Current News Items

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.

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.

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.

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

CUA law students assisting with the project - Thierry Ghatas, Shirley Chim, Laura Dorey, Kristina Hernandez, Jessica Woods, Anna Bristle and Angela Kondowe.

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.

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:

1. The new regime will uniformly apply to all non-profit organizations irrespective of the nature of their activities.



2. An organization will be treated as a non-profit organization if:



1. It is established for the benefit of the general public;



2. It is established for carrying on permitted welfare activities;



3. It is not established for the benefit of any particular caste;



4. It is not established for the benefit of any of its members;



5. It actually carries on the permitted welfare activities during the financial year and the beneficiaries of the activities are the general public;



6. 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;



7. Any expenditure by the organization does not inure, directly or indirectly, for the benefit of any interested person;



8. 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;



9. The surplus, if any, accruing from its permitted activities does not inure, directly or indirectly, for the benefit of any interested person;



10. 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;



11. It maintains such books of account and in such manner, as may be prescribed;



12. 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



13. It is registered with the Income-tax Department as required by the Code.

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.