Explain about functions of Non-profit organizations and types of Non-profit organizations

     MSW Notes > NGO Management 

2)  Explain about functions of Non-profit organizations and types of Non-profit organizations.

Discuss the functions and activities of Non-Governmental Organization.

Answer:  Functions and Types of Non-Profit Organisations (NPOs) with Special Reference to NGOs

Introduction

Non-Profit Organisations (NPOs), also commonly referred to as Non-Governmental Organisations (NGOs), are voluntary, service-oriented organisations that work for the welfare of society without the motive of profit. Unlike commercial enterprises, their primary objective is to serve disadvantaged communities, promote human rights, and ensure inclusive development.

In India, NPOs play a crucial role in supplementing government programs in areas like education, health, environment, child welfare, and women empowerment. Their functions can be broadly classified into service delivery, advocacy, empowerment, and capacity building.

 

Functions of Non-Profit Organisations

1. Service Delivery

NPOs directly provide essential services to communities where government support is limited.

·        Examples: Running health camps, schools, crèches, blood donation drives, and relief camps during disasters.

·        Case: The NGO Smile Foundation runs mobile healthcare units to deliver medical services in remote areas.

2. Advocacy and Policy Influence

NPOs advocate for policy changes and legal reforms to protect the rights of vulnerable groups. They often act as a bridge between people and policymakers.

·        Example: Centre for Science and Environment (CSE) campaigns for environmental laws and clean air regulations.

3. Empowerment and Awareness

They empower communities through training, awareness campaigns, and self-help initiatives.

·        Example: SEWA (Self-Employed Women’s Association) empowers women workers by providing microcredit and skill-building programs.

4. Capacity Building

NPOs build the capacity of grassroots organisations, self-help groups, and local communities by offering training in leadership, record keeping, and financial management.

5. Research and Innovation

Many NPOs engage in research, pilot projects, and innovative models of development. These models can later be scaled up by the government.

·        Example: Pratham NGO’s “Read India” campaign improved literacy rates and influenced government education programs.

6. Disaster Relief and Humanitarian Aid

NPOs often provide immediate relief during floods, earthquakes, pandemics, or conflicts.

·        Example: During the COVID-19 pandemic, NGOs like GiveIndia and Goonj provided food, masks, and medical supplies.

 

Types of Non-Profit Organisations

In India, non-profit organisations can be broadly classified based on their legal status, scope of work, and functions.

A. Based on Legal Status

1.     Trusts:

·        Governed by the Indian Trusts Act, 1882.

·        Suitable for charitable and religious purposes.

·        Example: Tata Trusts.

2.     Societies:

·        Registered under the Societies Registration Act, 1860.

·        Work in the fields of literature, culture, science, and charity.

·        Example: Indian Red Cross Society.

3.     Section 8 Companies:

·        Registered under the Companies Act, 2013.

·        Have higher credibility, suited for large-scale NGOs.

·        Example: Teach For India.

 

B. Based on Area of Work

1.     Charitable Organisations: Focus on relief work, donations, and welfare.

o   Example: Helpage India (elderly care).

2.     Service-Oriented Organisations: Provide specific services like health, education, sanitation.

o   Example: Smile Foundation.

3.     Advocacy Organisations: Influence policy and law through campaigns, research, and lobbying.

o   Example: Amnesty International.

4.     Grassroots/Community-Based Organisations: Work directly with local people with active community participation.

o   Example: SEWA.

5.     International NGOs (INGOs): Operate across countries and support national/local NGOs.

o   Example: Oxfam, Plan International.

 

C. Based on Target Groups

·        Child-focused NGOs: CRY, SOS Children’s Villages.

·        Women-focused NGOs: SEWA, Snehalaya.

·        Environment-focused NGOs: Greenpeace, CSE.

·        Health-focused NGOs: PATH, The Leprosy Mission.

 

Functions and Activities of Non-Governmental Organisations

NGOs, as a subset of NPOs, perform diverse activities based on the needs of the communities they serve. Their functions can be divided into direct service functions and indirect influencing functions.

1. Direct Service Functions

·        Education: Running schools, tuition centres, and literacy programs.

o   Example: Pratham NGO’s remedial education.

·        Health: Free health check-ups, awareness on HIV/AIDS, nutrition programs.

o   Example: NACO-supported NGOs in HIV prevention.

·        Livelihood Promotion: Skill training, microfinance, promoting self-help groups.

o   Example: Bandhan-Konnagar NGO for rural women’s economic empowerment.

·        Relief & Rehabilitation: Disaster relief, rehabilitation of victims of trafficking, child labour, and domestic violence.

o   Example: Goonj NGO during floods and earthquakes.

 

2. Indirect Functions

·        Policy Advocacy: Filing PILs, lobbying with legislators, campaigns for new laws.

o   Example: Childline India Foundation advocated for helpline 1098 for children in distress.

·        Social Mobilisation: Creating awareness on issues like sanitation, gender equality, climate change.

o   Example: Swachh Bharat campaigns supported by NGOs.

·        Research & Documentation: Collecting data, conducting studies, and publishing reports to influence decisions.

o   Example: Oxfam India reports on inequality.

·        Networking and Partnerships: NGOs often network with other NGOs, corporates, and international donors to mobilize resources.

o   Example: CSR-NGO partnerships in education and healthcare.

 

Importance of NGOs/NPOs in Social Development

·        Filling Gaps: They reach marginalized groups often left out by government schemes.

·        Innovative Models: Pilot projects by NGOs inspire larger government initiatives.

·        Community Trust: NGOs build rapport with local people, making interventions more effective.

·        Global Linkages: INGOs bring international best practices and resources.

 

Challenges in NGO Functioning

While NGOs perform important functions, they face challenges such as:

·        Limited and irregular funding.

·        Over-dependence on foreign aid (restricted by FCRA).

·        Lack of trained manpower and professionalism.

·        Government restrictions and lengthy registration processes.

·        Concerns about accountability and transparency.

Example: After amendments to FCRA in 2020, many small NGOs lost foreign funding, leading to closure of welfare programs.

 

Conclusion

Non-Profit Organisations, especially NGOs, are vital partners in development. Their functions range from direct service delivery in health and education to indirect roles like advocacy, awareness creation, and policy influence. They exist in various forms such as trusts, societies, and Section 8 companies, and are also categorized based on focus areas and target groups.

Despite challenges, NGOs continue to play a transformative role in India’s social sector. Their flexibility, grassroots connection, and ability to innovate make them powerful agents of social change, complementing government efforts and amplifying community voices.

In the future, strengthening NGO accountability, ensuring sustainable funding, and encouraging collaboration with government and corporate sectors will be crucial for enhancing their impact.