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quango (n.)

1973, acronym for quasi-non-governmental organization (a descriptive phrase itself attested from 1967). Related: Quangocracy; quangocrat.

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Definitions of quango from WordNet

quango (n.)
a quasi nongovernmental organization; an organization that is financed by the government yet acts independently of the government;
Synonyms: quasi-NGO
From wordnet.princeton.edu