Developing NGO laws and regulation - good principles and practice

In Guidelines for Laws affecting Civic Organisations (revised in 2004) - prepared for the Open Society Institute in cooperation with the International Center for Not-for-Profit Law - Leon Irish, Robert Kushen and Karla Simon note that "...laws should exist in all open societies to enshrine and protect the freedoms of expression, association and peaceful assembly for all citizens. At the same time, there must also be laws that protect the public from possible abuses by civic organizations. The regulatory burdens imposed on civic organizations must reflect a balancing of the rights of individuals to exercise their freedoms and the need for protection of the public." The Guidelines reflect the knowledge of many experienced professionals about the kinds of laws and administrative systems that are conducive to the creation and proper regulation of the civic sector. 

Implementing good regulatory principles

In the UK, the Charity Commission's aim is to provide the best possible regulation of charities in England and Wales in order to increase charities’ effectiveness and public confidence and trust. The Commission values the benefit charities bring to society and recognises that the vast majority are legitimate. It's approach is characterised by a focus on encouraging charity self-regulation through the provision of advice and guidance. This allows it to focus resources on high risk areas and actively identify and address serious abuse of charities. The Commission has an open and transparent relationship with charities and works with, not against, them.

All UK government departments are charged with helping the Better Regulation Executive to make regulation less burdensome for example by reducing paperwork and time spent on requests for information. Although the Charity Commission is a non-Ministerial department, we are actively involved in this initiative. For more details go to the Better Regulation Executive website.

 

Some further useful resources: 
  • Publications and tools produced by the International Centre for Not-for-Profit Law. Their Checklist for NPO Laws is a useful starting point. It outlines the basic provisions that should be included in legislation governing civil society organizations (CSOs) and is useful for assessing whether CSO legislation currently on the books or in draft form meets generally accepted international practices.
  • Key components of effective regulation. Summary produced by the International Programme of the Charity Commission for England and Wales 
  • Techniques for making regulation more effective. Recommendations from the International Programme of the Charity Commission for England and Wales
  • Regulation Assessment Questionnaire produced by the International Programme of the Charity Commission for England and Wales. The questionnaire is designed to identify areas for improvement in current NGO legislation and regulatory practice.  
  • Article by Leon Irish and Karla Simon in the International Journal of Not-for-Profit Law (Volume 2, Issue 3), "Law and Governance: a lesson in limits". The paper discusses the limitations of law as a means of ensuring good governance and accountability for not-for-profit, nongovernmental organizations (NGOs) and suggests other means by which nonprofit organizations can provide for stronger governance and better accountability measures. 
  • European Policy Forum 2003 Conference on NGOs, Democratisation and the Regulatory State. The purpose of the meeting was to evaluate the need for a framework which encourages a higher degree of congruence between democratic principles and practice on the one hand with the contemporary activities of NGOs) on the other. Report of meeting.