What are the Roles, Scope & Differences in SHG and NGO?

calendar15 Jul, 2020
timeReading Time: 4 Minutes

NGO and SHG are the types of organizations that take stand for people’s rights. An NGO carried out its operation on a broader spectrum, whereas SHG serves the society on a small level. Every system and society is afflicted with certain flaws, and these organizations take the initiative to mend them with proactive strategies. NGO and SHG conduct these actions for the welfare of human beings.

Roles of NGO and SHG

No society is problem-free. There are specific issues w.r.t social and economic that prevail in society every now and then. Problems such as women’s safety, malnutrition, and casteism are quite prominent in the community today. NGOs work on a larger scale to address these issues effectively.

Roles of NGO

SHGs, on the other hand, work with the same intention but with limited access to society. They only deal with small groups and provides aid to the people. NGOs and SHGs also deal with the prospects of healthcare, living, sanitation, and education.

Roles of SHG

Organizational structures of NGO and SHG

  • NGOs stand for non-governmental organizations, and SHG stands for self-help groups. The NGO’s volunteering workforce is more organized and holds a legal registration under the Societies Registration Act of 1860[1].
  • SHG is an independent entity that is not accountable to answering their action to the law authority. There is no such Act/provision that controls the SHG’s operation at this moment. It is basically formed as per the principle of Article 19 (1), which states that people are independent in forming any group with their mutual agreement.
  • NGO and SHG work on the same ground when it comes to actions, but they do differ in terms of structure and mechanism of function. Non-governmental organizations conduct their operation on a larger scale to support a large population. Meanwhile, SHG always lags behind NGOs in terms of the workforce. Typically, SHG has 20 to 30 active members under their umbrella.
  • SHG usually focused on a small section of society that seeks advancement, especially in backward or rural areas. The primary working protocol of SHG confined around mutual help.
  • SHG’s existence depends on the collaborative efforts of the member with the groups. Women dominate the majority of the Self-Help Group. They work for the prosperity of women in their respective committees.

Funding and other resources of NGO and SHG

Both these entities i:e NGO and SHG work independently on the funding front. Both of them lack a real source of funding. When it comes to SHGs, the fund is generated within the group by the member, whereas NGOs get the financial aid from elite members of the society, corporates, and celebrities. Some of the leading NGOs are getting their fund from overseas. Keep in mind that the accumulated funds remain the constant monitoring of legal authority, and it is regulated by the Foreign Exchange Management Act, 1999 to ensure transparency and accuracy.

Read our article: Civil society and NGOs: Things you need to know

What are the Powers of NGO and SHG?

The NGO and SHG hold limited power. The main disparity between NGOs and SHG is that an SHG is less potent than NGOs. The recognition level of non-governmental organizations is unparalleled as compared to SHG. They operate welfare activities generally within a group of states or in the entire nation. This makes their work more prominent in the eyes of people as well as the government. It makes them attain more applause and distinction as compared to self-help groups.

What is the Tier of work under NGO and SHG?

The self-help group serves a limited area of governance, and they operate with narrow working criteria. Their motto is to support help seekers who are dealing with uncertainties and pounded by financial issues.

Let’s understand the notion of NGO and an SHG via some practical examples.

  • An NGO radically addresses a more significant segment of the population. CRY, which is regarded as the leading NGO in India works for the upliftment of underprivileged children. The dominance and reach of this NGO are somewhat unparalleled as it works pan India. It addresses a large pool of underprivileged children in the country and provides them better education, food, and sanitation, unlike SHGs.
  • This organization is working proactively for the prosperity of children and prevents them from becoming a victim child labor. For instance, the Anganwadi, a social welfare platform, provides food for under-nourished children. Thus, this social work renders dual benefits. On the one hand, it gives better food to the needy children and, on another, helps the workforce of Anganwadi scale up the work.
  • SHG generally provides aid to the smaller section of society. A women-oriented workforce usually backs them. They provide financial support to each other, and they raise the fund within the group. The SHG work profile is smaller than NGOs, but their commitment toward their goals is unparalleled.

Some key points

  • The typical workforce size of SHG is 20 to 30 members. Most of the members are females.
  • They all work as a cohesive unit for the upliftment of their economic and social condition
  • NGO serve different prospects all together. They cater to the larger segment of the population and work for their benefits.
  • NGOs are typically well organized as compared to SHG.


So, this the complete guide on the differences between NGO and SHG. Hopefully, by now, you have no issue regarding the notion of NGO and SHG. Both the organization adhere no complexity, at least in term of intention. Their motto is more or less identical despite many discrepancies.

However, the formation of an NGO could be a tedious affair for someone whose intention is to conduct good deeds for society. The reason is that the newly established NGO needs to get NGO registration to conduct their activities. For more detail or assistance, please drop your query in the comment section.

Read our article:NGO and IGO: Things you need to know

Request a Call Back

Are you human? : 2 + 8 =

Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality