In the 1800s, the work of non‐governmental organisations (NGOs) focused on opposing slavery up until the 1900s where their work changed from anti‐slavery to focus on development‐related issues like education, poverty, hunger, and so forth. The transition of the NGOs was motivated by the failure of the public and private sector to provide the needs of the communities. Just like the other sectors (public and private sector), the work of NGOs is somewhere somehow failing to meet the needs of the needy because of the challenges in their operation. Against this background, the present study traces the transition of these NGOs and its present limitations in development. In order to explore the transition of NGOs and its limitations, the study used secondary data to collect relevant literature. Furthermore, the strict textual analysis of the existing literature is used. The results of the study show that NGOs face challenges of accountability and transparency, capacity, and corruption. In recommendation, the study suggests that NGOs have to be accountable and transparent; moreover, they should be capacitated with necessary skills. Lastly, NGOs should stay away with the acts of corruption.