A non-governmental organization (NGO) operates independently from government control while aiming to address various economic, social, and civic issues. These groups exist on multiple levels, whether it be local, national, or international, striving to create a positive impact in their respective communities.
Despite their independent status, many NGOs often receive financial support from government sources through various means, such as grants and contracts. This relationship can sometimes spark debates, particularly when the funding’s purpose is contested by the public or when an NGO wishes to remain free from governmental influence.
Understanding NGOs and Government Funding
NGOs, or non-governmental organizations, are independent entities managed by private individuals. In the United States alone, there are approximately 1.5 million NGOs, each championing diverse causes ranging from clean water initiatives to gender equality advocacy. 
A significant number of these organizations receive funding from various government tiers—local, state, and federal—primarily through grants.
Grants are financial awards meant for specific purposes, aiding in fields such as medical research, economic development, and educational initiatives. These funds act as gifts and don’t require repayment.
In addition to grants, NGOs also secure funding through multiple other sources:
- Annual Membership Fees: Regular contributions from members.
- Individual Donations: Monetary gifts from supporters.
- Charitable Foundations: Donations from both public and private foundations, including contributions from corporations, individuals, or families.
- Revenue from Goods and Services: Income generated from sales.
- Government Contracts: Agreements and cooperative projects with governmental bodies.
This blend of funding sources allows NGOs to maintain their activities and promote their various causes effectively.
Key Factors to Consider
NGOs may face controversy if government funding is involved, especially when the organization’s mission or the use of funds comes under scrutiny.
Some NGOs, like Greenpeace, avoid any government or corporate funding to maintain independence. Greenpeace’s status as a charity restricts it from political activities, helping preserve its impartiality.
It’s essential for NGOs to evaluate the benefits and drawbacks of government grants, considering how such funding may influence their autonomy and public perception.
Examples of NGOs and Government Funding
Doctors Without Borders
Doctors Without Borders offers crucial medical care globally, addressing needs such as malnutrition, HIV/AIDS, and malaria. Most of their funding comes from individual donors, corporations, and foundations.
While they do receive some international government funding, it constitutes less than 20% of their budget. Notably, the U.S. government has not funded them since 2002.
American Association of Retired Persons (AARP)
The American Association of Retired Persons (AARP) focuses on enhancing the quality of life for people aged fifty and older. A significant part of its work includes financial education, elder care, and fraud prevention.
Through its foundation, AARP receives federal grants aimed at combating poverty among seniors. The bulk of its funds come from membership fees, donations, and advertising in its publications. Additionally, AARP generates income through royalties by licensing its name to financial institutions and other entities.
World Wildlife Fund (WWF)
The World Wildlife Fund (WWF) is dedicated to conservation and biodiversity. Their key projects include the promotion of renewable energy, sustainable food systems, forest conservation, and securing freshwater resources.
Funding for WWF is diverse: 28% from individual donors, 29% from foundations, 3% from corporations, and 9% from government grants in 2021.
Does the UN give money to NGOs?
The United Nations collaborates extensively with NGOs to further its goals. It often provides financial support to civil society groups, individuals, and local organizations to aid activities aligned with its mission. These partnerships are critical in advancing various global initiatives.
Where can I find US government grants?
Check out Grants.gov for a central hub of over 1,000 federal grant programs. It’s the go-to spot for finding details and applying for various grants.
Are NGOs tax-exempt?
Many NGOs qualify for exemptions from state and federal taxes, but this is not a blanket rule. They must apply to the Internal Revenue Service for this status.
Typically, NGOs engaged in educational, religious, scientific, or charitable activities can obtain tax-exempt status. Those focused on political activities often face more restrictions regarding tax exemptions.
The Bottom Line
NGOs, which are non-profit groups run by citizens, work independently from the government and focus on social, economic, and civic issues.
They get funding from various places, including grants. Some well-known NGOs, like the American Association of Retired Persons (AARP), accept grant money. On the other hand, organizations like Greenpeace choose not to take government funds to maintain their independence.
