If you’ve ever searched for a charity to support and found yourself wondering what the difference is between a non-profit, an NGO and a charity, you’re not alone. These terms are often used interchangeably, but they don’t all mean the same thing.
Understanding the differences matters, not just for comprehension, but because it helps you donate to the appropriate organisation with confidence. Knowing what kind of organisation you’re supporting can help ensure your generosity is making the difference you want it to.
Learn what sets these organisations apart and how Save the Children fits in, as both a registered charity and a global non-governmental organisation (NGO).
Understanding how non-profit organisations work
A non-profit is any organisation that doesn’t operate to generate profits for owners or shareholders. Instead, any surplus income is reinvested to support its purpose, whether that’s in the community, an individual's wellbeing, or education.
In Australia, non-profits can be associations, trusts or companies limited by guarantee. What they share in common is a commitment to a cause, not a profit margin. However, non-profits are not required to register with the Australian Charities and Not-for-profits Commission (ACNC) unless they wish to be recognised as charities or access certain tax concessions.
Examples of non-profits include:
- A local football club reinvesting in equipment and training
- A community arts centre running workshops
- A wellbeing organisation promoting mental health
While non-profits contribute to community life, they are distinct from charities in their legal obligations and public accountability.
How charities go a step further than non-profits
Charities are a specific type of non-profit that meet legal criteria. To be recognised as a charity in Australia, an organisation must:
- Have exclusively charitable purposes (such as relieving poverty, advancing education, or promoting health)
- Deliver a public benefit
- Operate independently of political parties and government
- Comply with governance and reporting obligations set by the ACNC
Charities can also register as Deductible Gift Recipients (DGRs), meaning that donations over $2 are tax-deductible. This is one reason why Australians often look for charitable status when choosing where to donate.
Charitable status reflects an organisation’s transparency, integrity and public accountability. It shows that the organisation is not just mission-driven, but also regulated and trusted.
How NGOs differ from charities and non-profits
NGO stands for Non-Governmental Organisation, a term commonly used around the world to describe not-for-profit organisations working independently of governments, often in international development or humanitarian response.
In Australia, NGO is not a formal legal category. However, NGOs are typically recognised by the scale of their work and the scope of their missions, addressing complex social, environmental or political issues across borders.
Some NGOs are also registered charities, while others may not be. What they have in common is a commitment to public good, operational independence, and a focus on large-scale or systemic change.
Where non-profits may serve a single community and charities may operate nationally, NGOs often work globally, partnering with international agencies and communities to respond to emergencies, deliver development programs and advocate for change.
Save the Children is a charity and NGO
Save the Children is proud to be both a registered Australian charity and a globally recognised NGO. We are regulated by the ACNC, comply with the ACFID Code of Conduct, and hold DGR status, so your donation over $2 is tax-deductible.
As Australia’s leading child rights organisation, we work in more than 117 countries to protect and empower children. We support their right to live, learn and be safe from harm.
Our work focuses on:
- Health: We provide life-saving healthcare, vaccinations, nutrition and support for new mums and babies.
- Education: We help children access quality learning, even in disaster and conflict zones.
- Protection: We work to shield children from abuse, neglect, exploitation and violence.
- Emergencies: We respond rapidly when disasters strike, providing essentials like shelter, water, food and emotional support.
Approximately 81% of every dollar we receive goes towards programs and services. That means your support reaches the children who need it most, in an efficient manner. Read about our accountability for more information.
How to choose where to donate
Australians donate billions of dollars each year to causes they care about (ACNC Australian Charities Report). But not all organisations are held to the same standards, and understanding the difference can help you donate wisely.
When you support a registered charity like Save the Children, you know:
- Your donation is going to a regulated organisation with strict reporting obligations
- You may be eligible for a tax deduction
- Your contribution is being used efficiently and ethically
- You’re helping drive meaningful, lasting change for children
Donating isn’t just about giving, it’s about choosing to back an organisation that shares your values.
Make your impact today
Understanding the difference between non-profits, NGOs and charities allows you to make an informed decision. It helps you give confidently, knowing that your generosity is reaching people who need it, in the most impactful way possible.
Every child deserves a bright future. By supporting Save the Children, you’re not just giving to a good cause, you’re backing an experienced, transparent and compassionate organisation that puts children first.
Make your impact today. Donate today.