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Although the terms VOs & NGOs are used interchangeably, however, they differ widely in their objectives, methodology, style of functioning, motives, legal status, socio-political orientation, ideological affinity and economic strength etc. Voluntary organizations are opposite to business, cooperative and trade associations, Voluntary organizations or agencies are essentially non-profit and non-partisan organizations. They are largely independent of the government and are characterized primarily by humanitarian or cooperative rather than profit making objectives. The quintessence of VOs is voluntarism and the spirit of voluntarism stems from varied sources such as e.g. love of humanity, charity, welfare of the needy and destitute etc. VOs are controlled and administered by an association of citizens rather than any influence from the government.
The term NGO, has acquired wide acceptance internationally. The United Nations nomenclature of an NGO refers to any international organization not established by inter¬governmental agreement including organizations which accept members designated by governmental authorities, provided that such membership does not interfere with the organization's free expression of views. NGOs are different from the market induced organizations and other organizations of the State. They are formalized organizations beyond the market and the State, receiving their resources partly from voluntary contributions of the society. The term NGO in India has been used denote a wide spectrum of organizations which may be non-governmental, quasi or semi governmental, voluntary or non- voluntary, partisan or non-partisan, formal or informal, non-profit or profit oriented bodies, with a legal status and registered under special Acts (like Companies Act. Societies Registration Act, etc.). To be eligible for funding from various agencies, it should have legal status.
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