The terms “non-profit organization” and “non-governmental organization” (NGO) are often used interchangeably, but they can denote different types of entities depending on the context and the legal framework within which they operate. Here are the key differences:

1. Scope and Definition:
   • Non-Profit Organization: This is a broad category that includes any organization not operating for the profit of private shareholders. Non-profits can serve a wide range of purposes, including charity, education, religious, cultural, professional, or public service objectives. Their key characteristic is that any surplus revenue is reinvested into the organization’s mission rather than distributed as profit or dividends.
   • Non-Governmental Organization (NGO): NGOs are a subset of non-profit organizations. They are usually characterized by their international focus and advocacy work in areas such as development, environment, human rights, health, or humanitarian aid. NGOs often operate independently of government influence, although they may receive government funding or engage in public-private partnerships.
2. Legal Status and Regulations:
   • Non-Profit Organization: The specific legal definition and the regulations governing non-profits can vary significantly by country. In many places, non-profits are tax-exempt and must adhere to specific regulations regarding their governance, financial transparency, and the prohibition of private benefit.
   • NGO: The term “NGO” is not always a legal definition but rather a general way to describe organizations working independently from governments, often in the field of development or humanitarian aid. The legal status and regulations for NGOs can vary depending on the country in which they are registered and operate.
3. Funding Sources:
   • Non-Profit Organization: Non-profits can be funded through a variety of sources, including private donations, membership dues, philanthropy, grants, and government funding. The diversity of the non-profit sector means that funding models can be quite varied.
   • NGO: While NGOs are also typically funded through donations and grants, they often rely heavily on international funding sources, including international aid agencies, governments of other countries, and international philanthropic organizations.
4. Activities and Focus:
   • Non-Profit Organization: The range of activities and focus areas for non-profits is vast. They can operate locally, nationally, or internationally, covering sectors from local community development to education, arts, health, and more.
   • NGO: NGOs often have a more specific focus on advocacy, development, or humanitarian assistance at an international level. They are commonly involved in policy advocacy, on-the-ground development projects, disaster relief, and efforts to influence global policy.
5. Perception and Context:
   • The term “NGO” is more commonly used in international contexts and often implies a certain scale of operation or a focus on cross-border issues. “Non-profit,” meanwhile, is a more general term that can apply to small, local organizations as well as large, international ones.

In summary, while all NGOs can be described as non-profit organizations, not all non-profits are NGOs. The distinction often hinges on the scale, focus, and nature of their operations, particularly their level of engagement in international and advocacy work.