Foreign funding of NGOs

Background

In the late

Ethiopia introduced restrictive anti-foreign NGO legislation, the Charities and Societies Proclamation, in 2009, but substantially relaxed it in 2019.^[8][9]

Kenya

In 2013, a Kenyan law which would have imposed a cap on foreign funding was rejected by the legislature. However, in 2014 President Uhuru Kenyatta stated that he would not allow "organizations advancing foreign interests to destabilize the government".^[9]

Nigeria

Foreign funding of NGOs, including newspapers, also occurs in Nigeria.^[10] Nigeria adopted a law restricting foreign funding in 2017, closely modeled on a similar law adopted by Sierra Leone in 2016. Freedom House stated that the law could lead to "improper state control of NGO programs, if not outright co-optation of NGOs".^[9]

Zimbabwe

Zimbabwe prohibits foreign NGOs from engaging in any work related to governance and limits the activities of local NGOs which accept foreign funding.

In 2006, Venezuela rejected a law which would have forbidden foreign funding of NGOs entirely. A less restrictive law was passed in 2010. In the interim, Venezuela redirected its foreign policy and was no longer allied with countries which disapproved of such restrictions.[1]

USA

The Foreign Agents Registration Act is a United States law that imposes public disclosure obligations on persons representing foreign interests.

Asia

Cambodia

A study of foreign funding in NGOs operating in Cambodia found that donors prefer organizations with more professionalization, but do not prioritize those which have strong grassroots connections and local legitimacy.^[17]

India

Certain left-wing NGOs receive disproportionate funding from the European Union and Western European countries, which is perceived by opponents to undermine the policies of Israel's democratically elected government.^[23][24]

Kazakhstan

Kazakhstan has legislation that obliges entities receiving "money and/or other property" from "foreign source" to provide the tax authority with information on each receipt of foreign funding. The information is published on the tax authority's website. Materials published and/or distributed at the expense of foreign funding must include information about the foreign source.

Europe

Hungary

In 2017, Hungary passed

On 30 April 2024, Slovakia's parliament approved in the first reading the legislative amendment introduced by the Slovak National Party. The bill would require non-profit organizations which annually receive more than €5,000 from outside of Slovakia to register as "organizations with foreign support".^[27] The bill would oblige these organizations to disclose identity and nationality of donors and creditors. The organizations funded by more than €50,000 per year would be obliged to submit an annual report to the Ministry of the Interior. The Ministry would be able to dissolve the organizations which would fail to follow the regulations. The law has been described as stricter than Hungarian law, but softer than Russian and Georgian laws.^[27]

Ireland

In December 2017 newspapers reported that the Standards in Public Office Commission found that the Amnesty International Ireland had violated Ireland's campaign finance laws which prohibit foreign donors making donations to groups in Ireland who influence government policy. This was related to the Amnesty International Ireland's campaign to revise Ireland's abortion laws and the funding it received from George Soros Open Society Foundation. Amnesty Ireland stated that they were not going to obey the Commission's instruction to return the funding, as it considered it a violation of its - and other Irish NGOs' - rights to freedom of association and expression.^[28][29]

Amnesty initiated a High Court challenge to SIPO's instruction. The case was heard in July 2018 and as part of the settlement agreement, the High Court heard that SIPO now accepts its decision that the donation was for political purposes and must be returned was "procedurally flawed". The Commission had frequently stated in its reports that this provision is overly wide and cannot have been the intention of the legislature, except where groups are involved in campaigning at elections or referendums. Amnesty said it was pleased that the decision has been quashed and that it was vindicated in its decision to challenge the decision. Amnesty also said that it hopes the Government will reform the Electoral Act.^[30]

Poland

In May 2020,

The Russian foreign agent law requires foreign-funded NGOs to register as "foreign agents" (Russian: Иностранные агенты), a Soviet-era dysphemism for Soviet dissidents.^{[32][33][34][22]}

Georgia

On 7 March 2023, the

On 3 April 2024, it was announced that the similar draft law would be submitted to the Parliament.[37] On 8 April, the Bureau of Parliament of Georgia registered the bill for the parliamentary discussions.^[38] The Parliament passed the draft law with the third reading at the plenary session on 14 May, with 84 votes to 30.^[39]

Abkhazia

On 8 February 2024, the

In 2001, Belarus introduced a mandatory authorization system for foreign funding of NGOs.[41] Funds transferred from abroad, regardless of their value, have to be registered with the government. The registration may be denied for a broad number of reasons. The only exception of the requirement to register funding is when it is provided in accordance with programs approved by the President of Belarus or with international treaties ratified by Belarus. Since 2011, the violations of rules regarding receiving foreign funding may result in criminal liability.^[42] Foreign funding of NGOs can not be used for promoting political material, preparing or conducting elections, meetings, protests and other assemblies, conducting other types of political and promotional work with the population etc.^[43]

Azerbaijan

In 2014, Azerbaijan adopted amendments and additions regulating foreign funding of NGOs. Any grant agreement, donation or service contract must be registered with the Ministry of Justice.

According to Azerbaijani law, unlike a "donation", a "grant" is always given for a specific purpose and can be attached to specific conditions. A right to issue a grant in Azerbaijan must be obtained by registration. It is required to have a registered office in Azerbaijan and an approval from the Ministry of Finance in order to be allowed to issue grants to NGOs.^[44]

Pros and cons

Restrictions on foreign funding of NGOs are more common in

In 2013, the United Nations Special Rapporteur on the Rights to Freedom of Peaceful Assembly and of Association, Maina Kiai, stated that "The right to freedom of association includes the right to seek, receive and use resources – human, material and financial – from domestic, foreign, and international sources."^[46] In 2014, The Economist reported that "More and more autocrats are stifling criticism by barring non-governmental organisations from taking foreign cash", citing Hungary as an example.^[47]

A 2020 study found that African countries which allowed foreign funding of NGOs had a higher voter turnout; the authors argued that this effect was because laws against foreign funding implied a

A 2015 study found that local human rights organizations in non-repressive developing countries often relied on international funding as the path of least resistance instead of seeking local funding. The authors of the study also stated that "excessive reliance on foreign aid is rarely healthy over the long term; it can easily weaken, distort, and divide domestic civil societies".^[48]

One argument against foreign funding is that it might cause NGOs to reorient their objectives to what donors are looking for at the moment, at the cost of local priorities (mission drift).^[49][50][51] However, foreign funding might not have as strong a crowding out effect as local government spending because the money is coming from foreigners, rather than tax money.^[51]

Supporters of foreign funding restrictions argue that they undermine

• Foreign agent

References