Where Are Your Donations Going?

by | May 18, 2022 | Charitable Trust

There are many charity organizations globally, each focusing on making life easier for the less fortunate. Additionally, their mandate varies depending on how they license themselves. Unfortunately, people are unaware of this difference, causing them to hesitate to donate despite their good intentions. For example, do you know what an NGO trust does? Here’s more.

What is An NGO Trust?
You will meet charity organization representatives using this term freely, without realizing the confusion it creates. This is because a charity cannot have both titles since huge differences exist between them. Here is how:

Their Definitions
Non-Governmental Organizations (NGOs) are charity organizations that focus on offering services that boost community development wholesomely. Additionally, they can operate across jurisdictions with minimal restrictions since their initiatives apply globally. Typical examples of NGOs are Doctors Without Borders and Red Cross.

Trusts are organizations that cater to individual interests, depending on their stakeholder’s vision of the trust deed. Furthermore, most trusts function to manage estates of individuals and institutions, with charity as one of their functions.

Their Scope of Work
NGOs mainly work with government authorities to establish policies and initiatives. Typically, their executives are subject matter experts and may sometimes occupy national policy committees.
On the other hand, trusts work with specific organizations to support individual courses and rarely engage in government activities.

Different Funding Sources
There is a clear difference in how NGOs and trusts secure donations. NGOs receive donations from various sources, including an annual contribution by the government. Examples of NGOs that regularly receive government donations include The World Health Organization and UNEP.

Conversely, trusts mainly rely on select donors to finance their activities. So, for example, you and your fellow alumni can decide to donate to your school’s education fund. Examples of famous trusts include Welcome Trust in the United Kingdom and J. Paul Getty Trust in the United States.
Now that you are clear on the differences, why not donate and make someone’s life better.

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