Difference between revisions of "Overview of NGOs"

From NGO Handbook
(Covered Entities)
(Covered Entities)
Line 108: Line 108:
 
make up the “nonprofit sector” (Salamon and Anheier, 1992; 1996b)
 
make up the “nonprofit sector” (Salamon and Anheier, 1992; 1996b)
  
'''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.  
+
'''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.  
  
'''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.
+
'''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.
  
'''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.  
+
'''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.  
  
 
'''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.
 
'''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.
  
'''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.
+
'''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=====

Revision as of 11:53, 11 August 2008

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] More broadly, the term is applicable to any non-profit organization (NPO) that is not affiliated with government.[2] 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:

  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, 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).

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]


To read the rest of the article, please log in using your WANGO membership username and password (using the log in at the top, right-hand corner of the page). Not a WANGO member, but would like full access to the articles in the NGO Handbook? Join WANGO (http://www.wango.org/join.aspx) as an organization or individual member or purchase a year subscription for $30.