A:

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 specific social or political purposes. Despite their independence from government, many NGOs receive significant funding from government entities.

While an NGO can be funded entirely or in part by government funding, it may keep its non-governmental status by prohibiting government representatives from membership. In the United States, about 1.5 million NGOs are in operation, representing a wide variety of causes. Many of those receive funding from local, state and federal government entities. The funding often comes as a result of a grant award. However, other forms of funding, such as product donations, can occur. Examples of NGOs that currently receive government funding, or that have received government funding in the past, include:

  • American Association of Retired Persons (AARP)
  • Doctors Without Borders
  • World Vision United States
  • World Wildlife Fund

Government funding of NGOs is sometimes viewed as controversial, because the funding may support certain political goals rather than a nation's development goals. As such, certain NGOs will not accept funding from the government or any intergovernmental association. For example, the environmental NGO Greenpeace does not take any funding from government , corporations or political parties. Greenpeace has this policy in order to maintain "absolute independence."

RELATED FAQS
  1. What is an NGO (non-governmental organization)?

    A non-governmental organization (NGO) is a non-profit, citizen-based group that functions independently of government. NGOs, ... Read Answer >>
  2. How do NGOs get funding?

    A non-governmental organization (NGO) is a non-profit, citizen-based group that functions independently of government. NGOs ... Read Answer >>
  3. Can mutual funds only hold stocks?

    Learn about which types of mutual funds consist of only stocks, which may include stocks in addition to other assets and ... Read Answer >>
  4. What are the different groups involved in corporate governance?

    Learn about the challenges inherent to defining and executing corporate governance, and understand why different groups work ... Read Answer >>
  5. Can state and local governments in the US run fiscal deficits?

    Discover why most state and local governments do not – or cannot – run fiscal deficits in the same manner as the U.S. federal ... Read Answer >>
  6. How is the Social Security trust fund invested?

    Read about how the Social Security trust fund is set up, paid into, borrowed from and invested by the U.S. government and ... Read Answer >>
Related Articles
  1. Investing

    What are Government Securities?

    Government securities are debt instruments that governments issue to raise capital.
  2. Financial Advisor

    Advising FAs: Explaining Mutual Funds to a Client

    More than 80 million people, or half of the households in America, invest in mutual funds. No matter what type of investor you are, there is bound to be a mutual fund that fits your style.
  3. Investing

    Explaining Government Bonds

    A government bond is a debt security a government issues.
  4. Small Business

    Risks Associated With Government Contracts

    Government contracts can be rewarding, but they also come with a variety of risks.
  5. Investing

    Mutual Funds: Does Size Really Matter?

    The growth of mutual funds isn't always cause for celebration. Read on to find out why.
  6. Insights

    The Pros and Cons of Being a Nonprofit

    Evaluating the tradeoffs organizations face when choosing between becoming a tax-exempt nonprofit or for-profit business with innovative ease.
  7. Investing

    How Mutual Fund Managers Pick Stocks

    Learn about how mutual fund managers choose stocks based on the type of funds they manage and the investment goals of the funds' shareholders.
  8. Managing Wealth

    Should Balanced Funds Be Part Of Your Portfolio?

    Find out why you should include balanced funds in your portfolio, including the importance of customizability, diversification and professional management.
  9. Investing

    The Government And Risk: A Love-Hate Relationship

    Though the U.S. government can help its citizens by subsidizing risky loans, the costs always come back to the taxpayers.
RELATED TERMS
  1. Limited Government

    A political system in which legalized force is restricted through ...
  2. Government Bond

    A debt security issued by a government to support government ...
  3. Nonprofit Organization

    A business entity that is granted tax-exempt status by the Internal ...
  4. Federal Debt

    The total amount of money that the United States federal government ...
  5. Government Grant

    A financial award given by the federal, state or local government ...
  6. Income Fund

    A type of mutual fund that emphasizes current income, either ...
Hot Definitions
  1. Sharpe Ratio

    The Sharpe Ratio is a measure for calculating risk-adjusted return, and this ratio has become the industry standard for such ...
  2. Death Taxes

    Taxes imposed by the federal and/or state government on someone's estate upon their death. These taxes are levied on the ...
  3. Retained Earnings

    Retained earnings is the percentage of net earnings not paid out as dividends, but retained by the company to be reinvested ...
  4. Demand Elasticity

    In economics, the demand elasticity refers to how sensitive the demand for a good is to changes in other economic variables. ...
  5. Dark Pool

    A dark pool is a private financial forum or exchange for trading securities.
  6. Quadruple Witching

    The expiration date of various stock index futures, stock index options, stock options and single stock futures. All stock ...
Trading Center