SARDAR KHAN & CO | Non-Governmental Organisation
A Non-Governmental Organisation (NGO) is a voluntary, non-profit group of citizens organised at local, national, or international levels. NGOs are goal-oriented and driven by people with shared interests. They perform a wide range of humanitarian services, represent citizen concerns to governments, monitor policies, and encourage community-level political engagement.
NGOs provide expertise and analysis, act as early warning systems, and assist in monitoring and implementing international agreements. Some focus on specific issues such as human rights, health, or environmental protection.
A Non-Governmental Organisation is legally formed by private individuals or entities without government representation. Even when partially funded by governments, NGOs retain their non-governmental status as long as no government representatives are part of the organisation. While most operate at the grassroots level, some provide advisory services, research, and policy monitoring on international agreements.
The World Bank defines NGOs as “private organisations that engage in activities to alleviate suffering, promote the welfare of the poor, protect the environment, provide essential social services, or support community development.” According to the World Bank, NGOs can broadly include any non-profit organisation independent of the government. NGOs are typically value-driven organisations relying on donations and voluntary work. Although professionalisation has increased over the past two decades, principles of altruism and volunteerism remain central.
Terms Used for Non-Governmental Organizations
Besides “NGO,” other terms are commonly used, including:
- Independent Sector
- Volunteer Sector
- Civil Society
- Grassroots Organizations
- Transnational Social Movement Organizations
- Private Voluntary Organisations
- Self-help Organizations
- Non-State Actors (NSAs)
Freedom of Association
The Constitution of the Islamic Republic of Pakistan, 1973, guarantees citizens the fundamental right to form associations or unions. This right is subject only to reasonable legal restrictions in the interest of public order or morality.
How Non-Governmental Organizations Get Registered
NGOs in Pakistan can be registered under:
- Society registration
- Trust formation
- Company registration
Can Non-Governmental Organisations Make Profits?
Yes, but any earnings are termed “surplus” rather than profit. Unlike companies that distribute profits as dividends, NGOs cannot distribute their surplus among members.
Alternative Names for Non-Governmental Organisations
NGOs are sometimes referred to as:
- NPOs (Not-for-Profit Organizations)
- VOs (Voluntary Organizations)
- CSOs (Civil Society Organisations)
- CBOs (Community-Based Organizations)
- Charitable Organizations
- Third Sector Organisations
Typical Forms of Non-Governmental Organisations
Advocacy NGOs
These organisations focus on campaigning and advocacy rather than program implementation. For example, PETA advocates for the ethical treatment of animals but does not function as an animal shelter.
Consultancy / Research Organizations
These NGOs specialise in social and development research, offering consultancy services to other organisations.
Training / Capacity Building Organisations
Some NGOs exclusively focus on capacity building, providing training to strengthen other NGOs’ operational capabilities.
Networking Organizations
Networking NGOs create platforms for collaboration within a specific sector. For example, the Association of Voluntary Agencies for Rural Development (AVARD) facilitates networking for NGOs involved in rural development.
Mother NGOs
Mother NGOs both receive and distribute funding. Large organisations like CRY and Concern India monitor, evaluate, and provide capacity-building support to smaller NGOs rather than implementing projects directly.
Grassroots Organizations
These NGOs engage directly with communities at the local level.
City-Based Organisations
Focused solely on urban areas.
National Organizations
NGOs with a nationwide presence, such as CRY, Pratham, and Concern India.
International Organizations
Part of global NGO networks, such as CARE India. These NGOs both receive and allocate international grants.
Self-Help Groups
Formed by community members, often women, typically in groups of 10 or more. They are not formally considered NGOs.
Religious NGOs
A significant portion of NGO funding is directed to organisations with religious foundations.
Prominent International NGO Types
- INGO: International NGO
- BINGO: Business-oriented or Big International NGO
- ENGO: Environmental NGO (e.g., Global 2000)
- GONGO: Government-Operated NGO, appearing independent but set up to advance government interests
- QUANGO: Quasi-Autonomous NGO (e.g., ISO)
- TANGO: Technical Assistance NGO
- CSO: Civil Society Organisation
NGOs employ different strategies; some focus on lobbying, while others implement programs. For instance, Oxfam provides resources and skills for food and clean water access to impoverished communities.
United Nations and NGOs
NGO interaction with the United Nations System varies based on their mission and mandate. Over 1,500 NGOs are affiliated with the UN Department of Public Information (DPI), facilitating communication between the UN and global communities. DPI assists NGOs in sharing information about UN initiatives and objectives.
World Association of Non-Governmental Organizations (WANGO)
Founded in 2000, WANGO connects NGOs globally to advance peace, justice, and human well-being. It provides mechanisms for collaboration, networking, and sharing resources to address humanity’s challenges effectively.
Public Relations of NGOs
NGOs require strong public engagement to achieve their objectives. Foundations and charities often use advanced PR campaigns to raise funds and lobby governments. Interest groups can influence social and political outcomes, and NGOs may mobilise public support for advocacy purposes.
Management of NGOs
Key management approaches in NGOs include:
- Diversity Management: Handling intercultural challenges, especially in Northern NGOs operating in developing countries.
- Participatory Management: A learning-based style where all staff contribute knowledge, skills, and decision-making input to improve the organisation.
Legal Status of NGOs
NGOs are not recognised as subjects of international law like states. An exception is the International Committee of the Red Cross, which has specific legal recognition under the Geneva Convention.
In Europe, the Council of Europe drafted the European Convention on the Recognition of the Legal Personality of International NGOs (1986), establishing a legal framework for NGOs. The European Convention on Human Rights protects freedom of association, a core principle for NGOs.
Importance of NGOs
NGOs have a significant influence on social, economic, and political developments. They address issues such as women’s rights, environmental protection, human rights, economic growth, political participation, and healthcare. Globally, NGOs have contributed to democratisation, disease control, human rights enforcement, and raising living standards.
In Pakistan, 20 NGOs are currently associated with DPI, working in areas like education, environment, health, human rights, and women’s empowerment, supporting UN goals.
Key Components of NGOs
The success of an NGO depends on its programs, target communities, funding, and partnerships. Essential factors include:
- Community Needs: Identifying genuine issues faced by the target population
- Staff Expertise: Leveraging in-house or external expertise
- Funding Strategy: Accessing local and international funding for short- and long-term initiatives
New NGOs must also gain acceptance and trust from their target communities to ensure effective programs and real impact.
Status of NGOs in Pakistan
NGOs, also referred to as non-profit organisations or charitable institutions, are protected under the Constitution of Pakistan, 1973, which guarantees the right to form associations.
They can be registered under the Companies Ordinance, Trusts Act, or Societies Registration Act, with income tax exemptions for non-profit operations.
Registration of NGOs under The Companies Act, 2017
NGOs can register under Section 42 of the Companies Act, 2017, and comply with the Companies (General Provisions and Forms) Rules, 1985. Upon registration, they obtain a license as a company with limited liability without the term “Limited,” “(Private) Limited,” or “(Guarantee) Limited.”
These companies must apply all profits toward their objectives and are prohibited from distributing dividends to members.
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