Non-Governmental Organizations vs. Non-Profit Organizations
While the term “NGO” has various interpretations, it is generally accepted to include private organizations that operate without government control and that are non-profit and non-criminal. When people casually say “non-profit” they are usually referring to an NGO and using the incorrect parlance. For example, a religious institution is a nonprofit organization for tax purposes but it is not an NGO. Another example is political nonprofits, such as campaigns to elect representatives. While these organizations are exempt from taxes, they are not NGOs and thus are ineligible to receive various types of funding, i.e. federal grants.
“Nonprofit” actually designates a tax-status and not much more than that in te United States. Nonprofits provide services that for-profit organizations provide, they simply don’t “profit” from the services and all revenues are put back into providing those services.
Two broad groups of NGOs are identified by the World Bank:
- Operational NGOs, which focus on development projects (for example, The Red Cross).
- Advocacy NGOs, which are organized to promote particular causes (for example, Rock the Vote–a non-partisan NGO that advocates for voting rights and voter registration awareness).1
Certain NGOs may fall under both categories simultaneously, such as Grant a Gift Autism Foundation, an NGO that both promotes awareness of healthcare and education issues that the autism community faces and also provides direct medical and therapeutic treatments for the disorder.
How NGOs are Funded
As non-profits, NGOs rely on a variety of sources for funding, including:
- membership dues
- private donations
- the sale of goods and services
- grants
The Benefits of Funding NGOs
Unlimited life span
- An NGO will have what is called “perpetual succession”. Vegas Stronger will continue to exist if the directors or founder leave the organization or die. For the Vegas Stronger to be terminated, a formal decision must be made through a court order. In this way, your investments in Vegas Stronger will continue to support us after your death and for future generations.
Stable Leadership
- By registering Vegas Stronger as an NGO, we have indicated that our organization has stable and cohesive leadership. This means much more to the public than having an organization that is not registered. Also, Vegas Stronger will be better able to secure partnerships with charities, donor agencies, government entities and financial organizations as an NGO.
Do the Most Good
- NGOs are more advantageous than government programmes because they are part of the local community in terms of their structure. They can be involved in more than one project that is designed to support positive change in the lives of local people. This is also possible because of the NGO’s ability to integrate into each area of the local community to determine what is needed to facilitate positive change.
