Peter zehren, nonproft fundraising in egypt, uk, india and usa
+Peter ZehrenFebruary 16th, 2013 Nonprofit Governance and Fundraising A four country comparison
+ 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
+ Government: Republic Chiefof State: President Muhammad MURSI Headof Government: Prime Minister Hisham QANDILEgypt Population: 83,688,164 GDP: $229.53 billion Nonprofits: 24,500
+ 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)
+ 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
―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
+ Amendments toNGOs fight for Civil Institutions Actfreedom 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 overseeAfter the diplomatic push, Egyptian foreign funding issuesauthorities let the Americans leave, butthe Egyptians are still on trial. 4. No foreign NGOs with government funding or promote political policiesThe charges: Because the NGOs werenot properly registered to work in 5. Prohibited from practices threateningEgypt, the employees were essentially national unity or public orderreceiving illegal funds – in the form oftheir salaries. 6. Prohibited from any political or union- related activitiesUS funds support military andeconomic aid including: health, 7. Cannot conduct surveys, polls or do fieldeducation, economic development and research without prior approvaldemocracy promotion.
+ 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
+ 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 administrativeThe 2002 UNDP processes & decision making rulesHuman Rights Weak accountability andDevelopment ReportI‘m proud Im an Egyptian… transparency …but how should I show it?
+ Government: Constitutional Monarchy and Commonwealth Chief of State: Queen ELIZABETH II Headof Government:United Prime Minister David CAMERON Population: 63,047,162Kingdom GDP: $2.4 trillion Nonprofits: 185,000
+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
+ 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 integrityCharity Commission 6. Be open and accountableCode
+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)
―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
―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
+ Government: Federal Republic Chiefof State: President Pranab MUKHERJEE Headof Government: Prime Minister Manmohan SINGHIndia Population: 1,205,073,612 GDP: $1.86 trillion Nonprofits: 3.3 million
+ 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
+ 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 basisThe Foreign No funds can be accepted by aContribution political party, candidate or organizationRegulation Act
―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)
+ 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
+ India: CSR HIV/AIDS, 12% Education, 18% Micro Finance, 13% Environment, 1A recent Corporate Social 7%Responsibility survey Sanitation, 13%showed areas of giving.CSR tended to be local, Women Empowerment, Livelihoodseen as good business but Promotion, 13% 14%also inconsistent.
+ Government:Constitution Based Federal Republic Chiefof State: President Barack H. OBAMA Head of Government: President Barack H. OBAMAUnited Population: 313,847,465States GDP: $15.09 trillion Nonprofits: 1.5 million
+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
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 activitiesUnited States: may not be illegal or violate fundamental501(c)(3) public policyrequirements
+ 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 legalUnited States: requirements and all other obligationsBoard Governance are met
+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?
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 philanthropyThe Other America‘s Philanthropy: Giving USA‘s Forecasts1. a crisis of declining charitable giving reaching human Tough Years Ahead for services or social safety net groups Fund Raisers – The2. 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
+ 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
+ Foundations (and NGO‘s) today seek alignment and co-operation to play to each others strengths. However, concerns were raised that alliances of traditional institutional funders can morph into power blocs… …raising questions about who isThe World of forging these alliances (visionaries orPhilanthropy technocrats) and aboutPresent and Future forum October 2012 accountability. Sarah Masters and Erika Moisl
+ Nonprofit Governance and Fundraising A four country comparison