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A non-governmental group (NGO) is a non-profit, citizen-based group that features independently of presidency. NGOs are organized on native, nationwide, and worldwide ranges to serve financial, social welfare, and civic functions. Regardless of their independence from the federal government, many NGOs obtain important funding from authorities entities.
Key Takeaways
- A non-governmental group (NGO) is a non-profit, citizen-based group that features independently of presidency, and goals to serve financial, social welfare, and civic functions.
- Regardless of their independence from the federal government, many NGOs obtain funding from native, state, and federal governments by grants, contracts, and cooperative agreements.
- Authorities funding of NGOs can provoke controversy, equivalent to when members of the general public disagree in regards to the functions of the funding; some NGOs additionally want to not be related to the federal government and eschew funding from it.
Understanding NGOs and Authorities Funding
NGOs are personal organizations, managed by personal people and operated independently of presidency.
As of 2021, there are about 1.5 million NGOs in operation in the USA, representing all kinds of causes. Some NGOs give attention to developmental initiatives, equivalent to clear water, whereas others promote consciousness of particular causes, equivalent to gender equality.
Many NGOs obtain funding from native, state, and federal authorities entities by grants. A grant is a monetary award given to a corporation with a selected objective. Grants assist present funding for medical analysis, financial improvement, instructional advances, and varied initiatives that present public providers. Grants are basically presents that don’t should be repaid.
Different types of funding for NGOs embrace:
- Annual membership dues or charges
- Donations from people
- Donations from charitable foundations, that are funded both by public donations or personal donors, equivalent to an organization, a person, or household
- Income or earnings from the sale of products and providers
- Contracts and cooperative agreements with governments
Particular Concerns
Authorities funding of NGOs could provoke controversy when public officers and/or constituents disagree in regards to the NGO’s objectives or the needs of the funding. Some NGOs want to not be recognized or related to the federal government and eschew funding from any authorities or nationwide or worldwide governmental group.
For instance, the environmental NGO Greenpeace doesn’t take any funding from the federal government or companies. Greenpeace is prohibited from being concerned in politics, by advantage of being registered as a charity.
Examples of NGOs and Authorities Funding
Examples of NGOs that at the moment obtain authorities funding, or which have obtained authorities funding prior to now, embrace:
Medical doctors With out Borders
Medical doctors With out Borders is an NGO that gives medical help and entry to medicines to these in want all through the globe, which incorporates combating malnutrition, HIV/AIDS, Malaria, and plenty of different medical points.
The overwhelming majority of the income is raised by donations from people, companies, and foundations. The group receives some authorities funding internationally however limits that funding to lower than 20% of the overall quantity of funds raised. Medical doctors With out Borders has not obtained any funding from the U.S. authorities since 2002.
American Affiliation of Retired Individuals (AARP)
The American Affiliation of Retired Individuals (AARP) is a company that helps individuals age fifty and older by offering training and data. A few of the points that AARP focuses on embrace monetary training, caregiving for older adults, and fraud safety.
AARP receives some grant funding from the federal authorities by the AARP Basis, which helps to battle poverty for older residents. In any other case, the group receives the overwhelming majority of its funding by membership dues, donations, and promoting income from its publications. AARP additionally earns royalty earnings by permitting third-party companies, equivalent to monetary establishments to make use of the AARP model identify.
World Wildlife Fund (WWF)
The World Wildlife Fund’s mission is to preserve nature and promote the variety of life on Earth. The problems being addressed embrace creating renewable power, creating sustainable meals techniques for individuals, conservation of forests, and making certain that there is an satisfactory quantity of freshwater. In 2021, 28% of the WWF’s funding got here from people, 29% from foundations, 3% from companies, whereas solely 9% got here from authorities grants.
Does the UN give cash to NGOs?
The United Nations commonly types partnerships with NGOs to advance its beliefs. To that finish, the UN commonly makes funding obtainable for civil society teams, people, and grassroots organizations to help sure actions according to its mandate.
The place can I discover US authorities grants?
The federal authorities maintains a central repository of obtainable funding alternatives at Grants.gov. The location homes data for over 1,000 grant packages, and vets functions for them.
Are NGOs tax-exempt?
Whereas many NGOs are certified as exempt from state and federal taxes, this isn’t all the time the case. As a way to obtain tax-exempt standing, NGOs have to use for it from the Inside Income Service. On the whole, NGOs organized for instructional, spiritual, scientific, and charitablee functions can obtain such standing, whereas these organized for political functions obtain extra restricted tax exemptions.
The Backside Line
NGOs are non-profit, citizen-based teams that function independently of presidency. They could intention to serve a wide range of totally different social, financial, or civic causes. Regardless of their lack of presidency affiliation, they might obtain monetary help from an array of sources, together with by grants. Some distinguished NGOs, such because the American Affiliation of Retired Individuals (AARP) have obtained grant funding, whereas others like Greenpeace, could intentionally eschew it to keep away from affiliation with the federal government.
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