activities such as advocacy, development, and humanitarian aid. At the same time, Non-Profit Organizations can include charities, foundations, and educational institutions.
  3. NGOs may receive funding from governments, corporations, and individuals, while Non-Profit Organizations rely on donations and grants from individuals and foundations to fund their operations.

NGO vs Non-Profit Organization 

NGO stands for non-governmental organization, which is a non-profit organization that operates independently of government and is focused on advocacy, humanitarian aid, or development work. Non-profit organizations are organizations that do not operate for the purpose of generating a profit. They are focused on social, cultural, or environmental issues.

NGO vs Non Profit Organization

NGO or Non-Governmental Organization is a service-oriented organization that serves the general public facing any issue. Many NGOs work in various fields, and people who want specific help go to a particular one that specializes in their matter.

The owners or the trustees invest money in them but not for profit, instead to fulfill the NPO’s goal. All of the funds that a Non-Profit Organization earns go into the expense and maintenance of the operation.

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Comparison Table

Parameters of ComparisonNGONon-Profit Organization
Another name:Non-governmental
organization
NPO
Main Goal Development of the society To drive any particular 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.
 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 a group of employees and volunteers who organize and help people in need. Their motive is pure service and not profit-making.

They are a private foundation, separated by the government as cleared by Non-government organizations. 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, mainly by 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 help raise fundamental issues and address problems new-age like water resources, severe diseases like HIV and AIDS, Drug abuse, and many more.

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.

ngo

What is Non-Profit Organization?

A Non-Profit Organization is a group made for a purpose other than profit. It can be of any matter.

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Their main share of funds comes from the donations that they receive. Thus, they are more likely to be shut down than other firms.

non profit organization

Main Differences Between NGO and Non-Profit Organizations 

  1. NGOs operate without the influence of the government, while Non-Profit Organizations get securities, funds, and support from the government.
  2. NGOs, generally, target more people or a group who want help with a particular issue on a more significant level than a Non-Profit Organization.
Difference Between NGO and Non Profit Organization
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

Last Updated : 11 June, 2023

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19 thoughts on “NGO vs Non Profit Organization: Difference and Comparison”

    • I agree, the examples provided for both NGOs and non-profit organizations were helpful for better understanding their scope of activities

      Reply
  1. The discussion on the challenges faced by NGOs, such as financial aid and transparency, was thought-provoking, and important aspect to consider for these organizations

    Reply
    • Absolutely, it sheds light on the complexities of sustaining NGOs and the critical need for transparency in their operations

      Reply
  2. The challenges faced by NGOs, such as the need for financial aid and transparency, are crucial aspects to consider for their sustainability

    Reply
  3. It’s interesting to note the significant differences between NGOs and non-profit organizations, especially regarding their government influence and the scale of their operations

    Reply
  4. It’s essential to understand the differences in the funding sources between NGOs and non-profit organizations, it highlights their unique financial challenges

    Reply
  5. The article’s comparison between the main differences of NGOs and non-profit organizations was enlightening, and highlighted the distinct roles they play

    Reply
    • Agreed, the breakdown of the different funding sources for both NGOs and non-profit organizations provided a clear understanding of their unique financial models

      Reply
  6. I found the breakdown of the main goals of NGOs and non-profit organizations quite enlightening, it truly showcases their varied objectives

    Reply
  7. The article provides a comprehensive overview of NGOs and non-profit organizations, addressing their structure, funding sources, and the types of services they offer

    Reply
    • I agree, I particularly liked the part where they explain the main differences between NGOs and non-profit organizations

      Reply

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