Difference between revisions of "Overview of NGOs"

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==What are NGOs?==  
 
==What are NGOs?==  
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Non-governmental organizations (NGOs) are generally considered to be “non-state, non-profit orientated groups who pursue purposes of public interest”, excluding the private sector (Schmidt and Take 1997). One of the most widely used definitions is given by Operational Directive 14.70 of the World Bank: “private organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services, or undertake community development” (World Bank 2001).<ref>Operational Directive 14.70, August 28, 1989.</ref> More broadly, the term is applicable to any non-profit organization (NPO) that is not affiliated with  government.<ref>This, however, does not imply that an NGO cannot receive funding from governmental sources.</ref> According to the World Bank, NGOs are “value-based organizations which depend, in whole or in part, on charitable donations and voluntary service,” and in which “principles of altruism and voluntarism remain key defining characteristics”. The World Bank differentiates two main categories of NGOs with which it interacts:
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Non-governmental organizations (NGOs) are generally considered to be “non-state, non-profit orientated groups who pursue purposes of public interest”, excluding the private sector (Schmidt and Take 1997). One of the most widely used definitions is given by Operational Directive 14.70 of the World Bank: “private organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services, or undertake community development” (World Bank 2001).<ref>Operational Directive 14.70, August 28, 1989.</ref> According to the World Bank, NGOs are “value-based organizations which depend, in whole or in part, on charitable donations and voluntary service,” and in which “principles of altruism and voluntarism remain key defining characteristics”. More broadly, the term is applicable to any non-profit organization (NPO) that is not established by or controlled by a governmental entity, or even more broadly a nonprofit that is not affiliated with government.<ref>This, however, does not imply that an NGO cannot receive funding from governmental sources.</ref>  
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#''operational NGOs'', the primary purpose of which is the design and implementation of development-related projects, and #''advocacy NGOs'', the primary purpose of which is to defend or promote a specific cause, and influence the policies and practices of international organizations.<ref>The two categories are not mutually exclusive, as some NGOs engage in both operational and advocacy activities.</ref>
 
  
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Operational NGOs are further classified as: a) ''national organizations'', which operate in individual developing countries; b) ''international organizations'', which are typically headquartered in developed countries and carry out operations in developing countries; and c) ''community-based organizations'' (CBOs), which serve a specific population in a narrow geographical area. CBOs, also referred to as ''grassroots organizations'' or ''peoples’ organizations'', differ from other NGOs in both nature and purpose: while national and international organizations are seen as “intermediary” NGOs that are formed to serve others, CBOs are usually “membership” organizations whose purpose is to advance the interests of their members. Examples include women’s groups, credit circles, youth clubs, cooperatives and farmers’ associations.
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There are different ways of categorizing NGOs in broad terms. One categorization is the recognition of a :
 +
#''Mutual benefit NGO'', involving an association concerned with improving the situation of its membership, versus a
 +
#''Public benefit NGO'', which is an organization working for the imporvement of conditions of society as a whole or of a segment of society.  
  
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Alternative terms used to refer to NGOs include private voluntary organizations (used especially in the United States) and voluntary development organizations (a term favored by many African NGOs).  
+
The World Bank differentiates two main categories of NGOs with which it interacts:
 +
#''Operational NGOs'', the primary purpose of which is the design and implementation of development-related projects.
 +
#''Advocacy NGOs'', the primary purpose of which is to defend or promote a specific cause, and influence the policies and practices of international organizations.<ref> The two categories are not mutually exclusive, as some NGOs engage in both operational and advocacy activities.</ref> 
  
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Note: NGOs are not legal entities under international law, the way states are. An exception is the International Committee of the Red Cross, which is considered a legal entity under international law because it is based on the Geneva Convention.<ref>See, for instance, http://www.icrc.org/Web/Eng/siteeng0.nsf/html/genevaconventions.</ref>  
+
Operational NGOs are further classified as ''national organizations'', which operate in individual developing countries, ''international organizations'', which are typically headquartered in developed countries and carry out operations in developing countries, and ''community-based organizations'' (CBOs), which serve a specific population in a narrow geographical area. CBOs, also referred to as ''grassroots organizations'' or ''peoples’ organizations'' (PO), differ from other NGOs in both nature and purpose: while national and international organizations are seen as “intermediary” NGOs that are formed to serve others, CBOs are usually “membership” organizations whose purpose is to advance the interests of their members. Examples include women’s groups, credit circles, youth clubs, cooperatives and farmers’ associations.
 +
 
 +
Alternative terms used to refer to NGOs include ''private voluntary organizations'' (used especially in the United States) and ''voluntary development organizations'' (a term favored by many African NGOs). Civil society organization (CSO) is another term used for NGOs, sometimes favored as it does not define the sector in terms of what it is not (non-governmental).
 +
 
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'''Note:''' NGOs are not legal entities under international law the way states are. An exception is the International Committee of the Red Cross, which is considered a legal entity under international law because it is based on the Geneva Convention.<ref>See, for instance, http://www.icrc.org/Web/Eng/siteeng0.nsf/html/genevaconventions.</ref> The ICRC does not classify itself as an NGO, however, because of its legal, governmental status.
 
<membersonly>
 
<membersonly>
  
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Code 94 – Classes 941, 942 and 949  
 
Code 94 – Classes 941, 942 and 949  
  
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=====Class: 9499 - Activities of other membership organizations n.e.c.=====
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=====Class: 9499 - Activities of Other Membership Organizations n.e.c.=====
  
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Explanatory note
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This class includes activities of organizations not directly affiliated to a political party furthering a public cause or issued by means of public education, political influence, fund-raising, etc.:
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This class includes:
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* Citizens initiative or protest movements
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- activities of organizations not directly affiliated to a political party furthering a public cause or issue by means of public education, political influence, fund-raising etc.:
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* Environmental and ecological movements
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* citizens initiative or protest movements
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* Organizations supporting community and educational facilities n.e.c.
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* environmental and ecological movements
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* Organizations for the protection and betterment of special groups, e.g. ethnic and minority groups
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* organizations supporting community and educational facilities n.e.c.
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* Associations for patriotic purposes including war veterans' associations, consumer associations, automobile associations, associations for the purpose of social acquaintanceship such as rotary clubs, lodges etc., associations of youth, young persons' associations, student associations, clubs and fraternities etc., associations for the pursuit of a cultural or recreational activity or hobby (other than sports or games, e.g. poetry, literature and book clubs, historical clubs, gardening clubs, film and photo clubs, music and art clubs, craft and collectors' clubs, social clubs, carnival clubs).
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* organizations for the protection and betterment of special groups, e.g. ethnic and minority groups
 
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* associations for patriotic purposes, including war veterans' associations
 
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- consumer associations
 
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- automobile associations
 
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- associations for the purpose of social acquaintanceship such as rotary clubs, lodges etc.
 
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- associations of youth, young persons' associations, student associations, clubs and fraternities etc.
 
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- associations for the pursuit of a cultural or recreational activity or hobby (other than sports or games), e.g. poetry, literature and book clubs, historical clubs, gardening clubs, film and photo clubs, music and art clubs, craft and collectors' clubs, social clubs, carnival clubs etc.
 
  
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This class also includes:
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This class also includes grant giving activities by membership organizations or others.
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- grant giving activities by membership organizations or others
 
  
 
This class excludes:
 
This class excludes:
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- activities of professional artistic groups or organizations
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*Activities of professional artistic groups or organizations
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- activities of sports clubs
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*Activities of sports clubs
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- activities of professional membership associations
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*Activities of professional membership associations.
  
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n.e.c. = not elsewhere classified  
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'''Note:''' n.e.c. = not elsewhere classified
  
 
===International Classification of Nonprofit Organizations (ICNPO)===
 
===International Classification of Nonprofit Organizations (ICNPO)===
  
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http://www.jhu.edu/~ccss/pubs/pdf/icnpo.pdf
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The International Classification of Nonprofit Organizations (ICNPO) was developed through a collaborative process involving a team of scholars working on the Johns Hopkins Comparative Nonprofit Sector Project (for a fuller description of the project, see Salamon and Anheier, 1996a). The system took shape by beginning with the International Standard Industrial Classification (ISIC) system (United Nations, 1990) and elaborating on it as needed to capture most succinctly the reality of the nonprofit sector in the thirteen different countries that were involved in the first phase of this project (U.S., U.K., France, Germany, Italy, Sweden, Japan, Hungary, Brazil, Ghana, Egypt, India, and Thailand).
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Salamon, Lester M. and Helmut K. Anheier. "The International Classification of Nonprofit Organizations: ICNPO-Revision 1, 1996." Working Papers of the Johns Hopkins Comparative Nonprofit Sector Project, no. 19. Baltimore: The Johns Hopkins Institute for Policy Studies, 1996.
 
−
 
 
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The International Classification of Nonprofit Organizations (ICNPO) was developed through a collaborative process involving the team of scholars working on the Johns Hopkins Comparative Nonprofit Sector Project (for a fuller description of the project, see Salamon and Anheier, 1996a). The system took shape by beginning with the International Standard Industrial Classification (ISIC) system (United Nations, 1990) and elaborating on it as needed to capture most succinctly the reality of the nonprofit sector in the thirteen different countries that were involved in the first phase of this project (the U.S., the U.K., France, Germany, Italy, Sweden, Japan, Hungary, Brazil, Ghana, Egypt, India, and Thailand).
 
  
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====Covered Entities=====
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====Covered Entities====
 
   
 
   
 
The ICNPO was designed to differentiate entities that share five basic features and therefore
 
The ICNPO was designed to differentiate entities that share five basic features and therefore
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make up the “nonprofit sector” (Salamon and Anheier, 1992; 1996b).1 In particular, they are:
+
make up the “nonprofit sector” (Salamon and Anheier, 1992; 1996b)
  
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1. Organized, i.e., institutionalized to some extent. What is important is that the organization has some institutional reality to it. In some countries this is signified by a legal charter of incorporation. But institutional reality can also be demonstrated in other ways where legal incorporation is neither common nor readily available. These include some degree of internal organizational structure; relative persistence of goals, structure and activities; and meaningful organizational boundaries, i.e., some recognized difference between members and nonmembers. What are excluded are purely ad hoc and temporary gatherings of people with no real structure or organizational identity.  
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'''1. Organized''' (institutionalized to some extent). What is important is that the organization has some institutional reality to it. In some countries this is signified by a legal charter of incorporation. But, institutional reality can also be demonstrated in other ways where legal incorporation is neither common nor readily available. These include some degree of internal organizational structure, relative persistence of goals, structure and activities, and meaningful organizational boundaries (i.e. some recognized difference between members and nonmembers). What are excluded are purely ad hoc and temporary gatherings of people with no real structure or organizational identity.  
  
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2. Private, i.e., institutionally separate from government. Nonprofit organizations are not part of the apparatus of government. They are “nongovernmental” in the sense of being structurally separate from the instrumentalities of government. This does not mean that they may not receive significant government support or even that government officials cannot sit on their boards. What is important from the point of view of this criterion is that the organization has an institutional identity separate from that of the state; that it is not an instrumentality of any unit of government whether national or local, and that it therefore does not exercise governmental authority.
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'''2. Private''' (institutionally separate from government). Nonprofit organizations are not part of the apparatus of government. They are “nongovernmental” in the sense of being structurally separate from the instrumentalities of government. This does not mean that they may not receive significant government support or even that government officials cannot sit on their boards. What is important from the point of view of this criterion is that the organization has an institutional identity separate from that of the state; that it is not an instrumentality of any unit of government whether national or local, and that it therefore does not exercise governmental authority.
  
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3. Self-governing, i.e., equipped to control their own activities. Some organizations that are private and nongovernmental may nevertheless be so tightly controlled either by governmental agencies or private businesses that they essentially function as parts of these other institutions even though they are structurally separate. To eliminate such situations, we add the further criterion that nonprofit organizations must be self-governing. To meet this criterion, organizations must be in a position to control their own activities to a significant extent. This implies that they must have their own internal governance procedures and enjoy a meaningful degree of autonomy.  
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'''3. Self-governing''' (equipped to control their own activities). Some organizations that are private and nongovernmental may nevertheless be so tightly controlled either by governmental agencies or private businesses that they essentially function as parts of these other institutions even though they are structurally separate. To eliminate such situations, we add the further criterion that nonprofit organizations must be self-governing. To meet this criterion, organizations must be in a position to control their own activities to a significant extent. This implies that they must have their own internal governance procedures and enjoy a meaningful degree of autonomy.  
  
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4. Non-profit-distributing, i.e., not returning profits generated to their owners or directors.
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'''4. Non-profit-distributing''' (not returning profits generated to their owners or directors). Nonprofit organizations may accumulate profits in a given year, but the profits must be plowed back into the basic mission of the agency, not distributed to the organizations’ owners, members, founders or governing board. The fundamental question is: how does the organization handle profits? If they are reinvested or otherwise applied to the stated purpose of the organization, the organization would qualify as a nonprofit institution. In this sense, nonprofit organizations are private organizations that do not exist primarily to generate profits, either directly or indirectly, and that are not primarily guided by commercial goals and considerations. This differentiates nonprofit organizations from the other component of the private sector.
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Nonprofit organizations may accumulate profits in a given year, but the profits must be plowed back into the basic mission of the agency, not distributed to the organizations’ owners, members, founders or governing board. The fundamental question is: how does the organization handle profits? If they are reinvested or otherwise applied to the stated purpose of the organization, the organization would qualify as a nonprofit institution. In this sense, nonprofit organizations are private organizations that do not exist primarily to generate profits, either directly or indirectly, and that are not primarily guided by commercial goals and considerations. This differentiates nonprofit organizations from the other component of the private sector.
 
  
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5. Voluntary, i.e., involving some meaningful degree of voluntary participation. To be included in the nonprofit sector, organizations must embody the concept of voluntarism to a meaningful extent. This involves two different, but related, considerations: First, the organization must engage volunteers in its operations and management, either on its board or through the use of volunteer staff and voluntary contributions. Second, “voluntary” also carries the meaning of “non-compulsory.” Organizations in which membership is required or otherwise stipulated by law would be excluded from the nonprofit sector. Similarly, “voluntary” implies that contributions of time (volunteering) and money (donations) as well as contributions in kind may not be required or enforced by law, or otherwise be openly coerced.
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'''5. Voluntary''' (involving some meaningful degree of voluntary participation). To be included in the nonprofit sector, organizations must embody the concept of voluntarism to a meaningful extent. This involves two different, but related, considerations. First, the organization must engage volunteers in its operations and management, either on its board or through the use of volunteer staff and voluntary contributions. Second, “voluntary” also carries the meaning of “non-compulsory.” Organizations in which membership is required or otherwise stipulated by law would be excluded from the nonprofit sector. Similarly, “voluntary” implies that contributions of time (volunteering) and money (donations) as well as contributions in kind may not be required or enforced by law, or otherwise be openly coerced.
  
 
=====Basic Structure of the ICNPO=====
 
=====Basic Structure of the ICNPO=====
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*GROUP 10: RELIGION  
 
*GROUP 10: RELIGION  
 
*GROUP 11: BUSINESS AND PROFESSIONAL ASSOCIATIONS, UNIONS  
 
*GROUP 11: BUSINESS AND PROFESSIONAL ASSOCIATIONS, UNIONS  
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*GROUP 12: NOT ELSEWHERE CLASSIFIED (NEC)  
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*GROUP 12: NOT ELSEWHERE CLASSIFIED (NEC)
  
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===National Taxonomy of Exempt Entities – Core Codes (NTEE – CC) = the industry-wide standard for nonprofit organizational classification===  
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===National Taxonomy of Exempt Entities – Core Codes (NTEE – CC): The Industry-Wide Standard for Nonprofit Organizational Classification===  
  
 
The National Center for Charitable Statistics is the national clearinghouse of data on the nonprofit sector in the United States. NCCS is a program of the Center on Nonprofits and Philanthropy (CNP) at the Urban Institute.
 
The National Center for Charitable Statistics is the national clearinghouse of data on the nonprofit sector in the United States. NCCS is a program of the Center on Nonprofits and Philanthropy (CNP) at the Urban Institute.
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*Kaplan, Ann E. (Ed.). Giving USA, 1997: The Annual Report on Philanthropy for the Year 1995. New York: AAFRC Trust for Philanthropy, 1997.  
 
*Kaplan, Ann E. (Ed.). Giving USA, 1997: The Annual Report on Philanthropy for the Year 1995. New York: AAFRC Trust for Philanthropy, 1997.  
  
−
*Kovacs, Ruth and McLaughlin, Ben (Eds.) Grants Classification System Indexing Manual with Thesaurus. New York: The Foundation Center, 1995.  
+
*Kovacs, Ruth and McLaughlin, Ben (Eds.) Grants Classification System Indexing Manual with Thesaurus. New York: The Foundation Center, 1995.
 +
 
 +
*Salamon, Lester M. and Helmut K. Anheier. "The International Classification of Nonprofit Organizations: ICNPO-Revision 1, 1996." Working Papers of the Johns Hopkins Comparative Nonprofit Sector Project, no. 19. Baltimore: The Johns Hopkins Institute for Policy Studies, 1996.  
  
 
*Sales, Georgia. 1994. A Taxonomy of Human Services, 3d ed. Los Angeles: INFOLINE, Seattle: AIRS.  
 
*Sales, Georgia. 1994. A Taxonomy of Human Services, 3d ed. Los Angeles: INFOLINE, Seattle: AIRS.  

Latest revision as of 10:48, 12 February 2009

This article is based on an article prepared by Diana C. Carligeanu for the NGO Handbook, titled "NGO Overview: What are NGOs?.


“The 21st Century will be an era of NGOs."

-- Kofi Annan, UN Secretary General

What are NGOs?

Non-governmental organizations (NGOs) are generally considered to be “non-state, non-profit orientated groups who pursue purposes of public interest”, excluding the private sector (Schmidt and Take 1997). One of the most widely used definitions is given by Operational Directive 14.70 of the World Bank: “private organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services, or undertake community development” (World Bank 2001).[1] According to the World Bank, NGOs are “value-based organizations which depend, in whole or in part, on charitable donations and voluntary service,” and in which “principles of altruism and voluntarism remain key defining characteristics”. More broadly, the term is applicable to any non-profit organization (NPO) that is not established by or controlled by a governmental entity, or even more broadly a nonprofit that is not affiliated with government.[2]

There are different ways of categorizing NGOs in broad terms. One categorization is the recognition of a :

  1. Mutual benefit NGO, involving an association concerned with improving the situation of its membership, versus a
  2. Public benefit NGO, which is an organization working for the imporvement of conditions of society as a whole or of a segment of society.

The World Bank differentiates two main categories of NGOs with which it interacts:

  1. Operational NGOs, the primary purpose of which is the design and implementation of development-related projects.
  2. Advocacy NGOs, the primary purpose of which is to defend or promote a specific cause, and influence the policies and practices of international organizations.[3]

Operational NGOs are further classified as national organizations, which operate in individual developing countries, international organizations, which are typically headquartered in developed countries and carry out operations in developing countries, and community-based organizations (CBOs), which serve a specific population in a narrow geographical area. CBOs, also referred to as grassroots organizations or peoples’ organizations (PO), differ from other NGOs in both nature and purpose: while national and international organizations are seen as “intermediary” NGOs that are formed to serve others, CBOs are usually “membership” organizations whose purpose is to advance the interests of their members. Examples include women’s groups, credit circles, youth clubs, cooperatives and farmers’ associations.

Alternative terms used to refer to NGOs include private voluntary organizations (used especially in the United States) and voluntary development organizations (a term favored by many African NGOs). Civil society organization (CSO) is another term used for NGOs, sometimes favored as it does not define the sector in terms of what it is not (non-governmental).

Note: NGOs are not legal entities under international law the way states are. An exception is the International Committee of the Red Cross, which is considered a legal entity under international law because it is based on the Geneva Convention.[4] The ICRC does not classify itself as an NGO, however, because of its legal, governmental status.


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