NGO vs Trust: Difference and Comparison

It may be difficult to navigate the nonprofit industry since so many words describe mission-driven groups striving for the greater good.

As man acquired the art of assisting, he expanded and coordinated his efforts to assist people in need. Through this, an NGO and trust are nearby to assist others.

Key Takeaways

  1. An NGO is a non-governmental organization that can be formed for various purposes such as charity, education, or environmental protection.
  2. A trust is a legal arrangement in which a trustee holds and manages assets for the benefit of a beneficiary.
  3. NGOs are formed to carry out charitable or social work, while trusts can be used for various purposes, including managing personal assets.

NGO vs Trust

NGO stands for a non-governmental organization and is a foundation that assists the government with certain initiatives related to human rights or the environment. Trust is an organization in which donors donate money with the belief that the recipient will spend it to achieve certain goals included in the trust deed.

NGO vs Trust
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NGOs are responsible for promoting certain issues in health, education, labour, the environment, and other areas of life. They are non-profit organizations that may or may not be free.

They get government financial help. There are many kinds of them.

They organize resources to offer products and services to individuals who are environmentally vulnerable; they push change and collaborate with other groups to resolve issues and people’s needs.

Trust is a simpler concept. It is simpler to set up and maintain. This type of organization is built largely on trust. Donors give you money “trusting” that you will spend it wisely to achieve the goals mentioned in your deed of trust.

Trustees are not accountable to anybody other than the Charity Commissioner and the applicable laws.

Comparison Table

Parameters of comparisonNGOTrust
Full formNon- governmental organizationThe word “trust” is the term alone.
FoundationNGOs assist the government with initiativesThe government does not govern trusts.
AimNGOs aim to enhance the natural habitat, increase human rights adherence, and improve the well-being of the underprivileged.Trust is a modest organization that aims to bring in donors who give you money, believing that you will spend it wisely to achieve the goals mentioned in your trust deed.
FundsGovernment provides fundsThe government doesn’t give funds
ExamplesRed Cross, Doctors Without Borders Britain-Nepal Medical Trust.

What is NGO?

A Non-Governmental Organization (NGO) is essentially a group of individuals, including employees and volunteers, who organize and assist those in need.

Their motivation is genuine service rather than profit. They aim to help the community grow and prosper.

NGOs are categorized according to their (1) orientation, which is the sort of activities they conduct, such as consumer protection, health, environmentalism, human rights, or development; and

(2) degree of performance, which is the size at which they operate: regional, local, national, or global.

NGOs differ in their activities; some are largely campaigning organizations, while others provide programmers and activities.

They may be focused on poverty reduction, providing people who need help with said tools and expertise needed to get food and water, or assisting victims and survivors of violations with legal representation.

They can also supply specialized technological goods and services to complement development initiatives carried out by other groups on the field. Management methods are critical to project success.

Campaigning NGOs (such as human-rights organizations) frequently have programs that assist specific victims they are attempting to advocate for.

Operational NGOs will be using petitioning strategies if they confront challenges in the context that a change in policy could rectify, 

ngo

What is Trust?

Trusts are created when a person wishes for his or her property and money to be administered by a specific entity known as a trust. Trusts also help with charity activities for the future of the human race, whether it be healthcare, academic, or labour-related.

Trusts have their own set of rules since they might be open or private. They don’t require following guidelines issued by the legislature or associations.

Under private trust is an arrangement through which the owner of the asset transfers ownership to another person or entity who is obligated to retain and utilize the asset only for the advantage of the other.

 The party who bestows the asset is recognized as the “settlor,” the person to whom the asset is handed is recognized as the “trustee,” the entity as to whose profit the asset is assigned is understood as the “beneficiary,” and the subordinated asset itself would be recognized as the “corpus” or “trust property.” 

Meanwhile, charitable trusts established for charitable purposes and recognized by the Tax Department are not only free from paying taxes, but beneficiaries of such trusts can deduct the cost donated to the trust from their income taxes.

In India, charity activities include “relief of the destitute, training, medical assistance, preservation of antiquities and ecology, and promotion of just about any aim of wide public benefit.”

Main Differences Between NGO And Trust

  1. “NGO” is an abbreviation for “Non-governmental Organization,” and “trust” is the term itself.
  2. NGOs assist the government with initiatives it cannot already carry out, whereas trusts do not rely on the government.
  3. NGOs strive to enhance the natural environment, encourage human rights adherence, improve the welfare of the underprivileged, or reflect a corporate objective. However, Trust is a modest organization that seeks to attract donors who give you money, expecting you to spend it wisely to fulfil the purposes outlined in your trust deed.
  4. NGOs may get funding from the government, whereas trusts do not receive funds from the government.
  5. NGOs include the Red Cross, Red Crescent, and Greenpeace, meanwhile trusts include the Britain-Nepal Medical Trust etc.,
Difference Between NGO And Trust
References
  1. https://journals.sagepub.com/doi/abs/10.1016/j.jm.2004.02.002
  2. https://www.cambridge.org/core/journals/international-organization/article/growth-of-international-nongovernmental-organization-in-the-twentieth-century/54C59417AE253945287FF41DBF50CDA9

Last Updated : 13 July, 2023

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