NGOs can be distinguished into two groups:
Operational and advocacy NGOs.
This may be interpreted as the choice between small-scale change achieved directly through projects and large-scale change promoted indirectly through influence on the political system.
Operational NGO has to mobilize resources, in the form of financial donations, materials or volunteer labor, in order to sustain their projects and programs. This process may require quite complex organization. Finance obtained from grants or contracts, from governments, foundations or companies, require time and expertise spent on planning, preparing applications, budgeting, accounting, and reporting. Major fund-raising events require skills in advertising, media relations, and motivating supporters.
Thus, operational need to possess an efficient headquarters bureaucracy, in addition to the operational staff in the field.
Advocacy will carry out much the same functions, but with a different balance between them. Fund-raising is still necessary, but on a smaller scale and it can serve the symbolic function of strengthening the donors’ identification with the cause. Persuading people to donate their time is necessary, but, in addition to a small number of people giving a great deal of time, it is also necessary to be able to mobilize large numbers for brief periods.
External donors may not impose onerous administrative burdens, but supporters still have to be supplied with information on an efficient regular basis. Major events will aim to attract favorable publicity rather than raise funds. Therefore, despite their differences, both operational and advocacy NGOs need to engage in fund-raising, mobilization of work by supporters, organizing special events, cultivating the media and administering a headquarters.
Only the defining activities – implementing projects or holding demonstrations – serve to differentiate them. In reality, the distinctions are not as sharp as the labels suggest. Operational NGOs often move into advocacy when projects regularly face similar problems and the impact of the projects seems to be insufficient. All the large development and environment operational NGOs now run some regular campaigns, at least by supporting campaigning networks.
Similarly, advocacy NGOs often feel they cannot ignore the immediate practical problems of people in their policy domain. Human rights NGOs ,ngo registration and women’s NGOs end up having programs to assist the victims of discrimination and injustice.
Funding-based differences: a funding-only relationship at one end of the spectrum and a partnership based on policy dialogue with no funding at the other end. Capacity-based differences: a Partner with limited capacity requiring support from the Northern Partner; contrasted with a partnership with a strong, autonomous organization that contributes from its own experience. Trust-based differences: control of the Southern Partner at one extreme and unconditional trust at the other.