# Restrictions on non-profit advocacy around world could deter ‘new middle class’ from giving

- Link: https://fundraising.co.uk/2014/05/27/restrictions-non-profit-advocacy-around-world-deter-new-middle-class-giving/
- Published: 2014-05-27T08:43:12+01:00
- Author: Howard Lake

It’s not just the UK where charities feel they are being gagged by government through
hostility in the media and restrictive legislation such as the ‘Lobbying’ bill.

A new report by the Charities Aid Foundation says that NGOs around the world are
being prevented from speaking out by a “wave of polices” from their governments,
which are also limiting their freedom to manage their own finances.

The report – [Future World Giving: Enabling an Independent Not-For-Profit Sector](https://www.cafonline.org/pdf/CAF%20Independence%20Report-Web.pdfhttp://)–
warns that “poor legislation” could “jeopardise efforts to promote giving among 
new generations of middle class people emerging across the world”.

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This world’s middle class is expected to grow by 165 per cent by 2030 – with 70 
per cent of this growth outside of the “traditional philanthropic centres” of Europe
and the USA. The report says this new middle class has the potential to contribute
up to US$550bn a year to charities by 2030, were they to give one per cent of their
salaries, the report says.

“We believe that if governments put policies in place which help to enable the growth
of independent and sustainable not-for-profit organisations, the results could be
transformative, not only for their beneficiaries, but for the health of civil society
more widely,” CAF says in the report.

“When not-for-profits are free to pursue the causes that matter to ordinary people,
and are able to represent their concerns and aspirations, they can win the support
and legitimacy of aspiring middle class donors.”

### ‘Worrying’ trend to restrict advocacy

However, the report identifies a “worrying trend” whereby governments around the
word are restricting voluntary organisations that engage in “legitimate advocacy
activities that support their stated charitable mission”.

It says that governments in Algeria, Azerbaijan, Canada, Ecuador, and Indonesia,
as well as the UK, have recently introduced or are in the process of introducing
restrictive legislation. CAF says these moves “vindicate” governments such as Vietnam
and Saudi Arabia, which have had such polices in place for a long time.

It also says some governments have legislated to restrict financial surpluses being
carried over into the next financial year, which, rather than reduce the chance 
of financial mismanagement, actually increases the risk that charities would spend
money in an unstrategic manner, the report says.

CAF’s report recommends a set of actions for governments:

 [list type=”check”]

 * Governments should allow not-for-profits to criticise and influence policy in
   order to improve standards and promote public debate, for example by providing
   training for politicians on the importance of charity advocacy and establishing
   an independent body to arbitrate government claims of “unlawful” advocacy by 
   non-profits
 * Not for profit organisations need freedom to manage their resources in the way
   which best achieves their stated mission, including creating statutory guidance
   preventing the withholding of funds based on public criticism of government policy
   by charities and allowing charities to carry reserves into the next financial
   year
 * Governments should foster a strong and independent civil society to benefit both
   the state and society as a whole, for example, by introducing awareness training
   for commissioning civil servants.

 [/list]

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