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A non-governmental organization (NGO) is a non-profit, citizen-based group that functions independently of government. NGOs are organized on local, national, and international levels to serve economic, social welfare, and civic purposes. Despite their independence from the government, many NGOs receive significant funding from government entities.
NGOs are private organizations, managed by private individuals and operated independently of government.
As of 2021, there are about 1.5 million NGOs in operation in the United States, representing a wide variety of causes. Some NGOs focus on developmental projects, such as clean water, while others promote awareness of specific causes, such as gender equality.
Many NGOs receive funding from local, state, and federal government entities through grants. A grant is a financial award given to an organization with a specific purpose. Grants help provide funding for medical research, economic development, educational advances, and various projects that provide public services. Grants are essentially gifts that do not need to be repaid.
Other forms of funding for NGOs include:
Government funding of NGOs may provoke controversy when public officials and/or constituents disagree about the NGO's goals or the purposes of the funding. Some NGOs prefer not to be identified or associated with the government and eschew funding from any government or national or international governmental organization.
For example, the environmental NGO Greenpeace does not take any funding from the government or corporations. Greenpeace is prohibited from being involved in politics, by virtue of being registered as a charity.
Examples of NGOs that currently receive government funding, or that have received government funding in the past, include:
Doctors Without Borders is an NGO that provides medical assistance and access to medicines to those in need throughout the globe, which includes fighting malnutrition, HIV/AIDS, Malaria, and many other medical issues.
The vast majority of the revenue is raised through donations from individuals, corporations, and foundations. The organization receives some government funding internationally but limits that funding to less than 20% of the total amount of funds raised. Doctors Without Borders has not received any funding from the U.S. government since 2002.
The American Association of Retired Persons (AARP) is an organization that helps people age fifty and older by providing education and information. Some of the issues that AARP focuses on include financial education, caregiving for older adults, and fraud protection.
AARP receives some grant funding from the federal government through the AARP Foundation, which helps to fight poverty for older citizens. Otherwise, the organization receives the vast majority of its funding through membership dues, donations, and advertising revenue from its publications. AARP also earns royalty income by allowing third-party firms, such as financial institutions to use the AARP brand name.
The World Wildlife Fund's mission is to conserve nature and promote the diversity of life on Earth. The issues being addressed include creating renewable energy, creating sustainable food systems for people, conservation of forests, and ensuring that there's an adequate amount of freshwater. In 2021, 28% of the WWF's funding came from individuals, 29% from foundations, 3% from corporations, while only 9% came from government grants.
The United Nations regularly forms partnerships with NGOs to advance its ideals. To that end, the UN regularly makes funding available for civil society groups, individuals, and grassroots organizations to support certain activities in line with its mandate.
The federal government maintains a central repository of available funding opportunities at Grants.gov. The site houses information for over 1,000 grant programs, and vets applications for them.
While many NGOs are qualified as exempt from state and federal taxes, this is not always the case. In order to receive tax-exempt status, NGOs have to apply for it from the Internal Revenue Service. In general, NGOs organized for educational, religious, scientific, and charitablee purposes can receive such status, whereas those organized for political purposes receive more limited tax exemptions.
NGOs are non-profit, citizen-based groups that operate independently of government. They may aim to serve a variety of different social, economic, or civic causes. Despite their lack of government affiliation, they may receive financial support from an array of sources, including through grants. Some prominent NGOs, such as the American Association of Retired Persons (AARP) have received grant funding, while others like Greenpeace, may deliberately eschew it to avoid association with the government.