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F1 BPP ST(August 2020) [Unlocked by www.freemypdf.com] (1)

Cost
.
 
There can be conflict between economy of operation and adequacy of service. The public 
will demand as perfect a service as possible but will not wish to bear the cost involved. 
2.5 Non-governmental organisations 
A non-governmental organisation (NGO) is a legally constituted organisation of people acting together 
independently from any form of government.
Non-governmental organisations (NGOs) are bodies which are not directly linked with national 
government. The description 'NGO' generally applies to groups whose primary aim is not a commercial 
one, but within this the term is applied to a diverse range of activities, aimed at promoting social
political or environmental change. However, NGOs are not necessarily charities and, although they may 
have political aims, they are not political parties. 
NGOs need to engage in fund raising and mobilisation of resources in order to ensure that they are 
operating effectively and efficiently (for example in terms of donations received, volunteer labour or 
materials). This process may require quite complex levels of organisation. The following are some 
organisational features of NGOs. 

Staffing by volunteers as well as full-time paid employees 

Finance from grants or contracts 

Skills in advertising and media relations 

Some kind of national 'headquarters' 

Planning and budgeting expertise 
It can be seen, therefore, that NGOs may need to possess an efficient level of organisation structure
much in the same way as a traditional commercial undertaking. 
 EXAM FOCUS POINT 
There are two articles on the ACCA website entitled “Not-for-profit organisations I” and “Not-for-profit 
organisations II” that are relevant to material in this section.
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