Non government organizations (NGOs) are the non-profit organizations spread out all over the world which are generally involved in socio-economic development of communities. Till the end of 1970s, the role of non government organizations (NGOs) were little recognized, though the concept of voluntary action is not a new phenomena. The NGOs also perform the role of service Contractors for different government schemes and Projects. The present study was aimed at understanding the different practical aspects of the working patterns of NGOs. The study was desk based. The researcher used data from various secondary sources. The Article emphasizes on the urgent necessity to build the capacity of NGOs and the need to develop leadership capability. The researcher has tried to present possible solutions to the contemporary challenges the NGOs are facing as some recommendations for future policy making.