Philanthropy and Law in Pakistan
by Zafar Hameed Ismail and Qadeer Baig, Pakistan
An enabling environment is crucial for enhancing NGO sector contribution to social development. Although the Pakistani non-profit sector consists of about 45,000 active organizations, ranging from unregistered neighborhood/village community-based organizations to nationwide organizations, their contribution to the economy remains largely unnoticed. It is important to realize that the successful operation of this sector is dependent on governance laws relevant to nonprofit organizations.
For our analysis, the Pakistani nonprofit organizations have been divided into four main categories; the policy research and advocacy organizations at the national level; the umbrella organizations through which national or regional programmers, projects and schemes are either implemented; the Rural Support Programmers (RSPs) that aim to reduce poverty on the principles of self help; and the foot soldiers — the citizen-based organizations, normally known as CBOs.
These categories of NPOs are governed under a total of 22 laws that direct the registration, operations and existence of organizations engaged in philanthropic activities. These have been categorized into four types of laws, ranging from those that are used for registration, to those that impact all organizations generally, including sector organizations. These laws are considered to be irritants in character because they are found out-dated, ambiguous, and not implemented with a true spirit. However, the essence of these laws is often overlooked, hindering the potential benefit that could be duly received by nonprofit organizations. Secondly, the laws do not cater to the needs of the present nonprofit sector. There is also a need to ensure a standard definition of the term charitable purpose, public benefit organization and nonprofit organization across the legislative list.
The Enabling Environment Initiative undertaken by the Pakistan Center for Philanthropy and the Government of Pakistan acknowledges the above-mentioned challenges. It is important that the recommendations of the Enabling Environment Initiative are considered in true spirit to include the provisions for the establishment and empowerment of a truly independent Charity/NPO Commission and to ensure that a widely acceptable code of conduct for NPOs is developed, implemented and monitored for adherence.
Non-Profit Law in South Asia: The Regulatory Framework for Operations
by Zafar H. Ismail, Pakistan
This paper examines the comparative legal framework that non-profit organizations face in five countries of South Asia. The core issues addressed in the paper are limited to the permitted organizational forms, registration procedures, permitted and prohibited activities and purposes, and processes for termination and dissolution of non-profit organizations. The paper also examines the issues with respect to governance and accountability and highlights the attempts to establish self-regulation mechanisms. The paper presents the analysis in a comparative format and draws conclusions regarding the similarities and differences between forms of treatment and procedure. In the final part the paper attempts to suggest a series of generic policy actions which should help to improve the enabling environment across South Asia.
Philanthropy in Bangladesh: A Brief Overview
by Sumiyah Khair, Bangladesh
The social scenario in Bangladesh has traditionally been characterized by philanthropic activities. The practice of giving to others without expecting any return and helping the distressed often began at home and formed a crucial strategy for instilling family values and traditions in young people. In many ways philanthropic activities were regarded as being synonymous to works of charity. As such, these activities had both voluntary and religious dimensions.
Over time, individuals/groups involved in philanthropic activities sought ways to make such initiatives more sustainable. Accordingly, they began to incorporate professionalism and expertise by invoking formal organizational and management structures. Therefore, what started out as a purely humanitarian concept evolved into concrete mechanisms for providing welfare services to the public. The present day scenario in Bangladesh witnesses a shift in philanthropic activities, which have progressed beyond ordinary works of charity to encompass various aspects of social and economic development. This has largely been in response to the increasing diversity in people’s needs. Moreover, the advent of donor-aided corporate NGOs following the independence of Bangladesh from Pakistan in 1971 in many ways altered the pattern of social giving as these NGOs increasingly engaged in multi-sectoral initiatives that targeted in particular, the socially vulnerable and disadvantaged.
The NGO sector in Bangladesh has become a booming business and a large source for employment. Such organizations have become important powerhouses that are engaged in the delivery of services including inter alia micro credit, health care, informal education, women’s empowerment and advocacy on human rights and governance. However, progress in this sector has not always been easy; there have been allegations that the non-profit sector lacked transparency and accountability and engaged in partisan politics. These developments have given the Government an impetus for imposing greater restrictions on NGO activities ostensibly to curb these deficiencies. The challenge now for both the government and the non-profit sector is to engage in open discussions in order to delineate the bottom line against which the performance of each may be measured.
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