The Operation of Non-Profit Organization Or Non-Government Organization


Abstract: To alleviate poverty, the Non-profit Organizations emerged particularly in the third world countries. Beside Government bodies, the non-profit organizations are to take steps towards sustainable development of the communities. The development of the communities will boost up macro economy of a country and growth will rise. Based on the concept many NGOs are working in economies of the third world. While the different organs of state machineries are lacking transparency, and accountabilities, the corruption occurs. The interventions of Non-Government organizations impel the society to prevail in a tranquil mood. On the contrary, the profit motive or the curse of corruptions also cripples the NGO or NPO movement in many economies.

Motive behind the force: In capitalist economy, profit is the main concern, so that people have to work harder and harder to find out the edges. In a country, the state budget depends on overseas grants and loans, the emerging capitalist seize the opportunities to make money. Reforms measures often fail to sustain. The suffering of mass people becomes critical more and more. The government alone cannot take the pressure, in these gaps the non-government organization or non -profit organization emerge. Philanthropist initiate to operate NPO, based on their good will. In recent trends, the concept of Non- Government Organization has been established. In NGO movement, the participatory management takes place. It is a flavor of autocratic and participatory management. The socialistic ideas intervene under the democratic norms and values.

Programs of NGO or NPO: In developing economy, poverty eradication is the main concern. To do it employment generation is a crucial factor. To generate employment, others key issues come into the purview. Education, health, sanitation, along with infrastructural facilities combines the efforts of the NGOs in the least developing nations. Micro Credit fosters the communities, receivers usually utilize loan in the specified fields under the supervision of concerned NGO. Forestation, crops development, community development, small business all concern towards the economic emancipation of the mass people in the certain areas. Women empowerment is another concern of Non-government organization. They usually help them have training on different cottage industries, and the NGOs come forward to usher the sick industries, once the certain clan dependent on that particular industry. NPO, Non Profit Organization deals with the distressed in the society to help them participate in the economic activities. Alternatively, sometimes the NPOs only help the poor to sustain for period. The long-term impact is often absent. In Advanced nations, USA or Canada is utilizing the alternative economic force. In these countries, Small Business Administration, SBA is providing technical guidance to the small business units. SBA tries to develop entrepreneurships. Grants or funding is available only for NPOs, Charities, or Foundations.

Fund allocation for NGOs: It is difficult tusk for the NGOs. The mother NGOs often donates the smaller NGOs on projected or on-going programs. The funding agencies usually donate the established NGOs, as a result the good will of smaller NGOs often fail. In the beginning, some affluent people together collect fund to run their programs. The programs are common other than innovative. To collect fund, a number of steps has to be taken, the NGO should have

• constitution or memorandum of association, article of association varying region to region, country to country,

• registration under the social department in the concerned country,

• registered office,

• a monogram

• accreditation from the national directorate,

• for micro credit or small loan requiring permission from state financial institution

• formation of project proposal,

• organizational policy

• span of management

• fund allocation for programs

• budget preparation for internal staffs of the concerned NGO

Utilization of micro credits or small loan and technical expertise: The programs that are taken by the concerned NGOs are based on certain guidelines. To be successful in a small venture, the receiver has to know the business properly, the market, and the products. According to project proposal, the NGOs workers have to train and supervise the loan takers. The supervisors will receive the weekly or monthly installment. It appears often the money drains in different formats, the program does not sustain, the loan becomes bad debt. It happens due to managerial philosophy and lack of strict supervision. On the other hand, the people who are receiving loan are dealing with their small business smoothly. It happens because of their future forecasting and proper counseling. The many areas in which the loans can be activated can contribute in the economic development. The areas can be pond culture, floriculture, grocery, poultry, cattle development, milk production, information technology including software development, data management, e-commerce, and so on.

Sustainability: In recent trends, donors direct the NGOs to stand their own foot. To generate revenues from different project, they take the win- win procedures. The loan receivers and the donors choose certain projects. Based on this conception they collect the necessary funds and invest into the projects. The supervision and technological expertise often transfer into the certain areas of the project. The schedule of the project is fixed. The payback period is also fixed. The rate of interest has to bear by the receiver along with the original amount. Within a certain time, the project comes to a break-even point, and the sustainability arises. The concerned NGO becomes self-dependent partially, that organization again finds out more projects and invests the capital from the revenue generation from successful project. The beneficiaries of the successful project become the member of the win-win situation.

Hence, the Non-government organization is also uplifting the general mass. They provide loan, supervise and transfer the technical expertise to the projects. It is one of their developing organs. If the small business units can develop with the assistance of the concerned NGO, the project finishes; the organization has to look for funds again. The operation is going on based on the availability of the fund.

Conclusion: In different economies, the government provides some soft grants to the NGOs yearly. It is imperative that Government has to patronize the small NGOs in different regions to uplift the economies and ultimately it propels the macro economy of the country.


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