What Is the Difference Between SHG and NGO

Self-Help Groups (SHGs) and Non-Governmental Organisations (NGOs) are support groups that work to bring about social and economic empowerment for a large section of the population. Both these organisations are dedicated to reducing inequality prevailing in society and making it a better place to live. They stand up for the rights and needs of the people.

Though the work done by SHGs and NGOs and their nature is similar, there are certain differences between the two. NGOs carry out social work on a large level, while SHGs work on a small level. Compassionate individuals form NGOs to help others in need. A small group of people create SHGs and contribute money to a fund which they can use for the needs of its members. 

What is a Self Help Group (SHG)?

A Self-Help Group (SHG) refers to a self-governed and informal community of individuals with the same socio-economic background who collectively carry out shared purposes. The community of individuals who form an SHG save money from their earnings, collectively contribute to a common fund and lend it to its members to meet their needs. 

An SHG is a beneficiary organisation that works to promote the economic and other interests of its members. It is like a self-created banking system where the members of the same socio-economic background get together and pool in money to create a safe monetary space for each other. In India, SHGs are very common, especially amongst women belonging to the same communities. 

What is a Non-Governmental Organization (NGO)?

A Non-Governmental Organisation (NGO) is created by like-minded people who work for the needs of others like underprivileged children, animals, older people, orphans, victims of abuse, etc. NGOs work for improving the socio-economic condition of society. It is a voluntary organisation or entity with a social mission.

NGOs are organisations created by private individuals or groups to help out those in need. They accept donations for the general public in the form of cash payments and supplies. They also welcome volunteers to help them out in their various missions, such as donation drives, shelters, food supply, etc. 

In India, many NGOs are working towards assisting the people who do not have the means to support themselves. They work to improve the lives of people across India.

SHG and NGO Differences

Though there exist several functional and structural differences between SHGs and NGOs, their motive is the same. They both work towards helping people combat and revive social crises in an effective way. They thrive on making society better without seeking any administrative help from governmental bodies.  

Disclaimer: The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state.

Get an expert at affordable price

For ITR, GST returns, Company Registration, Trademark Registration, GST Registration

Get an Expert