CONTENTS:

• DEFINITION
• DIFFERENCE BETWEEN NGO AND NPO
• CONCLUSION

DEFINITION:

A non-governmental organization (NGO) and Non- profit organization (NPO) both work not for the making profit but for social good. Many other times their initiatives are similar to each other as well and the public would get confused on the differences of these two organizations. Many people do not understand the differences between, NGO and NPO. NGO and NPO are both and similar differences. The work they do is critical towards society and without both types of organizations. The simple point which they beautifully share with each other is the good of people. NGO and NPO work hard for the development of society. NGO is a non-governmental organization, and a non-profit organization can also be mention as an NPO. NGO funds are raised by the government, and they are also known as civil society organizations. A non-profit organization (NPO) uses its extra funds for the intention of the organization. NPO’S are public arts organizations, trade unions and charitable organizations. An NGO or non-governmental organization works for the public, social welfare and animal’s interest and NPO is a non-profit organization that works for the purpose other than the making of profits, but such organizations are incorporated under the Companies Act, 2013.

                                       NGO works for society and the economy. NGO works all over India and all over the world like equality and human rights all associate to the categories like arts and culture, research, and the same topics are managed mostly by NPO. NPO focus more on the improvement like arts and culture. Both still work to make a profit, not for personal gains but to help many parts of society, locally or internationally. NGO in India is a much broader concept as it also covers an NPO and NPO is a form of NGO. An NGO is formed by ordinary citizens that operate autonomously of government and NPO is an organization which is formed to provide goods and service to people. Non-Governmental Organization (NGO) and Non-Profit Organization (NPO) both functions to benefit the society and welfare of humans and improve the world. Both Organization is not affiliated with the Government. NGO and NPO are quite similar to each other based on their goals that are the reason it gets difficult to describe the difference between both.

The Difference between NGO and NPO is described in details below:

REGISTRATION: The main difference between NGOs and NPO in India, associates with the registration procedure of both the organizations. NGO can be done under various acts and laws in different states. NGO registered as a Trust under Public Trust Act, or a Society Registration Act, 1860 and also a non- profit company under the Companies Act, 1956. Most probably NGO’s register their organization in the form of a welfare company, trust or society.

The Registration of NPO is done as per Section 8 of the Companies Act, 2013. NPO’s register themselves as an exclusive organization.

OPERATION AREA: NGO’s area of operation is very large. NGO’s operate worldwide. NGOs in India carriage their work at national, regional, state, and international levels.

NPO’s area of operation is limited. The work of NPO’s in India restricts to only their organizations. They fight to serve people through their goods and services only.

WORK: NGO works for the- bring awareness of human rights, women empowerment etc. NGO works for the benefit of society and the economy of the country. NGO’s mainly work to help people evolve from problems.

NPO promote art, science, commerce, research or any other useful purpose. The primary object of NPO creating a company to promote non-profit objectives such as charity, education, religion, social welfare, sports, etc. NPO’s work to improve services for people.

FUND: NGO’s can raise funds various other programmers, projects, activities, processes.

NPO’s can raise funds through external commercial, foreign funds or the funds can be contributed by the members or directors.

CONCLUSION: NGOs and NPO both work for the advantage of human welfare and to better society. NGOs and NPO are one and the same. However, they are working towards the greater good of society. The primary difference such as NPO’s is exempted from tax and NGOs do not allow government representatives to become members of the organizations. An NGO works for promoting humanitarian and NPO is an organization which is set up to promote art, science, education or any other social or cultural purpose. NGO’s and NPO’s are both in the gentile sense, commentators draw a difference between them mainly based on the nature and scope of their operations.