How the 3rd sector works: differentiating NGOs, foundations and associations

O Third sector It's so broad that it can sometimes be confusing. However, misinformation regarding the entities that comprise it is extremely harmful to the good performance of those who seek to actively participate in the Resolution of our country's social problems.

After all, pertinent questions always arise: what type of institution am I supporting? How will my support be used? What is the difference between a Foundation and an NGO? Where does my support go?

What is an NGO?

The term NGO means Non-Governmental Organization, but this nomenclature does not correspond to a Legal Nature. Even so, is used to identify private non-profit institutions, which work with actions of public interest, but are not linked to the government.

Popularly, every organization created by people who work voluntarily in defense of a cause — protecting the environment, defending human rights, eradicating child labor, combating hunger and poverty — is an NGO.

But, judicially, NGOs are recognized for other duties.

What is an association? And what is a Foundation?

In legal terms, Every NGO is either an association or a Foundation. See how each of these assignments is characterized:

Associations

  • Associations are formed by a group of people who come together to achieve a specific goal;
  • It may or may not have initial equity;
  • Its purpose is defined by the members;
  • It may carry out economic activities to generate, maintain or increase its assets, as long as members do not profit from such activities.

Foundations

  •      They are made up of assets dedicated to charity or Charity;
  •      They have initial assets and their activities revolve around the administration and distribution of this assets;
  • They are private law entities with philanthropic purposes and with legal personality;
  •      They are administered in accordance with the objectives and foundations of their founder, who may be an individual or legal entity capable of indicating assets in its constitution;
  • Are the institutions that finance the activities of the Third sector.

Resultado de imagem para associação x oscip

What is the difference between association and Foundation?

Although both turn to the Services provision philanthropic and public interest, it is important to highlight their differences:

  • In foundations, the focus is on heritage. In associations, it is the individual;
  •      According to the law, foundations can only have moral, cultural, assistance or religious purposes. Associations are free to determine their purpose;
  • The purpose of foundations must be permanent, but that of associations can be modified according to the objectives of the members;
  • The Public Ministry monitors the activities carried out by both entities. In the case of foundations, there is an annual obligation to submit accounting and operational reports. For associations, this control is not so severe.

This is why small and medium-sized NGOs, support groups and research groups, for example, are always associations, as they do not have initial equity and depend on financing.

Funding entities, large educational institutions, groups that promote projects and research, are foundations.

Thus, it is possible to say that many foundations finance associations, but both are NGOs.

How do NGOs support themselves?

Those that depend on financial support can count on private entities in the Third sector or the business community, with the Donation of individuals in solidarity with the cause that the institution supports and even with support from the government, in cases where resources are provided for activities in which both can join forces, such as cultural promotion.

But these are just some of the features of the gigantic universe of Third sector. As we can see, it is a solidarity cycle with different possibilities!

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