Non-profit Social Enterprises
- A non-profit social enterprise is an organisation that combines the characteristics of both a non-profit organisation and a social enterprise
- Non-profit social enterprises pursue a social or environmental mission while using business strategies to generate revenue and achieve financial sustainability
- These organisation rarely make a surplus or profit
- Two of the main forms of non-profit social enterprises are non-governmental organisations (NGOs and Charities
Non-governmental organisations (NGOs)
- NGOs operate locally, nationally and/or internationally and are independent of government
- These are typically voluntary, community-based organisations which do not aim to make a profit but seek to meet a need or provide a service
- NGOs are typically financed by a combination of government funding and donations from businesses or private individuals
- With a community based emphasis, they are able to
- Engage in small scale projects giving control to community stakeholders
- Draw on local skills
- Encourage sustainability & remove the need for aid
- Tackle environmental sustainability using local knowledge & resources
- Lobby governments to support their cause
- NGOs have played a major role in many LEDCs and their aid often comes with fewer conditions or expectations than that provided by overseas development agencies
- Examples of NGOs include Oxfam International, Save the Children International and Amnesty International
Charities
- Charities have a specific purpose defined by law and are subject to strict regulations governing their activities
- They primarily rely on donations from individuals, corporations and governments and often actively fundraise and engage in campaigns to attract donations
Examples of charities around the world
- The terms NGO and charity are often used interchangeably and there are variations in their definitions and usage between countries or regions
An Evaluation of Charities and NGOs
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Exam Tip
Make sure that you fully understand the differences between charities and NGOs.
Whilst they are both types of non-profit organisation, charities are regulated by national Charity Commissions and have a relatively narrow scope of operations.
NGOs can also be charities - but not always. Oxfam and Médécins sans Frontières are both registered as charities in several countries but operate as NGOs in other countries around the world, particularly where the domestic third sector is underdeveloped.
