Non-profit organizations are engaged in activities that are not aimed at obtaining commercial benefits. They can be funded by foreign and domestic grants, state budget, donations and investments. The main activity of NPOs is aimed at providing public goods.
Non-profit organizations (NPOs) are organizations that do not pursue their goal of obtaining commercial gain. NPOs are formed to achieve various social, educational, political, scientific, charitable, cultural and other goals. The main task of a non-profit organization is to provide public goods and protect the legitimate interests of people.
Sometimes non-profit organizations are allowed to engage in commercial activities. But only when it is aimed at achieving the main goals of the NPO. Non-profit organizations can be funded from the state budget, debt capital, profits from commercial activities, investments, donations and grants.
If a non-profit organization is engaged in the performance of functions characteristic of the state or self-government bodies, it is called non-state.
NGOs and independence
The principle of independence is embedded in the very concept of an NPO. If an organization is dependent on funding from sponsors or founders, it cannot gain people's trust. To ensure their independence, NPOs use charters, regulations and founding documents, which prescribe provisions that prevent conflicts of interest from arising, as well as ensure independent oversight and control.
Modern types of NPOs
Modern NGOs include organizations such as lawyers' formations, government corporations, charitable foundations, housing construction cooperatives, Cossack societies, condominiums, public associations, communities of indigenous peoples, consumer cooperatives, religious organizations, horticultural associations, chambers of commerce and etc.
NGOs in Russia
There are several dozen types of NPOs in Russia. They are regulated by the Civil Code and the Federal Law “On Non-Commercial Organizations”. Since 2008, the President of Russia has been providing grants to support non-profit organizations. If the NPO receives funding in the form of grants from foreign charitable organizations, this money is not taxed.
Since 2012, NPOs receiving grants from abroad and engaging in political activities must obtain the status of a foreign agent and register as such with the Ministry of Justice.