INTERNATIONAL CENTER FOR CIVIL SOCIETY LAW
USING LAW TO EMPOWER CITIZENS

Ethiopia
May 2009

World Bank Extends $540 Million Loan and Says Country Should Ease Regulations on NGOs

Nasdaq reports that the World Bank extended $540 million to develop basic services in Ethiopia and stated that the country should ease its regulations on NGOs. Ethiopia adopted a controversial aid law early this year, under which any local group drawing more than 10% of its funding from abroad would be classified as foreign and subjected to tight government control. The classification would effectively ban such associations from working on issues related to ethnicity, gender, children's rights, and conflict resolution. The $540 million is meant for basic services covering education, health, agriculture, water, and road projects under a three-year scheme. The World Bank replaced its former scheme of direct budgetary support to Ethiopia soon after the disputed 2005 parliamentary elections there, which foreign observers said fell short of international standards.

Egypt
May 2009

EOHR Again Subjected to Harassment

On April 27, 2009, the Egyptian Organization for Human Rights (EOHR) received a letter from the Egyptian Ministry of Social Solidarity, Masr-El-Kadima district authority, in which it was warned that the organization risks to be subjected to closure and dissolution for violating Law of Association No. 84 of 2002 because it had allegedly received unauthorized foreign funding. The Euro-Mediterranean Organization for Human Rights reported that the organization suspects that the Ministry’s action was instigated following the regional conference entitled "Information is a right for all," organized in Cairo jointly by EOHR and the Centre of Media Freedom in the Middle East and North Africa (CMF MENA), Morocco, on January 27-28, 2009, which focused on freedom of expression, as well as the right to a free flow of information. Six months prior to the conference EOHR had submitted to the authorities notice of the event as well as a request to receive funds from its partner institution in Morocco, in order to cover expenses for the conference. However, since no response had been received from relevant authorities within the time frame as provided by law, the request was deemed implicitly approved and both organizations proceeded with the organization of the event.

Europe
April 2009

ECtHR Decision Guarantees Freedom of Information as Being Encompassed within Freedom of Expression

In a landmark decision on 14 April 2009, the European Court of Human Rights of the Council of Europe found in favor of Tarsasag a Szabadsagjogokert, the Hungarian Civil Liberties Union, in its complaint against the Hungarian government over a submission to the Hungarian Constitutional Court filed by a member of parliament concerning drug policy. This is the first time the European Court of Human Rights has unanimously recognized that freedom of expression, as mandated by Article 10 of the European Convention of Human Rights, also includes the right to information from public bodies. Like the Inter-American Court decision Reyes v. Chile, the European Court of Human Rights has affirmed that the right to information is essential to free expression. Because the government holds the "information monopoly," according to the Court's decision, "the law cannot allow arbitrary restrictions which may become a form of indirect censorship."

Australia
March 2009

Productivity Commission to Study Contribution of Sector to Australian Society

The Deputy Prime Minister, the Hon Julia Gillard MP, the Assistant Treasurer, the Hon Chris Bowen MP, and the Parliamentary Secretary for Social Inclusion and the Voluntary Sector, Senator the Hon Ursula Stephens, today announced that the Productivity Commission will examine the contribution of the not-for-profit sector to Australian society. The announcement fulfils an election commitment to maximize the sector’s contribution to social inclusion, employment and economic growth, by leveraging off the Productivity Commission’s Study. The Commission has been asked to assess how the not-for-profit sector’s contributions to Australian society are currently measured and whether these measures can be improved. The Government has also asked the Commission to identify ways to improve the efficiency and effectiveness of community organizations, and to consider options for improving the delivery of government-funded services by these organizations. The Commission is required to provide a final report by the end of 2009.

European Union
February 2009

European Court of Justice Rules on Tax Deductions for Cross Border Gifts

The European Court of Justice ("ECJ") ruled that a tax deduction for cross-border gifts is encompassed by the free movement of capital guaranteed by European Community law. Where a body recognized as charitable in one Member State satisfies the requirements imposed for that purpose by the law of another Member State and where its object is the promotion of the very same general public interests, so that it would be likely to be recognized as charitable in the latter Member State, the authorities of the latter Member State cannot deny that body the right to equal treatment for tax deductibility solely on the ground that it is not established in its territory. To view the press release, please click here. To view the Court's decision, please click here.

Cayman Islands
January 2009

The Law Reform Commission has proposed new legislation that would establish a Charities Commission to regulate charities as well as implement Recommendation VIII of the Financial Action Task Force on Nonprofit Organizations. The Bill and the Discussion Paper are available in the Documentation Center.

Ethiopia
January 2009

Repressive CSO Law Adopted

UNHCR and Amnesty International reported that the Ethiopian parliament adopted a potentially repressive new law which could criminalise the human rights activities of both foreign and domestic non-governmental organizations (NGOs). The Charities and Societies Proclamation law (CSO law) is designed to strictly control and monitor civil society in an atmosphere of intolerance of the work of human rights defenders and civil society organisations. The law has not been translated into English, but previous drafts of the CSO law imposed strict government controls and harsh criminal penalties on NGOs. The final text of the law is not expected to substantially differ. The Ethiopian government claims the CSO law addresses perceived inadequacies in the existing legal regime, promotes financial transparency and accountability, and provides “proper” administration and regulation of civil society. But it goes far beyond what should be necessary to legalize NGO standards.

China
January 2009

Developments in the Charter 08 Movement

In December 2008, on the 60th anniversary of the Universal Declaration of Human Rights, more than 300 Chinese intellectuals and human rights activists issued "Charter 08," a document calling for more democracy in China. Based on Charter 77, issued in 1977 in Czechoslovakia, the document now has over 700 signers, including Beijing University Professor He Weifeng and members of the prestigious Chinese Academy of Social Sciences. The publication of Charter 08 has been met with considerable consternation by China's power elite, with some sources reporting that Hu Jintao has himself taken charge of efforts to stamp out the movement behind it. The document calls for an independent legal system, freedom of association, human rights protection generally, equality of peoples, and a republican form of government. In response to CPC pressures, it has now been reported that the party organization at Beijing University Law School has moved against Charter 08 and urged students to refrain from being involved with the movement.

Japan
December 2008

The new legal framework for Japan’s civil society organizations went into effect On December 1. It replaces the old and outdated Civil Code system for public benefit associations and foundations with a new system, including a national level "charity commission." For discussions of the new system, please read the articles by Tatsuo Ohta and Morihisa Miyakawa in IJCSL.

Latin America
November 2008

Latin America - Due Process of Law Foundation (DPLF) Publishes Report on Situation of Victims after Transitional Justice Processes in Guatemala and Chile

Even though criminal prosecutions and reparation programs have been implemented in a number of Latin American countries to address grave human rights violations, very little has been done to evaluate their effectiveness. In fact, in some of these countries, it has been a couple of decades since these violations took place and the first responses to the calls for justice were taken. Nevertheless, there is a noticeable scarcity of studies --focused on the victims-- that measure how and if these programs have met the victims' needs and expectations. For this reason, DPLF organized in late 2007 a meeting to explore what would need to be done to study this issue and promote a dialogue by bringing together experts on transitional justice and reparations mechanisms to discuss the current conditions of the victims in selected countries. Preliminary conclusions and recommendations for future study arrived at during this meeting are now available in a published report in Spanish.

Ethiopia
October 2008

The Ethiopian government has submitted the controversial draft legislation for Civil Society Organizations (CSO law) to the parliament. The draft has been strongly criticized as a document that criminalizes human rights activity of non-governmental organizations and seriously undermines civil society groups in Ethiopia. While the government claims that the CSO law is to strengthen democratic institutions and ensure constitutional rights of citizens, Human Rights Watch (HRW) warns that the bill violates both the Ethiopian constitution and several international agreements, including regional African treaties and the International Covenant on Civil and Political Rights.

United States
October 2008

Professor Karla W. Simon and Dr. Leon Irish presented a paper on October 3, 2008 at Fordham Law School. The venue was the China Colloquium sponsored by the Louis Stein Center for Law & Ethics and the Leitner Center for International Law and Justice. Prof. Simon’s paper – Legal Reforms for Civil Society Organizations in China after the Olympics and the Sichuan Earthquake – offers a perspective on ways in which the Chinese government can enhance the space for civil society as it seeks to address social and economic development in the 21st Century. The paper will be published in the January 2009 issue of the Fordham International Law Journal.

China
September 2008

New "Charity and Social Welfare Department" established at MoCA

A new department to promote charity and social welfare was set up on 11 September 2008 under China’s Ministry of Civil Affairs, reports the People’s Daily, quoting Xinhua. The department will deal with the welfare lottery, charity activities, donations, and welfare projects for the elderly, disabled and children, a ministry statement said. The department will also draft rules on volunteer affairs and work on a nationwide volunteer network. It is also entrusted to make a regulation on running the welfare lottery and managing the welfare fund raised through the lottery. It will work out plans on how to spend the money on charity programs.

Jordan
September 2008

Controversial Societies Act Published in Official Gazette; May Be Amended.
The Jordan Times reports that civil society representatives and activists said they were still hopeful that the government will either draft a new NGOs law or amend the controversial 2008 Societies Law, recently endorsed by Parliament and a Royal Decree. The new Act was published in the Official Gazette on 16 September 2008. Premier Nader Dahabi has said the government is considering amending the controversial law, although it had already been endorsed by Parliament. "If the government finds there are valid reasons, it will reconsider the 2008 Societies Law," he said during a meeting with representatives from charity societies. He noted that one of the potential options for the government is to add new amendments to the law and present it to the Lower House under emergency status. Prior coverage of the legislation can be found in IJCSL-N for August 2008.

United States
September 2008

Fact Sheets Provide Concise Explanations About How "War on Terror" is Affecting Charitable Activities
On 15 September 2008, the Global Nonprofit Information Network (GNIN) released seven fact sheets to provide information about how the policies of the "War on Terror" have affected charitable activities. GNIN was launched in March 2007 by Urgent Action Fund, Grantmakers Without Borders (GWOB), and OMB Watch to foster information sharing focused on counterterrorism measures affecting the nonprofit sector and global civil society. The fact sheets are available on the GWOB website, and they reflect the analysis in the article on this issue published in the last issue of IJCSL.

United States
July 2008

The Revised Uniform Unincorporated Nonprofit Associations Act was adopted by the Uniform Law Commission at its Annual Meeting in Big Sky, MT in July 2008. ICCSL principals Dr. Leon Irish and Prof. Karla Simon participated in the Drafting Team as representatives of the ABA Section of International Law.

Global
July 2008

Charity Law and Social Policy Released by Springer
Springer has recently released Charity Law and Social Policy, by Kerry O’Halloran, Myles McGreogor-Lowndes, and Karla W. Simon, which appraises the factors to be taken into account in aligning charity law with social policy in six common law jurisdictions. The aim of the book is to assess ways in which the law can facilitate the environment for appropriate charitable activity to meet important social policy concerns, such as alleviating poverty, addressing health care needs, eliminating racial and other discrimination, and meeting other needs of under-resourced and under-represented communities.

Turkey
July 2008

Turkey’s Constitutional Court decided on 30 July 2008 not to ban the ruling Justice and Freedom Party AKP, which had been accused of undermining the country’s secular system. But the judges did cut half the AKP’s treasury funding for 2008. The AKP, which won a huge poll victory in 2007, denies it wants to create an Islamist state by stealth. It called the case an attack on democracy. The powerful military, on the other hand, sees itself as the guardian of the modern secular state founded by Mustafa Kemal Ataturk. The Court President, Hasim Kilic, said the financial sanctions imposed on the AKP were a "serious warning" to it. It is also relevant that the Court was deeply split, with six judges favoring the ban. Seven would have been needed to uphold it.

Zimbabwe
June 2008

New Update June 27
The Standard reported on 22 June that war veterans and Zanu PF youth militia continue to block relief agencies and HIV and Aids service organizations from accessing areas in dire need of aid in rural and peri-urban areas. This is despite recent assurances from the government that the NGOs could resume their humanitarian operations, the national association of NGOs has said. The government three weeks ago suspended all NGO licenses, accusing them of being conduits of foreign interference in Zimbabwe's politics. But there was an apparent about-turn on the blanket ban last week, with the government announcing that more than 400 organizations working in the HIV/AIDs sector would be allowed to operate after local and international NGOs protested at the ban. NANGO's spokesperson Fambai Ngirande said it was still impossible for the organizations to operate.

Turkey
June 2008

Headscarf Availability For Women Attending University Overturned
The Turkish military has been quick to endorse the 5 June 2008 ruling of the country’s Constitutional Court annulling the attempts by the ruling Justice and Development Party (AKP) to create a legal framework for lifting the ban that currently prevents women wearing headscarves from attending the university. Reports in the Eurasia Daily Monitor indicate that the Constitutional Court ruled that two constitutional amendments introduced by the AKP were invalid, as they violated the principle of secularism enshrined in the constitution as one of the unchangeable characteristics of the Turkish Republic. On 9 February 2008 the AKP had changed Article 10 of the constitution, which guarantees equality before the law irrespective of language, race, color, sex, political opinion, philosophical belief, religion, or sect, to include a commitment ensuring all citizens equal access to all public services. The government also amended Article 42 on the right to education to include a phrase preventing anyone from being denied access to education except for a reason openly stated in law. For prior coverage, see the February 2008 issue of IJCSL-N.

Zimbabwe
June 2008

Clarification Issued on Suspension Order For NGOS/PVOS
The Government of Zimbabwe wrote on 13 June 2008 to all NGOs/PVOs to give clarification on the order to suspend the field operations of all NGOs/PVOs. In a press release on its website, NANGO, the National Association of NGOs, states that according to the letter of clarification from the Acting Permanent Secretary in the Ministry of Public Service, Labour and Social Welfare, Sidney Mhishi, the suspension of field operations on 7 June 2008 does not imply banning or deregistration of PVOs/NGOs. This latest communiqué from the government appears to contradict the position stated by the Deputy Minister of Information, Bright Matonga, which was carried in the government’s official newspaper, The Herald, of 7 June 2008. The statement published there had indicated that government had suspended all licenses of NGOs and would require them to re-apply for re-registration. The clarification notice indicates that the only issue at stake is PVOs/NGOs engaging in political activities.

China
May 2008

Major corporate and individual donors who made significant contributions to the May 12, 2008 Sichuan Earthquake relief efforts were honored at the conference. Law makers are working with professionals, major not-for-profit organization leaders and volunteers to issue new laws in order to encourage charitable donations and to develop a healthy charitable system in China.

United States
May 2008

Vermont Legislation on L3C's Becomes Effective At End Of May
Vermont has recently become the first state in the nation to enact a statute permitting a new form of organization: the low-profit limited liability company ("L3C"). This form of organization is intended to blend elements of for-profit and nonprofit corporations. The entity can produce some profits, but must have a purpose to pursue social benefits. The statute's supporters noted it would be particularly useful as a form of organization for an entity wishing to signal to private foundations that it would be an appropriate recipient of program-related investments. As entities may form in any state, now that the L3C is available in Vermont, organizations across the country may choose to try this new organizational structure. Of course, using the L3C form may still be risky for many charities, as questions still remain about how the IRS will regard the L3C.

China
May 2008

New Open Government Regulations Become Effective
In a move that Chinese officials claim is intended to combat corruption, increase public oversight and participation in government, and allow citizens access to government-held information, the State Council on April 5, 2007, issued the first national Regulations on Open Government Information (OGI Regulation), which took effect May 1, 2008. Implementation begins at a time when the need for greater transparency in the areas of environmental health, land disputes, disease, and food, drug, and product safety has become apparent. The time lag between issue and effective date provided citizens and government departments a one-year preparatory period. For more information on the development, please visit the Congressional-Executive Commission on China website.

England and Wales
May 2008

The Charity Commission has published the 2008 Charity Commission Study into Public Trust and Confidence in Charities. This is based on independent research conducted by Ipsos MORI which shows there has been an increase in public trust and confidence since the research was last undertaken in 2005. The research looks at what drives public trust and confidence, and includes research on the percentage of people that give money, goods or time to charities, and what people's perception of charities is. The Commission has also produced some initial analysis of issues that the research raises. Download a pdf copy of the report with an executive summary, the Commission’s initial analysis and its press release.

United States
May 2008

New Model Nonprofit Corporations Act Exposure Draft
There is a June 1, 2008, deadline for comments on the ABA Business Law Section’s January 2008 Exposure Draft of the revised Model Nonprofit Corporations Act. The exposure draft is available on the ABA website: Part 1 and Part 2. The Task Force will meet on June 14 to review and discuss comments, and will thereafter produce a final version that, upon review and approval by Committee Leadership, will be posted to the Committee website on or before July 31.

India
April 2008

BUDGET TO AMEND DEFINITION OF "CHARITABLE PURPOSE"
In the amendments to the Income Tax Act proposed in the 2008-09 Budget by the Government of India, the Finance Minister seeks to amend the definition of charitable purpose to "exclude entities carrying on regular trade, commerce or business or providing services in relation to any trade, commerce or business and earning incomes from claiming that their purposes also fall under 'charitable purpose.' Genuine charitable organizations [are] not to be affected in any way." This means that the proposed amendment will not affect organizations involved in activities such as relief of the poor, medical relief, and education. A more technical explanation of the proposed amendment can be found in the Documentation Center.

North America
April 2008

ICCSL renewed its partnership with the University of Bologna in April, 2008
Dr. Leon Irish and Prof. Karla Simon taught the Comparative Civil Society Law for the Master in International Studies in Philanthropy (MISP) Program at the University of Bologna in April, 2008.

United States
April 2008

April 14, 2008: Broken Trust author speaks at Catholic University

Prof. Randall Roth of the University of Hawai’i’s Richardson School of Law spoke at the Catholic University of America's Columbus School of Law on April 14 at 2 PM. He discussed his book "Broken Trust," which was reviewed in the July 2007 issue of IJCSL. For more details, please contact Prof. Karla W. Simon.

England and Wales
March 2008

A tribunal allowing charities to challenge decisions made by the sector regulator has opened. The Tribunals Service will administer the appeals. The Charity Tribunal, which were created under the Charities Act 2006, are designed to be informal, independent and provide a free way for appeals to be taken, according to the government news network press release.

Carry-over onto the news page Before the launch of this service, charities in England and Wales had to go through the High Court to dispute decisions. The President of the Tribunals Service will be supported by five legal members and seven non-legal members. They are currently being recruited by the Judicial Appointments Commission for appointment by the Lord Chancellor. The Tribunals Service expects legal members to be in place in the spring and the latter in the summer.

More about the Charity Tribunal and the Rules applicable to it is available on the Tribunals Service website.

Ethiopia
March 2008

After a long two years and five months in prison, the two Ethiopian anti-poverty campaigners Daniel Bekele and Netsanet Demissie were released from prison on 28 March 2008. Daniel and Netsanet were the last two people who remained detained in the high profile treason trial that originally charged 131 journalists, politicians, and civil society leaders with a range of charges from genocide to treason. They were among thousands who were detained following protests accusing the government of rigging the 15 May 2005 parliamentary elections. Daniel, who is a Board member of ACCSL, has now been returned to his family. ICCSL and ACCSL, along with their many partners such as ActionAid, CIVICUS, etc., welcome the release of Daniel and Netsanet.

North America
March 2008

On March 14 and 15, 2008, Dr. Leon Irish and Prof. Karla Simon attended the meetings of the Uniform Law Commission (formerly NCCUSL) on the Harmonization of the Unincorporated Nonprofit Associations (UNA) project. They were representing the International Law Section of the ABA. This project, which will produce a draft Unincorporated Nonprofit Association Act for the United States, consists of members from the Uniform Law Conference of Canada (ULCC) and the Mexican Center on Uniform Law.

Pictures from the event are available in the Photo Gallery.

North America
March 2008

New Hampshire Supreme Court Upholds Charitable Status for Artist Colony in Face of Private Benefit Challenge
In an interesting state law opinion relating to the federal "public benefit" doctrine, the New Hampshire Supreme Court concluded in Peterborough v. MacDowell Colony, Inc. (Download Peterborough.pdf) that an organization that operated an Artist Colony in Peterborough was entitled to state tax exemption as a charitable organization.

United Nations
Arab Charter on Human Rights Enters into Force
United Nations High Commissioner for Human Rights Louise Arbour issued the following statement on 24 January:

"In this celebratory year of the 60th anniversary of the Universal Declaration of Human Rights, I welcome the 7th ratification required to bring the Arab Charter on Human Rights into force….Regional systems of promotion and protection can further help strengthen the enjoyment of human rights, and the Arab Charter on Human Rights is an important step forward in this direction.
The next vital step will be to ensure that the body that will monitor the Charter, the Arab Committee for Human Rights, is independent and properly resourced so as to be effective and efficient. The Office of the United Nations High Commissioner for Human Rights is committed and stands ready to support the States Parties to the Charter in ensuring that core values of human rights are upheld."

England and Wales
January 2008

The Charity Commission for England and Wales has published its new guidance on the meaning of public benefit under the Charities Act 2006. Entitled "Charities and Public Benefit," the guidance addresses "what charity trustees should consider in order to show that their charity’s aims are for the public benefit."

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