How do NGOs get funding?

By Jean Folger AAA
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.
As non-profit organizations, NGOs rely on a variety of sources for funding projects, operations, salaries and other overhead costs. Because the annual budget of an NGO can be in the hundreds of millions (or even billions) of dollars, fundraising efforts are important for the NGO's existence and success. Funding sources include membership dues, the sale of goods and services, private sector for-profit companies, philanthropic foundations, grants from local, state and federal agencies, and private donations.

Individual private donors comprise a significant portion of NGO funding. Some of these donations come from wealthy individuals - such as Ted Turner's $1 billion donation to the United Nations, or Warren Buffett's pledge to give 10 million Berkshire-Hathaway class B shares to the Bill and Melinda Gates Foundation (valued at more than $31 billion in June 2006). Many NGOs, however, rely on a large number of small donations (rather than a small number of large donations).

Despite their independence from government, many NGOs rely heavily on government funding in order to function. Some governmental NGO funding may be viewed as controversial because the funding may support certain political goals rather than a nation's development goals.

RELATED FAQS

  1. Does the federal government fund any NGOs? Which ones?

    A non-governmental organization (NGO) is a non-profit, citizen-based group that functions independently of government. NGOs ...
  2. Do nonprofit organizations pay taxes?

    Section 501 of the Internal Revenue Service (IRS) tax code exempts qualified nonprofit organizations from federal taxes. ...
  3. What does "pro bono" mean?

    The term pro bono is short for the Latin "pro bono publico," which means "for the public good." The term generally refers ...
RELATED TERMS
  1. National Motor Freight Traffic Association (NMFTA)

    A nonprofit organization representing interstate, intrastate, ...
  2. Guarantee Company

    A form of corporation designed to protect members from liability, ...
  3. Economist Intelligence Unit - EIU

    An organization that provides forecasting and advisory services ...
  4. Investment Counsel Association Of America - ICAA

    A non-profit organization whose members work in the investment ...
  5. Canadian Association Of Petroleum Producers - CAPP

    A trade organization whose members operate petroleum and natural ...
  6. Energy Resources Conservation Board - ERCB

    An agency of the government of Alberta responsible for the regulation ...
comments powered by Disqus
Related Articles
  1. How To Start Your Own Private Foundation
    Personal Finance

    How To Start Your Own Private Foundation

  2. Microfinance: What It Is And How To ...
    Entrepreneurship

    Microfinance: What It Is And How To ...

  3. An Introduction to Microfinance
    Insurance

    An Introduction to Microfinance

  4. Social Finance Careers: Creating A Better ...
    Entrepreneurship

    Social Finance Careers: Creating A Better ...

  5. Trading The Non-Farm Payroll Report
    Forex Education

    Trading The Non-Farm Payroll Report

Trading Center