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

1. Tools for Civil Society Organizations’ Accountability in the B-MENA Region Where to take CSO Accountability? Catherine Shea Vice President – Programs International Center for Not-for-Profit Law

2. 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

3. 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)

4. 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  

5. Legal Restrictions Mandatory Registration of Groups

6. Legal Restrictions Licensing of Domestic Fundraising

7. 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).

8. Legal Restrictions Egypt: Threat to close down the Egyptian Organization for Human Rights (EOHR) 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. Restrictions on Foreign Funding

9. Map of Arab Foreign Funding Restrictions Green – No Restrictions Dark Grey – No InformationLight Green – Notification Required Light Grey – Non-Arab (Not Surveyed) Orange – Prior Approval Required Red – Prohibited

10. Legal Restrictions Extensive Reporting and Intrusive Supervision

11. 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).

12. Legal Restrictions • Mexico -- Caps on Administrative Expenses • Uzbekistan – Restrictions on Bank transfers

13. Good Governance Provisions Iraq -- Law on Non-Governmental Organizations

14. 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

15. General Findings Large number of initiatives to improve NPO accountability and transparency. Driving force: growing social and economic importance of the sector. 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

16. Public Regulation Initiatives

17. Map of Public Regulation Initiatives Transparency & Reporting (32) Legal Status & Registration (28) Public Funding & Tax (22) Governance & Internal Rules (18) Supervision & Investigation (18) Fundraising (11) Unknown/Other (5)

18. 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

19. 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

20. 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.”

21. 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

22. Trends with respect to Accountability and Transparency • Self regulation as a means of improving NGO’s ability to govern themselves effectively

23. 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

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