Oxfam Australia

What Is an NGO? Understanding NGOs, Charities, and Not-for-Profits in Australia 

Myanmar: Oxfam staff discussion about the devastation at the areas they are visiting in Mandalay. Photo: Aung Khant Zaw/Oxfam

Myanmar: Oxfam staff discussion about the devastation at the areas they are visiting in Mandalay. Photo: Aung Khant Zaw/Oxfam

What is an NGO? An NGO (short for non-governmental organisation) is a group that works independently from the government to address social, environmental or humanitarian issues.

You’ll often find NGOs running development programs, responding to emergencies, or advocating for human rights. Some are small and local. Others, like Oxfam, operate around the world. Not all NGOs are charities or not-for-profits, but many are.

You can also check whether an NGO is accredited through DFAT. Now, how is an NGO different from a not-for-profit and a charity?

What is a not-for-profit?

A not-for-profit (or NFP) is an organisation that doesn’t operate to make money for its owners or members. Instead, any surplus it earns is put straight back into its work — whether that’s running programs, maintaining facilities or supporting its community.

Not-for-profits can cover a wide range of groups, including:

Some not-for-profits register as charities, but many don’t. What matters most is that they exist to serve a purpose, not to make a profit. You can learn more from the ACNC about how not-for-profit status works in Australia.

What is a charity?

A charity is a special type of not-for-profit that’s registered with the Australian Charities and Not-for-profits Commission (ACNC). To be recognised as a charity, an organisation must exist for a charitable purpose and that purpose must benefit the public.

Common charitable purposes include:

Charities must meet legal requirements, including being not-for-profit, operating for the public good, and avoiding political campaigning as a main activity.

Charities are also more likely to receive tax benefits, including Deductible Gift Recipient (DGR) status, which allows donors to claim a tax deduction for certain gifts.

What is an NGO vs a charity vs a not-for-profit?

These three terms often get used interchangeably, but they’re not quite the same. Here’s a quick breakdown of the key differences between them.

 

NGO

Charity

Not-for-profit

What it is

Non-government group tackling social, environmental or humanitarian issues

A type of not-for-profit that must meet legal tests to be registered with the ACNC

Any organisation that reinvests surplus into its mission, not personal profit

Legal status

May be a charity, not-for-profit, or neither

Must be a registered charity with the ACNC

May or may not be registered as a charity

Tax-deductible donations

Not always

Often (if endorsed as a DGR by the ATO)

Not usually

Scope

Often global or advocacy-based

Often local or service-based

Broad — can include clubs, associations, etc.

Example

Oxfam, Amnesty International

The Smith Family, Fred Hollows Foundation

Local sports club, arts collective

While this table is a useful starting point, the distinctions between these types of organisations can be nuanced. For example, some NGOs may not be registered as charities but still operate on a not-for-profit basis. Tax-deductibility also depends on whether an organisation is endorsed as a Deductible Gift Recipient (DGR) by the ATO.

So, what are the nuances around NGOs?

What makes an NGO different?

NGOs work independently of government to tackle some of the world’s biggest inequalities. But what sets them apart is how they work, and what they focus on.

Unlike some charities or not-for-profits that provide direct services locally, many NGOs take a broader, more systemic approach. They often:

In other words, NGOs aren’t just filling gaps. Many are pushing for larger, more powerful organisations to help fill the gaps too — whether that’s fighting climate injustice, demanding gender equity, or challenging the root causes of poverty.

Some NGOs are charities. Some are not. Some receive government grants or work alongside public agencies. All operate independently and are driven by a mission, not a mandate.

Oxfam is one example. So is Amnesty International, or Médecins Sans Frontières. What unites them is a focus on global justice and a belief that people everywhere deserve safety, dignity and opportunity.

What is an INGO?

An INGO is an international non-governmental organisation. Like NGOs, they work independently of government. But what sets INGOs apart is their reach — they operate across borders to tackle issues that affect people globally.

INGOs often work in partnership with communities, governments and other organisations in multiple countries. They respond to humanitarian crises, run long-term development programs, and campaign for systemic change on issues like climate justice, inequality and disaster preparedness.

Being international also means working to shared standards, especially around transparency, impact and coordination with others.

Oxfam is an example of an INGO. While Oxfam Australia leads work locally, it also contributes to the broader global Oxfam International network by supporting responses to conflict and crisis, and helping communities lead their own development in nearly 80 countries.

Why these distinctions matter

It’s easy to get lost in the labels — NGO, charity, not-for-profit. But knowing the difference can help you support the causes you care about with more confidence.

If you’re donating, volunteering or even working in the sector, understanding an organisation’s structure can tell you a lot about:

  1. How it’s funded
  2. Who holds it accountable
  3. What kind of impact it aims to make
  4. Whether your donation may be tax-deductible

It’s also a way to build trust. Registered charities in Australia must meet legal requirements and report to the ACNC. NGOs and INGOs often publish detailed reports about where funds go and what’s been achieved.

At the end of the day, it’s not about knowing what an NGO is and choosing the “right” label. It’s about knowing how your support is used and ensuring it aligns with your values.

Support a trusted NGO: Oxfam Australia

Understanding how NGOs, charities, and not-for-profits work is a great first step. But the real impact comes when you choose to act. If you want to support an independent, impactful and values-driven organisation, consider Oxfam.

We work alongside communities in Australia and around the world to tackle inequalities at their roots — responding to emergencies, defending human rights, and supporting long-term change.

Be part of something bigger

As part of a global confederation, Oxfam Australia contributes to shared humanitarian efforts and advocacy campaigns in nearly 80 countries. We’re committed to transparency, accountability, and supporting locally led solutions.

If you’re ready to support work grounded in fairness and justice to build a better world, we’d love to have you with us. Donate to Oxfam or explore our current appeals to see where your support is needed most. 

Are you curious about EOFY and your savings at tax time? Try our tax-deductible donations calculator or read our guide to the tax benefits of donating.

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