the shrinking space for civil society philanthropic perspectives from across the globe

democracy civic rights operating environments

EFC POLICY AND PROGRAMMES the shrinking space for civil society philanthropic perspectives from across the globe

democracy civic rights operating environments

EFC POLICY AND PROGRAMMES Contents

\ \ Foreword - Pushing back against the shrinking space for civil society 02 Ewa Kulik-Bielińska, Stefan Batory Foundation \ \ Challenges for civil society in Latin America 04 Sean McKaughan, Fundación Avina \ \ Appealing to the enlightened self-interest of partners to reinforce civil society 07 Adam Pickering, Charities Aid Foundation \ Ensuring grantees’ resilience 12 Emily Martinez and Iva Dobichina, Open Society Foundations \ \ Enabling philanthropy across Europe 16 Ludwig Forrest, King Baudouin Foundation \ \ The shrinking space for civil society - The case of Russia 18 Joachim Rogall and Atje Drexler, Robert Bosch Stiftung \\ A letter from an African foundation in 2064 22 Bhekinkosi Moyo, Southern Africa Trust \ \ Palliative or catalyst? Defending the space for civil society 24 Vinit Rishi, Oak Foundation \ \ From dissidents’ democracy to grass-roots democracy - Countering the notion of 28 the closing space of civil society Haki Abazi, Rockefeller Brothers Fund \ \ Civil society in Greece - The stretching and maturing of the non-profit sector 32 Dimitrios Vlastos, Bodossaki Foundation \ \ The shrinking space for civil society 36 Nick Perks, Joseph Rowntree Charitable Trust \ \ Civil society in France - Rising constraints and new opportunities 38 Frédéric Théret, Fondation de France \ \ Navigating our new normal 40 Martín Abregú and Hilary Pennington, Ford Foundation \ \ The space for civil society is big enough - If we push for it! 42 Boudewijn de Blij, Fonds 1818 \ \ Closing space for civil society creates new challenges for international grantmakers 44 Mary A. Gailbreath, Charles Stewart Mott Foundation

01 Foreword Pushing back against the shrinking space for civil society Ewa Kulik-Bielińska, Executive Director, Stefan Batory Foundation and Chair of the European Foundation Centre

landscape on developments important to The shrinking space for our members in an effort to contribute civil society and reported intelligence and capture the experience of foundations to make sense of the violations of fundamental increasingly complex and interconnected and democratic rights are world in which we all live. a global phenomenon. Rather than providing an empirical study, we felt that first-hand accounts Foundations have from foundations operating in affected reported problematic countries would give us a better understanding of the nature of the laws in Algeria, China, shrinking space problem and offer Columbia, Egypt, fresh ideas on possible ways out. These clues and forecasting from foundations Ethiopia, India, Russia, are particularly valuable as these Syria and Zimbabwe, just organisations, due to their funding practice and policy work, are often ahead to name a few. of the curve in terms of what’s happening on the ground.

And EU countries are hardly immune. As highlighted in these pages, government Of serious concern have been ongoing motivations for restricting civic space challenges to civic rights in Hungary, UK differ: national security arguments and surveillance programmes, anti-protest a focus on counterterrorism policies; laws in Spain, counterterrorism measures economic interests; fear of a strong civil in France, and attacks in my own country, society; and “aid effectiveness” arguments Poland, on the freedom of public media by recipient governments of development and the independence of the judiciary. aid are some of the motivations that have been identified. National sovereignty To add insight to this critical issue, we arguments are also used specifically to asked a group of EFC members working control or block foreign funding. across the globe to share their thoughts on and experience of the shrinking Fuelling the problem in some countries is space for civil society. This publication the sense among citizens of disappointment signals the EFC’s ambition to scan the with inept governments which cannot Ewa Kulik-Bielińska has been the Bielińska was also the initiator and Executive Director of the Stefan founder of the Polish Donors Forum Batory Foundation since 2010 where she served as Chair for two Boudewijn de Blij (1954) appointed Managing Director of and EFC Chair since 2014. A concurrent terms, and is currently studied industrial engineering Fonds 1818, an endowed foundation journalist and social activist, she a member of the Working Group at at the Eindhoven University of in The Hague region of the has become a leader of advocacy the Chancellery of the President of Technology (MSc in 1978). In 1983, Netherlands. efforts to create an enabling legal Poland’s task force on an enabling he started working for the Labour environment for philanthropy in fiscal and legal environment. She Party (PvdA) in the Lower House of As well as working for Fonds 1818, Poland and Europe. She has been has also been honoured with the the Dutch Parliament. He resigned Mr. De Blij is also a Member of the involved in drafting the Law of medal of the Minister of Education, from his position as Staff Director Board of Stadsherstel Den Haag, Public Benefit and Volunteerism, the Minister of Culture’s award for of the Labour Party Group in 1995. Chairman of the Program Board of the Public Collection Law and promotion of free speech and the He subsequently took positions as The Hague FM, and Member of the developing recommendations for Order of Poland Restored. Managing Director of the Dutch Board of Statenkwartier Energy. reform of foundation law and law Foundation for Smoking and He is married to Marjan Engels and on associations in Poland. Ms Kulik- Health, and of the Netherlands is the father of two sons (30 and Heart Foundation. In 2006, he was 29). He lives in The Hague.

deliver the promise of democracy and solve economic problems. How can we counter And it’s not just governments that are to blame. Self-censorship combined these worrying trends with a lack of courage on the part of NGOs and foundations, especially in and what role can Europe, is causing them to assume that they cannot act when in fact they can. In foundations play in this way we are shrinking our own space, doing serious damage to the agency and this scenario? From self-confidence of our sector. But how can we counter these worrying strengthening trends and what role can foundations play in this scenario? From strengthening counter-narratives counter-narratives to developing more resilience, much can be done. A guide to developing recently published by Ariadne, the EFC and IHRFG (International Human Rights Funders Group) lists seven levers that more resilience, foundations can use to make a difference: “Challenging the closing space for civil much can be society – A practical starting point for funders”, offers a practical complement to done. the perspectives in this publication, and is available on the EFC website. The EFC encourages foundations and other philanthropic organisations to work collaboratively with each other and with other stakeholders to further strengthen the case for an enabling environment for civil society. And, not least, to have the courage to act. The shrinking space for civil society civil society for shrinking space The

03 Challenges for civil society in Latin America Sean McKaughan, Board Chair, Fundación Avina

Authoritarian progressivism - The majority The degree to which civil of Latin American countries saw democracy society can express itself emerge following military dictatorships that restricted human rights across the and act freely is a good board. Speaking broadly, since the 1980s indicator of democratic democratic governments of different ideological orientations have taken their consolidation. When that turn in power. In the 1990s and early 2000s, action space is restricted, centre-right administrations tolerated but largely ignored civic organisations democracy is restricted. and maintained checks on the access of Avina operates in 21 social movements to public spaces. In the last decade, several left of centre and or countries in Latin America, populist governments emerged from civil and although it is a diverse society to take power democratically with a progressive agenda. Unfortunately, the region, many countries are expected golden era for civil society in seeing a growing number these countries has not materialised, as some of these governments implemented of obstacles that hamper progressive public policies by adopting authoritarian practices and eliminating civil society organisations democratic checks and balances. Wrapped in and social movements. the mantel of progressive objectives, some governments operate with impunity and Some of these obstacles are historical, limit government access to a small group but others stem from new practices or of carefully chosen friends and supporters. democratic erosion seen in recent years. This approach has significantly curtailed the This occurs in a context of generally weak ability of civil society in these countries to public institutions and official resistance to maintain its influence, access and dialogue the adoption of participatory tools other with government. than elections. State monopoly - Governments that claim to Current restrictive practices toward social lead the social agenda often ignore or even organisations and an independent civil society compete with social organisations. Far from arise from two trends in Latin America: valuing them, public officials often perceive since 1998. Prior to his current role serves on the boards of Avina as Chairman of Fundación Avina’s Americas, World Transforming board of directors, Mr McKaughan Technologies (WTT), and the led Avina’s international executive Lozano Long Institute of Latin team for seven years. He became American Studies at the University director of international operations of Texas. in 2006, and was tapped as Chief Mr McKaughan holds master’s Executive Officer in 2007. During degrees in both Urban Planning his time at Avina, Mr McKaughan and Latin American Studies from has been a champion for inclusive the University of Texas. He is Sean McKaughan has over 20 business, efforts to combat married with two children and years of experience in the field of deforestation, social innovation divides his time between Rio de sustainable development and has networks, and the promotion of Janeiro and Austin, Texas. published two books on the subject. sustainability in Latin America He has been with Fundación Avina and throughout the world. He also

independent civil society organisations as to obtain legal status or meet the competitors or adversaries at odds with requirements of an uneven and government aspirations to control power contradictory patchwork of regulations. and take credit for social progress. As Conversely, fiscal incentives to promote the state establishes a monopoly on the philanthropic culture are rare, difficult promotion of progressive social policies, to achieve and often reserved for it begins to undermine the legitimacy of insiders. Private donations are often respected citizen organisations. The result heavily taxed. Elected leaders and public is a shrinking capacity of civil society to institutions opposed to an independent operate as an independent public forum civil society have little incentive to where alternative ideas and perspectives are clarify the regulatory framework since considered. informality and regulatory uncertainty offer a variety of options for selective The combination of these two trends has enforcement. As a result, the legal led to some government actions that framework for civil society organisations increasingly restrict the activities of civil in Latin America generally suffers from society in many Latin American countries. multiple operational obstacles and What follows are some examples: enjoys few incentives. • Public resources co-opt organisations, • In cases where civil society often converting entities that provide organisations expose or denounce support to government programmes government actions, the abuse of into parallel ministries. At the same power can be more severe. The time, those organisations that do not important role of an independent participate become marginalised. The civil monitor to encourage public incentive structure is clear: no public accountability often clashes with resources for the independent-minded, the goal of state power monopolies. conditional transfers for those trying to Rather than protect such advocates, demonstrate loyalty, and blank checks government institutions often for friends and allies. perceive them as threats and seek • Governments resist calls to regulate to crush them with the full weight of the civil society sector and ensure a regulatory bureaucracy. In some cases, clear legal, tax and labour framework. harassment can extend to domestic Many citizen institutions operate in spying and infiltration by members of

some degree of informality, unable the police or security agencies. civil society for shrinking space The

05 Sadly, the retreat of international philanthropy from Latin America has exacerbated the erosion of civil society.

• When an executive branch attempts to pulled back from Latin America, leaving reduce the powers of an independent once strong civil society organisations judiciary, it is a clear sign of a increasingly dependent on government move towards authoritarianism. funds, and especially vulnerable to the A constitutional system is only as tactics of coercion and abuse of power. With strong as its system of checks and few exceptions, local private philanthropy balances, public accountability and has failed to fill the gap. The biggest citizen participation. The corruption philanthropic organisations in Latin scandal that has played out in Brazil America tend to be associated with private and the one that led to new elections sector companies that often seek to avoid in Guatemala represent encouraging risk. In fact, grantmaking to independent examples of constitutional and civil civil society organisations has decreased systems of checks and balances at as local philanthropists by and large prefer work. Where these constitutional to operate their own projects, contracting checks have failed, the space for civil other organisations as service providers, if society deteriorates. at all. • Another sure sign of an anti-democratic There are, however, exciting counter- turn by an elected government is its examples to these trends. Many civil attack on freedom of expression and society organisations have had success access to public information. A number in enshrining public participation and of governments in Latin America have public access in official government policy moved against independent media over at the local, provincial and federal level. the past five years, while at the same A number of enlightened municipalities time rewarding media outlets that have led the way in introducing civil broadcast official propaganda, often involvement, public accountability and new with public funds. In a few countries public goods. However, these heroic efforts of the region, only the government- face a stiff headwind as new political and sponsored press organisations can economic realities destabilise the civil operate effectively. society space built over decades. As the space for organised civil society collapses, Sadly, the retreat of international chaotic large-scale public protest and street philanthropy from Latin America has confrontations offer the primary alternative exacerbated the erosion of civil society. for concerned citizens. Over the past ten years, foundations and international agencies have largely Appealing to the enlightened self-interest of partners to reinforce civil society Adam Pickering, International Policy Manager, Giving Thought, Charities Aid Foundation

Adam Pickering is International global policy positions for CAF and Policy Manager for Charities writes and speaks widely on global Aid Foundation (CAF), a leading trends in philanthropy and the international civil society legal environment for CSOs and organisation that seeks to donors. He is currently leading the create an enabling environment Future World Giving project, which for the development of civil seeks to create a policy framework society through the provision of that will help governments seize philanthropy advice and services, the potential for rapidly growing and through advocacy. Mr Pickering middle class populations to engage is responsible for developing in philanthropy.

The closing space for civil and conduct research and advocacy with the aim of creating a more enabling environment society is affecting the for civil society around the world. We often Charities Aid Foundation’s describe ourselves as “cause neutral” but that is a slight mischaracterisation of our (CAF) global programme, mission. Rather, all of our activities are in pursuit of one overarching goal: to create either by restricting our a world in which people and businesses are activities as a funder able to give easily and effectively to causes that reflect the diverse needs, aspirations and of civil society or by interests of society. To that extent, “cause limiting our own advocacy neutrality” means that we are interested in and passionate about all legitimate public- activities. benefit causes. As such, our interest in addressing the closing space for civil society CAF occupies an unusual position in global stems both from direct operational concerns civil society. We provide financial services and and also from broader concerns about

advice for charities and donors at all levels threats to our overarching mission. civil society for shrinking space The

07 The breadth of this mission sees us interact creates a more enabling environment for with every part of every sector. From this investment, free from the onerous scrutiny vantage point the differing perceptions of activists. However, in the long run, the of the closing space for civil society are shrinking of civic space damages social striking. In short, those funders and CSOs cohesion, and undermines the systems that are directly being affected by the of accountability and the rule of law issue – often human rights defenders, that create an enabling and sustainable environmental campaigners or those environment for all legitimate interests. advocating for marginalised groups in Corporations society – are mobilising while others, Several forces seem to be driving a including much of the rest of civil society, new, more imited consensus as to what continue to see the issue as marginal. This, civil society organisations are for and in our view, is a dangerous miscalculation. what they should do. The current global The closing space for civil society should political economy is characterised by be a concern to everyone, and those of competition for business and investment. us who have the ability to broaden the As governments strive to create stable knowledge base of influential partners have environments that are attractive to a duty to raise awareness. Partners may business, they make assumptions about the think that the silencing of environmental interests of companies which are used to and human rights campaigners has inform policymaking. This results in some little relevance to their interests. Some progressive policies, but also in a broad outside of civil society may even think range of regressive measures, including that this suppressing of criticism actually subduing media and civil society criticism, reducing environmental regulation and land drop the prosecution of a journalist who laws, and relaxing labour laws or breaking uncovered human rights abuses in Angola’s unionism. Ironically, many companies are diamond fields. Their co-signed letter of the view that these policies are not stated that “vital investigations into human necessarily good for business in the long rights abuses should not be impeded by the term. It is up to those of us that work with threat of jail” and called for “standards of businesses to make the case for solidarity international law” to be applied. Where in between the private sector and civil society the past companies might have engaged in that is motivated by enlightened self- wholly profit-motivated lobbying with one interest. hand, while giving back to society through their CSR department with the other, Economic instability, an erosion of trust many – as Mauricio Lazala, Deputy Director, in public and private institutions, gaps Business & Human Rights Resource Centre in governance, climate change, youth points out3 – now take a more long-term unemployment, rampant inequality and the approach. This is a trend that we have a rise of sectarianism, populism, nationalism duty to cultivate. Working with corporate and statism all form part of the “new global clients must mean mutual improvement of context” which was discussed at this year’s practices where all parties seek to influence World Economic Forum.1 The fact that one another positively. business leaders increasingly recognise that these issues threaten to undermine Politicians their interests presents an opportunity for There is no doubting that governments civil society to find powerful advocates in are faced with an unprecedented volume the corporate community. Civil society’s of competing demands in the current capacity to ameliorate the effects of, and global context. Delivering economic growth advocate for reforms that address the while maintaining the rule of law, in an drivers of the above problems should environment where state sovereignty make it a fundamental part of the enabling is being undercut by globalisation of environment for business. We need to work business and information flows, is with private companies to ensure that they extremely challenging. In many nations understand that even when civil society formal, organised civil society may seem stands in the way of their short-term to governments like an import that has interests, they are vital to their long-term travelled on a wave of foreign capital. sustainability. We might find that business Equally, the spread of ideas about freedom is more amenable to this idea than many of association, assembly and the right to assume. campaign could be viewed as a western invention that has spread through internet Take the recent case of Tiffany & Co, communication and the global media – in Brilliant Earth and Leber Jeweler Inc. who, the case of China, there is some evidence alongside human rights charities, recently that this view has gained traction.4 The called on the Angolan government2 to 3 Lazala. M, Despite the odds: Businesses speaking out for hu- man rights, June 2015, Business and Human Rights Resource 1 World Economic Forum Annual Meeting 2015: The New Centre, available at http://business-humanrights.org/en/de- Global Context, 2016. Event Report. Available at http://www3. spite-the-odds-businesses-speaking-out-for-human-rights weforum.org/docs/WEF_AM15_Report.pdf 4 Translation of an alleged leaked Communist Party circular 2 Elgott. J, Tiffany & Co backs investigative reporter in called Document Number Nine reported by the Economist, Angola blood diamonds case, 3 June, 2015, The Guardian, ”Political Rebalancing: Thinking Backwards”, The Economist, available at http://www.theguardian.com/world/2015/jun/03/ 24 June, 2013. Article available online at http://www.econo- tiffany-co-backs-investigative-reporter-in-angola-blood-di- mist.com/blogs/analects/2013/06/political-rebalancing?fs- civil society for shrinking space The amonds-case rc=scn/tw/te/bl/tilitinbackwards

09 pragmatic response by many governments commissioned by CAF this year showed that has been to isolate the parts of civil society just 33% of politicians in the Conservative that they see as necessary, or at least Party, currently in power in the UK, believe benign – for instance service providing that, “It is important for charities to organisations in health, children, education highlight if they believe government policies and the arts – while seeking to marginalise will negatively affect people”, compared to critical voices through regressive legislation 63% of the general population.6 In the UK, and muscular regulation. like many other nations, the view of the role that charities and their funders should To challenge this narrative play in society appears to be changing we need to work harder as Most of all, in ways that may give cause for concern. funders to show the positive Increasingly, where charities are concerned, effects that civil society the word “political” has become a pejorative we need to can have. We need to take term that is all too often conflated with a more prominent role in “party political” or “partisan”. This wilful start asking explaining how philanthropists confusion has seen new restrictions on and foundations, and the campaigning during the run up to general organisations that they fund, ourselves elections in the UK as a result of a piece of can do more than augment legislation that has become known as the state provision of services. We difficult “Lobbying Act”. need to show that far from undermining stability and Funders of civil society questions. growth, civil society is a vital Some funders may feel that their mission part of delivering it. A well- is sufficiently uncontroversial that it funded charitable sector is able to represent is unlikely to fall foul of even the most the marginalised and voice dissent that muscular regulatory clampdown. Such an may not always be comfortable to hear, but assumption could be criticised as favouring should be tolerated as a critical friend. Such pragmatism over a sense of civic solidarity, an avenue for dialogue allows politicians but even this criticism might be too kind. to monitor public sentiment and acts as As funders of civil society we must cultivate a pressure gauge for society. Egypt has an environment in which politicians, become an extreme case in point. As I wrote business leaders and the public recognise last year5, successive Egyptian governments the importance of an independent, diverse have failed to learn that silencing civil and occasionally controversial civil society. society is not merely ineffective at When we allow ground to be ceded at preventing unrest but may in fact ferment it the margins because it doesn’t affect us in the long term. directly, we weaken the argument for our very existence. As an organisation that is As a UK-headquartered foundation, we trusted due to the essentially neutral nature would not want to give the impression of most of our activities, CAF is choosing that the closing space for civil society is to talk to our partners and raise awareness only a problem for emerging economies or about the closing space for civil society. We nations with nascent civil societies. Research encourage other funders to lend their voice

5 Pickering. A, “By trying to control civil society, the Egyptian government could fuel more social unrest”, May 21st, 2014, 6 Under the Microscope: Examining the Future of Charities in New Statesman. Available at http://www.newstatesman. Britain (2015) Charities Aid Foundation. Available at https:// com/world-affairs/2014/05/trying-control-civil-society-egyp- www.cafonline.org/docs/default-source/about-us-publications/ tian-government-could-fuel-more-social-unrest cafpartyconference-report2015.pdf to those who are being silenced and to resist same paragraph with a “call for increased complacency. But most of all, we need to transparency in philanthropy”. Again, start asking ourselves difficult questions. there is a strong movement to ensure that philanthropy is open to scrutiny from As advisers to funders or as funders in within the sector itself as this could help to our own right we are all faced with the coordinate resources and build public trust. challenge of adapting to trends in giving. It But funders need to consider whether as is critically important that we, as experts, minority partners (in terms of finances at consider how these trends interact with least) within SDG partnerships, they may the closing space for civil society. The rise lose some of their independence, flexibility of movements like Effective Altruism, for and capacity to innovate. Equally, they will example, is largely donor led and in many need to consider whether partnering with ways extremely positive. The desire to governments who are closing the civic space ensure that the maximum impact is derived while becoming ever more accountable to from philanthropic money is undoubtedly them represents a Faustian pact. laudable. However, it is crucial that in the quest to move the dial on causes that are Mainstreaming the response to the closing innately measurable and tangible, we don’t space is not easy, and it has not been easy side-line activities that attempt to address at CAF. As an international organisation systemic problems. An analysis of the with offices in advanced and emerging history of philanthropic giving – such as can economies, we have first-hand experience be found in the forthcoming book by my of many of the issues that form part of colleague Rhodri Davies, which focuses on this broad regressive trend. However, the UK example – reveals that advocacy has it is not always possible or indeed wise been every bit as productive in improving to tackle them at country level. We are lives as any other form of giving. lucky enough to have a dedicated staff – of which I am one member – that can As momentum develops around the consider the implications of wider trends Sustainable Development Goals (SDGs), and policies on our day-to-day business we must of course do all that we can and on our wider charitable mission. In to seize the opportunity and invest in a the course of our work we have put out a movement that could achieve historic number of reports, as well as a great many progress for humanity. However, while we articles and blogs, which have looked at should welcome the fact that the Addis issues such as how governments can build Ababa Action Agenda7 on financing the trust in civil society and charitable giving; SDGs recognises the “rapid growth of how they can create an environment that philanthropic giving and the significant guarantees the independence of civil contribution individuals have made”, the society; and how the legal, regulatory and expectation is, perhaps quite rightly, that tax environment can encourage giving.8 philanthropy should work increasingly within As a result, our hope is that CAF can partnerships that are led by government help raise the profile of this issue with and largely financed by business. The “call our partners and tackle what may be the on all philanthropic providers to partner” greatest threat that civil society faces. in delivering the SDGs is followed in the

7 Outcome document of the Third International Conference on Financing for Development: Addis Ababa Action Agenda,

Third International Conference on Financing for Development, 8 All of the listed content is available at www.futureworldgiv- civil society for shrinking space The (2015) United Nations ing.org

11 Emily Martinez is the Director Europe and the former Soviet of the Open Society Human Union. As the programme’s Rights Initiative. Previously, she founding director, she developed established and directed four expertise on a broad range of global grantmaking programmes fundamental human rights issues in on disability rights, LGBTI rights, that region, as well as civil society’s the rights of criminal defendants, role in promoting rule of law and the right to information. Prior and accountable governance. Ms to moving to Washington, D.C., Martinez holds a master’s degree in Ms Martinez was the Director of human rights from the University

© Marc McAndrews © Marc the Open Society Human Rights of Essex. She also graduated and Governance Grants Program from Georgetown University in in Budapest, where she helped Washington, D.C., with a bachelor’s promote the development of degree in international affairs and human rights and accountability developmental economics. groups in eastern and central

Ensuring In practice, this means that many groups in these countries face obstacles in accessing resources, maintaining their registration, and organising events. As a result, they spend grantees’ more of their time protecting themselves instead of serving the communities of people they represent. resilience When the “foreign agents” law was enacted in Russia, the national government launched a wave of invasive inspections against NGOs. Emily Martinez, Director, Open Society No one was immune. In some cases the Foundations; and Iva Dobichina, Associate measures were absurd - officials required Director for Participation with the Human chest X-rays and immunisation records of NGO staff, and demanded to see office air- Rights Initiative, Open Society Foundations quality and noise-level certificates, all in a bid to stop the spread of infectious diseases. One inspection resulted in a grantee having to Over the past year we photocopy over 8,000 pages of documents. have been hearing from Such laws are framed as legitimate efforts by governments to combat money laundering; an increasing number of encourage transparency and accountability; grantees about a common ensure that tax breaks are given only to organisations that are “genuinely charitable”; and crucial challenge - and counter terrorist financing. While such governments restricting narratives and such measures are sometimes civic space in societies of all legitimate and necessary, when one takes a closer look at the laws being proposed and types, whether open, closed, passed across the globe, a gap emerges or in transition. between the motivations given and the measures taken. For example, after the Al-Shabaab attacks in Mandera, northern Kenya in December 2014, the Kenyan government shut down Iva Dobichina is Associate Director media; freedom of assembly; for Participation with the Open freedom of religion; and the right Society Human Rights Initiative. to fair trial. Ms Dobichina also Previously, she worked for Freedom served as Executive Director of House, an independent, US-based the Institute “Reason”, Director watchdog organisation, where she of Programs at the Bulgarian served as Director of Programs School of Politics, and Director of for Central Asia, responsible Programs at the Political Academy for implementing human rights for Central and South-Eastern programmes focused on legislative Europe in Sofia. © Jocelyn Bain Hogg/VII Photo Bain © Jocelyn reforms; freedom of speech and

15 NGOs and put 540 organisations on €100 or more. Such restrictions are neither a list of deregistered NGOs . Following proportional nor effective in responding to the attacks at Garissa University College real or perceived threats. in April 2015, the government again From Russia and China, to Canada, the US, listed organisations suspected of having and Kenya, countries have proposed or ties with Al-Shabaab, including Muslims passed truly worrisome counterterrorism for Human Rights (MUHURI) and Haki legislation. Such legislation results in Africa. Both are well-respected human increased surveillance, restricted financial rights organisations working from within flows, lack of due-process requirements, and the Muslim community in Kenya. Both suppression of dissent and expression. were cooperating with the UN Security Council Counter-Terrorism Committee on Experts have attributed the trend to countering violent extremism. a number of complex factors. Many governments are concerned by the wave of Several countries have introduced civil unrest that began in Tunisia in 2010 and burdensome reporting requirements has since touched on countries as varied as for NGOs and high penalties for non- Brazil, Russia, Thailand, Venezuela, Spain, compliance, including requiring additional Hungary, the US and Mexico. States also staff responsible for anti-money laundering increasingly identify civil society actors as and counterterrorism financing compliance; “political opponents”, even though they detailed activity reporting and assessment of are non-partisan, non-governmental actors. work; and compulsory annual auditing. Previously open societies have been affected In Cambodia, for example, the Law on by what the Carnegie Endowment’s Thomas Associations and Non-Governmental Carothers describes as “the global stagnation Organizations purportedly prevents terrorist of democracy”. The counterterrorism financing. The law mandates NGO registration imperative has also contributed to and allows either the Ministry of Economy restrictions, with governments having been and Finance or the National Audit Authority pressured by the US and the UN to pass to conduct an audit or examination of an counterterrorism legislation that targets association or NGO “in case[s] of necessity”. civil society. The Financial Action Task Force The law also requires all NGOs to submit (FATF) is also promoting the crackdown, annual financial reports to the government. albeit unwittingly. In Spain, foundations and associations are There are a couple of generalisations that are required to identify and document all persons made often when talking about the trend of civil society for shrinking space The who provide donations or resources of

13 When one takes a closer look at the laws being proposed and passed across the globe, a gap emerges between the motivations given and the measures taken.

closing space. However, what is required is a service providers, humanitarian groups, and more nuanced understanding of the causes. unions operate are shrinking. For example: First, worrying statistics regarding civic • In India, DanChurchAid (DCA), the space issues are used to draw attention to Catholic Organisation for Relief and the issue. While the statistics are indeed Development Aid (Cordaid), Hivos, worrying and useful in attracting interest to the Interchurch Organization for the problem, such figures are less helpful in Development Cooperation (ICCO), designing strategies to address it. Statistics ClimateWorks, and Mercy Corps have lump together countries like Azerbaijan, all been put in the “prior approval” where activists face imprisonment; and category by the national government Ethiopia, with its NGO law regarded as the - any transaction they make through most restrictive in sub-Saharan Africa as it Indian banks will need Indian government de facto criminalises most foreign funding clearance from the Ministry of Home for human rights groups; with countries like Affairs. Among the allegations against Mexico and Spain, where the governments them is that they were funding anti- have implemented problematic anti-money India activities and clandestinely routing laundering laws that have increased money to Greenpeace India. the bureaucratic burden on NGOs. This • In Pakistan, authorities shut down Save contributes to the difficulty in developing the Children’s offices, claiming staff contextually relevant and effective responses. members had been working “against Second, often we hear that the issue of Pakistan’s interest”. The decision was closing space is affecting only grantees and later reversed. donors working on the most sensitive of • In Nicaragua, the government launched issues, including human rights. While it is “Operation No More Lies” against true that some of the groups most at risk NGOs it accused of embezzlement, are those working on human rights and money laundering, and subversion. community-based activists tackling thorny The NGOs’ promotion of human rights, and deeply-rooted issues of inequality - from gender equality, and poverty reduction community and environmental activists were “modern-day Trojan horses”, the challenging business-investment and land- government said. tenure policies, to membership-based LGBTI and education organisations seeking greater • In Egypt, Coptic Orphans was denied equality within systems - increasingly, permission to work. The Ministry of however, the spaces in which development Insurance and Social Affairs denied the organisation’s application on the grounds mobilising other resources that contribute that “mechanism[s] of implementation to a stronger, broader resource base for [were] found by the Egyptian activism. We also need to support their [government to be in] conflict with state efforts to think creatively about how to sovereignty over its territory.” engage with the communities in which they work and to raise the profile of their work • In 2015 alone, labour unions were not among those constituents. allowed to assemble and associate in countries such as Bangladesh, Too often, funders focus on what we know Guatemala, Indonesia, Cambodia, and how to do - advocate for or against legal Swaziland. changes and global norms. But the reality is that in many places the restrictions civil As a funder working in this context, Open society groups face do not only require Society Foundations is guided by our firm changing laws; rather, these groups must belief that people have the right to organise respond effectively to smear campaigns and participate in any decision-making that that undermine their reputations (personal affects their lives. In so doing, they have and professional) and overcome a litany of the right to seek and receive support from bureaucratic hurdles that activists face in domestic and international sources. The carrying out their everyday work. examples above provide both the impetus and the opportunity to build more effective There are additional steps donors can take to links across civil society and across different underscore the legitimacy and critical role of rights struggles to ensure that these rights our investments in civil society. We can foster are realised. conversations across thematic fields and geographies around the space for activism. We What can we as donors do? can begin opening communication channels One set of responses is related to the among funders, human rights groups, resilience of the civil society sector. humanitarian organisations, development As funders, we should help grantees agencies, and other civil society groups to comply with new regulations. Even before discuss how to reverse what Carothers calls a regulations are put in place, funders should “tectonic shift” in how governments view and help strengthen grantees’ financial and deal with civil society. And, we can proactively governance systems to support them in engage in discussions with aid-providing and meeting their regulatory obligations and aid-receiving governments and international mitigate any disruption caused by over- institutions on the challenges of grantees in reaching government requirements. Failing their countries. Finally, there is an increasing to incorporate overall organisational need to explore how policies within the health into our grantmaking practices financial and trade sectors are being used leaves grantees vulnerable to accusations to limit space and how advocacy efforts can of mismanagement of funds or lack of reform these policies to protect and expand transparency. the space for activism. We also have an opportunity to focus more attention on building our grantees’ capacity for public outreach to expand and consolidate their bases of support. We need to encourage groups to develop new

approaches to leveraging local funds and civil society for shrinking space The

15 Enabling philanthropy across Europe

Ludwig Forrest, Philanthropy Advisor, King Baudouin Foundation

More and more persons and companies are A few months ago, the engaging in Europe, but also around the 18 members of the world. Philanthropy is undoubtedly achieving impact, it is embracing innovation and it is in Transnational Giving a unique position to support and try smart Europe network agreed on new practices to tackle and solve social problems. And we all agree that philanthropy a new tagline, “Enabling never can and indeed should not replace philanthropy across the role of the state, but remains a vital complement to it. Europe”, to explain what it The bad news is that the title of this tries to do and achieve. publication is “Shrinking”, not “Enabling”. All this positive energy is countered by dramatic This is simply about making the lives of developments in some parts of the world but donors wanting to support a beneficiary in also within some countries in Europe. Things another country easier, and doing this in are not as easy for civil society as they once a secure and tax effective way, with more were. Other contributors to this publication effective due diligence. In times when it is have illustrated clear examples of this. most needed, philanthropy is being creative However, we should not panic - we need to in finding the pathways it needs. remain optimistic, but careful. We should At the Centre for Philanthropy at the King highlight these unfortunate developments Baudouin Foundation, we continue to while continuing to improve our work; our promote more and better philanthropy in transparency and self-regulation efforts; our Belgium, in Europe and around the world. The quest for social impact. We should highlight Centre advises donors of all sizes and shapes also the positive developments that happen on their philanthropic, and increasingly in many countries. Philanthropy is so much international, vision. More and more donors more than tax benefits for donors, and we want to support social projects either abroad should not see budget cuts as necessarily or with an international outreach. These shrinking our space to operate. We and donors want to be enabled to improve and our beneficiaries need to understand that maximise their philanthropic impact. these cuts just mean that we need to be creative and find new “business models”. The good news is that figures of (cross- We should continue to monitor legal and border) philanthropy are still growing. fiscal regulations, changes or proposals. provides information, guidance Chair of the Legal Committee at and tailor-made help on the European Foundation Centre; strategic philanthropy to private advocate at national and EU- donors, families, businesses level; and publicist and speaker/ and professional advisors who moderator at international wish to engage in public-benefit conferences. He has also initiatives. Helping donors and organised and coordinated the beneficiaries to find effective three editions of Philanthropy Day solutions for philanthropic in Brussels, gathering more than © F. Toussaint © F. intentions, and fostering and 600 persons from Belgium and enabling the European cross- Europe interested in philanthropy. Ludwig Forrest has been a border giving environment by Philanthropy Advisor for 15 years promoting the Transnational at the King Baudouin Foundation’s Giving Europe network are his Centre for Philanthropy. He main objectives. Mr Forrest is the

We should enter into dialogue as never before with our national and supranational In times when it authorities to boost our complementarity. And finally, we should communicate on is most needed, philanthropy, on foundations and on what we do achieve, also and probably as a priority to philanthropy is those who are not yet aware of this. The EFC has played an active role in this being creative through its Legal Committee, which I have the honour to Chair. Advancing an enabling in finding the operating environment for foundations and cross-border giving has been a key priority for the EFC since its establishment. The pathways it EFC has built significant expertise on legal, tax and regulatory developments for the needs. sector in Europe – through mappings, policy monitoring and analysis, and advocacy work at EU and, increasingly, international level. A key objective is to raise awareness within the philanthropic and wider civil society better knowledge base on and develop ways community of policies or regulations that to address more effectively the growing might be affecting – either negatively or number of restrictions on the operating positively – their ability to pursue public space for civil society, both in Europe and benefit work, either within their home internationally. Key recent activities include country or internationally. monitoring FATF and EU regulations. Overcoming its disappointment with the In ways big and small, philanthropy has withdrawal of the European Foundation helped to advance the human condition and Statute, the EFC is looking at other ways spirit around the world. When individuals, to overcome barriers to cross-border families, organisations and businesses donations and legacies, including the issue contribute to the public good, they are of withholding taxes. We are also monitoring participating in a time-honoured tradition the developments on VAT. More recently, that advances our common humanity. We the EFC has joined efforts with a number should therefore continue all together to The shrinking space for civil society for shrinking space The of funders networks and NGOs to build a enable it, not to shrink it.

17 Joachim Rogall studied Eastern and Eastern Europe, CIS, China European History, Slavonic studies until March 2013. He became the and German. He was awarded a Chief Executive Officer of the PhD in 1988, and qualified as a Robert Bosch Stiftung in April university lecturer in 2000 at the 2013 where he is responsible University of Mainz. for financial management and control, human resources, as well Mr Rogall has been an Adjunct as the programme areas “Health”, Professor for Eastern European “Science” and “Europe and its History at the University of Neighbors”. Heidelberg since 2003. In 1996 he moved to the Robert Bosch Stiftung in Stuttgart where he worked as Senior Vice President International Relations Central

The shrinking It is not only the legal and political frameworks that have been narrowing the room for manoeuvre, but also carefully designed public campaigns aiming to space for discredit civil society organisations and to stir up distrust in their leaders. As the situation in Russia has been deteriorating dramatically over the past civil society - three to four years, this is the country we would like to focus on here. The political and legal conditions for civil society organisations and active citizenship as The case of Russia a whole have alarmingly changed. New legislation like the so-called “foreign Joachim Rogall, Chief Executive Officer, Robert agent” law; high profile trials against civil society actors; and an overall atmosphere Bosch Stiftung; and Atje Drexler, Head of in which the questioning of government Department International Relations Europe policies or cooperation with a foreign and its Neighbors, Robert Bosch Stiftung organisation may be publicly denounced as “unpatriotic” or “treasonous”, all challenge the functioning and vitality of The space for civil society Russian civil society. Some prominent is shrinking in quite a NGOs, especially from the field of human and civil rights, are paralysed by number of countries we are recurring financial and other reporting currently working in – most requirements, and some spend as much time and monetary resources on dealing notably in Russia, but also in with them as they direct to their cause. Turkey and Egypt and even The ongoing political crisis of confidence inside the European Union, between Russia and the West has impacted the economy and civil society, and is if you look at developments reflected in anti-Western media coverage in Hungary or Poland. in Russian state-controlled media. The work of foreign NGOs and foundations Atje Drexler has been Head of the Institute for Clinical Pharmacology Department International Relations and the Institute for the History Europe and its Neighbours since of Medicine. Before joining the April 2013. She has been with the foundation, she worked in the Robert Bosch Stiftung since 2001 automotive industry for three working primarily in the Health and years as a Junior Sales Manager Science Department where she at Continental Teves AG & Co. KG held the position of Deputy Head in Frankfurt. Ms Drexler graduated of Department from 2007 through from the University of Göttingen 2012. In this position she was in 1998 with a Masters degree responsible for the foundation’s in Slavic Studies and Political medical and research institutions, Economy, after having studied both namely the Robert Bosch Hospital, in Germany and in St. Petersburg, the Dr. Margarete Fischer-Bosch- Russia.

is often portrayed as an intrusion into Russian domestic affairs and was put Looking to the under a sword of Damocles when the law on “undesirable foreign organisations” more established was introduced in 2015. As a consequence, opportunities for Russian foundations representatives of civil and NGOs to cooperate with international partners are fading. societies, Russian How can we as Western funders and partners of Russian civil society continue NGOs more than ever our work in these circumstances? Which options are open to us as a foundation which has a long tradition of fostering need our support mutual understanding and dialogue with Russia? Is there anything we can do to to maintain and help Russian civil society survive and develop? Does the work we do in this broaden their situation still have an impact? Of course, we are constantly confronted with these international questions, and a lot has changed for our work. We are convinced that working in contacts. and with Russia is possible, necessary and potentially impactful, even though it is difficult and at times discouraging. It does take, however, more resources and time than it used to, because it has become vital to follow the situation closely and to give more thought to risk analyses and safety issues. Given the difficult and volatile situation in the country we are also learning to be more flexible in formats and approaches and not to be deterred for too long by setbacks. Over the past three

years we have become less attached to civil society for shrinking space The

19 long-term strategies and have made more Russia and fostering connections between use of opportunities when they arose. stakeholders from different sectors. A lot can still be done in Russia, but it With the directed involvement of cross- takes time and openness to identify the sectoral stakeholders from government, opportunities rather than staying focused civil society, academia and business, on the barriers. “new” synergies and opportunities for What can we do to support Russian civil participation for civil society evolve. In society? We are convinced that it is more particular, social entrepreneurship has important than ever to stay in touch developed into a sphere of activity in with Russian civil society and secure its which international cooperation is desired, access to international exchange and providing starting points for collaboration shared learning. In doing so we believe with Russian partners. that it is crucial to define “civil society” Moreover, cooperation in the promotion in a broad sense which encompasses both of urban development, social investment the traditional institutions of civil society and innovation seems highly promising. (e.g. NGOs) and the full range of the With the programme “Social Impact manifestations of active citizenship and Days” the Robert Bosch Stiftung promotion of social change (e.g. social fosters a multilateral and cross-sectoral entrepreneurship, impact investment, exchange platform for social innovation volunteering, and participative urban in cooperation with BMW Stiftung Herbert development). For us, this means Quandt and MitOst e.V. The “Social exploring new ways of cooperation, Impact Award” honours promising social getting engaged with new partners in entrepreneurial approaches in the region. Working in and with Russia is possible, necessary and potentially impactful, even though it is difficult and at times discouraging.

Both projects have proved remarkably Since the 1990s, the Robert Bosch Stiftung popular in the Russian foundation has stood up for democratic values such community, and we do believe that seeking as the rule of law, freedom of speech cooperation with domestic funders from and press and the strengthening of civil philanthropy and the business sector society. By strengthening “new” civil is helpful and necessary for further society actors and exploring innovative engagement in Russia. project ideas beyond already paved paths, new opportunities open up for cooperation Looking to the more established and spheres of activities, which seem to representatives of civil societies, Russian rebuild and enhance mutual trust with and NGOs more than ever need our support to within Russian civil society. maintain and broaden their international contacts. Invitations to international conferences and exchanges, but also international presence at their events, will help them counteract the isolation they are experiencing at home. In addition, initiatives that foster professional development and conserve the human capital in the sector are much in need. In particular, NGO staff today need a high degree of accounting, tax and law expertise that they typically do not have and which is essential to navigate the complex Russian framework. civil society for shrinking space The

21 A letter from an African foundation in 2064

Bhekinkosi Moyo, Executive Director, Southern Africa Trust

But today the struggle for opening up Dear colleagues in the space is not only along political lines foundations, but along a number of fronts, especially for foundations like ourselves. Our It is just over a century since the operating space has been closing due formation of the Organisation of African to political harassments, arrests and Unity, whose main mandate was the torture especially for movements and emancipation of African nations from individuals who operate in the main on colonialism. Colonialism and imperialism human rights. Even foundations like among other forms of oppression were ourselves that support these movements, then the highest expression of how the including minority rights such as sexual space was closed for African citizens and rights, are being persecuted. Life has their political life. become very difficult for foundations that provide financial support to movements Protracted political struggles were and organisations that defend people’s waged to open up the political space rights. This has forced many of us to for Africans and in 1994, South Africa contemplate closing down operations. became the last country to receive international acclaim for making the While 100 years ago the main factor transition to a free country. that closed the space was the political dimension, today there is an economic Interestingly though is that in 2064, a dimension where the private sector hundred years later, we are still waging has also become involved in solving struggles against many attempts to social issues. While this was initially close the space for citizens and their welcomed 50 years ago, it has of late formations. We should have known just obliterated civil society completely. I better when some of our ancestors miss the days when we could take a long fought against the one-party state that view in solving social problems. Today it was adopted by many of the newly is all about scalability and replicability independent African states. Not only did as well as metrics. I shudder to imagine newly elected leaders form their own what the space will look like in 3064 organisations in place of civil society, they given the speed at which technology has also shut down the space especially for transformed the world and left many of human rights movements and the media. our groups behind. This has gone on till today. Programs at TrustAfrica, a pan- journal articles, book chapters and African foundation based in Senegal regularly writes a column for the for close to seven years contributing African Decisions Magazine. His to its growth and pan-African reach. 2014 article in the Development Mr Moyo writes extensively on in Practice Journal is “African African philanthropy, governance philanthropy, pan-Africanism and and the state of civil society in Africa’s development”. Most of Africa. Among his recent books are: his works can be found on www. “ Helping to Give, Giving to Help: bhekinkosimoyo.com including his The Context and Politics of African Mail and Guardian blog. Mr Moyo sits Philanthropy” (2013), “Disenabling on the boards of The African Union Bhekinkosi Moyo is the Executive the Public Sphere: Civil Society Foundation; International Society for Director of the Southern Africa Regulation in Africa (2010); “Africa Third Sector Research; African Grant Trust, a regional organisation that in Global Power Play” (2007); and Makers Network; University World supports wider and deeper policy “What about the children: The silent News; ICCO Southern Africa Regional engagements in regional integration. voices in maintenance” (2004). He Council; as well as the Alliance Prior to this, he was Director of has also contributed a number of Magazine Editorial Board.

My colleagues, the more things change, the more they stay the same. Closing the We need to work space for liberties and operational space has jumped from one century to the other. very closely In order to stay the course, foundations like ourselves need to dig deeper because those into the future and build anti-fragile systems and processes to mitigate any new forms of closing the space for our that close the existence. We need to improve our data collection methods, nuance our advocacy space for us approaches as well as be sophisticated with our intelligence capacities. We must have always give our governments and the private sector serious competition. Forty-nine banded years ago in 2015, we asserted that we had power as foundations when the together. United Nations Sustainable Development Goals (SDGs) negotiators included foundation leaders in adopting the goals. We resisted being seen only as providers of money. We affirmed our role beyond money to include our flexibility, risk taking and innovation among others. We can still resist the closing of space in its many manifestations. We need to work very closely because those that close the space for us have always banded together. Frankly, if we don’t do this, some foundation leader will be writing similar things in 3064. Yours,

Amadou civil society for shrinking space The

23 Palliative or catalyst? Defending the space for civil society

Vinit Rishi, Director of Administration, Oak Foundation

known organisations with significant A couple of months brand recognition. The reason for this I ago, our bank refused am told is that the payment description reads “Syria Appeal”. We have put that to process a payment in so that the receiving organisation to a US public charity knows which of their projects to apply the funds to. To the bank it’s a red flag. despite our providing I know that Syria is on the sanctions IRS determination list but this money is going to bank accounts in the United Kingdom and letters, audits, etc. Too Switzerland, so what is going on here? risky they felt. The My contact at the bank explains the rather toxic mix the payment represents organisation had “Iran” – the delivery instructions contain both in its name – just the a non-profit and a name that appears on sanction lists. At the individual level this mention of Iran was represents career terminating risk. Due enough to have the bank diligence forms on the transaction must be completed; the ordering customer want to keep its distance. must explain and justify the purpose of the payment; higher authorities at the bank must sign off; and, no, we will not The grantee organisation has been check the Charities Commission website established by exiles critical of the to confirm that Oxfam is a registered current government who now cannot charity - the client must furnish all of the even use the name of their country if needed documents. they want to use the banking system. Keep in mind that BNP Paribas paid an To be fair, the bank says it’s because it’s $8.9 billion fine in 2014 for breaching complying with the recommendations US sanctions against Iran, so our bank of the Financial Action Task Force wanted nothing to do with anything even (FATF), but surely Oxfam and the remotely associated with Iran. International Committee of the Red Cross are not likely to be engaged in More recently the bank has blocked and terrorist financing or money laundering! questioned a number of other grant And furthermore, aren’t these entities payments. The payments are to well- accounting and management HQ office. He has also worked experience operating at an for Iomega, a manufacturer of international level within complex smart, portable computer storage matrix organisations. Prior products; as Head of Treasury & to joining Oak Foundation, as Tax for Europe and Asia/Pacific; the Head of Global Statutory and as Chief Financial Officer for & Interfirm Transactions with Logispring, a private equity firm. Andersen Worldwide, he built He studied at the Doon School in and developed a team that India joining his parents in Geneva provided controllership oversight in 1983 where he completed a for transaction flows across 84 master’s degree in Finance at Vinit Rishi is Director of countries. Mr Rishi was also the Webster University. He is fluent in Administration at Oak Foundation. partner in charge of Finance & English, French and Hindi. Mr Rishi has extensive financial, Administration for the Geneva

already regulated, duly registered, The in-practice implementation of filing documents annually and doing so FATF regulation 8 only confirms the publicly? Despite the layers of regulation asymmetric value being placed on and control that already existed pre- economic versus human rights. And even FATF Recommendation 8, an entire within the sphere of economics, more additional layer of compliance has been value is placed on macro-level economic crammed on with no consideration to use growth than the more pressing issues what was available, to complement it, for humanity of access, distribution and or to eventually rescind it if it serves no the sustainability of resources! Perhaps purpose. the recent trend to set up limited liability companies to disburse philanthropic The contrast with the “for-profit” sector funds is a related consequence. is striking. While civil society struggles with these increasing burdens of FATF is only part of the challenge compliance, governments are secretly faced by civil society organisations. A negotiating treaties such as the Trans- quick web search on the term “closing Pacific Partnership to remove the burden space for civil society” lists articles and of regulation from business. Maina Kiai, reports from every significant network UN Special Rapporteur on the rights to of human rights organisations discussing freedom of peaceful assembly and of the crackdown that is underway. A association, observes in his report to the recent article published in The Guardian UN General Assembly meeting in October newspaper states that over the past 2015 that: three years more than 60 countries have passed or drafted laws that curtail the “States often go to great lengths to activities of non-governmental and civil create the best possible environment society organisations. The article goes for businesses, but rarely go so far on to quote James Savage of Amnesty for associations. These differences International: appear motivated more by politics than practicality. Economic interests are prized “There are new pieces of legislation over what are perceived as non-economic almost every week – on foreign funding, activities, and the influence and opinions restrictions in registration or association, of industry take precedence over social anti-protest laws, gagging laws. And, justice and fundamental rights. Sectoral unquestionably, this is going to intensify equity is not a difficult concept to adopt. in the coming two to three years. You can The shrinking space for civil society civil society for shrinking space The It is simply a matter of political will.” visibly watch the space shrinking.”

25 What I feel and see day today is While governments the increasing complexity and compliance burden faced by both us try to quash the flow and the organisations we fund. These requirements tend to be country specific and therefore particularly of funds to issues onerous for organisations working internationally. Examples include they dislike, they banking requirements with purpose of payment codes being introduced by actively seek to various countries (Jordan, India etc.) or the need to supply documentation channel foundation with every payment to a recipient organisation (Mexico). and other donor Beyond the increased cost the criminal liabilities being attached to what are engagement essentially administrative laws and rules are more concerning. An example towards service is the new information law in Tanzania which criminalises the publication of statistical data that does not come delivery. from the government’s own Bureau of Statistics. Similarly, falling afoul of the What I feel and see day today is the increasing complexity and compliance burden faced by both us and the organisations we fund.

laws on the receipt and use of foreign capital of social change finds itself funds in Ethiopia and India can lead to increasingly cajoled or coerced into imprisonment. Governments are writing being a palliative rather than a catalyst. laws in vague and broad terms and then This is a challenge the sector must interpreting them as required by the come together to face. circumstances. The prospect of partners or staff being imprisoned is a growing and real concern. While governments try to quash the flow of funds to issues they dislike, they actively seek to channel foundation and other donor engagement towards service delivery. Governments claim the reason for this is their own democratic mandate as opposed to the lack of accountability of foundations and as a quid pro quo for tax breaks. Sadly, there has been no demonstration of large-scale public support for traditional civil society, encouraging some actors to voluntarily curtail their activities to “safer” issues. A sector The shrinking space for civil society for shrinking space The that prides itself on being the risk

27 From dissidents’ democracy to grass-roots democracy - Countering the notion of the closing space of civil society

Haki Abazi, Program Director Western Balkans, Rockefeller Brothers Fund

The dissident approach clearly worked As a result of the in many countries and was particularly Cold War and the impactful in central Europe during the 1990s, when dissidents played critical ideological clash between roles in maintaining the spirit and vision western democracies of the people united in fighting communist autocratic regimes and organising the and communist “colour revolutions” of the early 2000s. systems, the work of However, even in the cases of Poland, the multilateral, bilateral, Czech Republic, Hungary, and the Baltic countries, one could question what the and philanthropic donors effectiveness of the dissident approach during the 1970s, 1980s would have been if there had not been proximity or genuine interest of the EU to and 1990s was focused aid and advise the development reform on establishing and agenda of these countries, in order to join the EU, as well as cultural and societal supporting dissidents. similarities among aspiring countries and EU members.

They became the symbol of resistance, a On the other hand, why are Georgia, synonym of freedom of expression, and Moldova, Ukraine, and the Balkans failing guardians of fundamental human rights. to follow the same process as central In many cases, this approach continues Europe did not so long ago? It is obvious to be implemented in post-conflict and that geopolitics and the international transitional settings. political economy are among the determining factors of successes or failures The time has come to question whether of transformation and change. We must this approach is adequate and producing find the way to also compare this to the the impact we need in creating struggles for change in Cuba and the functional participatory democratic Middle East and the role civil society is societies. If this approach is supporting playing or not playing in those places. a developmental agenda, is it being used as a stabilising factor to maintain a post- Using the same approach today that was conflict status quo? employed during the dissident-centric Kosovo office for the East West in decision-making processes. Mr Management Institute, Inc. He Abazi has in-depth knowledge and developed and implemented a wide work experience related to the range of programmes addressing Balkan’s civil society community critical issues in Kosovo during and the geopolitics of the region. the transition period. He also has He is chairing the Steering played an important role in the Committee for the Grantmakers development of civil society in the East Forum and sits on the region. Mr Abazi has over nine boards of several international years of experience in designing organisations. He holds a degree and managing development in computer sciences and Haki Abazi is the Program Director programmes in Kosovo, Serbia, management, and was educated in for the Western Balkans portion of Montenegro, Afghanistan, and Kosovo and the United States. He the RBF’s Pivotal Place programme. Indonesia. These programmes is fluent in English, Albanian, and Prior to joining the RBF in 2007, were designed to support overall Serbian, and also knows basic Dari. Mr Abazi served as Director of the developments and increase the level of participation of citizens

revolutions of the 1990s, the post-Berlin complaining mechanisms in society; it has Wall era, presents the major obstacle to to represent broad, substantiated public political dialogue and partnership between input, become the space for developing a civil society and governments. These days, solutions discourse, provide comprehensive donor support for individuals to become alternative solutions, and nurture the the voices of citizens against authoritarian brain power of society that can eventually regimes automatically raises concerns that migrate into the political system to boost the aim is only to collapse and remove the capacity of governments. regimes. In most cases, the authoritarian Increasingly, the space where civil society regimes consider support from donors to operates is ambiguous, diverse, and largely certain individuals or groups as threats to an ecosystem encompassing many different their power. As a consequence, the world and often competing interests, making is seeing extreme polarisation of societies it difficult to align organisations, as is and crackdowns on civil society by using happening in the post-Mubarak era in Egypt. extreme methods and means. When the Muslim Brotherhood took power, Over the last five years, there has been a it continued to oppress the very same civil tremendous increase of conflicts where society groups that had demanded change. instability and violence have been triggered It is hard to pinpoint what went wrong in as a result of animosity and lack of civic Egypt, Libya, Syria, and even the Balkans engagement, lack of conflict prevention in the 1990s, and when it happened. But, it initiatives, manipulation of individuals is clear that revolutions in societies cannot for different interests inside regimes, happen only on the streets: Revolutions and, often, individuals in civil society who have to happen in the minds of the people, become instruments of hidden agendas, and change cannot happen because there is mostly in international fora. one dissident leading the frustration of the people. Civil society should be the driver of A shift in the funding paradigm is change that offers clear alternatives and necessary. Donors have to move from protects a quick transition to a very clear being hostages of a relationship with an development agenda based on the rule of individual to primarily supporting lines of law, equal opportunity, and social mobility. work that strengthen the sophistication and engagement of a much larger number of I am not arguing that the approach used in issue-based groups. Civil society cannot be the past for supporting strong dissidents understood only as the voice of individuals was wrong. On the contrary, it seems to The shrinking space for civil society civil society for shrinking space The that call themselves NGOs or reactive/ have been a workable solution to prepare

29 societies for change based on a vision Talking about the and clear plan on how to achieve it, in order to avoid clashes, the emergence of closing space of nationalism and fascism, the destruction of infrastructure, and displacement and war. civil society is For example let’s compare the split between the Czechs and the Slovaks. If a bit of a knee- society were not ready, dark forces could have easily turned that situation into a jerk reaction conflict to perpetuate and maintain their power, and a fight over the control of resources. Compare that to the collapse as well as a of the Sykes-Piko agreement that is producing catastrophic consequences in sentimental the Middle East. judgment. It was once effective to have one person and one goal or message be repeated for decades. Today that is not enough. The Occupy Movement, the Taksim Square/ Gezi Park Movement in Turkey, and even the Hong Kong Occupy Central Movement are proving that it is not adequate only to mobilise people. Movements for change also not be about individual names, but have to have clear sets of mechanisms and about proposing solutions and permanent governing concepts that they will address. openness, and ensuring a constant internal They also need a plan on how to eliminate refreshing of ideas and concepts in a world corruption and how to fight monopolisation that is being severely challenged by the of the political processes through financial concentration of capital, lack of resources, influence – two 21st-century cancers and now the effects of climate change. A afflicting democracies today. Otherwise, paradigm shift is necessary. Donors should people are reluctant to let go of a broken take the long view and help support the system that is at least delivering something, horizontal and vertical development of civil and instead embrace a theoretical vision of society and its mechanisms to be a sector change whose ability to provide and fulfil for solutions and in becoming a powerful basic needs is unknown. guardian of democratic functionality for countries, regions, and global governance The role and responsibility of civil society institutions. Civil society can forge as a third and balancing sector between the partnerships among governments, the government and the private sector is more private sector, and themselves, and complicated and it requires larger sets of encourage respect for fundamental skills and sophistication in strategising values and principles of democracy and rather than just presenting itself as an rule of law. Donors should get out of the agent of fleeting change. foundation offices and live as partners Guaranteeing functionality of the in the ecosystem of civil society. They democratic system requires a solid base should be wary of artificial spaces that from which people can not only operate but absorb and consume energy and resources can also sustain themselves and present without producing results. The sector’s aim proactive solutions that go beyond protests should be local ownership, sustainability, and demonstrations in the street. transparency, and accountability of To conclude, talking about the closing the third sector, and knowledge-based space of civil society is a bit of a knee-jerk engagement and collaboration. reaction as well as a sentimental judgment. The civil society sector is smarter and has more experience to understand that there is no force, including the state apparatus, that can entirely close or even partially close the space for civil society. If civil society changes its tactics and strategy, the shape and form of engagement can be different and the results will be different. We cannot fall into the trap of classifying the lack of change as an impossible situation and take the position of civil society as victim. The same way that governments in democracies should not be about cults and individual names, civil society should civil society for shrinking space The

31 Civil society in Greece - The stretching and maturing of the non-profit sector

Dimitrios Vlastos, President of the Board, Bodossaki Foundation

rate has rocketed to 30% among the If civil society in many general population, and to more than countries is currently 50% among young people. Poverty rates have risen steeply, meaning that an experiencing a “shrinking” important proportion of the population of the space in which it can are now unable to meet their basic living expenses and have lost access to the operate, in Greece it would national healthcare system. As a result, be more accurate to state CSOs that provide social welfare have seen an exponential demand for their services. that civil society actors The migration crisis has added an extra are being “stretched” by dimension to the humanitarian challenge: Hundreds of thousands of migrants and recent developments. refugees have entered the country since the beginning of 2015 and there is no end There is a dramatically increased social to this situation in sight. demand for services provided by civil This would be a formidable set of society organisations at a time when circumstances for civil society to respond state funding has decreased, and both to in any context. In Greece, the challenges institutional and organisational barriers are exacerbated by the fact that organised continue to hinder the development of the civil society is still comparatively sector. However, there are also positive underdeveloped. Historical, social and signs of an awakening and maturing of political factors have all contributed to a Greek civil society, which give grounds for context in which concepts of civic culture optimism for the future. and active citizenship have never become The past six years of economic and social mainstream. This is reflected both in crisis in Greece have fundamentally shaken citizens’ low levels of volunteering and the environment in which CSOs - including associational membership and in the NGOs, informal citizens groups, grass-roots state’s failure to understand the value organisations and charitable foundations of the third sector for strengthening - were accustomed to operating. The democratic institutions and promoting figures are striking: Since the onset of social participation. In these circumstances, the crisis, Greece’s GDP has shrunk by it is not surprising that very few NGOs more than 25%, and the unemployment have achieved the level of organisational executive of organisations such Bodossaki Foundation, after which as Shell, The Hellenic Industrial he became President and Chief Development Bank and the Executive Officer. He also served Bodossaki Group of Companies, as a member of the Board of and has served as a consultant on Trustees and Secretary General of economic and investment matters WWF Greece, Vice Chairman of the of metallurgical and industrial Board of Trustees of the National companies and as member of the Library of Greece, member of the board of directors of many other Board of Trustees of the Athens companies and organisations. He Concert Hall and member of the has been an external collaborator Advisory Board of the EGG (enter. Dimitrios Vlastos has studied Law, of the Centre for Economic grow.go) Programme which aims at Economics and Political Sciences Research (KEPE), Athens. boosting young entrepreneurship. He is married and has a son and a at the Aristotle University of From 1991-2007 Mr Vlastos was a daughter. Thessaloniki and the University member of the Board of Trustees of Geneva. He has served as an and Secretary General of the

development necessary to be able to scale of NGOs in Greece is vague and ambiguous. up their activity beyond the local level. There is no concrete legal definition of the term NGO. Such ambiguity jeopardises the Perhaps the most immediate challenge independence of non-profit organisations, faced by the sector today is the lack of and undoubtedly contributes to the low funding. The government suspended much levels of public trust in the sector. The of its public funding for NGOs in 2010, in system of financial regulation of the sector an attempt to control and minimise public is also haphazard and locally variable, spending. Understandably, public donations being largely dependent on the subjective have also dropped sharply. This situation interpretations of local tax officers. has been further exacerbated by fiscal This approach has failed to promote measures that have annulled tax exemptions transparency across the sector and has and benefits for NGOs, including charitable further undermined public confidence. foundations1, meaning that foundations’ funding capacities have also been hit hard. Another important institutional inefficiency has to do with the complete absence of a However, the institutional barriers to the legal framework for volunteering in Greece. development of the sector go far beyond The lack of legal recognition of volunteers the lack of funding. The lack of a coherent, is a major obstacle, as many organisations transparent framework for NGOs has rightly fear that they may be liable for a number of negative ramifications for prosecution for violating labour laws their operation. First, there is no complete because they work with volunteers. The catalogue of NGOs in Greece. Over the failure of the state to promote volunteering years, several attempts have been made through the education system, for example, to map the sector, but the resulting lists also contributes to the extremely low levels are all partial and there is still no single, of volunteering. comprehensive catalogue. This lack of basic information makes it impossible to A further barrier to the development of the accurately calculate the size and social sector is the marginal role that civil society contribution of civil society organisations is granted in the policymaking process. Civil and hinders efforts to promote the role of society actors are rarely given a consultative the sector. role, and if they are taken into account at all in policy formation, it is usually only in their Second, the legal framework that governs capacity as service providers. Policymakers the operation, funding and accountability do not seem to realise the value and The shrinking space for civil society civil society for shrinking space The 1 Most recently, Law 4172/2013. importance of the voluntary organisations

33 in producing social capital which in turn can Foundations, along promote more effective government. In the face of these challenges, foundations, with other civil along with other civil society actors, have a crucial role to play in working to increase the society actors, space for civil society in Greece. At the heart of the matter is the need to promote the have a crucial value of civic culture and active citizenship, not only among the general public, but also role to play in among state and media actors. We certainly need to promote public engagement, but we also need to advocate for a policymaking working to culture in which the democratic and social value of a vibrant civil society increase the is recognised and is also underpinned by a clear, transparent legal and fiscal space for framework. With these goals in mind, the Bodossaki Foundation recently participated civil society in a legislative committee whose primary purpose was to draft a new law that would in Greece. create a coherent framework for the establishment, operation, transparency and accountability of Greek NGOs. Despite the scale of the challenges, we Unfortunately, political developments have believe that there are grounds for optimism hindered this initiative, but the work is still regarding the development of the sector. in progress and we hope that it will yield The crisis has acted as a wake-up call results. for Greek civil society. There has been a blossoming of new informal citizens groups At the same time, we also need to and grass-roots organisations across the acknowledge that the rather unfavourable country, and established organisations context for civil society in Greece today are also reporting a surge in volunteers. is at least in part a reflection of the fact Moreover, an increasing number of that Greek civil society has not been able organisations are realising that they need to advocate effectively for a recognition to invest in capacity building and knowledge and an expansion of its own role. For civil sharing: In this turbulent environment, society organisations to be taken seriously collaboration is increasingly seen as an by the state, they need to be able to opportunity and not a threat. There are also organise themselves collectively and to indications that citizens are requesting more be able to demonstrate that they have participation in decision making and have transparent internal procedures and the started becoming more involved in political ability to create a sound evidence base and public life. for their policy positions. Thus, a strategy to increase the space for civil society in One could say that the civil society in Greece Greece must also include investments in is coming of age and that the experience of developing the organisational capacity of being “stretched” by recent developments the sector. The capacity building needs is leading to a maturing of the sector. Trying of Greek civil society organisations are to find its place in such a socio-politically high. Apart from undermining their ability unstable environment will not be easy, and to contribute to the development of the new and socially innovative approaches sector, the low levels of professionalisation need to be explored in order to tackle the and coordination also limit the ability country’s vast and complex social problems. of organisations to respond to new Foundations in Greece have a crucial role to circumstances caused by the crisis. play in supporting this evolution. By doing so, we will be helping not only to maintain It is for these reasons that building the space for civil society today, but also to the capacity of Greek civil society has expand the space for the new generation of become an important area of work for dynamic and committed civil society actors. the Bodossaki Foundation. Through the EEA Grants NGO programme “We Are All Citizens”, the Bodossaki Foundation is channelling more than one million euros to capacity-building activities, including training seminars, networking activities, and skill sharing among NGOs. In collaboration with the Municipality of Athens, we will also soon launch a co-working space for NGOs in downtown Athens, with the aim of increasing collaboration and knowledge

sharing in the sector. civil society for shrinking space The

35 The shrinking space for civil society Nick Perks, Trust Secretary, Joseph Rowntree Charitable Trust

law, without undue interference. Like human rights, civil There is no doubt that there is a fairly society space is both widespread sense among UK charities and inherent and constructed. other civil society organisations that there is a shrinking space for civil society. I think Our rights are not granted this can be traced to four factors, listed or gifted by governments, here in no particular order: powerful men, large • Comments from previous government ministers implying that corporations or popular charities should stick more closely opinion - they are inherent to service delivery activities to being human. Civil • The language used by the Charity Commission (the UK regulator) society is always already about charities, highlighting and there, wherever people focussing on risks, and a shift in Charity Commission activity, come together, wherever faced with reduced staffing, to communities exist: “Sous concentrating on compliance and les pavés, la plage (Under enforcement the pavement, the beach).” • Media attacks on charities • The Transparency of Lobbying, Non-Party Campaigning and Trade At the same time, rights can be Union Administration Act 2014 (the curtailed, abused, denied. Civil society “gagging bill” to its critics) space can be shut down, narrowed, oppressed. The exact nature of a free However, it is important to keep society has been much debated. Here legitimate concerns about each of the is one test for me: Can a small group above contextual changes from becoming of concerned citizens come together self-fulfilling prophecies. The picture is for a social purpose without seeking or always more complicated, and civil society requiring permission from the state? A space is expanding in some directions secondary question is whether they can as it contracts in others. Here are four pursue that purpose freely within the reasons to feel a little more optimistic: Nick Perks has been Trust Mr Perks has a degree in English Secretary since August 2012, Literature from the University of having previously worked Cambridge and holds post-graduate for JRCT as Assistant Trust qualifications in management Secretary between 2001 and and consultancy. He is an active 2008. He has previously been a Quaker and has served the Quaker trustee of the Friends Provident church in a number of capacities Charitable Foundation and was at local and national level. Mr the coordinator of the UK’s Perks leads on JRCT’s Power and Environmental Funders Network. Accountability Programme.

• Civil society is increasingly engaging around the world, and the need to with and influencing the private sector, protect civil society space. There is and doing so more effectively than also hope wherever civil society itself ever before. ShareAction’s AGM army, is speaking up and speaking out. which attends annual general meetings Our task is not to fret about shrinking of corporations to raise awareness civil society space, it is to work together of environmental and social issues, to enlarge it. and Carbon Tracker’s stranded asset’s research, are just two examples. • Developments in Australian and New Zealand law have suggested It is important to keep a broadening understanding and definition of charity; and in the UK, legitimate concerns... the Charity Commission guidance on charity campaigning remains broad from becoming self- and permissive, much more so than in decades past. fulfilling prophecies. • Economic inequality used to be only a party-political question. Today, thanks The picture is to Wilson and Pickett and Thomas Picketty, among others, it is recognised always more as a social and economic question of more general concern. Perhaps partly reflecting this, the UK Charity complicated... Commission recently registered The Equality Trust, which works to reduce economic inequality, as a charity. • Support for a free and diverse civil society comes from many different quarters. Joyce Anelay, current Minister of State in the UK Foreign Office has written of her concern

about more restrictive NGO legislation civil society for shrinking space The

37 Civil society in France - Rising constraints and new opportunities

Frédéric Théret, Director of Marketing and Development, Fondation de France

administrative complexity, innovation and Since the beginning of the rise of the circular and collaborative the 20th century, and the economies. emblematic 1901 law on The restriction of public funding has led to a drastic transformation in the very model freedom of association, of associations. In France, civil society France has been a country organisations, and especially associations, have been among the most severely hurt of associations. There in budget restrictions at the local level. In are over 1.35 million in 2013, the majority of funding for associations switched from public sources to private ones. our country, and several At the same time, within the public funding thousand continue to be element, another shift has occurred. Before, two-thirds of public funding for civil society created every year. These organisations came in the form of subsidies associations are the living and one-third in the form of public contracts. Now those figures have reversed. As a direct tissue of civil society in consequence, many associations, especially in the social field, have now become mere action. contractors or operators of public agencies and administrations, most worryingly losing French citizens who are not members or part of their freedom of speech and action. donors of at least one association are a The risk of associations being used in this small minority. Whether it be for culture, way to answer public tenders is not to be the environment, education or social ignored. Many associations have also been justice, associations engage in all fields obliged to resort to membership fees or of general interest, with various modes of charging for services to their beneficiaries to intervention: direct support to places or fill the funding gaps. people in need, raising awareness, lobbying, etc. Another strain on associations which, in France, goes back further than budgetary In recent times, the conditions in which constraints, is growing administrative associations live and develop have complexity. Not only is French labour law changed tremendously, due to four main complex and ever in motion, but every aspect factors: shrinking public funds, growing of association work has become far more his career in an advertising 2006, Mr Théret went to the agency, where he took an active Institut Pasteur where he was the part in the creation of a structure Fundraising, Partnerships and dedicated to new technologies Events Department Manager. He and multimedia applications. He then joined Action Against Hunger was also involved in advising, on a France as Communication and strategic basis, large international Development Director. In 2012, groups such as Shell, Peugeot, and he joined Fondation de France SFR. He then decided to devote his as Marketing and Development career to one-to-one marketing Director. He has been Treasurer and networks and joined, in 2001, of the French Foundations Centre, After graduation from a a new agency oriented towards and is now member of the Board competitive French business fundraising and communication of the European Foundation school, Frédéric Théret started for non-profit organisations. In Centre.

technical in recent years. The positive aspect tend to develop instead. It seems that people, of this evolution is the professionalisation of especially the youth, become more and many associations, which is positive for them more aware of their capacities and power as and for their beneficiaries. But administrative individuals through local engagement. nightmares can also discourage very valuable All in all, French associations have been led projects or individuals when they don’t to review deeply their ways of operating. have sufficient means to allocate time and Although a lot of opportunities arise in this resources to these tasks. This is also worrying. new context, the concerns are also many, All funders, private but also public, are funding probably being the most pressing one becoming more and more focused on – if not in that it has implications for the very model obsessed with – innovation. This is tangible in of associations. calls for projects from public administrations Very recently and more specifically, the specifically aiming at “innovative projects”. concern about the shrinking space for Obviously, innovation is a powerful stimulus, civil society has been focused on the and for many associations this renewed consequences of the state of emergency requirement has been an opportunity to instituted in the wake of the November review and refresh their methods and 2015 terrorist attacks in Paris. The French approaches. But this has also created government has explicitly warned the uneasiness with others that legitimately Council of Europe that this context might felt they were accomplishing their missions lead to some infringements of the European consistently and seriously, but that innovation convention on human rights. If the obvious should not always necessarily be a condition and important restrictions of individual for quality work. Why change methods that liberties have generally been accepted by have proved to be effective and that have French civil society, it is due to the temporary taken a long time to develop? nature of the restrictions. How the French From another standpoint, tools and government will manage to put an end to opportunities for individual engagement and this state of emergency is now the real action have developed dramatically. The rise challenge, and at present there doesn’t seem of social media and circular and collaborative to be a consensus on that issue. Civil society economies has created new ways for civil organisations and individuals must therefore society members to interact, share, move, remain constantly watchful, if France wants recycle and engage. Associations are not to live up to its reputation as the country of always the most relevant form, but many human rights. The shrinking space for civil society civil society for shrinking space The “collectives” or informal grass-roots groups

39 and reproductive justice. He he served as the Argentina joined Ford in 2000, serving as representative for the Center for Boudewijn de BlijProgram Officer for human rights Justice and International Law in the Santiago office. In 2007, he (CEJIL), an inter-American human Director, Fonds 1818 was appointed the foundation’s rights body that works across the representative for the Andean hemisphere. heRegion started and working Southern for Cone, the Labour guiding Mr. De Blij is also a Member of the Mr Abregú has served as an Partygrant (PvdA)strategy in and the programmesLower House of Board of Stadsherstel Den Haag, associate professor of human theacross Dutch the Parliament. region. In 2010, He resigned he was Chairman of the Program Board of rights at the University of Buenos fromnamed his Director position of as Human Staff Director Rights The Hague FM, and Member of the Aires School of Law, where he ofand the Governance. Labour Party Group in 1995. Board of Statenkwartier Energy. graduated with a law degree, Since 2013, Martín Abregú has He subsequently took positions as He is married to Marjan Engels and Before joining the foundation, Mr specialising in international law. led the Ford Foundation’s global Managing Director of the Dutch is the father of two sons (30 and Abregú served for six years as He is also a graduate of American grantmaking on human and civil Foundation for Smoking and 29). He lives in The Hague. Executive Director of the Center for University in Washington, DC. He rights; effective and transparent Health, and of the Netherlands Legal and Social Studies (CELS), a has been an Ashoka Fellow since governance; democratic Heart Foundation. In 2006, he was leading human rights organisation 1995. participation; strengthening civil appointed Managing Director of based in Argentina. Simultaneously, Boudewijnsociety; and de gender, Blij (1954) sexuality, Fonds 1818, an endowed foundation studied industrial engineering in The Hague region of the at the Eindhoven University of Netherlands. Technology (MSc in 1978). In 1983, As well as working for Fonds 1818, also understand that for many of the world’s most indispensable civil society organisations Navigating our - the people’s bulwark against the excesses of business and government - it’s a call to arms, but also, at times, a cause for concern. A new normal for the Ford Foundation new normal As we’ve said before, we are excited about the challenge of learning, of adapting, and Martín Abregú, Vice President, Democracy, of recasting our work - in our headquarters, Rights, and Justice, Ford Foundation; and in our regional offices, in the philanthropic sector as a whole, and in active partnership Hilary Pennington, Vice President, Education, with the individuals, institutions, and Creativity, and Free Expression, networks on the front lines of change. Ford Foundation For example, building stronger alliances with local actors is something we’ve always been interested in, and this new normal A new normal, everywhere is forcing us to do what we’ve always Fifteen years into the 21st century, the world known we needed to - listening to people, has both outgrown and, at long last, grown understanding voices on the ground. In this into “globalisation”. It’s no longer some way, we can address a form of inequality prospect of great promise or grave peril. that’s long been present in our own work - It’s the new normal, yesterday’s news, the how we balance our worldview with the local forecast that the weatherman, more or less, context of where we work while advancing predicted correctly. What it has meant is human dignity in the places where inequality that the world’s relationships of influence is most pronounced. For every lesson continue shifting. New powers are emerging we’ve learned, however, more questions and exerting their gathering authority in have come into clearer focus: How can we new ways. Traditional powers - and western be more sensitive to local context, while institutions, in particular - necessarily must staying true to our values? How can we engage differently. protect our partners while preserving our standing in various countries? How can we At the Ford Foundation, this dispersal of respond to new barriers and continue to influence is not a hazard to be feared, but promote social justice? rather a tremendous burst of creative, constructive energy to be harnessed. But we expert on postsecondary education Officer of Jobs for the Future, a and intergenerational change. research and policy development Before joining the foundation in organisation she co-founded and 2013, she was an independent worked for for 22 years. She also consultant whose clients included served on President Bill Clinton’s the Next American University transition team and as co-chair of project of the New America his administration’s presidential Foundation and Arizona State advisory committee on technology. University. She is a graduate of the Yale Ms Pennington served as director School of Management, Yale of education, postsecondary College, Oxford University and Hilary Pennington leads the Ford success, and special initiatives the Episcopal Divinity School. In Foundation’s work on school at the Bill and Melinda Gates 2000, she was a fellow at Harvard’s reform in the United States and Foundation for six years. She Kennedy School of Government. higher education around the world; was a Senior Fellow at the Center next-generation media policy for American Progress and and journalism; and support for President and Chief Executive arts and culture. She is a national

A new normal for all Together, we can establish a new paradigm Of course, we are hardly the only ones for philanthropy to match our new global grappling with these issues. Organisations paradigm, and work better and more broadly around the world feel more vulnerable than than ever before. Given the progress we have even just a few years ago. The changing seen throughout the 20th and 21st centuries, climate for civil society puts a tremendous we are hopeful and optimistic we can adapt to amount of pressure on us all to do right by our these challenges, and advance social justice grantees, and oblige governments to do so, for all. even when their interests may be in conflict. Yes, there are safety issues. Yes, there are security issues - and these should be taken seriously. But there also are issues of How can we protect process, and compliance, and regulation, and transparency, and diplomacy. No longer can we our partners while lean on established precedents and fall back on our paternalist instincts - if we ever could. preserving our Now we need to be more thoughtful, more creative, and, ultimately, more deferential in our standing in various response. We need to understand the multiple forces and factors interacting with each other countries? How in complicated ways. Most important, we need to listen - and engage our peers and partners in can we respond a serious conversation that acknowledges the needs of all parties involved. to new barriers A new normal for good For our part, we’re deepening our and continue to understanding of these issues by investing in research and analysis that will inform promote social the next generation of our support for civil society organisations. What we learn will hopefully shed light on what we can do as a justice? sector to better prepare ourselves, and our

grantees, to adapt to the world’s new normal. civil society for shrinking space The

41 The space for civil society is big enough - If we push for it! Boudewijn de Blij, Director, Fonds 1818

The charitable sector and the government In the Netherlands the have signed a covenant called “Space space for civil society for giving”. That covenant is signed by the prime minister, the state secretary is quite big - there is no of justice, and the representatives of the Charity Commission, fundraising charities, the endowed charities and the churches. This document addresses and no restriction on the basically five issues: founding of charities or • Better information exchange the way the investments • Better coordination of policies and investments, aimed at improving have to be handled. From society a European perspective • Improving the infrastructure of the charitable sector the Dutch situation is • More transparency in the charitable extremely liberal. sector • Improving the confidence of the public in the charitable sector The rules for charities have more to do with The last two issues have had the most fiscal facilities, particularly important for effect on Dutch charities. With the typical donations by private persons to charity. Dutch approach of “self-regulation” it has Tax payers receive a tax rebate for their been agreed that the different parts of the donation if the charity is registered as a charitable sector would cooperate to write charitable foundation with the Revenue a code of conduct, with a common part for Service. all and specific chapters for fundraising, On a national level some politicians are endowed charities and churches. This code pushing for more control over charities. should have stricter rules for governance They seize opportunities such as small and transparency and would be policed by misbehaviours of board members of the sector itself. charities to ask for stricter legislation. The Not all charities really like this approach. government does not comply immediately The fundraising charities are very with such wishes, and is generally reluctant dependent on the public and are willing to introduce new legislation. A typical Dutch to do nearly anything to improve public solution is found: a covenant. Boudewijn de Blij studied industrial appointed Managing Director of engineering at the Eindhoven Fonds 1818, an endowed foundation University of Technology (MSc in in The Hague region of the 1978). In 1983, he started working Netherlands. for the Labour Party (PvdA) in As well as working for Fonds 1818, the Lower House of the Dutch Mr de Blij is also a Member of the Parliament. He resigned from his Board of Stadsherstel Den Haag, position as Staff Director of the Chairman of the Program Board of Labour Party Group in 1995, and The Hague FM, and Member of the subsequently took positions as Board of Statenkwartier Energy. Managing Director of the Dutch Foundation for Smoking and He is married with two sons and Health, and of the Netherlands lives in The Hague. Heart Foundation. In 2006, he was

confidence. That is not so much the case cultural organisations that receive fewer for the endowed foundations. In that subsidies – this gives them the feeling that sector there is some reluctance to go their priorities are being defined by the along with these proposals. The FIN, the authorities. association of endowed foundations, has Locally the situation is not so different stated clearly that it will not apply these from the national one in that covenants rules just for its members, the more well- are also made between charities and the known endowed charities. It should also be local municipality. Local government, compulsory law for the charities that are however, has no power to make regulations not members of FIN. If not, a charity could concerning charities, so the balance of evade all supervision by simply ending power is less skewed than at national level. its membership of FIN. The government In some cases even the local businesses are representatives agree in principle, but are involved in covenants. The arrangements not very eager to engage in the long and are more focused on a few important local arduous process of lawmaking. issues, or specific projects. Sometimes the In the meantime, the funding of projects municipality and charities work together to has just gone on. After a long period make a specific project possible. of budget cuts by central and local My conclusion for the Netherlands is government, most cultural and social that in most cases charities with a clear organisations are now developing new understanding of their mission can fend projects. They have more or less adapted off onerous government intervention with to the situation of fewer subsidies and their projects. It is important to find a good a more business-like approach. More balance between cooperation and defence organisations are now looking for funding against interference. In the Netherlands at by charities. Charities are reacting to this least, most foundations have no trouble in in different ways. Some have a stricter finding that balance. approach, others try to accommodate, but are restricted by available budgets. We see that quite a few subsidised groups have closed shop and that others are focusing on core business. In these cases, no funding is needed for extra projects. Charities generally don’t like to The shrinking space for civil society civil society for shrinking space The supplement the budgets of social and

43 Closing space for civil society creates new challenges for international grantmakers Mary A. Gailbreath, Vice President Administration and Secretary/Treasurer, Charles Stewart Mott Foundation

Through four decades of is vital to maintaining a level of charity supporting international needed to help address such needs. In my role as chief compliance officer for charitable endeavours, the Mott Foundation, my overall charge is the Charles Stewart Mott to assist my board and programme staff in making grants that advance our founder’s Foundation has witnessed vision, as well as the organisation’s values the ebb and flow of civil and code of ethics. My staff and I work diligently to ensure we are making grants society development. in accordance with all laws, processes and customs of every country where we In today’s world, where humanitarian provide support. Further, we do all we can issues have become more complex to assist our grantees in understanding and difficult to address, the need and complying with the sometimes for philanthropy and civil society stringent and complex guidelines involved organisations to be able to work together in accepting funds from our organisation. across borders is greater than ever. Yet Our foundation’s commitment to just when the need is greatest, challenges addressing charitable needs outside of to the work are increasing. the US has always presented obstacles, Few would argue that charitable work including legal, language, technology fills critical gaps around the world. and other barriers on both the donor and Governments alone cannot solve every grantee sides. For instance, applying US social problem, businesses cannot tax classifications to charities that exist meet every economic need, and private in what may be an entirely different legal individuals can neither marshal the and cultural context has long been a resources nor organise effectively to challenge for us and our fellow US-based address the often overwhelming need international grantmakers. for help. Without the system of sustained And other restrictions, such as taxation charitable giving that philanthropy on global philanthropy and pre- and post- supports, fewer children would learn to grant procedural burdens, have become all read and write, and more people would too commonplace in many countries. live in fear, poverty and poor health. The freedom for civil society organisations to Because of the US Internal Revenue participate in a global network of giving Service’s (IRS) complex regulations, the in Flint, Michigan. Ms Gailbreath A certified public accountant, joined the Mott staff in 2002 she holds a bachelor’s degree as grants manager. In 2010, in business administration from she became Director of Grants Eastern Michigan University in Administration and Assistant Ypsilanti. Treasurer. She was promoted to her A Michigan native, Ms Gailbreath current position in mid-2015. worked for ten years as a manager During her years with the at Arthur Andersen LLP in Ann foundation, she has become Arbor, Michigan and three years well-known in the philanthropic at a family-owned real estate community for her expertise in development company before Mary A. Gailbreath is the Vice compliance issues associated joining the Mott Foundation. President Administration and with international grantmaking Secretary/Treasurer of the Charles and expenditure responsibility. Stewart Mott Foundation, based

process of making grants to non-US more complex procedural requirements organisations continues to be challenging. - both at home and abroad - are creating Whether a private foundation opts to nearly insurmountable challenges for both perform an equivalency determination or grantor and grantee. Even for a larger follow the IRS “expenditure responsibility” institution such as the Mott Foundation, process, either approach is costly in terms which has the resources to follow country of the time and expertise it requires. For laws and adopt best practices, these instance, the Mott Foundation has spent processes substantially increase the cost in excess of $650,000 for technology of making a grant and the time required to and consulting services to assist the process it. This means that many smaller foundation and our grantees in meeting grants are so cost-prohibitive that they counterterrorism requirements. Due to simply will not be made. And it means that US sanctions in the Crimea region, we many smaller foundations, without the are cross-checking grantees’ financial resources to comply with all of the laws, institutions against prohibited banks. regulations and best practices, may have to Going forward, we also foresee the stop making international grants altogether. potential need to adopt increased due When Mott and other private diligence processes recommended by the philanthropies cannot make international Financial Action Task Force. grants in a timely and cost-effective way, Global politics also have created constraints we lose momentum toward achieving our so severe that they have interrupted charitable goals. But our concern is never - or forced us to end - an area of our for ourselves and the challenges we face in grantmaking. Notable examples include making grants. Rather, our fear and deep the need for advance government approval sorrow is that the closing space for civil to receive foreign aid, which caused us to society is keeping aid from the people who suspend our grantmaking in Belarus, and need it most. the difficult decision we recently made to halt our grantmaking in Russia, precipitated by the Russian parliament’s formal recommendation to the prosecutor’s office to consider designating the Mott Foundation as an “undesirable foreign organisation”. The reality of balancing compliance costs The shrinking space for civil society civil society for shrinking space The and grantmaking expenditures with ever

45 About the EFC

The EFC is the platform for and champion of institutional philanthropy – with a focus on Europe, but also with an eye to the global philanthropic landscape. We support our members, both individually and collectively, in their work to foster positive social change in Europe and beyond. Our European and global perspective on institutional philanthropy and the landscape it inhabits gives us a “helicopter view” that presents a unique opportunity for us as an organisation, hand in hand with our members, to reflect on, understand, engage with and together strengthen the environment for philanthropy. Established in 1989 by 7 foundations, the EFC now represents more than 200 philanthropic organisations, including foundations and corporate funders.

EFC Policy and Programmes brings together the EFC’s capacities for building intelligence on and for institutional philanthropy; connecting our members with relevant partners and stakeholders, including decision- makers; and brokering opportunities for collaboration and public policy engagement.

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