Models of NGO regulation

1
Models of NGO regulation

• An overview of why, who and how
• ICNL conference
• Istanbul, November 2005

2

• The accountability and transparency of NGOs is a
  live issue that is being debated by
  governments, civil society and donors in many
  countries.

3
Why regulate?

• NGOs look after the publics money and carry out
  public work
• To ensure NGOs operate legally in exchange for
  the benefits they enjoy (such as tax exemption,
  government funding and fundraising licences)
• Multi- and bi-lateral donors are increasingly
  aware of the local legal status of organisations
  they fund

4
Why regulate?

• To detect and remedy serious mismanagement or
  misuse
• To ensure greater organisational accountability
  given the limited influence that a single donor
  or beneficiary has
• To protect the integrity, and public confidence
  in the sector as a whole

5
Who should regulate?
6
Key Components of any NGO Regulatory System

• Registration
• Monitoring
• Identifying and dealing with misuse

7
Different regulatory models

• State model multiple/single agency
• Certification model
• Courts based model
• Tax based model

8
State model multiple/single agency

• Multiple Ministries involved disperse resources
  and expertise
• Advantages of having a single source for
  information, advice and reporting concerns
• Cost-effective to have proportionate, risk-based
  approach
• Clear and predictable strategy

9
Certification model Philippines

• Established by NGO sector (self-regulation)
• Authority delegated by government
• Responsible for
• setting minimum standards
• acting as gatekeeper to tax exemption
• providing advice and guidance

10
Courts-based model England and Wales

• Offshoot of the Courts
• limited judicial powers
• independent
• Responsible for
• assessing charitable status (giving tax
  exemption)
• registering and monitoring charities
• providing legal authorities, advice and guidance
• identifying and investigating misuse

11
Tax-based model Canada

• Arm of the Revenue Agency (Charities Directorate)
• Responsible for
• assessing eligibility for a tax rebate
• registering and monitoring NGOs
• regulating the sector
• providing technical advice and guidance
• overseeing audit and compliance requirements