What is Not for Profit Organization - NGOs

  • Print Article |
  • Send to a Friend |
  • |
  • Add to Google |

Not for Profit Organizations or NGO are organizations whose purpose is to serve the broader community interests, rather than the pursuit of profit. In broad terms, such organizations seek to serve the interests of society as a whole , and so they give non-financial objectives priority of place. This category of organization includes public sector bodies such as the national health services, Redcross, charitable bodies, local councils etc.

The major difficulty with NGO's bodies is to practically measure precisely how much they have achieved in their non financial objectives. Value for money  as a concept assumes that there is a yardstick against which to measure success i.e., achievement of objectives. In reality, the indicators of success are open to debate. For example, in the health services success can be measured in terms of fewer patient deaths per hospital admission, shorter waiting list for operations, average speed of patient recovery? Etc., etc. as long as objectives are difficult to specify, so too will it remain difficult to specify where there is value for money.

It is also incredible difficult to quantify the not for profit organization benefits to public welfare. For example how do put value for money to Redcross  rescue operation where they have saved a patient life and prolonged it by "x" number of years, or on the easing the pain of an injured patient. The benefits extend beyond factors which can be measured in purely financial terms.

The effectiveness measures the extent to which a service achieves its declared objectives/goals. For example an operation can produce a certain number of goods or service. In economic measure a certain input number can produce a certain output number.

To seek non-financial objectives is not to ignore the financial, but merely to acknowledge that no single aim is of overriding importance. Most commercial organizations have an NGO objectives too used to give a strong public image and good publicity. This not for profit objectives include sponsoring student education, football clubs, churches, funerals, clean up, community projects, etc., etc.

Most of these organization are funded by sponsors or donors for their services and day to day running needs. They may also have volunteers working staff like doctors, nurses, workers etc. Public donations help pay their staff and other costs.

Thomas karanja Is an Internet Marketer who enjoy offering Free online jobs. He also offers Free Computer maintainance Tips and softwares Visit and bookmark his blog.

Rate this Article:
  • Article Word Count: 356
  • |
  • Total Views: 82
  • |
  • permalink
  • Print Article |
  • Send to a Friend |
  • |
  • Add to Google |
>