22 May 2014
The independence of not-for-profit
organisations is at risk due to the hostile rhetoric and regressive
policies of governments around the world. This is stopping these
non-governmental organisations (NGOs) speaking out and is limiting
their freedom to manage their own finances, claims a report
released today.
These governments risk alienating donors and
damaging civil society. In many countries NGOs are being prevented
from performing their crucial role in holding governments to
account and helping to drive improvements in society.
We, an international charity which promotes
charitable giving and provides financial services and social
finance to not-for-profit organisations, describes the wave of
policies weakening the independence of not-for-profit
organisations.
This wave is engulfing countries regardless in
both the developed and developing world. Governments in emerging
economies such as Azerbaijan, Ecuador, Indonesia and Algeria are
joined by the likes of Canada and the UK in introducing legislation
to restrict the ability of NGOs to campaign and influence
government policy.
The report ‘Future World Giving: Enabling an
Independent Not-for-profit Sector’ warns that poor legislation on
not-for-profit campaigning and independence could jeopardise
efforts to promote giving among new generations of middle class
people emerging across the world, which otherwise could contribute
up to $224 billion a year to good causes by 2030.
The report looks at how governments are either
intentionally or indirectly, through vague legislation, stifling
the voice of not-for-profit organisations.
For example, in Venezuela organisations that
criticise the government have faced informal, personal threats and
prosecution of their members, while in Thailand and Cambodia, it is
possible to be charged with defamation against the government for
criticising their policies. This is a criminal offence with the
possibility of 2 years in jail, meaning that NGOs feel unable to
take on the risk of speaking out against the State.
The report also looks at how government funding of not-for-profit
organisations can impact their independence. Without strong rules
guiding relationships, these organisations can become mere
contractors to government – a problem exacerbated by the inclusion
of “gagging clauses” that prohibit public criticism. To tackle
this, the report lays out a number of recommendations that
developing and developed nations should adopt in order to encourage
a healthy civil society and build independence in the not for
profit sector.
They include:
- Governments should allow not-for-profits to
criticise and influence policy in order to improve standards and
promote public debate.
- Not-for-profit organisations need
freedom to manage their resources in the way which best achieves
their stated mission.
- Governments should foster a strong
and independent civil society to benefit both the state and society
as a whole.
Adam Pickering from the Charities Aid
Foundation, said:
“It’s frightening to see how many countries
have recently tightened controls on the activities of
not-for-profit organisations.
While governments may want to ensure that
public donations to not-for-profits are used responsibly, their
methods for doing so are effectively gagging charities and holding
them back from achieving their missions.
It is invaluable that not-for-profits are free
to do things differently, to take risks and to speak out on behalf
of the marginalised. Policy makers need to recognise this and
ensure they do not create a barrier to these activities.
“Not-for-profits don’t just provide services
for society. They often represent the concerns and aspirations of
communities to government and act as a pressure gauge to release
social tensions in a controlled and constructive way.
Not-for-profits around the world must be free to pursue causes and
develop ideas that would be deemed too risky by the private sector.
They must be free to drive improvements that make the world a
better place for us all.“
Download the report 'Future World Giving: Enabling an Independent Not-For-profit Sector'
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