THE OPERATION OF NON-PROFIT ORGANIZATIONS OR NON-GOVERNMENTAL ORGANIZATIONS
Summary: To alleviate poverty, nonprofit organizations emerged particularly in third world countries. In addition to government agencies, nonprofit organizations must take steps towards the sustainable development of communities. Community development will boost a country’s macroeconomics and growth will increase. Based on the concept, many NGOs are working in third world economies. Although the different organs of state machinery lack transparency and responsibility, corruption occurs. Interventions by non-governmental organizations drive society to prevail in a calm state of mind. On the contrary, the profit motive or the curse of corruption also paralyzes the NGO or NPO movement in many economies.
Reason behind the force: in the capitalist economy, profit is the main concern, so people have to work harder and harder to find the limits. In a country, the state budget depends on grants and loans abroad, emerging capitalists take advantage of opportunities to earn money. Reform measures are often not maintained. The suffering of people in mass becomes increasingly critical. The government alone can not take the pressure, in these gaps arise the non-governmental organization or non-profit organization. The philanthropist begins the operation of NPO, based on his good will. In recent trends, the concept of non-governmental organization has been established. In the NGO movement, participatory management is carried out. It is a taste of autocratic and participatory management. Socialist ideas intervene under democratic norms and values.
NGO or NPO programs: In the developing economy, poverty eradication is the main concern. To do so, job creation is a crucial factor. To generate employment, other key issues fall within the scope. Education, health, sanitation and infrastructure facilities combine the efforts of NGOs in least developed countries. Micro Credit encourages communities, recipients usually use loans in the specified fields under the supervision of an interested NGO. Afforestation, crop development, community development, small businesses care about the economic emancipation of people in mass in certain areas. The empowerment of women is another concern of non-governmental organizations. They usually help them train in different home industries, and NGOs come forward to advertise the sick industries, once a certain clan depends on that particular industry. NPO, Nonprofit Organization deals with the distressed in society to help them participate in economic activities. Alternatively, sometimes NPOs only help the poor stay for a period. The long-term impact is often absent. In advanced nations, the United States or Canada are using alternative economic force. In these countries, the Small Business Administration, the SBA is providing technical guidance to small business units. The SBA tries to develop enterprises. Grants or funds are only available to NPOs, charities or foundations.
Allocation of funds for NGOs: it is a difficult fang for NGOs. Mother NGOs often donate to smaller NGOs in projected or ongoing programs. Funding agencies generally donate established NGOs, as a result, the goodwill of smaller NGOs often fails. At first, some people well-off together raise funds to run their programs. Programs are common as well as innovative. To raise funds, a series of steps must be taken, the NGO must have
• Constitution or memorandum of association, association article that varies from region to region, from country to country,
• Registration in the social department of the country in question,
• Registered office,
• A monogram
• Accreditation of the national management,
• For microcredits or small loans that require permission from a state financial institution
• Project proposal formation,
• Organizational policy
• Management span
• Allocation of funds for programs
• Budget preparation for the internal staff of the NGO in question
Use of microcredits or small loans and technical experience: the programs taken by interested NGOs are based on certain guidelines. To succeed in a small business, the recipient must know the business properly, the market and the products. According to the project proposal, NGO workers have to train and supervise loan applicants. Supervisors will receive the weekly or monthly fee. It seems that money is often drained in different formats, the program is not supported, the loan becomes bad debt. It occurs due to management philosophy and lack of strict supervision. On the other hand, people who receive loans are running their small businesses without problems. It happens due to its future forecast and adequate advice. The many areas in which loans can be activated can contribute to economic development. The areas may be pond farming, floriculture, groceries, poultry farming, livestock development, milk production, information technology, including software development, data management, electronic commerce, etc.
Sustainability: in recent trends, donors order NGOs to stand firm. To generate income from different projects, they take the procedures of mutual benefit. Loan recipients and donors choose certain projects. According to this conception, they raise the necessary funds and invest in the projects. Supervision and technological experience are often transferred to certain areas of the project. The project schedule is fixed. The recovery period is also fixed. The interest rate must be borne by the recipient along with the original amount. Within a certain time, the project reaches an equilibrium point and sustainability emerges. The NGO in question becomes partially independent, that organization again discovers more projects and invests the capital to generate revenue from the successful project. The beneficiaries of the successful project become members of the win-win situation.
Therefore, the non-governmental organization is also raising the general mass. They provide loans, supervise and transfer technical expertise to projects. It is one of its developing organs. If small business units can be developed with the assistance of the NGO in question, the project ends; The organization has to look for funds again. The operation continues based on the availability of the fund.
Conclusion: in different economies, the government provides some mild grants to NGOs annually. It is imperative that the Government has to sponsor small NGOs in different regions to raise economies and, ultimately, boosts the country’s macroeconomics.