Are you planning to donate money to an NGO but don’t know how to proceed? Are you confused between the terms - NPOs and NGOs? Do you want to donate but are afraid of fraud? These are some of the basic queries that evolve around your mind while taking your first step toward donating to an NGO or NPO or charity, or any other social enterprise.
Whether you're a seasoned social entrepreneur or a newbie in donation, it's easy to get confused. Not to forget, there are about 3.2 million registered non-government organizations (NGOs) in India alone. In the end, it comes down to money, and you want that to go in the right direction. If you have made the decision to donate to a deserving cause, it is imperative that you fully comprehend important details. It is always a good idea to have several options in hand. So, let's explore the same in detail!
An NGO is an organization that is not under the supervision of the government and runs on a not-for-profit basis. It includes nonprofits and charities too. NGOs engage in a variety of disciplines, such as disaster assistance, to promote the rights of suppressed and disadvantaged populations, etc. Numerous NGOs advocate various human rights, including those of women, children, and others. For example, Annamrita Foundation is an NGO that specifically deals in providing mid-day meals to underprivileged school-going children.
Similar to nonprofit organizations, NGOs are primarily supported by membership fees, individual donations, grants, loans, and the sale of services. While keeping its non-governmental status, it can also take financing from governmental bodies. While the government cannot directly control what an NGO conducts, several NGOs rely on funding from governmental institutions.
NPO or Non-Profit Organization is not about making money. It can be viewed as a group of people coming together legally to advance social, professional, religious, or cultural goals. NPOs heavily rely on fundraising and actively seek volunteers. If you want to donate to a food NGO, then ensure that it should be registered under Section 8 of the Companies Act. You can gain various benefits from doing this, including tax exemption. NPOs frequently work on a small scale and rely on their employees and volunteers to deliver services. Some examples of NPOs - are public arts organizations, trade unions, & more.
A particular category of nonprofit organization known as a charity serves the public good and seeks to elevate society's standard of living. Churches, schools, hospitals, research groups, and other establishments fall under this category. A charity can support several noble causes, from the eradication of poverty to the provision of education to poor children to the preservation of the environment or the protection of animal rights.
An NGO, NPO, and charity can be different in many segments but the motive is the same i.e., working toward the greater good. On one end, NGOs work independently of the government whereas the money made by not-for-profit organizations is utilized to support their own infrastructure and operations. Charities have strict guidelines and receive various tax perks that other businesses do not. It's up to you which of these organizations you feel is the most progressive and can contribute best to the social needs. It is always recommended to research the status of the NGO or NPO you choose before donating.