Current News Items
India
August 2010
New Version of FCRA Passes Parliament
The Hindu reported that Parliament has given its stamp of approval to the Foreign Contribution (Regulation) Bill, 2010. The Bill seeks to regulate the acceptance and utilization of foreign contributions, prohibiting the acceptance and utilization of
foreign contributions for activities detrimental to the national interest or national security. Minister of State for Home Ajay Maken said the Bill had sufficient provisions to ensure that genuine non-governmental organizations involved in developmental activities will not suffer.
Bolivia and Ecuador
August 2010
Efforts Underway to Clamp Down on NGOs
According to a report published by the Americas Program, there is conflict brewing between indigenous rights groups and the governments in Bolivia and Ecuador.
"These people are gringos who are coming here with NGOs. Take it somewhere else. These people's stomachs are full enough", said the president of Ecuador, Rafael Correa,
in reference to the protesters who belong to the National Confederation of the Indigenous in Ecuador (CONAIE). Evo Morales said almost the same thing: "Since the Right can't find arguments for
opposing the process of change, it’s using rural, indigenous or original people leaders who have been paid off in special favors by NGOs." Morales is using the 2007 Decree on International Cooperation
to clamp down on foreign, particularly American, for NGOs. It is available in Spanish on the ICCSL website at
http://www.iccsl.org/pubs/Bolivia-Decree_on_International_Cooperation_2007.pdf.
Pakistan
August 2010
Delivery of Foreign Aid:
Lessons for Disaster Relief in Pakistan
A FREE, ABA non-CLE teleconference (with an optional onsite component)
presented by the
Asia-Pacific Committee
September 1, 2010
12:00 p.m. - 1:30 p.m. EDT/ 5:00 p.m. – 6:30 p.m. BST/6:00 p.m. – 7:30 p.m. CET
Register for Free Today
The devastating floods in Pakistan have displaced more than 14 million people and killed at least 1,600. In a memorandum the UN refugee agency, UNHCR, warned that its capacity and that of other UN and international agencies to respond to the crisis created by the flooding was being "tested to the limits." The situation in Pakistan highlights a critical issue in the international development sector: how can the U.S. and other members of the international community distribute disaster relief effectively and efficiently and still ensure accountability?
China
August 2010
ICCSL posts new Update on Civil Society, Charity and Giving in China on its website
Vietnam
July 2010
New Association Regulations Effective July 1, 2010
The revised Decree 45 (2010) on the Organization, Activities, and Management of Associations,
was promulgated on April 21, 2010, and took effect on July 1, 2010. The new Decree governs the registration, operations, and activities of associations at national, provincial, municipal, and sub-provincial levels.
As explained by Mark Sidel in a recent article on the subject in the International Journal of Not-for-Profit Law, by issuing
the regulation the Ministry of Home Affairs responded to calls from government regulators and the associations themselves for a more detailed regulatory document. The World Bank and other donors also requested that
the associations serving as their grantees have access to better and clearer regulations. Some procedures have been changed from Decree 88 (2003), but procedures remain extremely complicated and make it difficult
for the associations to actually become registered. Such requirements include a pre-registration process involving the creation of a board to apply for registration.
China
July 2010
China Foundation Center Launched
The Wall Street Journal’s Realtime China Blog reported that some of China’s most recognized philanthropic
leaders have gathered in Beijing for the launch of the China Foundation Center, a new organization that aims to help increase the transparency of Chinese charitable groups, which have sometimes
struggled with public suspicion of mismanagement and even corruption. The organization looks to bolster trust in Chinese foundations by making information about their activities available to the
public - thus hopefully encouraging more participation in charitable work. The center’s website will initially archive data
on more than 1,800 foundations across China. Chinese and international
philanthropic leaders gathered for the launch ceremony, including Peter Geithner, father of the U.S. Treasury secretary and a former longtime leader in the Ford Foundation, and Xu Yongguang,
founder of Project Hope, China’s largest non-governmental social welfare group. Many of them described the new organization’s launch as mirroring crucial steps taken to improve the transparency of
the charitable sector in the U.S. in the 1950’s.
Global
July 2010
Prof. Karla W. Simon has posted her article in the International Lawyer to her SSRN webpage. The article is a "year-in-review" summary of developments
during the year 2009 regarding civil society organizations around the world. The article is accessible both in hard copy and
on the internet.
Those wishing a hard copy reprint should contact Prof. Simon directly at simon.karla@gmail.com.
United States/Israel
July 2010
West Bank Settlements Supported by Tax Exempt Funds from the U.S.
As the American government seeks to end the four-decade Jewish settlement process and foster a Palestinian state in the West Bank, the
American Treasury helps sustain the settlements through tax breaks for donations to support them. A New York Times examination of public records
in the United States and Israel identified at least 40 American groups that have collected more than $200 million in tax-deductible gifts for Jewish settlement
in the West Bank and East Jerusalem over the last decade.
The Times reported on this investigation in a July 7, 2010 article,
noting that the money goes mostly to schools, synagogues, recreation centers and the like, legitimate expenditures under the tax law. But it has also paid for more legally questionable
commodities: housing as well as guard dogs, bulletproof vests, rifle scopes and vehicles to secure outposts deep in occupied areas. In some ways, American
tax law is more lenient than Israel's. The outposts receiving tax-deductible donations - distinct from established settlements financed by Israel’s government - are
illegal under Israeli law. And a decade ago, Israel ended tax breaks for contributions to groups devoted exclusively to settlement-building in the West Bank.
Now controversy over the settlements is sharpening, and the issue is sure to be high on the agenda when President Obama and the Israeli prime minister,
Benjamin Netanyahu, met in Washington in early July. Although supporting political activities is illegal for U.S. charities, money somehow seems to end up in the
hands of settlers' seeking to engage against the government's policy and rid the West Bank of Palestinians.
India
June 2010
New Revisions to Direct Tax Code Proposed
Under the latest proposal from the Finance Ministry, a Revised Discussion Paper suggests the following changes affecting charities and NPOs will be made in the Direct Tax Code (DTC).
- NPOs already registered under the Income-tax Act, 1961 and holding valid registration on the date on which DTC comes into effect, would not be required to apply for fresh registration under the DTC. However, they would be required to provide additional information to facilitate the administration of the new provisions;
- Up to 15% of the surplus or 10% of gross receipts, whichever is higher, will be allowed to be carried forward to be used within three years from the end of the relevant financial year. In other words, indefinite accumulation of up to 15% of gross receipts as is prevalent will not be allowed;
- The term "charitable purpose" will be retained in place of "permitted welfare activity" proposed earlier;
- Donations by an NPO out of its accumulated surplus to another NPO will not be considered as an application for "charitable purpose;"
- A basic exemption limit will be provided and the surplus in excess of such limit will be subject to tax;
- The cash method of accounting will be retained since it is simple to follow and easy to administer;
- The Central Government will be empowered to notify any non-profit organization of public importance as an exempt entity;
- Currently NPOs are allowed unlimited carry forward of unspent balance to the next financial year. It is proposed not to allow this;
- NPOs will no longer be allowed to accumulate funds for up to 5 years;
- Donors will not be able to enjoy 100% deduction for donations made to projects approved under section 35AC; and
- Business activity, even if incidental, will not be allowed for NPOs established for a "charitable purpose" but falling under the category, "advancement of any other object of general public utility."
Vietnam
June 2010
New Article Provides Interesting Comparisons with China
Mark Sidel has published an interesting article on the development of the laws and regulations affecting civil society organizations in Vietnam, a country that ICCSL has been following for several years.
One worthwhile aspect of the paper is that it provides a means of comparing Vietnam and China as they continue on their quest to find ways to regulate civil society that are consistent with their political systems.
United States
June 2010
ACLU Report Details Undermining of Muslim Charities Since September 11 Attacks
The fight against terrorism has dealt a harsh blow to Muslim charities and interfered with their donors’ religious freedom, a new report by the American Civil Liberties Union concludes.
The New York Times story says that the report details "statutes that it describes as overly broad and enforced in a discriminatory manner, coupled with a lack of due process, have starved Islamic charities
of money and impeded Muslims' ability to fulfill zakat, their religious requirement to make charitable donations. The report is based on interviews with more than 100 Muslim community leaders as well as experts
on antiterrorism laws and regulations." Though it gives no estimate of the decline in donations to Muslim groups after the September 11 attacks, the report notes that nine Islamic charities have closed since then.
China
June 2010
New Regulations Analyzed
Prof. Karla Simon has published a short, non-academic paper on the recent developments (SAFE regulations on foreign grants and Yunnan regulations on INGOs) regarding CSOs in China,
which is now available on the ICCSL website.
United Kingdom
June 2010
New Government Appointments Focus on Civil Society
The new U.K. Government has appointed Nick Hurd as the Minister for Civil Society and Nat Wei as Government advisor on the Big Society in the House of Lords, according
to an announcement from the Cabinet Office. Charities
Aid Foundation’s (CAF’s) chief executive John Low has praised the new government's focus on civil society. Speaking to
Cabinet Office staff, Nick Hurd, alongside the Minister for the Cabinet Office Francis Maude, has announced that Government policy will focus on three fundamental issues:
- Making it easier to run a charity, social enterprise or voluntary organisation
- Getting more resources into the sector: strengthening its independence and resilience
- Making it easier for sector organisations to work with the State
John Law stated as to Nat Wei that he is “encouraged that Nat Wei has been elevated to the Lords to support Government’s development of the Big Society agenda - his inspired leadership at Teach First amply
demonstrates his ability to harness the power of civil society and corporate engagement to make a lasting difference in communities up and down the country.
China
May 2010
NGO "Clamp-down" story on NPR
http://www.npr.org/templates/story/story.php?storyId=126821399
This story from NPR’s Morning Edition on May 14, 2010 (by Anthony Kuhn) is the best analysis we have read or heard about the "clamp-down" on NGOs. It quotes extensively from Deng Guosheng,
who heads the NGO Center at Tsinghua. It also quotes Xu Zhiyong from Gongmeng, which was closed down last July. Xu says he wants now to be more strategic in what he does and that he will no
longer accept foreign funding. Prof. Deng also mentions the local level efforts to make it easier for certain NGOs to register.
Israel
May 2010
The ICCSL analysis of second draft NGOs Law has been posted to the web.
The ICCSL comments on first draft NGO law are also available.
These comments were part of a successful campaign to avert the adoption of the first law.
ICCSL is involved in ongoing efforts to persuade the Knesset not to change the legal framework for associations (Amutot) in Israel.
Israel
April 2010
New Law Proposed in Knesset
On April 28, 2010, 19 Knesset members from both the coalition and opposition proposed a law that would forbid the registration of organizations "if there is a reasonable basis to
conclude that the organization is providing information to foreign bodies or is involved in lawsuits abroad against senior officials in the government in Israel and/or officers in the Israeli
army regarding war crimes." Existing organizations found to engage in such activity would be shut down. A group of ten Israeli human rights organizations has published a response to
the bill, saying that it "violates international treaties and the Universal Declaration on Human Rights," and that it "seeks to conceal information or suspicions of a crime." An English translation
of the law is available here. More information about the legal developments
is available here.
Tibet
April 2010
Yushu Earthquake-Related Developments
Times Online reports that the leading Tibetan intellectual, a writer, publisher and philosopher long seen as close to
China’s ruling Communist Party, has been arrested after organizing private donations for this month’s earthquake in Yushu. Tra Gyal, better known by his penname of Zhogs Dung, was detained in Xining, capital of the western province
of Qinghai, where the April 14, 2010 tremor killed more than 2,000 people, Tibetan sources said. Half a dozen police picked him up from his office at the Qinghai Nationalities Publishing House, took him to his home and carried out a
meticulous search of his study, taking him away at about 10.00pm. The officers returned in the early hours of the morning and removed two computers, written documents and pictures and came back again at about 3.30am to show
the writer’s wife a formal arrest warrant for her husband. Other sources attribute his arrest to the fact that a group of prominent Tibetan intellectuals based in Qinghai’s Xining province had written an open letter of condolence to the
victims of the disaster. Shogdung was one of the signatories of this open letter (in his real name Tra Gyal) and it was published on his blog. The open letter expresses condolences and at the same time is critical of the Chinese
government in their handling of the earthquake relief efforts. In a related development, Buddhist monks who had been delivering most of the aid to earthquake victims in its immediate aftermath were asked to return home so that
professionals could offer aid, according to the New York Times.
Egypt
April 2010
Foreign Policy has a story detailing the facts about a potential new law governing NGOs have sent a shudder through Egypt's civil society.
A group of more than 41 NGOs have banded together to oppose the legislation, warning it could be used not only to curtail their activities, but also restrict the ability of groups such as the National Coalition for Change led by Muhammad
ElBaradei from campaigning for reform. The new law is also cause for alarm for the Obama administration, whose own change of policies towards some U.S. funding of Egyptian NGOs is seen by activists as having sent the wrong signal
to the Mubarak regime. If the U.S. is serious about its declared support for Arab civil society, now is the time for the administration to show its hand. The alarm in the Egyptian NGO community revolves around a bill drafted by the Ministry
of Social Solidarity that could become law within months should the government decide to send it to parliament. The NGO coalition warns that the government is rushing a bill which would “limit the activities of human rights organizations or
shut them down completely by criminalizing all forms of unregistered civic organization...[with] ramifications for some of the most important political reform movements (such as the National Association for Change, Kifaya, April 6th Youth
and others).” It warns that the bill would establish "unprecedented control over civil society worse than the crackdown that followed the July 1952 revolution which nationalized political, partisan, syndicate and civic action."
China
April 2010
NGOs Permitted to Assist with Yushu Earthquake Relief and Recovery Efforts
On April 14th 2010 several earthquakes struck the Yushu Tibetan Autonomous Prefecture in Qinghai province, the largest of which had a magnitude of 7.1.
Initial eyewitness reports from the prefecture government seat Jiegu (Jyekundo) speak of extensive damage to houses and many wounded and dead.
Official figures at time of writing are over 600 dead and 8,000 wounded, with more casualties expected because of the extreme cold and the winds.
The Ministry of Civil Affairs said about 15,000 houses had collapsed and 100,000 people need to be relocated. The area sits at around 4,000 metres (13,000 feet) and is very poor.
The Yushu Prefecture government has requested aid in the form of medical personnel, medical supplies, and temporary shelters (i.e., tents and blankets).
Additional supplies and medical teams will be sent once an operations base has been established in Yushu.
There is already a solid network of medical personnel in China prepared to depart for Yushu, and gifts of cash are the easiest and quickest way that one can help out.
Gifts of supplies are more difficult and time consuming to receive, and most supplies needed can be bought in the provincial capital, Xining.
Sichuan Quake Relief (SQR) is sending a team from Chengdu to work with the Yushu prefectural government and locally based NGO Plateau Perspectives to carry out wider needs assessments and help coordinate NGO relief activity.
Updates will be posted on the SQR website and at dedicated website yushuearthquake.com (mirrored at yushuearthquakerelief.com).
Other NGOs that are involved include Qinghai Earthquake Appeal (QEA). Funds will be allocated to local NGOs that are involved in emergency response and relief efforts.
They need to buy medical supplies, tents, blankets, food, and water, etc. Supplies need to be purchased in Xining and nearby cities and delivered by trucks to Yushu.
See www.Tibetanvillageproject.org for updates and to make donations.
Egypt
April 2010
Ministry Has Prepared New NGO Law Said to be Very Repressive
The Ministry of Social Solidarity has completed a draft for a new NGO law.
According to the latest leaked copy, the bill is more restrictive and draconian than repressive law already in place.
The new bill is expected to pass into law with the approval of the government parliamentary majority in the coming month.
A press release by 41 NGOs published on the Euro-Med Human Rights Network website suggests that the haste to pass
the bill is attributable to a desire to undermine civil society efforts to monitor the upcoming parliamentary and presidential elections.
Following the abolition of judicial supervision of elections in the last round of constitutional amendments and the government’s refusal
to allow international monitors, this step will facilitate further dishonest elections conducted without any meaningful oversight.
Some articles of the new bill aim to limit the activities of human rights organizations or shut them down completely by criminalizing all forms
of unregistered civic organization. The bill promises to institute unprecedented control over civil society worse than the crackdown that followed the
July 1952 revolution which nationalized political, partisan, syndicate and civic action. It is clear that goal of the bill is to tighten the stranglehold on NGOs and other civic organizations.
China
April 2010
Report on Support for Charities in China Released by MCA
China received more than 33 billion yuan ($ 4.83 billion U.S.) in donations in 2009, according to a government charity report released April 8, 2010. The report, jointly released by the Department of Social Welfare and Promotion of
Charities under the Ministry of Civil Affairs (MCA) and the China Charity and Donation Information Center, said donations included more than 22.7 billion yuan in funds and goods worth more than 10.5 billion yuan. Domestic and
overseas enterprises were the major donors, contributing more than 13 billion yuan to the total, according to the report. Overseas donations amounted to 4.5 billion yuan. More than 40 percent of the donated funds were for
education, a survey showed.
United States
March 2010
Master in International Studies in Philanthropy
United States
March 2010
Leading Developments in Chinese Law Conference
China
March 2010
New Regulation of Foreign Donations Now Effective
The Notice (No. 63 [2009]) of the State Administration of Foreign Exchange on "Issues concerning the Administration of Foreign Exchange Donated to or by Domestic Institutions" became effective March 1, 2010.
Although the regulation states that it was promulgated "to improve the administration of donated foreign exchange and facilitate the donated foreign exchange receipts and payments," many CSOs and academic leaders
are concerned about the tenor of the regulation, according to the South China Morning Post. It requires that "receipts and payments of foreign exchange of domestic institutions shall
be transacted through a donated foreign exchange account, which shall be set up at the designated foreign exchange banks ("Banks") and incorporated into the foreign exchange account management system by the Banks."
In addition, an application to set up a foreign exchange account for a donation must be accompanied by “a certificate of registration of the overseas non-profit organization (with its Chinese translation attached).”
Israel
March 2010
Draft Legislation Introduced in Knesset to Reclassify Charities Receiving Funding from Political Entities
Members of the Knesset introduced legislation to reclassify charities (Amutot) as non-public institutions for tax law purposes. The amendment will jeopardize access by such entities to other foreign funding if it goes into effect. The proposed amendment to the Law on Amutot is under attack by Israeli charities. ICCSL is currently analyzing the legislation on behalf of Israeli charities.
South Africa
March 2010
Corporate Governance Code Applicable to CSOs Now in Effect
The King III Code of Corporate Governance has become effective in South Africa. In a change from the King II Code promulgated in 2009, King III says that it applies to "all entities regardless of the manner and form of incorporation or establishment and whether in the public, private sectors or non-profit sectors."
According to the drafters, the principles contained in the report have purportedly been drafted so that "every entity can apply them and, in doing so, achieve good governance." It is debatable whether that is true - the Code is full of rigorous requirements that are relevant to companies (and was originally intended to cover corporations regulated by the new Companies Act). Whether it should be applicable to CSOs without some recognition of their special issues and, in many cases, small size, remains questionable. ICCSL will be publishing an article about the King III Code in the April issue of IJCSL.
Uganda
March 2010
Critical Comments Made on Proposed Amendments to Press and Journalism Act
The members of the Article 29 Coalition, a voluntary network of media organisations and associations with a mandate to promote media freedom and professionalism in journalism, and our allies have strongly objected to the spirit and content of the proposed amendments to the Press and Journalist Act Cap 105 of 2000 and have expressed their comments, including the following:
- Some of the proposed newspaper licensing conditions, such as "proof of existence of adequate technical facilities" and the "social, cultural and economic values of the newspaper" violate constitutional guarantees of freedom of expression and are subject to abuse. A person or legal entity should be free to publish a newspaper whether they have state-of-the-art technology or not;
- Contrary to the provisions of Article 29 of our constitution, licensing of newspapers will amount to licensing the very fundamental freedom of expression that is guaranteed in the constitution. Licensing of newspapers is an archaic control mechanism which has been used by regimes that do not appreciate the role of the media in enhancing the public good. These amendments are reminiscent of the Zimbabwean Access to Information and Protection of Privacy Act (AIPPA) of 2002 that was effectively used de-license critical newspapers in that country using the licensing requirement; and
- Particularly disturbing is the Media Council’s powers to revoke a newspaper’s license based on publishing material that is "prejudicial to national security, stability and unity," "injurious to Uganda’s relations with her neighbours or friendly countries," and that "amounts to economic sabotage." The criminalisation of the publication of such material is very dangerous as such provisions are prone to subjective interpretation.
United States
March 2010
States and Localities Revoking Charity Tax Exemptions to Gain Revenues
A report in the New York Times says that faced with steep declines in tax revenue,
an increasing number of states and localities are considering eliminating various tax exemptions for nonprofit groups. A bill before the Hawaii Legislature, for instance, would require charities to pay a 1 percent
tax, and Kansas is considering making them subject to sales taxes. Revoking the nonprofit organizations' exemptions from property taxes is also under scrutiny in several counties in Kansas, as well as in Pennsylvania.
And last fall, Minneapolis made charities subject to the fees it charges businesses and residents for streetlights in hope of gaining an additional $155,000, an exercise Jon Pratt, executive director of the Minnesota Council of
Nonprofits, describes as "looking under the sofa cushions." In most cases, churches would be exempt from the tax measures, but all other nonprofit groups, including private schools and colleges, would be affected.
City and state officials say they have no choice.
United States
February 2010
Half a Century of Asian Law - Speaking Engagement
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Prof. Karla Simon was an invited speaker at "Half a Century of Asian Law: A Celebration of Prof. Jerome Cohen,"
on February 19, 2010, held at GWU Law School. The conference marked the 80th birthday of the noted NYU Law School professor. Her paper, "Two Steps Forward One Step Back - Developments in the Regulation of Civil Society Organizations in China", was listed on SSRN's Top Ten download list for Asian Law. The article appeared in the October 2009 issue of IJCSL.
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United States
February 2010
Two Steps Forward One Step Back - Developments in the Regulation of Civil Society Organizations in China
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Professor Karla Simon's paper, "Two Steps Forward One Step Back - Developments in the Regulation of Civil Society Organizations in China",
was recently listed on SSRN's Top Ten download list for Asian Law. The article appeared in the October 2009 issue of IJCSL. Professor Simon has
accepted an invitation to address a conference "Leading Developments in Chinese Law Conference,"
to be held at UCLA School of Law on March 5, 2010.
She was also an invited speaker at "Half a Century of Asian Law: A Celebration of Prof. Jerome Cohen," on February 19, 2010.
The conference marked the 80th birthday of the noted NYU Law School professor.
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India
February 2010
Changes in Fiscal Environment in Proposed Budget
According to an email received from Noshir Dadrawala (noshir101@gmail.com),
"The amendments proposed in the new Budget under the Income Tax Act concerning charitable organizations are soft and at places even encouraging." Here are the Highlights:
- Implementation of the Direct Tax Code (DTC) has been postponed by a year and may be introduced only from April 1, 2011;
- A Goods & Services Tax (GST) may also be introduced from April 2011;
- The Finance Act 2008 had changed the definition of “charitable purpose” such that "Advancement of any other object of general public utility" would not be considered as "charitable purpose" if it involves carrying on of any activity in the nature of trade, commerce or business or any activity of rendering any service in relation to any trade, commerce or business for any fees or other consideration. The Finance Bill 2010 has attempted to provide some relief with retrospective effect from the 1st day of April, 2009 by exempting the aggregate value of the receipts from such activities up to ten lakh rupees;
- A small amendment has been proposed in sub-section (3) of section 12AA of the Income Tax Act such that the Commissioner, if satisfied that the activities of a trust or institution "which has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996]"are not genuine or are not being carried out in accordance with the objects of the trust or institution, as the case may be, he shall pass an order in writing canceling the registration of such trust or institution.
- In section 35(1) it is proposed that the words "scientific research association" be changed to just "research association" and that the tax deduction allowed under this section be enhanced from "one and one-fourth" to "one and three-fourth"
- The service tax continues to be retained at 10 per cent to pave the way for GST. However, certain services, hitherto untaxed, are expected to be brought within the purview of the service tax levy. These new services will be notified separately
United States
February 2010
Supreme Court Hears Arguments in Important Freedom of Association and Expression Case
The Humanitarian Law Project and its president, Ralph Fertig, a retired United States administrative law judge, want to provide training in peaceful dispute resolution to the Kurdistan Workers' Party,
which has waged a separatist guerrilla campaign against the Turkish government, and to advise the group on how to petition the United Nations and other international organizations for relief. They
were prevented from doing so under sections 302 and 303 of the Antiterrorism and Effective Death Penalty Act ("AEDPA") and its 2004 amendment, the Intelligence Reform and Terrorism Prevention Act ("IRTPA").
The United States Court of Appeals for the Ninth Circuit, in Holder v. Humanitarian Law Project, rejected
the broadest challenges to the law but ruled that some of its provisions - making it illegal to provide "training,"
"expert advice or assistance" or "service" - are unconstitutionally vague. That ruling improved the law, but there is room for improvement. Lawyers for the plaintiffs argue that it is still so broad that it could encompass
anything from publishing an opinion piece written by a spokesman for a terrorist group to filing a friend-of-the-court brief in support of L.T.T.E. in this lawsuit.
United States
January 2010
Karla Simon paper published
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Karla Simon's article on the new legal framework for civil society organizations in Japan has been published as the lead article in the Journal of Japanese Law.
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Iraq
January 2010
New NGO Legislation Passes Parliament
ICNL announced the passage of a new Law on Non-Governmental Organizations for the Republic of Iraq. The new law, which awaits the final signature of Iraqi President Jalal Talabani,
will replace Coalition Provisional Authority Order Number 45. According to ICNL’s analysis the new Law on Non-Governmental Organizations is a significant improvement upon both CPA
Order 45 as well as the draft law first introduced in the Iraqi parliament in March 2009. ICNL has produced a table that summarizes several of the most important provisions.
This is available at http://www.icnl.org/knowledge/news/2010/01-25.htm
Euro-Mediterranean Region
January 2010
Survey on Freedom of Association Published
The Euro-Mediterranean Human Rights Network (EMHRN) has published its third survey on Freedom of Association in that region.
The premise of the survey of the state of freedom of association in the Euro-Mediterranean region is that freedom of association constitutes a
right that is absolutely essential, along with freedom of expression, to the exercise of virtually every other civil and political right, and to the
advancement of economic, social and cultural rights. The Survey reports that the period since the last EMHRN survey, in December 2008,
has seen little or no improvement in the state of freedom of association in any country in the Euro-Mediterranean region, and in some
respects continued deterioration of the ability to exercise this right. In virtually every country covered, there are thousands of associations,
a great many of them charitable in nature, and for the most part these organizations do not experience problems with the authorities unless they are
affiliated, or suspected of being affiliated, with opposition political movements. The hand of the government as a general rule is heaviest, in terms of legal
restrictions and official harassment, when it comes to human rights organizations as well as other groups advocating for changes that can affect the exercise
of political power, including the power of security services.
Philippines
December 2009
A Legal Matrix for Civil Society in the Republic of the Philippines has been added to the Documentation Center.
China
December 2009
Clarifications Issued on Tax Exempt Income for NPOs and Donor Deductibility of Charitable Gifts
The Ministry of Finance (MoF) and the State Administration of Taxation (SAT) issued two circulars in November to clarify the tax treatment of CSOs/NPOs and to provide rules for donors to them. Both circulars are retroactive to January 1, 2008, the effective date of China’s new Enterprise Income Tax Law. With respect to the former, Circular [Caishui] 122 says that exempt items include gifts, state subsidies, membership fees, interest on bank accounts, and other income as determined by the MoF and the SAT. The second Circular [Caishui] 123 describes the procedures whereby CSOs/NPOs seeking to qualify themselves as appropriate donees of tax deductible contributions can do so. It also describes attributes of such NPOs, including rules putting into effect the non-distribution constraint. The latter is a reissuance of a Circular first issued in 2007, which is described in detail in Karla W. Simon, Regulation of Civil Society Organizations in China: Necessary Changes after the Olympic Games and the Sichuan Earthquake, and which was re-published in IJCSL. The translated texts of the circular on income tax exemption (122) as well as the one on eligibility for tax deductibility of donations (123) are available in Documentation Center.
United States
November 2009
Visit of Chinese Delegation to ICCSL
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ICCSL hosted a Chinese delegation to the United States, comprised of government officials and CSO leaders.
The aim of the delegation was to discuss the role of civil society in environmental protection. Our discussions also ranged over a number
of civil society issues, including new developments with regard to the documentation system for a local entity to begin work for public benefit and the proposed charity law.
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Philippines
November 2009
Philippines Study Tour Completed in November
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The third and final Study Tour conducted by ICCSL for the Aga Khan Development Network involved delegations of Pakistanis and Afghanis.
Under the leadership of Dr. Leon Irish of ICCSL and Mr. Richard Holloway of AKDN, the group was hosted in Manila by
CODE-NGO, a Philippines NGO network,
which is really a network of networks. CODE put together a wonderful and extremely illuminating Study Tour, which is described in more detail here.
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Russia
November 2009
Incentives for Charities Promised by Medvedev
The New York Times reports that President Dmitri A. Medvedev has called for tax incentives and other measures to assist Russia’s beleaguered nonprofit groups, which have come under government pressure in recent years. Mr. Medvedev, promoting policies that he hopes will modernize the country, said in a meeting with human rights advocates that new laws would not alleviate all the problems the groups faced, but that they would certainly help. “Our main goal is the support of the authority of nonprofit groups in society, and the attraction to this sector of more talented people and philanthropic resources,” Mr. Medvedev said. “We need to stimulate philanthropy and create a stimulus or a motivation for volunteers who toil for such organizations.” The government has sought in recent years to establish more control over nonprofit groups, especially those that receive foreign assistance. Mr. Medvedev’s mentor, Prime Minister Vladimir V. Putin, the former president, has at times portrayed the groups as little more than tools that the West uses to meddle in Russia’s affairs. Under Mr. Putin, the groups were subjected to new regulations, as well as increased scrutiny that they have sometimes characterized as harassment. Charities and other nonprofit groups have also not prospered in Russia because there is less of a tradition of giving here. In Soviet times, the Communist Party was supposed to take care of societal needs, so a philanthropic sector barely existed. And current tax regulations do not encourage charitable donations or charitable activity, as they do in many countries, including the United States.
India
November 2009
Greater Scrutiny of NPO Financial Activities Announced
Non-profit organizations (NPOs), whether registered as charitable trusts, temples, churches or mosques, NGOs, educational institutions or societies, etc.
will not only have to disclose the sources of their funds, but also will be scrutinized for large monetary transactions. This change in the law has been introduced
by an amendment to the Prevention of Money Laundering Act (PMLA) 2002,
notified in the Official Gazette on November 12, 2009 to bring NPOs within the purview
of the law. Earlier, the entities that fell under the ambit of the law included only fund companies, banking companies, financial institutions, and housing finance companies.
The amendment now says any company registered under section 25 of the Indian Companies Act, 1956, and/or as a trust or society under the Societies Act, 1860, or
any similar state legislation, will be brought within the purview of PMLA. "Money laundering in India was rampant through NGOs and charitable trusts. The majority of
industrialists and even some top politicians were using NGOs to launder their black money back into the country. The amendment would prove an effective tool in the
hands of authorities and would take the veil off the racket," said Mumbai-based lawyer Bhushan Bahal.
Europe
November 2009
Ruling Against Crucifixes in Classrooms Generates Discussion and Dismay
Italy has reacted furiously after the European Court of Human Rights ruled in Lautsi v. Italy that crucifixes should not be displayed in the country’s schools, reports the Telegraph.
The Vatican expressed "astonishment" and "regret" about the decision. The landmark judgment could force a Europe-wide review of the use of religious symbols in state-run schools. A chamber panel of seven judges in Strasbourg said the display of crucifixes, which is common but not mandatory in Italian schools, violated the principle of secular education and might be "disturbing" for children from other faiths. It upheld a complaint filed by Soile Lautsi, a Finnish woman with Italian citizenship, who complained that her children had to attend a state school in northern Italy which had crucifixes in every classroom. The court awarded her 5,000 euros (£4,470) in "moral damages," which will have to be paid by the Italian government. The court stopped short of ordering authorities to remove crucifixes from all state-run schools and the long-term implications of the ruling were unclear. Italy says it will appeal to a Grand Chamber.
International
October 2009
On October 28, 2009, a program on "Trends & Recent Developments in Regulating Non-Governmental Organizations" was held at the American Bar Association International Law Section Meeting. The moderator was Leon Irish of ICCSL and Prof. Karla Simon was one of the speakers. Her slides and further information on the program are available here.
France
October 2009
Scientology Convicted of Fraud by French Court
A French court has convicted the French branch of the Church of Scientology of fraud and fined the organization almost $900,000. However, the court stopped short of granting the prosecution's demand to ban the church entirely. The church said it would appeal. The verdict was among the most important in several years to involve the group, which is registered as a religion in the United States but has no similar legal protection in France where it is considered a sect. The court decision marks the first time that the church itself -- and not individual church members -- had been tried and convicted. According to the New York Times, The case was brought by two former members who said they were pushed into paying large sums of money in the 1990s, pressed to sign up for expensive "purification courses" and harassed to buy a variety of vitamins and other forms of pharmaceuticals, plus electronic tests to measure spiritual progress. One woman said she had been pressured into spending more than $30,000. The major fines were rendered against the Scientology Celebrity Center in Paris and a Scientology bookstore. Six group leaders were convicted of fraud, with four given suspended sentences of 10 months to two years. One of them, the group’s leader in France, Alain Rosenberg, was given a two-year suspended sentence and fined $44,700. Two others were given only fines, of $1,490 and $2,980.
England & Wales
October 2009
Charity Commission Decision Overturned by Tribunal
Third Sector reports that the Charity Commission's decision to remove a trustee of a Tamil temple in south London has been overturned by the First-tier Tribunal (Charity).In only its second verdict, the tribunal panel, formerly known as the Charity Tribunal, rejected all seven of the commission's reasons for removing Nagendram Seevaratnam as a trustee of the Sivayogam temple in south London and decided unanimously he should be reinstated immediately. The seven reasons included claims that Seevaratnam had failed to take sufficient steps to dissociate himself and the charity from the Tamil Tigers. The tribunal said that rumors about links had not been in wide circulation and the Commission had failed to show it would be reasonable for anyone to believe them. The tribunal agreed with the commission that Seevaratnam, who declined to give oral evidence, had been a dominant trustee but said that did not constitute misconduct or mismanagement in its own right and arose because of his professional background, language skills and his status in the religious and cultural life of the charity. It accepted that Seevaratnam had shown misconduct and mismanagement in various ways, but disagreed with the commission that his removal was necessary to protect the assets of the charity. The tribunal said it was also “most concerned” to hear that evidence submitted to the commission by Seevaratnam demonstrating he had implemented adequate procedures for selecting and monitoring recipients of funding in Sri Lanka had not even been translated. A spokeswoman for the commission said the regulator would respond fully to the findings once it had had time to consider the judgment in detail.
Australia
October 2009
The Tax Laws Amendment (2009 Measures No 4) Bill 2009 has passed the Australian Senate and is now awaiting royal assent. The Assistant Treasurer has issued a media release regarding the amendments in the Bill - see No. 049 Important philanthropic tax law reforms pass through parliament. The Bill amends the tax law to improve the integrity of prescribed private funds (PPFs). The amendments among other things:
- rename PPFs as private ancillary funds (PAFs)
- move the full administration of those funds under the authority of the Commissioner of Taxation (the Commissioner)
- allow the Commissioner to endorse PAFs as deductible gift recipients (DGRs)
- give the Treasurer the power to make legislative guidelines about the establishment and maintenance of PAFs
- give the Commissioner the power to impose administrative penalties on trustees that fail to comply with the guidelines and to remove or suspend trustees of non-complying funds.
The Government of Australia has now published the Private Ancillary Fund Guidelines 2009, which are effective from 1 October 2009. They set minimum standards for the governance and conduct of a private ancillary fund and its trustee.
Russia
October 2009
Restrictions on Registration for Religious Organizations not in Russia for Fifteen Years Struck Down by European Court of Human Rights
In a case of great importance, the European Court of Human Rights ruled unanimously in favor of two Scientology religious groups in Russia (European Court of Human Rights: Case # 7683601 and 32782/03), finding that they have the right to be registered as religious organizations under Russian law. This decision determines that members of the Church of Scientology of Surgut and the Church of Scientology of Nizhnekamsk have the right to religious freedom and freedom of association pursuant to Articles 9 and 11 of the European Human Rights Convention. In 1997, the Russian government passed laws preventing religious organizations from forming legally unless they could prove they had been in existence in their respective state(s) for 15 years. Such a law obviously discriminates against religions not established in a state for 15 years and has now been ruled as unlawful by the European Court of Human Rights. In reaching this decision, the Court "established that the applicants were unable to obtain recognition and effective enjoyment of their rights to freedom of religion and association in any organizational form. The first applicant could not obtain registration of the Scientology group as a non-religious legal entity because it was considered to be a religious community by the Russian authorities. The applications for registration as a religious organization submitted by the first and second applicants as founders of their respective groups ... were denied by reference to the insufficient period of the groups’ existence. Finally, the restricted status of a religious group for which they qualified ... conveyed no practical or effective benefits to them as such a group was deprived of legal personality, property rights and the legal capacity to protect the interests of its members and was also severely hampered in the fundamental aspects of its religious functions. Accordingly, the Court finds that there has been an interference with the applicants’ rights under Article 9 interpreted in the light of Article 11."
China
September 2009
Study on Outsourcing Released on World Bank Website
The World Bank has released the study conducted by ICCSL entitled "Outsourcing Social Services to CSOs: Lessons from Abroad." It is available here. The study involved a collaboration between Dr. Irish and Prof. Simon of ICCSL and Dr. Lester Salamon of Johns Hopkins University. The report was completed in June, 2009.
England & Wales
September 2009
CIO Consultation Report Published
Publication of the joint Cabinet Office/Charity Commission
response to
the consultation on the
Charitable Incorporated Organization (CIO), a new legal form for charities, was announced September 17, 2009.
The CIO is the first incorporated legal form designed specifically with the needs of charities in mind. The CIO
will be available only to charities and will add to the existing range of forms that charities can use. Responding
to the consultation on how the CIO will work, the Government and the Charity Commission have agreed to make a number
of important changes to the initial proposals including:
- ensuring a robust duty of care by removing a proposal that CIO trustees could in some circumstances take less responsibility for their charity’s activities
- tightening up rules on access to personal information in the registers of trustees and members that CIOs will have to maintain, and
- replacing a number of minor criminal offenses for administrative failings with a power for the Charity Commission to direct rectification.
Iraq
September 2009
CSOs Gear Up for Campaign Against Draft Law
The UN’s Programme on Governance in the Arab Region (POGAR) reports that Civil Society Organizations
in Iraq are rejecting a draft law that regulates their work. Citing Al Hayat,
POGAR says that the Iraqi government published in early 2009 a draft law for regulating
the activities of non-governmental organizations. The draft law met wide criticism at that
time because it imposes heavy monitoring on the activities of more than 8500 operating in Iraq.
The Iraqi government ignored all criticisms and referred the draft law to parliament for approval.
The head of the Committee on Civil Society Organizations in the Iraqi parliament, Mrs. Ala Talabani, said
that the draft law is very unfair and that the parliamentary committee wrote down many observations concerning
the draft law that will be discussed in the new legislative session. Mr. Falah Alousi, a member of the "Rafidain Peace"
NGO said that the draft law seeks to put NGOs and human rights organizations under severe supervision by state
agencies, and also aims to interfere in the affairs of civil society organizations. He added that most NGOs have
reservations against article pertaining to funding. The draft law stipulates that before establishing an NGO, the
"Ministry of Civil Society Organizations" must approve the source of funding of that NGO. However, the draft law
did not set criteria for acceptable funding, thereby rendering the Ministry’s approval arbitrary and selective.
On the other hand, a high ranking government official said that the draft law was prepared by the government after
it received information about the lack of organizational structures and work mechanisms of some NGOs; the lack of
experience to build a proper NGO by others; in addition to turning of some NGOs into a personal venture by only
appointing relatives and friends. Still, other NGOs were extensions of political parties and religious, sectarian or
ethnic movements. The official added that many Iraqi NGOs are lacking in democratic practice and their leading bodies
are not chosen through election; many also do not make any initiatives and are poor at the intellectual and practical
levels. On the other hand, many Iraqi civil society organizations are preparing to wage a vast campaign against
the draft law when the parliament’s begins its discussion of the draft law. CIVICUS, the international civil
society organization, has already prepared comments on the draft legislation
, urging that it not be adopted in
its current form.
Zambia
September 2009
Repressive NGO Bill Signed by President
AllAfrica.com reports that Zambian
president Rupiah Banda has signed legislation regulating the operations of civil society, sending shock waves through the sector,
which fears its independence will be severely compromised. Presidential assent means the 2009 NGO Bill, withdrawn in 2007 after
widespread protests by civil society and opposition parties, now only needs gazetting to become legislation that will require
"the registration and co-ordination of NGOs" and can “regulate the work, and the area of work, of NGOs operating in Zambia."
Dickson Jere, a special assistant to the president for press and public relations, confirmed in a statement: "His Excellency the
President Mr Rupiah Banda has assented to 13 Bills, which were recently passed by the National Assembly, including ... the
Non-Governmental Organisations Bill." The new stipulations will compel NGOs to re-register every five years and submit
annual information on their activities, funders, accounts, and the personal wealth of their officials; failure to comply
could result in the suspension or cancellation of registration. On 28 August 2009 civil society organizations held an
emergency meeting in the capital, Lusaka, to plan a response to the looming regulations, which the NGOs have termed "unconstitutional."
"We have already resolved to carry out a peaceful demonstration next week on 4 September 2009 in Lusaka, and there are arrangements
going on so that people in the provinces also carry out the protests. I think the court action [a proposed injunction] is
a definite intervention as well, but we are still talking," an NGO worker, who declined to be identified, told IRIN News Service.
Zambia
September 2009
ICCSL to Assist ABA in Organizing "NGO Law" Task Force
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CUA law students assisting with the project - Thierry Ghatas, Shirley Chim, Laura Dorey, Kristina Hernandez, Jessica Woods, Anna Bristle and Angela Kondowe.
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In order to facilitate the development of comments on the new and proposed "NGO" laws in Zambia
and Iraq by an American Bar Association Task Force, ICCSL is making documents received so far
available on its website. The Task Force is being formed by the International NGOs and NPOs
Committee of the Section of International Law. Members of the Human Rights and Africa
Committees of the International Law Section are also expected to join. Law students at
various law schools will assist with the drafting efforts.
The Comments will be based on a model used previously for comments on
Zimbabwe’s Draft
Changes to the NGO Law (developed by ICCSL). Members of the Task Force will also
consult the book prepared by ICCSL for the Open Society Institute in 2004: Leon Irish,
Robert Kushen & Karla Simon,
Guidelines for
Laws Affecting Civic Organizations.
The new law in Zambia has been passed by the Parliament and signed by the President,
but the comments are designed to assist the NGOs in Zambia in their resistance to
the legislation through court action. Comments by Mandeep Tiwana of CIVICUS are also
available for the Task Force, and CIVICUS has agreed to partner with the ABA and ICCSL
on this and the Iraq project.
The Draft NGO Law in Iraq is still working its way through the Iraqi parliament and has
been severely criticized by local CSOs as violative of their freedom of association.
The Iraqi government, however, evidences concern about a lack of transparency and accountability
of many NGOs working in Iraq. CIVICUS has also provided ICCSL with its comments on the Iraqi Draft.
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Zanzibar
August 2009
Zanzibar's NGO Policy is now available online in the Documentation Center.
China
August 2009
Authorities Release Activists and Withdraw Tax Evasion Charges
The New York Times reported on August 23, 2009 that Chinese authorities
unexpectedly released three political activists from detention on Sunday,
including one whose case had drawn worldwide attention. Officials offered no
reason for the releases, but they occurred one day after the new American ambassador to
China, the former Utah governor Jon M. Huntsman Jr., arrived in Beijing. The government
made it clear it has also suspended criminal tax-evasion charges that were made last week
against one of the freed men, Xu Zhiyong, a well-known public-interest lawyer, that could
result in a prison sentence of seven years were he convicted. “It is difficult to say” whether
the charges against him remain intact, Mr. Xu told The Associated Press after his release. Mr. Xu,
36, and a co-worker, Zhuang Lu, were released more than three weeks after they were seized in their
homes on July 29. The other activist released published a Uighur website that has remained closed.
India
August 2009
New Direct Taxes Code 2009 to Affect Charities and Nonprofit Organizations
First, in terms of the definition of charitable purposes, the Code replaces the term "charitable purpose" with the term "permitted welfare activities."
"Permitted welfare activities" has been defined to mean any activity involving relief of the poor, advancement of education, provision of medical relief,
preservation of environment, preservation of monuments or places or objects of artistic or historic interest and the advancement of any other object of
general public utility. The scope of Section 2 (15) of the Income Tax Act has been broadened. Prior to this amendment, "Charitable purpose" included:
"relief of the poor, education, medical relief and the advancement of any other object of general public utility." Finance (No.2) Act 2009 has now added:
"preservation of the environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic
interest." Advancement of any other object of general public utility will not include any activity in the nature of trade, commerce or business, or any
activity of rendering any service in relation to any trade, commerce or business, for a fee or for any other consideration, irrespective of the nature of
use, application or retention of the income from such activity. The finance ministry has uploaded on its website (www.finmin.nic.in) the draft Direct Taxes
Code, a discussion paper, a comment on the code, and a place for people to respond to it.
Second, in terms of the calculation of taxes for nonprofit organizations, Chapter IV of the draft Direct Taxes Code contains "Special Provisions Relating
to Computation of Total Income of Non-profit Organisations." Some of the important features of this chapter are as follows:
- The new regime will uniformly apply to all non-profit organizations irrespective of the nature of their activities.
- An organization will be treated as a non-profit organization if:
- It is established for the benefit of the general public;
- It is established for carrying on permitted welfare activities;
- It is not established for the benefit of any particular caste;
- It is not established for the benefit of any of its members;
- It actually carries on the permitted welfare activities during the financial year and the beneficiaries of the activities are the general public;
- It does not intend to apply its surplus or other income or use its assets or incur expenditure, directly or indirectly, for the benefit of any interested person;
- Any expenditure by the organization does not inure, directly or indirectly, for the benefit of any interested person;
- The funds or assets of the organization are not used or applied, or deemed to have been used or applied, directly or indirectly, for the benefit of any interested person;
- The surplus, if any, accruing from its permitted activities does not inure, directly or indirectly, for the benefit of any interested person;
- The funds or the assets of the non-profit organization are not invested or held in any associate concern or in any prescribed form or mode;
- It maintains such books of account and in such manner, as may be prescribed;
- It obtains a report of audit in the prescribed form from an accountant before the due date of filing of the return in respect of:
The accounts of the business, if any, carried on by it;
(B) The accounts relating to the permitted welfare activities; and
- It is registered with the Income-tax Department as required by the Code.
There are also complex rules for the computation of income of non-profit organizations; the generally applicable tax rate is 15%. Surprisingly, the gross receipts to be taken into account include contributions, unless they are designated as being made to the endowment. In addition, passive investment income is included. On the other hand, the amounts paid out to carry out “permitted welfare activities” or capital expenditures for such purposes are deductible from gross receipts in order to arrive at the income of an organization.
United States
August 2009
Prof. Karla Simon has become a Contributing Editor of the Nonprofit Law Prof. Blog, blogging principally on international issues.
Poland
July 2009
Study Tour to Poland Completed
From July 27 to July 31, 2009 Dr. Leon Irish conducted the second of four study tours for the Aga Khan Foundation.
On this one, he led teams from Kyrgyzstan and Tajikistan to Poland, to study the developments with regard to the enabling
environment for civil society in that country. The host organization was the Foundation for the Development of Polish
Agriculture, one of the oldest post-Communist CSOs in Poland, having been founded in 1988.
South Africa
July 2009
Study Tour to South Africa Completed in July
ICCSL led a Study Tour on behalf of the Aga Kahn Foundation to learn about the enabling environment for
civil society in South Africa and to assess needs and concerns about those legal and fiscal framework issues in
East Africa. The four East African jurisdictions represented - Kenya, Tanzania, Uganda, and Zanzibar - each sent
teams of NGO representatives and government officials. Also joining the tour were Grace Isharaza, Regional Rep for the
AKF Civil Society Programme in East Africa, and Ricardo Wyngaard and Peter Hendricks, South African NPO lawyers. Ricardo
was the local facilitator.
More pictures and further description of the tour can be found here.
Zambia
July 2009
Restrictive NGO Legislation Introduced in Parliament
IRIN news service has reported that Zambia joined a growing list of countries seeking to restrict civil society through controversial legislation.
Although one of the stated objectives of the Zambian bill is to enhance the transparency, accountability and performance of NGOs, questions regarding the
motives behind this push by the Movement for Multiparty Democracy (MMD) government, which has held power in the country since 1991, are being raised.
Key provisions of the bill restrict the independence of NGOs and subject them to excessive and unwarranted controls. If the bill becomes law it would empower the Interior Minister to form a 10-member board, comprised of government members and two representatives from civil society, which would "receive, discuss and approve the code of conduct [of NGOs], and ... provide policy guidelines to NGOs for harmonizing their activities to the national development plan of Zambia." A more detailed analysis of the provisions of the bill in Zambia is available here.
Azerbaijan
July 2009
Azerbaijan’s parliament adopted a new law on non-governmental organizations, but eliminated several controversial
amendments that were widely opposed by IFEX members and other international human rights groups,
the Institute for Reporters'
Freedom and Safety (IRFS) and RFE/RL's Azerbaijan Service report. NGOs and international rights groups argued that the amendments would
increase the government's control over civil society and media organizations in Azerbaijan. The rejected proposals would have banned NGOs that
received more than 50 percent of their funding from abroad; required all NGOs to register with the state, or else face a fine of up to 50,000 New Manats
(US$62,200); and prohibited NGOs from operating nationally if they didn't have branches in one-third of Azerbaijan's administrative units. IRFS says
some restrictive amendments remain, such as foreigners with permanent residency in the country not being allowed to found NGOs, foreign NGOs being
prohibited from operating unless their activities are based on a "relevant international contract," and unions having to notify the state of its members and
changes to membership.
England & Wales
July 2009
The Charity Commission has published its "Emerging Findings" on Public Benefit Assessments, required under the 2006 Charities Act.
They are already exceptionally controversial, with many suggesting that the attempt to remove charity status from fee-charging private schools
is "war" by the Commission against them. One of the schools adjudged not to be operating for public benefit, St. Anselm’s, a boarding preparatory
school in Bakewell, Derbyshire, has only 200 pupils. Although it had made attempts to use its facilities to help local schoolchildren, it probably
would have to raise fees in order to provide more bursaries to poorer children. This newest drive by the Charity Commission to improve fairness is said
by the Sunday Times to inevitably involve more discussions at a policy level.
China
June 2009
China Visit June 2009
Prof. Lester Salamon of the Center on Civil Society of Johns Hopkins University joined Prof. Karla Simon of the Columbus School of Law of the Catholic University of America and Dr. Leon Irish, President of ICCSL, in a visit to China in early June. The principal purpose was to have a seminar at the World Bank's Beijing office to discuss the draft report "Outsourcing Social Services to CSOs: Lessons from Abroad," which was prepared for the Ministry of Civil Affairs.
Click here for more details and photos from the 2009 China visit.
Russia
June 2009
Duma Passes New NGO Law
According to BarantsObserver.com, just a week after Russian President Dmitry Medvedev
introduced the re-written law on Russian non-governmental organizations, the law passed
the State Duma in the first reading. BarentsObserver.com wrote last week that the re-written
text to the law could make fewer hurdles for Russian NGOs. The law has more relaxed restrictions
on the civic groups than the legislations introduced by former president Vladimir Putin in 2006.
Voting on the law in the State Duma, Communist party Deputy Sergei Obukhov said President Dmitry Medvedev
had proposed the bill Wednesday to appease Obama, who will visit Russia in early July. "Not everything that
is good for Obama is good for Russia," Obukhov said, according to The Moscow Times. The law passed with a
vote of 391 to 57. Commenting the bill last week, President Medvedev said the number of audits would be reduced
for non-profit organizations to once every three years. The list of documents authorities are allowed to ask for
checks will be restricted, and registration procedures will be simplified.
Canada
June 2009
New Not-for-Profit Corporations Act Passed
On 22 June 2009, the Standing Senate Committee on Banking, Trade and Commerce made its Third Report back to the Senate
and recommended no amendments to
Bill C-4,
the new Canada Not-for-Profit Corporations Act. As a result, Bill C-4 passed its
third reading in the Senate on 23 June 2009 and received royal assent on the same day. The provisions of this new Act though are
not yet in force, and will only come into force on a day or days still to be fixed by order of the Governor in Council. Bill C-4
has been the topic of previous Charity Law Bulletins issued by Carters.ca, with updates on its progress over the years outlined in various
Charity Law Updates. As a result of its recent passage, the new Act represents the first substantive changes in the law governing
federal not-for-profit corporations in over 90 years.
United States
June 2009
ACLU Report Details Undermining of Muslim Charities Since September 11 Attacks
The fight against terrorism has dealt a harsh blow to Muslim charities and interfered with their donors’
religious freedom, a new report by the American Civil Liberties Union concludes. The New York Times story says
that the report details "statutes that it describes as overly broad and enforced in a discriminatory manner, coupled with a lack of
due process, have starved Islamic charities of money and impeded Muslims’ ability to fulfill zakat,
their religious requirement to make charitable donations. The report is based on interviews with more than
100 Muslim community leaders as well as experts on antiterrorism laws and regulations."
Though it gives no estimate of the decline in donations to Muslim groups after the September 11 attacks, the report
notes that nine Islamic charities have closed since then.
Lao PDR
May 2009
International NGOs Welcome New Law Allowing Local NGOs to Register and Operate as Independent Entities
International aid groups have welcomed a decision
by the Lao government to allow local NGOs to register and operate as independent entities for the first time. By November 2009, Lao citizens will
be able to apply to form NGOs after the Decree on Associations was signed by Prime Minister Bouasone Bouphavanh and announced on 11 May 2009.
The decree will be effective within 180 days. Two or more people can now establish a local NGO under the new law, which “provides a guideline
for Lao officials as they consider applications,” a UN statement said. The decree provides a clear legal framework for membership-based groups,
in contrast with a more ad hoc registration process, which often depended on connections. Although international NGOs can do much in the country,
local NGOs were often more attuned to the local culture, as well as needs at the community level, according to Luke Stephens, country director of
the Irish-based NGO Concern Worldwide.
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.
Dr. Leon Irish and Prof. Karla Simon taught the first Module of the Fifth Cycle of the 
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