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. Are accepting investments legal for NGOs in the USA?

    We have wealthy individuals who wish to contribute investments themselves to our efforts. Is that advisable and legal? ... Read Answer >>
  4. What typically comprises a money market fund?

    Learn about the basic types of money market funds and discover how they are characterized by the types of investments that ... Read Answer >>
  5. 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 >>
  6. How do I calculate the loan-to-value ratio using Excel?

    Learn what a mutual fund and a money market fund are, and understand the differences between each and how they serve various ... Read Answer >>
Related Articles
  1. Investing

    Popular Resources for Equity Research and Analysis: Chapter 3: Government Agencies and NGOs

    Many direct government agencies and NGOs maintain websites with robust and timely financial information. The Federal Reserve is top on the list and should be tracked by any parties interested ...
  2. Markets

    Explaining Limited Government

    Limited government is a political viewpoint that favors few, if any, government controls on individuals and the economy.
  3. Markets

    What are Government Securities?

    Government securities are debt instruments that governments issue to raise capital.
  4. Personal Finance

    NGOs Millennials Like To Donate To

    To appeal to millennials, NGOs must adapt to new approaches to giving.
  5. Investing

    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.
  6. Markets

    Explaining Government Bonds

    A government bond is a debt security a government issues.
  7. Managing Wealth

    Risks Associated With Government Contracts

    Government contracts can be rewarding, but they also come with a variety of risks.
  8. ETFs & Mutual Funds

    5 Characteristics of Strong Mutual Fund Shares

    Discover some of the basic characteristics shared by good mutual funds that investors can use to help them in selecting funds.
  9. ETFs & Mutual Funds

    The 4 Best American Funds for Growth Investors in 2016

    Discover four excellent growth funds from American Funds, one of the country's premier mutual fund families with a history of consistent returns.
  10. Managing Wealth

    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.
RELATED TERMS
  1. Master of Public Administration - MPA

    A Master's level degree in public affairs that prepares recipients ...
  2. Grant-In-Aid

    A transfer of money from the federal government to a state government, ...
  3. National Social Security Fund (China)

    A government-controlled investment fund established primarily ...
  4. Government Bond

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

    A business entity that is granted tax-exempt status by the Internal ...
  6. Limited Government

    A political system in which legalized force is restricted through ...
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center