Community-based organizations that do not wish to have their lobbying activities restricted may register as social welfare organizations under section 501(C)(4) of the Internal Revenue Code. Donors’ donations to such organizations are not exempt from taxation. Moreover, these organizations may engage in partisan political campaigning, but only as a secondary activity. A helpful explanation of the differences between these categories of organizations can be found here.

Funding

Budgets for civic organizations can be in the thousands or billions of dollars, depending on their size and scope of activity. Most community organizations build their budgets through fundraising. Funding for civic organizations comes from a number of sources: private donations, membership fees, sales of goods and services, and grants from international agencies or governments.

A typical example is the Yellowstone Park Foundation, which is an NGO that serves as the official fundraising partner for Yellowstone National Park in the American West. More than 16,000 individuals, corporations and foundations donate to the foundation each year. The purpose of the foundation is to fund programs to protect, preserve and enhance natural and cultural resources and to introduce visitors to Yellowstone Park. The Foundation receives 52% of its income from individuals, 21% from gifts from corporations, 21% from gifts-in-kind, and 7% from other sources (grants from government and foundations, and income from investments). Donations do not have to be large – many community organizations in the U.S. ask citizens to donate as little as $10, $25, or $50.

Different levels of government also provide funding to community organizations, especially those involved in service delivery. For example, the government in the U.S. funds a variety of services for victims of domestic violence, such as transitional housing, counseling, and a domestic violence hotline.

Donations to community organizations registered under section 501(C)(3) of the U.S. Internal Revenue Code are tax-exempt. This tax policy encourages Americans to support community organizations.

International NGOs and International Funding

Foreign civil society organizations operating in the United States range from the German Goethe Institute, which promotes study abroad of the German language and Germany and encourages international cultural exchanges, to the network of Confucius Institutes, which provides information on Chinese education, culture, economy and society. Another example is the Hitachi Foundation, based in Japan, which focuses on strengthening communities in the U.S. through programs such as the Business and Jobs program aimed at improving the lives of underserved Americans. Since 2007, the European Instrument for Democracy and Human Rights (EIDHR) has supported key lobbying actions in favor of abolishing the death penalty in Illinois and Maryland. The European Commission acts as one of the largest donors of development projects in the world, and dozens of American civil society organizations submit project proposals to the European Commission for funding. All of Germany’s party institutes also work in the United States.

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Organizations provide services.

Many public organizations in America provide social services and humanitarian aid to American citizens. The 19th century American industrialist Andrew Carnegie established a foundation to open public libraries across the United States. A century later, this tradition was continued by Bill Gates, who founded the Gates Foundation to equip thousands of public libraries with computers and Internet access, making modern Internet technology available to millions of Americans. Other community organizations, such as the American Red Cross and the Salvation Army, focus their efforts on disaster relief and humanitarian aid. Such organizations are often supported by various church organizations across America. Providing victims of domestic violence with a variety of services and shelter, the National Domestic Violence Hotline is another example of an organization that provides assistance directly to citizens.

Community-based organizations engaged in expert analysis and research

The role of other community organizations is to provide expert analysis on major public policy issues. There are civil society organizations and think tanks that deal with a variety of issues, including foreign policy and the public life management system. The analysis carried out by American think tanks covers the entire range of policy issues. Right next door to the Carnegie Endowment in Washington is the Brookings Institution, which has been analyzing public policy issues for almost a century. The mission of the Institute for American Enterprise is “to expand individual freedom, personal prospects and strengthen free enterprise. The Institute embodies these enduring ideals through the development of independent thinking, open discussion, reasoned argument, facts, and the highest standards of research and description of findings.” The Cato Institute “upholds the principles of individual liberty, limitation of state power, free trade, and peace.” The Heritage Foundation sees its goal as a conservative public policy based on the principles of free enterprise, limitation of government power, individual liberty, traditional American values, and a strong national defense. The number of think tanks used to be small, but it has grown exponentially over the past three decades.

Community-based organizations for the protection of human rights

Community-based organizations are also being created to preserve what they consider to be Americans’ constitutional rights. For example, the National Rifle Association was created in 1871 to protect the right to own firearms and to provide firearms training for police and self-defense courses, improve firearms safety, improve shooting techniques, and promote hunting in the United States. Today, the National Rifle Association is better known as one of the main political forces advocating for reducing restrictions on gun ownership and defending Second Amendment rights under the U.S. Constitution. The Brady Center for the Prevention of Gun Violence, on the other hand, works to pass and enforce federal, state laws, regulations and public policies that would ensure stricter control over gun use and ownership. Both of these organizations, along with thousands of other civic organizations, play an important role in the gun control debate that is currently underway in the United States following the tragedy at Sandy Hook Elementary School in Newtown, Connecticut late last year.

Many civil society organizations, especially those that advocate for civil liberties, are devoting a great deal of attention to criticizing our authorities. The American Civil Liberties Union is a prime example. Its purpose is to defend and preserve individual rights and freedoms as enshrined in the U.S. Constitution and U.S. law. Every day the ACLU works with the courts, legislatures and the public to protect and preserve individual rights and freedoms.

Civil Society Organizations Monitoring Governmental Practices

NGOs in the U.S. monitor elections and the fulfillment of campaign promises, conduct investigations and expose corruption, and actively advocate on behalf of national minorities. One function of NGOs is court monitoring, where U.S. citizens monitor decisions.

For example, WATCH, a Minnesota NGO, describes its purpose as improving the efficiency and responsiveness of the court system in cases of violence against women and children. The organization is a member of the National Association of Judicial Monitoring Programs, which provides training and materials to organizations in various states. Because the U.S. Constitution guarantees openness of the courts to the public, members of community-based organizations that monitor the courts have no difficulty gaining access to the courts and observing what is happening in a court case.

Public organizations defending the interests of their members and the public before the authorities

Another common activity for civic organizations is to advocate for the interests of people in their constituencies in institutions, legislative and electoral bodies at all levels of government. Large civic organizations use their voter mobilization and fundraising capabilities to influence policy. For example, the American Association of Retired Persons, a non-profit, non-governmental organization for people of retirement age. It has 37 million members. The association informs its members about legislation affecting their retirement living conditions, such as health care, Social Security and pension laws. The organization also advocates for its members with service companies, helping them get discounts based on their limited retirement budgets, and provides services such as retirement plans. It also lobbies state and national governments on the issues its members care most about, such as health care and health insurance laws. According to the association’s 2011 annual report, the organization encouraged its members to reach out to their representatives in Congress during the deficit-reduction budget debate there. More than 8 million members sent letters, e-mails, made phone calls and signed petitions demanding that Congress not cut individual welfare benefits in the final version of the state budget. In this way, community organizations are able to influence policy by shaping public debate on issues of public interest.

MomsRising is another example of this type of community organization. I know MomsRising well because my wife Donna Norton helped found the organization, which now has over a million members. MomsRising seeks to increase the economic security of families and end discrimination against women and mothers. MomsRising focuses its efforts on organizing grassroots action from below to lobby lawmakers and amplify women’s voices in the national media. When we lived in the United States, Donna regularly went to Capitol Hill to talk to members of Congress about paramount maternal issues and concerns: affordable health care, parental leave, child welfare, flexible work schedules and equal pay. She relayed appeals and real-life stories directly to elected officials. CBOs can check to see if elected leaders are hearing their voices and the opinions of their constituencies. A civic organization is able to provide this important service to its members who live in different parts of the country and have no opportunity to come to Congress in person.

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There are about 1.5 million community organizations in the United States today. These independent, voluntary unions of people help assert individual freedom while maintaining a sustainable social order. We call it “civil society,” but that term does not capture the diversity of organizations, the momentum and energy of citizens who come together to solve a social problem or address a pressing need. Though strangers start a movement toward a common goal, they often come from the same neighborhood, church, union, business partnership or youth group. They interact with each other, negotiate, resolve differences, fight for a common cause and try to convince society and government of their rightness – all without any control from the state. In this way, civil society fosters unity and solidarity through the activism of citizens.

Through non-governmental organizations, Americans unite to solve local problems, such as keeping children safe on the roads, reducing crime, improving schools (in the U.S. local governments are responsible for education), increasing transparency in local government, etc. CBOs also work on national issues such as health care reform and immigration law reform. Some U.S. civic organizations attempt to address global issues, such as the Association for Arms Control or the Global Women’s Fund.

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The world of business can be divided into two main categories: public and private. It’s very important to understand the distinct differences between the two. Especially from a business perspective, understanding the differences in financing between the public and private sectors is essential. 

This guide will look at what the public sector is with some illustrative public organization examples. 

What Is the Public Sector?

The public sector, also known as the state sector, is the part of the business world that is focused on goods and services that are intended to benefit the general public and society at large.

Public organizations and companies are owned and operated by the government, as well as being funded through the government in the form of taxes.

4 Features of a Public Organization

Here are four of the key aspects and defining features that separate public organizations from private businesses.

1. Objective

Public sector employers and agencies do not aim to make a profit from the goods and services they provide. These services are provided for the good of the public. 

2. Funding

Public service is usually generated in the form of taxes and fees, rather than through private investment. In some cases, funding can be generated in other ways, but the government is always either the sole owner or majority shareholder of a public organization.

3. Competition

In the private sector, competition for profit between companies can drive changes and adaptations. The public sector does not have this same competition.

4. Focus

Organizations in the public sector are focused primarily on infrastructure and essential services for society, like education, electricity, defense, agriculture, transport, and so on, while private sector companies can be found in many fields like tech, finance, and retail.

Public Organization Examples

One of the best ways to understand the answer to questions like “What is a public agency or organization?” is with the help of examples. So, here are some examples of public organizations.

1. Education 
2. Law enforcement
3. Justice 
4. Military 
5. Electricity 
6. Healthcare
7. Public transit
8. Public roads
9. Housing 
10. Water

1. Education

One of the most commonly-cited examples of the public sector is education. Schools, colleges, universities, and other educational institutions are examples of public organizations, with the main objective of these organizations being to provide educational services for the general public, improving knowledge, understanding, literacy, and key skills in communities across the nation.

2. Law Enforcement 

Law enforcement is another example of a public organization, with police services in cities and areas across the United States being funded publicly and created to serve the public at large, with the main aims of enforcing the law and helping the population live safely and securely.

3. Justice

Connected with the world of law enforcement, public organizations in the field of justice are responsible for ensuring that justice is served when laws are broken and that those who have broken the rules of society receive adequate punishments for their crimes in accordance with the law.

4. Military

The military and its various branches can also be classed under the category of a public organization. The military in the US, and in many other countries around the world, is funded through taxation of the general public, with the primary purpose of defending the country’s people and interests around the world.

5. Electricity 

Electricity providers are another example of public organizations. Electricity is considered to be an essential service in today’s world, and electricity providers work to provide homes and communities across the country with the electrical energy they need to power up different devices and appliances around homes and businesses.

6. Healthcare

Healthcare is another example of a public organization. Public hospitals, clinics, and healthcare locations help to provide essential health treatments, medications, surgeries, and other services for people with health problems. Aside from public offerings, there are also many private clinics and healthcare institutions too. 

7. Public Transit

In many cities across the US, public transit organizations can be found, offering transportation services for inhabitants and visitors in the area. Examples may include a subway system, a bus network, or a metro line, allowing the public to get around more quickly and conveniently from place to place.

8. Public Roads

The creation and maintenance of public roads across the US is also handled by public organizations. The employees of these organizations are responsible for monitoring, making, and maintaining roads that allow the population to drive from place to place in their own personal vehicles.

9. Housing 

Public organizations can also be involved with constructing public housing developments, as well as implementing building standards and developing strategies to provide reliable, affordable homes for the public.

10. Water

While much of the world does not have access to clean water, providing this access is seen as an essential duty of the government in developed nations like the US.

Water companies, therefore, tend to be public organizations, providing the public with municipal water supplies to their homes and also handling water treatment to ensure that water is safe to drink and use.

Each Public Organization Has Importance 

As these examples show, public organizations provide some of the most vital services in society today, helping to ensure that children are educated, the sick are healed, key utilities are provided, and infrastructure is maintained.

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