Difference Between NGOs and SHGs

Non-Governmental Organizations (NGOs) and Self – Help Groups (SHGs) are support groups that strive to bring about social empowerment for a large section of the population. 

In every society and social system, there will be inevitable flaws that will cause a shortfall of opportunities for some people. The role of these organizations is to reduce this inequality.

Although the type of work done is similar in nature for both the organization, the manner in which they function and structure is different. The aim of this article is to highlight the differences between the two.

NGOs and SHGs - UPSC 2021 Exam

Both these concepts are important within the context of the IAS Exam.

This article will further highlight the differences between NGO’S and SHG’s

Aspirants can find more Difference Between Articles, by visiting the linked page

The difference between the Non-Governmental Organizations and Self-Help Groups are  highlighted in the table below:                                                                                                                                                                           

Differences between NGO and SHG



The volunteering force at an NGO is more organized and cohesive as they are registered under the Societies Registration Act of 1860 Comparatively less organized than their NGO counterparts as SHG’s are not governed by a specific act. Their formation is based on Article 19 (1) of the Constitution of India which states that people are free to form any group or association with their mutual consent
Non-governmental organizations operate to implement their actions on a large-scale to help a greater number of the population As self-help groups are based on the concept of mutual help their work is limited to providing assistance to members within the group
NGOs are funded by volunteering individuals and corporations. Some NGOs also receive funds from foreign countries. The funds are safeguarded and regulated by the Foreign Exchange Management Act, 1999 to maintain accuracy and transparency. The source of funding in SHGs is its members only which deposits a particular amount of money in their committee’s fund. 
The work done by an NGO is executed is on a large scale with welfare activities being carried out at the state or national-level., As such their work gets more recognition  The work carried out by an SHG is usually small in scale and usually limited to the members of the group.
NGO’s are composed of volunteers from all sections of the society SHG’s are formed mostly by women with the dual purpose of women empowerment and socio-economic empowerment. 

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