Tools for Civil Society Organizations’ Accountability in the B-MENA Region

Where to take CSO Accountability?

Catherine SheaVice President – Programs

International Center for Not-for-Profit Law

ICNL

Legal Framework for Civil Society: Framework Laws, Taxation, Public Participation, Self-regulation, Governance, Accountability

Projects in 100 countries Middle East/North Africa Regional

Program – Jordan Affiliate Office UNDP, EU, USAID, Council of Europe,

Council on Foundations, Corporations, Foundations, World Bank, IMF

Accountability: an obligation or willingness by a CSO to accept responsibility or to account for its actions

Key elements: compliance with legal obligations demonstrating how resources are spent and how these

respond to the mission and obligations taken towards stakeholders

good governance prudent financial management demonstrating goodwill or an intent to meet certain

professional and management standards demonstrating regularly that it uses its resources wisely

and does not take advantage of its special privileges (e.g., tax exemptions) to pursue activities contrary to its nonprofit status

ECNL, Study on Recent Public and Self-Regulatory Initiatives Improving Transparency and Accountability of Non-Profit Organisations in the European Union (2009)

Legal Framework for CSOs

Necessary but not sufficient for ensuring CSO accountability

Legal restrictions can inhibit rather than encourage accountability› “Government suppression of CSO activities

has undermined both government's and CSOs' efforts to institute good governance practices among CSOs.”

Mohammed Agati, Undermining Standards of Good Governance: Egypt ’s NGO Law and Its Impact on the Transparency and Accountability of CSOs  

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NS Mandatory Registration of Groups

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NS Licensing of Domestic Fundraising

Legal Restrictions

› Kuwait: “Registered and established societies may

request permission for collecting money to achieve their goals once a year abiding by rules and regulations stated in the Law Permitting Collection of Money for Public Purposes” (Article 22, Law 24 of 1962).

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Restrictions on Foreign Funding

15 April 2000

2009/05/07

Front Line is concerned following reports that the Egyptian Organization for Human Rights (EOHR) received a letter from the Egyptian Ministry of Social Solidarity on 27 April 2009 threatening to dissolve the organization for violating the Law of Association by receiving unauthorized foreign funding.

Egypt: Threat to close down the Egyptian Organization for Human Rights (EOHR)

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Green – No Restrictions Dark Grey – No InformationLight Green – Notification Required Light Grey – Non-Arab (Not Surveyed)Orange – Prior Approval RequiredRed – Prohibited

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NS Extensive Reporting and Intrusive Supervision

Legal Restrictions

› Egypt: Ministry officials may enter premises “for the purpose of reviewing its registers” (Law 84 of 2002, Article 20)

› Qatar: “The employees of the Ministry . . . shall have inspection authority in investigating and proving violations . . . They may enter the premises of the association or private institution and its annexes, to inspect them and to examine its documents and records.” (Law of Associations and Private Institutions, Article 44).

Legal Restrictions

Mexico -- Caps on Administrative Expenses

Uzbekistan – Restrictions on Bank transfers

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S Iraq -- Law on Non-Governmental Organizations

Study on recent public and self-regulatory initiatives improving transparency and accountability of non-profit organisations in the European Union

Goals of the ECNL Report› Map and assess the recent and most

important public and self-regulatory initiatives enhancing non-profit organisations’ (NPO) transparency and accountability in the 27 EU member states

› Support increased knowledge and improved dialogue by identifying and helping to develop best practices through comprehensive case studies

General Findings 1. Large number of initiatives to improve NPO

accountability and transparency.

2. Driving force: growing social and economic importance of the sector.

3. Specific motivations include: › Transparency;› Value for (public) money; › Clarification of role – legal and societal;› Improved governance and effectiveness; › Prevention of fraud / crime;› Countering terrorist financing/money laundering

threat.

Close to 140 initiatives from 27 EU member states and EEA:

including over 65 public and over 70 self-regulatory

Public Regulation Initiatives

Map of Public Regulation Initiatives

Legal Status &

Registration (28)

Transparency &

Reporting (32)

Governance & Internal Rules (18)

Fundraising (11)

Public Funding & Tax

(22)

Supervision &

Investigation (18)

Unknown/Other

(5)

Trends with respect to Accountability and Transparency

Promotion of Accountability is on the rise: › 140 initiatives from the 27 EU member

states and the EEA, › 65 public and over 70 self-regulatory

projects › Driven by increased economic and social

importance of the sector Development of Comprehensive

legal frameworks as a means to promote NGO accountability

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Europe: Increased Focus on Accountability Co-exists with Respect for the Right to Associate

European Convention on Human Rights protects the right to associate

European Court of Human Rights has issued leading decisions on the right to associate

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ECNL Study Findings

Success of CSO accountability initiatives

› “depends to a large extent on the buy-in of NPOs. The most successful public regulatory initiatives identified during research rely on consultation with – and in some cases joint design by – the sector.”

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ECNL Study Findings

The impact of accountability and transparency initiatives depends upon an enhanced flow of information.

Recommended: › information-sharing and research to

identify needs› best practice and practical tools› in-depth understanding of the NPO sector

and how it works

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Trends with respect to Accountability and Transparency

Self regulation as a means of improving NGO’s ability to govern themselves effectively

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NGO Accreditation and Certification: The Way Forward?

› Certification -- compliance measured against an established set of norms (includes self-certification; peer certification; and third party certification)

› Voluntary Codes of Conduct – organizations set standards by voluntary agreement

› Watchdog or Ratings Agencies – set standards and rate other organizations

› Awards

Learn more at www.icnl.org