This is a four country comparison from a presentation I made which gives an overview of nonprofit governance and fundraising in Egypt, the UK, India and the United States.

1. +
Peter Zehren
February 16th, 2013
Nonprofit Governance
and Fundraising
A four country comparison

2. +
Similarities Differences
 Boards  Types of nonprofits (NGOs)
 Registration  Restriction of foreign funds
 Government Regulation  Fundraising skills
 Increased Accountability  Self Regulation
 Talk about further policy  The Culture of Giving

3. +
 Government: Republic
 Chiefof State:
President Muhammad MURSI
 Headof Government:
Prime Minister Hisham QANDIL
Egypt  Population: 83,688,164
 GDP: $229.53 billion
 Nonprofits: 24,500

4. +
Egypt: Governance
 Associations, Foundations, and Not-for-Profit Companies
 Mandatory Registration (Associations Law 84 2002)
 Vague Denial of Registration ―threaten unity‖
 International NGO‘s face challenges
 Post 2011 Revolution, lower house focus NGO reform
 Reform on freedom of association and assembly (Article 131)
 New NGO laws anticipated 2013 (lower house April)

5. +
Egypt: Law 84
 Passed quickly w/o CSO input (civil society organization)
 Ministry of Social Affairs oversight, interfere in operations or call
a board meeting.
 Required Board of Directors between 5-15 (Associations)
 Provide list of board members w/in 1day of nomination and 60
days of election
 Questionable constitutionality, NGO‘s suffer from security
forces investigating and harassing organizations

6. ―Media reports (allege)
judicial officials in Egypt
intend to forward a number
of cases involving U.S.-
funded NGOs to the Cairo
criminal court.
+
We are deeply concerned
by these reports and are
seeking clarification from
the government of Egypt.‖
U.S. State Department Deputy Spokesperson Mark Toner

7. + Amendments to
NGOs fight for Civil Institutions Act
freedom in Egypt
1. 20 founding members, 250,000 EGP in
capital (from 10,000)
2. Foreign funds and donations would be
regulated
3. Committee of stakeholders oversee
After the diplomatic push, Egyptian foreign funding issues
authorities let the Americans leave, but
the Egyptians are still on trial. 4. No foreign NGOs with government
funding or promote political policies
The charges: Because the NGOs were
not properly registered to work in 5. Prohibited from practices threatening
Egypt, the employees were essentially national unity or public order
receiving illegal funds – in the form of
their salaries. 6. Prohibited from any political or union-
related activities
US funds support military and
economic aid including: health, 7. Cannot conduct surveys, polls or do field
education, economic development and research without prior approval
democracy promotion.

8. +
Egypt: Fundraising
 Prohibited receiving foreign funds w/o Ministry of Social Affairs
advance approval (article 17)
 Associations need advance approval for seeking funds from
Egyptian individuals (human rights organizations)
 Charities (non-associations) may accept funds w/o approval
 Associations must submit financial reports to the Accounting
Auditors Register including funding sources
 High potential for corruption: UN human rights report shows
many deficiencies with transparency

9. + United Nations Report
Shows NGO Deficiencies
 Lack of democracy (reflected in the
slow circulation of power)
 Inadequate representation of youth
and women on boards of directors
 The personalization of these
institutions, organizations
 Lack of clear administrative
The 2002 UNDP processes & decision making rules
Human Rights  Weak accountability and
Development Report
I‘m proud I'm an Egyptian…
transparency
…but how should I show it?

10. +
 Government:
Constitutional
Monarchy and Commonwealth
 Chief
of State:
Queen ELIZABETH II
 Headof Government:
United Prime Minister David CAMERON
 Population: 63,047,162
Kingdom  GDP: $2.4 trillion
 Nonprofits: 185,000

11. +
United Kingdom: Governance
 Define ―Charity‖ more by what they do:
1)trusts for poverty relief; 2) for educational advancement; 3) religious
advancement; and 4) other purposes beneficial to the community
 Overseen by the Charities Commission and must operate for the public
benefit and may not act in a political manner
 Trustees are responsible for finances and running of charity
 Must have a Governing Document which can be a trust deed,
constitution, memorandum or articles of association
 The Statement of Recommended Practice (SORP) provides
recommendations for charity accounting and reporting
 Include a risk management statement in Trustees' Annual Reports to
address financial and other potential risks

12. + 2011 Code for Voluntary
and Community Sector
1. Understand their role
2. Ensure delivery of their
organizational purpose
3. Work effectively both as
individuals and a team
4. Exercise effective control
5. Behave with integrity
Charity Commission 6. Be open and accountable
Code

13. +
United Kingdom: Fundraising
 Fundraising is largely ―self regulated,‖ although government regulation
keeps infringing
 All Party Parliament Group (APPG) comprised of 300 members of
parliament is looking into future regulation and recession impact
 The Institute of Fundraising (self regulating org.) has 29 codes governing
all types of fundraising, such as telephone, direct mail, electronic media,
challenge events and cash collections
 Face-to-Face Activity Code of Fundraising Practice monitored by PFRA –
recommends a solicitation statement (disclosure)
(Public Fundraising Regulatory Association)
 License needed for street team and door-to-door cash donations from
local authority (usually)

14. ―It is important that charities
maintain high standards of
fundraising in order to
maintain their income…
+ including using best practice
supported by the Institute of
Fundraising‘s Code of
Fundraising Practice and
resources.‖
Peter Lewis CEO of the Institute of Fundraising

15. ―Charities rely on generous
public support to carry out
their charitable work.
+ The Fundraising Standards
Board enables the public to
donate to charities that are a
member with confidence .‖
Minister for Civil Society, Nick Hurd

16. +
 Government: Federal Republic
 Chiefof State:
President Pranab MUKHERJEE
 Headof Government:
Prime Minister Manmohan SINGH
India  Population: 1,205,073,612
 GDP: $1.86 trillion
 Nonprofits: 3.3 million

17. +
India: Governance
 Trusts, Societies, and Not-for-Profit Companies (Section 25)
 Nonprofit/public charitable organizations must register (district)
 ‗Charitable purpose‘ must include ‗relief of the poor, education,
medical relief and the advancement of any other object of general
public utility‘ (excludes religious)
 Self governing board, council or managing committee who have a
fiduciary responsibility
 Foreign NGOs who want an office in India have to follow special
licensing procedures

18. + Regulates acceptance, utilization and
accounting of foreign funds.
 40,000 organizations receiving
foreign contributions, only 18,000
report
 Funds over 1 million rupees ($18k)
have to be reported immediately
 Organizations renew registration
every five years (NGO status)
 Prevent outside powers from
dividing the country on religious
basis
The Foreign  No funds can be accepted by a
Contribution political party, candidate or
organization
Regulation Act

19. ―Capacity building of young
fundraisers has now
become a priority, which we
can ignore at our own peril.
+
This alone can make NGOs
sustainable, accountable,
transparent and credible.‖
Major General Surat Sandhu, Chair - South Asian Fundraising Group
(Former Chief Executive of HelpAge India)

20. +
India: Fundraising
 Foreign Contribution Regulation Act (May 1, 2011) restricts funds
 Need to develop fundraising, over reliance on government and
foreign funds
 Lack of skilled, trained professional fundraisers, estimates show only
1% of NGOs have a fundraiser on staff
(2007 SAFRG planning commission presentation by Major General)
 Planned giving, volunteering, feeling an obligation to charity not part
of the culture
 National survey of CSR survey showed increase but inconsistent
initiatives, over ¾ companies want government policy

21. + India: CSR
HIV/AIDS, 12%
Education, 18%
Micro
Finance, 13%
Environment, 1
A recent Corporate Social 7%
Responsibility survey Sanitation, 13%
showed areas of giving.
CSR tended to be local, Women
Empowerment,
Livelihood
seen as good business but Promotion, 13%
14%
also inconsistent.

22. +
 Government:Constitution Based
Federal Republic
 Chiefof State:
President Barack H. OBAMA
 Head of Government:
President Barack H. OBAMA
United  Population: 313,847,465
States  GDP: $15.09 trillion
 Nonprofits: 1.5 million

23. +
United States: Governance
 Charity, Foundation, Trust, Association, Nonprofit Corporation or other
Organization
 What exactly are nonprofit organizations? (http://youtu.be/0myNj8BHt_4)
 Must register as a 501(c)(3) with the IRS (1023) and file 990
 Board size regulations vary by state 1-3 minimum, the average board
size for nonprofits in US is16 members (BoardSource)
 IRS reviews nonprofits for policies relating to:
executive compensation, conflicts of
interest, investments, fundraising, documenting governance
decisions, document retention and destruction, and whistleblower
claims
 Self regulation or legislative policy? Many states nonprofit liaison

24. Organized and operated exclusively for:
charitable, religious, educational, scientific,
literary, testing for public safety, fostering
national or international amateur sports
competition, and preventing cruelty to
children or animals. (IRS)
May not operate for the benefit of private
+ interest (net earnings)
Activity may be not attempt to influence
legislation and are restricted in political
and legislative activities (lobbying)
The organization‘s purposes and activities
United States: may not be illegal or violate fundamental
501(c)(3) public policy
requirements

25. + LEGAL DUTIES
 Duty of Care: exercise reasonable care
in decisions as a steward of the
organization
 Duty of Loyalty: act in the best interest
of the organization
 Duty of Obedience: faithful to the
mission and central goals
FURTHER DUTIES
 Duty of Stewardship: oversight of
resource management
 Duty of Compliance: ensures legal
United States: requirements and all other obligations
Board Governance are met

26. +
United States: Fundraising
 Government grants, process by which nonprofits carry out work
formerly done buy government agencies (Mayor‘s Initiative)
 Individual gifts, events, CSR
 Association of Fundraising Professionals ‗donor bill of rights‘
 Self regulation also led to gift acceptance policies, board packets
with more explanatory materials
 Transparency, accountability and integrity: ―100% of your gift goes to
the cause‖ but does it?

27. Giving Trends
 Giving rose only 2.1%
last year (2010), echoing
a slowing
recovery, donors
continue to hold tight to
their wallets
 Even as US recovers
+ economically it remains
home to the most
generous people who
support nonprofits and
philanthropy
The Other America‘s Philanthropy:  Giving USA‘s Forecasts
1. a crisis of declining charitable giving reaching human Tough Years Ahead for
services or social safety net groups Fund Raisers – The
2. a class divide where the groups that do well in recession cloud may
charitable solicitations are those with
connections, and social class interrelationships hover for years, it could
be as long as 2016

28. +
Conclusions
 NGOs are a large part of each countries economy, but what role
should they play?
 Stronger government regulation is being explored by every country
to some degree—a matter of security.
 Questions are being ask about transparency, accountability and
overall integrity of NGOs
 Collaborations are being looked at globally…however
 Global giving is plagued by fear of outside interests sway

29. +
 Foundations (and NGO‘s) today seek
alignment and co-operation to play
to each other's strengths.
 However, concerns were raised that
alliances of traditional institutional
funders can morph into power
blocs…
 …raising questions about who is
The World of forging these alliances (visionaries or
Philanthropy technocrats) and about
Present and Future forum October 2012
accountability.
Sarah Masters and Erika Moisl

30. +
Nonprofit Governance
and Fundraising
A four country comparison