Background: Alternative healthcare, community development, social justice, and education are all areas where non-governmental organisations (NGOs) are increasingly being recognised or promoted, but these efforts are hampered by government inefficiency and resource constraints. However, the statement of non-profit organisations is more complicated than simply comparing them to the government, as they may also suffer from a lack of resources and ineffective management, just like the government. Purpose: The purpose of this paper is to examine the role and impact of non-governmental organisations (NGOs) towards Sustainable Community Development in and to identify the challenges these organisations face. Method: Throughout this investigation, a wide range of sources from academic journals, reports, and even company websites were consulted to gather data. This article includes data on the number of NGOs in Malaysia, which can help us obtain a better sense of the sector. To find out just how rapidly these non-profits are expanding, the project’s goal is to track their progress. A systematic literature review method was used to screen the retrieved articles from three online databases. Findings: Eight articles have been chosen for further analysis in this study. In total, four challenges and four recommendations have been identified. Conclusions: To that end, this article offers some suggestions for improving already-existing non-profit organisations so that they serve the community as a whole.