Non-Profit Organizations

A development initiative’s institutional profile impacts its options for targeting certain problems and populations, establishing partnerships and raising and managing funds. Some projects become more self-sustainable by legally registering as non-profit organizations, because doing so gives them reliability and helps them attract donations of public or private, national or international funds –a large portion of which are specifically allotted to promote the development of civil society, or to address populations or social problems that don’t usually yield a profit.

In general, development projects diversify their sources of support when, instead of depending on a single or on a few sources of funding, they broaden the amount and origin of their resources. As a result, they can negotiate their priorities and objectives in conditions of greater equity. Furthermore, by having access to resources destined for civil society organizations, many initiatives that work with very vulnerable populations or address issues that are not profitable can create interventions that are more relevant to all, and not just to a few. 

Depending on the place in the world, Non-Profit Organizations are called Non-Governmental Organizations (NGOs), Private Non-Profit Institutions (PNPIs), Third Sector Organizations (TSOs), Civil Associations (CAs), etc. 

Some non-profit organizations manage to get more support when they also register as “authorized donors” (although the name changes in each country), because this legal status allows people, companies and institutions to contribute tax-deductible donations to the organization. 

Some initiatives are not registered as non-profit organizations themselves, but create or strengthen this type of organizations in the communities they work with. By doing so they seek to build capacity to solve the community’s economic and social problems locally and in a more cost-effective, therefore, more self-sustainable way.