What are NGOs?

Non-governmental organizations (NGOs) are generally considered to be “non-state, non-profit orientated

groups who pursue purposes of public interest”, excluding the private sector (Schmidt and Take 1997).
One of the most widely used definitions is given by Operational Directive 14.70 of the World Bank:
“private organizations that pursue activities to relieve suffering, promote the interests of the poor, protect
the environment, provide basic social services, or undertake community development” (World Bank
2001).[1] According to the World Bank, NGOs are “value-based organizations which depend, in whole or in
part, on charitable donations and voluntary service,” and in which “principles of altruism and voluntarism
remain key defining characteristics”. More broadly, the term is applicable to any non-profit organization
(NPO) that is not established by or controlled by a governmental entity, or even more broadly a nonprofit
that is not affiliated with government.

There are different ways of categorizing NGOs in broad terms. One categorization is the recognition of a :

1. Mutual benefit NGO, involving an association concerned with improving the situation of its
membership, versus a
2. Public benefit NGO, which is an organization working for the imporvement of conditions of society
as a whole or of a segment of society.

The World Bank differentiates two main categories of NGOs with which it interacts:

1. Operational NGOs, the primary purpose of which is the design and implementation of
development-related projects.
2. Advocacy NGOs, the primary purpose of which is to defend or promote a specific cause, and
influence the policies and practices of international organizations.

Operational NGOs are further classified as national organizations, which operate in individual developing
countries, international organizations, which are typically headquartered in developed countries and carry
out operations in developing countries, and community-based organizations (CBOs), which serve a
specific population in a narrow geographical area. CBOs, also referred to as grassroots
organizations or peoples’ organizations (PO), differ from other NGOs in both nature and purpose: while
national and international organizations are seen as “intermediary” NGOs that are formed to serve others,
CBOs are usually “membership” organizations whose purpose is to advance the interests of their
members. Examples include women’s groups, credit circles, youth clubs, cooperatives and farmers’
associations.

Alternative terms used to refer to NGOs include private voluntary organizations (used especially in the
United States) and voluntary development organizations (a term favored by many African NGOs). Civil
society organization (CSO) is another term used for NGOs, sometimes favored as it does not define the
sector in terms of what it is not (non-governmental).

Note: NGOs are not legal entities under international law the way states are. An exception is the
International Committee of the Red Cross, which is considered a legal entity under international law
because it is based on the Geneva Convention. The ICRC does not classify itself as an NGO, however,
because of its legal, governmental status. 

History of the NGO Sector

Non-governmental organizations (NGOs) as we know them today are generally thought to have come into
existence around the mid-nineteenth century. It was only about a century later that the importance of
NGOs was officially recognized by the United Nations. At the UN Congress in San Francisco in 1968, a
provision was made in Article 71 of the Charter of the United Nations framework that qualified NGOs in
the field of economic and social development to receive consultative status with the Economic and Social
Council.

The development of modern NGOs has largely mirrored that of general world history, particularly after the
Industrial Revolution. NGOs have existed in some form or another as far back as 25,000 years ago. Since
1850, more than 100,000 private, not-for-profit organizations with an international focus have been
founded. The growth of NGOs really took off after the Second World War, with about 90 international
NGOs founded each year, compared with about 10 each year in the 1890s. Only about 30 percent of
early international NGOs have survived, although those organizations founded after the wars have had a
better survival rate. Many more NGOs with a local, national or regional focus have been created, though
like their international counterparts, not all have survived or have been successful.

This article presents an overview of the history of modern day NGOs, with particular emphasis on
international organizations. It looks at the different causes that have been championed by NGOs as the
events in world history have unfolded, from the aftermath of the Industrial Revolution to the World Wars
and through the aftermath of the Cold War. It also looks at the evolution of the structure and purpose of
NGOs as they have matured over the years.