Non-governmental Organizations (NGO): What They Are and Their Purpose

| GS INSIGHTS

Non-governmental organizations (NGOs) are important components of civil society. These groups, independent of official control, work to address social issues, preserve human rights, provide humanitarian assistance, and promote sustainable development. The goal of non-governmental organizations (NGOs) is to bridge the gap between governments, the private sector, and the nonprofit sector - the communities with which they work, providing empowerment to local populations and making marginalized groups' views heard.

NGOs have recently gained popularity in addressing problems that governments and the business sector cannot manage alone, particularly humanitarian disasters, pollution, education, and community development. NGOs frequently develop critical relationships with governments and international institutions, such as the United Nations and the World Bank, to address global concerns in an increasingly linked world.

What Is an NGO?

A non-governmental organization (NGO) is a nonprofit, voluntary group organized by individuals or institutions, without receiving any funds from any government body. NGOs’ primary mission is to promote social, environmental, political, or economic development and to advocate for or on behalf of lines of public interest or behalf of the interests of societies with the least affirmation. NGOs work at various levels, ranging from advocacy, capacity building, and grassroots mobilization, to the delivery of direct humanitarian services, local, national, and international.
NGOs are altruistic and nonprofit-driven. However, NGOs are autonomous and seek to make government authorities accountable to civil society.

Types of NGOs

NGOs can be categorized into different types based on their functions, areas of focus, and the methods they employ to achieve their goals. The two primary types of NGOs are Operational NGOs and Advocacy NGOs:

  • Operational NGOs: These organizations focus on designing and implementing projects that address issues like poverty, education, healthcare, and environmental conservation. They deliver tangible results through development projects and humanitarian aid, directly helping communities with disaster relief, healthcare, or food distribution. Examples of private organizations and international NGOs include the Red Cross, Oxfam, and Doctors Without Borders.
  • Advocacy NGOs: These act as agents of change, focusing on campaigning, lobbying, and shaping policy and public opinion on issues such as human rights, the environment, and women’s rights. They use public relations, education, and lobbying to influence laws and policies. International organizations like Amnesty International and Greenpeace are prominent examples of those advocating for human rights, environmental protection, and civil society participation in decision-making processes.

Variations of NGOs

While NGOs share common principles, they can vary based on their scope, structure, and the nature of their relationship with governments. Here are a few key variations:

  • INGO: International Non-governmental Organization (INGO) is an organization that functions across various nations to work on global concerns such as humanitarian help, development, and worldwide advocacy. Oxfam and Save the Children are INGOs that tackle challenges crossing national borders (sometimes working with partners from developing countries) to promote sustainable development, improve health, and respond to natural disasters.
  • GONGO: A government organization that is either created or scaled up by a government is called a government organized non-government organization (GONGO). GONGOs look like traditional NGOs in structure, but they often receive government funding. They can be deployed to handle civil society organizations, influence international thoughts, or advance the government’s agenda abroad.
  • QUANGO: A quasi-autonomous non-governmental organization (QUANGO) is an organization that has a great deal of state supervision or funding but is not entirely autonomous. Such governmental functions are delegated to QUANGOs, for example, they are focusing on public health, education, and regulation but not being under direct governmental control directly.
  • ENGO: Environmental NGOs (ENGOs) represent environmentalism and the paradigms of sustainability. These organizations include causes such as climate change, wildlife conservation, and pollution control. Greenpeace and the World Wildlife Fund (WWF) represent two of the best-known ENGOs that work at local and global levels to affect environmental policy and advance the causes of conservation.

What’s the Importance of NGOs in Society?

NGOs are a very important part of society because they can work on social, political, and environmental indispositions in which governments and businesses live. They operate to contribute to the development of civil society, empower local populations, accountable to authorities. In conflict zones or less developed regions, NGOs also contribute to fostering community participation and human rights (and in specialized cases, such as the protection of refugees, also to refugees), and delivering essential services.

NGOs increase the space for public participation through alternative platforms, increase fairness and inclusive development, and end corruption by challenging systemic injustices in democratic processes. These are proactive, innovative solutions to the world’s problems including poverty, healthcare, environmental damage, and educational inequality.

Some purposes include:

  • Grassroots Mobilization: Grassroots organizations are mobilized by NGOs who empower individuals to speak up for their rights and to participate in decision making. It makes communities feel a bit more responsible and helps foster ownership of those problems and local solutions to local problems.
  • Humanitarian Purposes: Many NGOs aid people in humanitarian ways with response to natural disasters, wars, etc. Services they provide include emergency food and shelter, healthcare, and psychosocial support to affected populations. The Red Cross and Doctors Without Borders are known as organizations with humanitarian work.
  • Community Development: NGOs also take on the role of fostering community development by supplying progression in living conditions, healthcare, education, and economic opportunities through the delivery of resources, training, and support. They work on skill development and capacity-building initiatives to build self-reliant communities.
  • Education and Capacity Building: NGOs support education by providing schooling in underdeveloped areas, and by offering vocational training and literacy and digital literacy programs. Capacity-building initiatives also prepare communities with the skills for long-term development.
  • Sustainable Development Goals (SDGs): They (NGOs) are key actors in promoting and delivering on the United Nations’ Sustainable Development Goals (SDGs) – the 17 global challenges including poverty, hunger, inequality and climate change. Many NGOs use the SDGs as a framework through which they choose to align their work by defining projects and initiatives.

How to Form an NGO

If you are looking to create an NGO, you need to first determine your mission statement and the primary cause you want to assist them with. Do extensive research on your country or region's legal requirements as they vary widely. You will need to write some fundamental documents, such as a constitution of incorporation, that explain the purpose or structure of the NGO and its governance. The next step is to get the NGO registered with the appropriate governmental authority. Normally this entails the registering of the organization’s constitution and board members’ information, along with payment of the registration fee.

Once registered, you set up a governance structure, appoint a board of directors, and onboard the internal policy to govern more efficiently. The next step will be to develop a strategic plan with funding strategies, partnerships, and program development that will help to direct the organization’s future growth. It is also necessary to network with a number of NGO stakeholders and community members to build a sound support base and create an impact on your work.

How Are NGOs Funded?

Funds for NGOs are drawn from a range of sources. They receive funding from donations from individuals, beneficiaries, businesses, and philanthropic foundations. Another key source of grant funding is through international bodies, governments, and private foundations that will give grants based on the mission fit of the NGO. Many NGOs are based on membership fees or selling products and services that have to do with their cause (like publications and handicrafts). In addition to crowdfunding and online fundraising, it has also become common to reach a wider audience. 
In addition, NGOs usually develop corporate social responsibility relationships with corporations which include sponsorships or in-kind donations. The sustainable and healthy financials of the organization require several funding streams.

Tax-Exempt Status

In the U.S., NGOs can achieve tax-exempt status by registering as a 501(c)(3) entity with the IRS. To qualify, the NGO must function exclusively for charitable, religious, scientific, or educational purposes. Upon approval, donations to the NGO become tax-deductible for donors, and the organization is exempt from paying federal income taxes. The IRS provides comprehensive guidance for applying for and maintaining this tax-exempt status, ensuring NGOs meet all legal requirements.

Examples of NGOs and Differences Between Nonprofit Organizations

NGOs are a type of nonprofit organization, but not all nonprofits qualify as NGOs. The distinction is in their breadth and concentration. An NPO is an organization that does not seek to make a profit; instead, any excess is used to support a specific cause or service, rather than being distributed to shareholders. Examples include local community charities, churches, and educational organizations. In contrast, NGOs frequently work at the national or worldwide level, focusing on lobbying, humanitarian relief, or development initiatives, although national NGOs may engage in a broader range of activities.

For example:

  • Amnesty International (NGO) advocates for human rights on an international level.
  • The American Red Cross (Nonprofit Organization) focuses on national disaster relief and healthcare support within the United States.

Frequently Asked Questions (FAQ)

1. What is the role of NGOs in international development?
NGOs contribute to international development by providing humanitarian aid, promoting sustainable practices, and working to reduce poverty and inequality in developing countries.

2. How can NGOs achieve consultative status with the United Nations?
NGOs can apply for consultative status with the UN’s Economic and Social Council (ECOSOC), which allows them to participate in UN meetings and influence global and public policy.

3. Can NGOs engage in political activities?
In many countries, NGOs can engage in non-partisan political activities, such as advocacy and lobbying, but they cannot endorse political candidates or parties.

For more information on forming and funding NGOs, visit the IRS Charities and Nonprofits page to learn about tax-exempt status and application requirements. The USA.gov Guide on Starting a Nonprofit provides a detailed overview of the steps needed to establish a nonprofit organization in the U.S. If you are looking for funding opportunities, check out Grants.gov’s Applicant Resources for information on how to find and apply for government grants.