Are Civil Society Organizations at Risk?
By Anita Whitehead, Managing Director, and Tim Stiles, Partner, KPMG LLP
Restrictions on civil society and foundations have become increasingly widespread. In the last year alone, civil society organizations (CSOs) in over 100 countries experienced serious threats to one or more civic freedoms. A variety of complex factors have driven this trend, impacting how CSOs operate in longstanding democracies and autocracies alike.
In order to remain effective, CSOs and foundations need a deep understanding of government activity affecting civil society in the countries where they operate. Greater regulations are not always meant to impede CSOs. However, navigating the impacts of these regulations remains critical to achieving a CSO’s mission. To support this need, KPMG recently launched the Civil Society Risk Matrix for 40 countries. This tool provides an overview of government activity affecting CSOs in the form of legislation and regulations.
Chart 1: Civil Society Risk Matrix
Source: KPMG International
Of the countries included, 27 already had or were considering new regulations or legislation to impose greater scrutiny of CSOs. These typically fell into the following: internet and cyber security; access to foreign funding; national security/counter terrorism; and restrictive tax regulations. Asia in particular demonstrated an increasingly tight space for civil society organizations. However, based on survey responses, CSOs in 29 out of 40 countries have not yet taken action to adapt to new restrictions. This could suggest that these countries face obstacles in adapting to recently enacted laws or regulations.
The tightening space for civil society worldwide is a significant barrier that must be overcome through dialogue, partnership, and innovation. Now more than ever, with the adoption of the Global Goals for Sustainable Development, CSOs and foundations play a critical role: eradicating extreme poverty and creating opportunities for billions of people to live productive, healthy lives. Civil society organizations are essential to achieve this mission and we should carefully track their progress and the barriers that might limit their success. To learn more about the Civil Society Matrix, visit the website here.
Members of The Conference Board Global Social Investing Council and Contributions Councils I and II can join KPMG on a webinar on Wednesday, October 12 at 2pm for an interactive discussion of the matrix. Anita Whitehead, managing director and council member, and Tim Stiles, global chair of the International Development Assistance Services from KPMG LLP, will discuss the impacts of the matrix on corporate philanthropy.
About the authors:
Anita Whitehead
Managing Director
KPMG
Anita Whitehead is a Managing Director with KPMG’s Development and Exempt Organizations practice. Based in Washington, DC, she assists global commercial organizations strategize their philanthropic vision and manage the legacy they wish to leave behind. KPMG’s DEO professionals are uniquely familiar with the trends affecting corporate responsibility, corporate philanthropy and charitable activities – including tax compliance services related to giving within the commercial environment.
Tim Stiles
Partner
KPMG LLP
Timothy Stiles is the National Practice Leader of KPMG’s tax exempt practice and the Global Chair of KPMG’s International Development Assistance Services (IDAS) practice. He is responsible for delivery of services to not-for-profit organizations and foundations participating in the program.
