non profit

Difference between non governmental and non profit organization

Non Governmental Organizations

The Non Governmental Organizations, also known as the NGOs, are those in which funds are raised by the government, but it is not under the government influence. It has a non-governmental position. Therefore, it is called the nongovernmental organization. It is established by the citizens of the country and perform a range of activities to serve the humanity. It takes several initiatives to protect the people against the bad effects of the society. It does not aim to profit making. It operates at the different levels from local to national to the international level depending on the operations performed in the NGO.

Non profit organization

It is the organization which provides support to the needy people in the society by a meeting their basic needs. It promotes the cultural and spiritual values of the society. It is the legal entity which works with the volunteers. These volunteers may include the individuals from home, corporations, and foundations. It is formed by a group of persons who work with each other to serve the nation at best possible level.

Differences between the non governmental and non profit organization

Non-profit organizations and non-governmental organizations are different from each other. Some of the differences between these two concepts are as follows:

  1. NGO is established by the citizens, and the organization has a stake by the government. On the other hand, NPO is started by a group of persons who provide the goods and services free of cost to the needy people in the society. Their starting arrangements are different from each other.
  2. In NGO, a citizen who starts the organization takes the profit or loss while in the non profit organization, members of the organization do not have any share in the profit and loss of the organization. Non profit organization operates for the people without the wealth maximization of the members.
  3. Non governmental organizations can register through the government as the trust, society or the non profit organization. They get registered as a trust under the public trust act. They can register as a society under the societies registration act 1860. They can be registered as the non profit organization under the companies act 1956. On the other hand, non-profit organizations can be registered solely under the companies act 1956.
  4. An NGO differs in the size of operations with the NPO. NGO have wide operations while non profit organizations have a small size of operations as compared to the them. An NGO deals with broad range of activities while the NPO mainly deals with only one or two tasks.
  5. The non governmental organization takes initiatives to develop the society through promotional activities. They work on the projects of the women empowerment, protection from child labour and protection against any harmful societal activities. On the other hand, non profit organizations work for the promotion of the cultural values and poverty reduction by helping the poor and needy people. They both have different objectives from one another.