2010 AGNA Regional Meeting of Asia
Toronto, 19-20 August 2010

Meeting ReportCopyright©2010 CIVICUS: World Alliance for Citizen Participation
CIVICUS House
24 Gwigwi Mrwebi Street, Newtown 2001
Johannesburg, South Africa
Tel: +27 (0) 11 833 5959

Fax: +27 (0) 11 833 7997

Website: http://civicus.org

Secretariat of AGNA Asia regional group
The Japan Association of Charitable Organizations
2-27-15, Hon-komagome, Bunkyo
Tokyo, 113-0021, Japan
Tel: +81 (3) 3945-1017

Fax: +81 (3) 3945-1267

Website: http://www.kohokyo.or.jp/english/eng_index.html

1Reflections on AGNA Asia Regional Meeting 19-20 August 2010, Toronto Canada
The AGNA Asia Regional Group held its first regional meeting for 2010 at the Japanese-Canadian
Cultural Centre, Toronto, from 19 to 20 August. Participants were Mr. Huang Haoming from CANGO,
China; Mr. Harsh Jaitli from VANI, India; Mr. Dala Rawal from NGO-Federation, Nepal; Mr. Sixto
Donato C. Macasaet from the CODE-NGO, the Philippines; and Mr. Yoshiharu Shiraishi from JACO,
Japan. The aim of the meeting was to assess the state of civil society in Asia and share informationon the different countries represented at the meeting.
The group paid a visit to Imagine Canada (the largest umbrella body in the country) and Canada
Helps (Canada’s only charitable giving operator), both located in Downtown Toronto. They listened
to their presentations and participated in discussions with staff on the role of both organisations in
the country and their contribution towards civil society activities in Canada. The group learnt about
the contributions made by Canadian charitable organisations to their communities and how the
Canadian non-profit sector contributes to development at local and national levels.
In January next year, the Asia regional group is planning to hold a second regional meeting in
Kathmandu, Nepal and discuss the LTA of national associations, the legal environment for civilsociety in Asia and a CSO database system. The session “Legal Environment for Civil Society” will bea joint meeting with Working Group 5: “Ensure an Enabling Legal Environment for Civil Society”
established this year, and will promote participation from other countries even if they are not AGNA
members such as Cambodia, Laos and Vietnam.
The Asia regional group consists of 13 National Associations from AGNA members in Asia) but
we hope to play a leading role in developing civil society in our respective countries and the region
as a whole by working with each other and other regional actors. For more information on the Asia
regional group, please get in touch with Yoshiharu Shiraishi on shiraishi@kohokyo.or.jp.
This time, the group has produced copies of meeting reports about the regional discussions
which held on 19 August. It is our great pleasure to send you a copy of the meeting report for yourreview.

Yoshiharu Shiraishi
Research associate of the Japan Association of Charitable Organizations
Secretariat of AGNA Asia regional group2

Programme of Activities for 2010 AGNA Regional Meeting of Asia
18-19 August 2010: Toronto, Canada
21 August 2010: Montreal, Canada
Day 1: Wednesday 18 August (Toronto)
Place: Japanese Canadian Cultural Centre (6 Garamond Court, Court, Toronto)
09:45-09:50 Opening, agenda, logistical announcement (Mr. Yoshiharu Shiraishi, JACO)
09:50-10:00 Welcome speech (Mr. Huang Haoming, Chairman of AGNA regional meeting of Asia)
10:00-12:20 Session 1: The situation of Civil Society in Asian countries
10:00-10:30 P1: China (Mr. Huang Haoming)
10:30-11:00 P2: India (Mr. Harsh Jaitli)
11:00-11:30 P3: Nepal (Mr. Dala Rawal)
11:30-12:00 P4: Philippines (Mr. Sixto Donato C Macasaet)
12:00-12:30 P5: Japan (Mr. Yoshiharu Shiraishi)
12:30-14:00 Lunch
14:00-16:30 Session 2: Accountability, Legitimacy and Transparency
14:00-14:30 P1: China (Mr. Huang Haoming)
14:30-15:00 P2: India (Mr. Harsh Jaitli)
15:00-15:30 P3: Nepal (Mr. Dala Rawal)
15:30-16:00 P4: Philippines (Mr. Sixto Donato C Macasaet)
16:00-16:30 P5: Japan (Mr. Yoshiharu Shiraishi)
16:30-16:40 Coffee break
16:40-18:10 Session 3: Innovative ways of information sharing and promoting participation
16:40-17:00 P1: China (Mr. Huang Haoming)
17:00-17:20 P2: India (Mr. Harsh Jaitli)
17:20-17:40 P3: Nepal (Mr. Dala Rawal)
17:40-18:00 P4: Philippines (Mr. Sixto Donato C Macasaet)
18:00-18:20 P5: Japan (Mr. Yoshiharu Shiraishi)
18:20-18:25 Logistical announcement (Mr. Yoshiharu Shiraishi, JACO)

3

Day 2: Thursday 19 August (Toronto)
Place: Canada Helps (215 Spadina Avenue, Suite 330, Toronto)
Place: Imagine Canada (2 Carlton Street, Suite 600, Toronto)
10:00-12:00 Visiting “Canada Helps” (Canada’s largest Charitable giving operator)
1. About Canada Helps
2. Their impact on charitable giving in Canada
12:00-13:00 Lunch
13:00-15:00 Visiting “Imagine Canada” (Canada’s largest umbrella organization)
1. CSOs in Canada
2. About Imagine Canada
3. Their impact on civil society

Day 3: Saturday 21 August (Montreal)
Place: Palais des congres de Montreal
13:00-14:15 Future direction for AGNA Regional Meeting of Asia
14:15-14:25 Closing (Mr. Huang Haoming, Chairman of AGNA regional meeting of Asia)
14:25-14:30 Logistical announcement (Mr. Yoshiharu Shiraishi, JACO)

Members are presenting on civil society in their countries(Japanese-Canadian Cultural Centre, Toronto)

4

Attendees of AGNA Regional Meeting of Asia
1. China

China Association for NGO Cooperation
Mr. Huang Haoming <hmhuang@cango.org>

2. India

Voluntary Action Network India
Mr. Harsh Jaitli <harsh@vaniindia.org>

3. Japan

The Japan Association of Charitable Organisations
Mr. Yoshiharu Shiraishi <shiraishi@kohokyo.or.jp>

4. Nepal

NGO Federation of Nepal
Mr. Dala Rawal <dalarawal@gmail.com>

5. Philippines

Caucus of Development NGO Networks
Mr. Sixto Donato C Macasaet <scmacasaet@code-ngo.org>

Provision of documents(1) Turkey

Third Sector Foundation of Turkey
Ms. Derya Kaya <derya@tusev.org.tr>

Asia regional members(Palais des congres de Montreal, Montreal)5

Table of Contents
1. China 1-1 Civil Society development and the Legal System in China

7

1-2 Accountability, Legitimacy and Transparency in China’s Society Organizations ..38
1-3 Innovative ways of information sharing and promoting participation
2. India 2-1 Civil Society in India

49
65

2-2 Accountability, Legitimacy and Transparency (India)

70

2-3 Information Dissemination & Participation73

3. Nepal 3-1 Major Highlights of NGO Federation of Nepal

75

3-2 LTA Situation in Nepal

91

3-3 Innovative way for information sharing

94

4. Philippines
4-1 Philippine Civil Society Organizations (CSOs)

97

4-2 Legitimacy, Transparency and Accountability of CSOs – Philippines

116

4-3 Information Sharing and Participation - Among Philippine CSOs

125

5. Japan 5-1 The Situation of Civil Society in Japan130

5-2 Legitimacy, Transparency and Accountability in case of Japan152

5-3 Innovative ways of information sharing promoting participation

166

6. Turkey 6-1 Civil Society in Turkey

177

6

1. China
Haoming HUANG
China Association for NGO Cooperation (CANGO)

1-1 Civil Society development and the Legal System in China
11-1-1 Overview of NGO development in China
The official classification of NGOs in China is based on the law promulgated by the Ministry of
Civil Affairs. They are assigned to three different categories, namely: Social Organizations, Private
Non-Enterprise Entities and Foundations. Social Organizations that make up the major proportion,
are further divided into four subcategories: Academic Organizations, Industrial Organizations,
Professional Organizations and Federate Organizations.
At the end of 2009, China counted 431,000 registered NGOs, among them 239,000 Social
2

Organizations, 190,000 Private Non-Enterprise Entities and 1,843 Foundations. In addition, there
is a huge amount of chinese NGOs which did not register and meet government’s requirements, as
for instance NPOs registered with industrial and commercial authorities, urban community
organizations at grassroot level, public benefit and mutual aid organizations in rural communities,
farmer economic cooperation organizations, urban and rural religious groups, foreign-fundedorganizations in China, foreign projects in China, foreign chambers of commerce in China. The
current conservative estimate is that the number of such NGOs amounts to over one million.

1-1-2 How NGOs work in China
At present, Chinese NGOs get involved in many fields relating to social development. According
to the report by Prof. Wang Ming from Tsinghua University, we can see NGOs being mainly active inthe following fields: social services (44.63 %), survey and research (42.51 %), industrial associations
and societies (39.99 %), legal counseling and service (24.54 %), policy counseling (21.88 %) andpoverty reduction (20.95 %). It is obvious that the fields NGOs are engaged in usually are those with3

tremendous social demands which can hardly be covered by governments and enterprises. In
those fields, public services are rare and thus creating opportunities for NGO involvement. If------------------------------------------------------------1
Non-Governmental Organization
2
Statistics of the Ministry of Civil Affairs of the Peoples Republic of China, 20093

Data source: Editor in chief: Wang Ming, China NGO Study 2001- Focus on Case Study, P11, United Nations Centre

for Regional Development, 2001, Note: multi-selection. The total proportion exceeds 100 %.

governments reduce intervention, NGOs will quickly grow in number and play an increasingly7

indispensable role. At present, chinese NGOs concentrate on fields such as women’s and children’s
rights, environmental protection, poverty reduction, education, floating population and HIV/AIDS
prevention and treatment.
The main roles of NGOs are to use their extensive social networks and funds to provide better
services and products for the public, particularly for disadvantaged groups in the social sector inwhich governments have devolved power onto them. Furthermore, they can wield influence on the
direction of policy making and they can establish regulative and supervisory mechanisms
concerning governments and enterprises.
The main purpose for the establishment of NGOs is to promote reform of government policies
through their particular actions. Some top-down NGOs often benefit from their close relations tocompetent authorities and proffer suggestions to organs of government directly, while somebottom-up NGOs often impinge upon government policies through the media. The survey
conducted by Wang Ming et al. in 2001, investigating chinese NGOs’ influence on policy making,indicates that in 1998, 885 NGOs made suggestions on policies towards national or local
governments. About 40% of them raised 1-5 policy-related suggestions, 21.2% of them expressed
one of their suggestions was adopted, 15.8% of them expressed 2-5 of their suggestions wereadopted and less than 5% of them expressed more than 6 of their suggestions were adopted (Wang
Ming, 2001)[5].
In terms of influence on public policy, NGOs are the most active in fields such as environmental
protection, education and poverty reduction. At the UN Hydropower and Sustainable development.
The most striking social influence of NGOs is to significantly deepen public’s understanding of
their specific work. The number of NGOs increases day by day. In the mid 1990s, “NGO” still was anunfamiliar word to most chinese people and NGOs themselves had very limited influence in society.
Along with important international meetings taking place frequently, the ground breaking event
was the fourth UN Women Conference in Beijing in 1995, and their outstanding engagement inlocal affairs, public gradually started to take note of NGOs’ work.

1-1-3 The impact of emerging NGOs on existing statutory NGOs
NGOs influence society through their activities. Despite the considerable variance in size, area,
scope, nature and other aspects, in terms of function, each one still has its own focus andimportance. or even sometimes demonstrates an oppositional role. Nonetheless, on the basis of
their activities and social performances we are still able to emphasize four basic functions in therealm of civil society, namely: resource mobilization, public services, social governance and policy
advocacy. Now, I would like to give some examples from our organization.
China Association for NGO Cooperation (CANGO) is a non-profit, membership organization
operating nationwide. CANGO was founded in 1992, registered with the Ministry of Civil Affairs8

(registration number 3340) and is audited according to Chinese law. Presently, at the end of October
2010, CANGO has 135 member organizations across China.
CANGO's mission is to create a strong and efficient network of Chinese NGOs to address poverty
alleviation, environmental protection and social development, particularly in China's poor, remoteand minority-inhabited areas. CANGO acts as an intermediary agency and partners with foreign
NGOs, bilateral and multilateral organizations and chinese NGOs to enhance fundraising, provisionof technical support and capacity building of grassroot NGOs in China.
Since its founding, CANGO has developed and maintains good relations with 165 foreign NGOs,
bilateral and multilateral organizations through its day-to-day operations. By the end of December
2009, CANGO had raised 472 million RMB Yuan from 82 donor agencies for project implementation.
The local matching fund has reached 280 million RMB Yuan. Almost 100 counties from 31 provinces,autonomous regions and municipalities were involved in the projects.
The task and direction for CANGO will be to promote China’s civil society development and toprovide an experience-exchanging and information-sharing platform for Chinese NGOs.

1-1-4 The legal framework of all kinds of NGOs in China
1. Types of Organizations
4

The People's Republic of China (PRC) is a civil law country with three primary forms of
nongovernmental, not-for-profit organizations (NPOs): Social Organizations (SOs) (shehui tuanti),
Foundations (jijinhui) and private non-enterprise entities (PNEs) (minban fei qiye danwei).
Social Organizations (SOs)The Social Organization, which is essentially an association, is the primary NPO form in the PRC.
Social Organizations are formed to advance “the common desires of their members”. They may beformed for mutual benefit or public benefit. In 1998, the State Council promulgated the“Regulations on Social Organization Administration”, which is the second administrative regulationof its kind.
Social Organizations are subject to joint oversight by (1) a “Registration and Administration
Organ”, which may be the Ministry of Civil Affairs or the local “Civil Affairs Authority”, and (2) a------------------------------------------------------------4

After more than 2,000 years with its own unique legal tradition, China began to embrace the civil law

tradition of the western world early in the 20th century. During the Republic of China period(1912-1949), systematic legislation placed China firmly in the civil law family. Since the establishment of
the People’s Republic of China in 1949, the legal tradition in China has remained mainly civil law, thoughwith significant characteristics of socialism. Thus there is no Civil Code in China at present, only General
Principles of Civil Law.

“Competent Business Unit”, which is a line ministry or other state organ at the national or local levelwith jurisdiction over the SO's sphere of activity. In general, only SOs with nationwide activities or9impact are regulated at national level; other SOs are regulated at provincial, city, or county level.
Private non-enterprise entities (PNEs)
PNEs are "social institutions established by enterprises, institutions, Social Organizations orother social forces as well as individual citizens using non-state assets and conducting
non-profit-making social service activities”. Private schools, private not-for-profit research institutes
and private not-for-profit hospitals are commonly PNEs. A PNE, like a Social Organization and aFoundation, is subject to the joint oversight of a Registration and Administration Organ and aCompetent Business Unit. At the same time, 1998, the State Council promulgated the “Regulations
on private non-enterprise entities Administration”, which is the first administrative regulation of its
kind.
Foundations
A Foundation is a not-for-profit organization that promotes public benefit undertakings. Its
assets are donated by individuals, legal persons or other organizations [Regulations on the
Administration of Foundations (RAF), Article 2]. An organization cannot be a Foundation if
established with appropriated state funds. Foundations, like Social Organizations, are regulated byboth a Registration and Administration Organ and by a Competent Business Unit. In many laws andregulations issued prior to the 2004 Foundation Regulations (such as the Public Welfare Donations
5

Law or PWDL), the term "Social Organization" included Foundations . The new Foundation
Regulations distinguish between public foundations and private foundations, with the former now
subject to strict regulation of their public fundraising. In 2004, the State Council promulgated the“Regulations on Foundation Administration”, which is the second administrative regulation of its
kind.
The three types of NPOs are not government agencies, though they are all closely linked to thegovernment through various establishment and oversight mechanisms.
A fourth type of organization, the Public Institution (shiye danwei), is a quasi-government
agency, formed by the government and generally staffed with government employees. They are
discussed in this Note because they frequently receive grants from foreign donors and are subject------------------------------------------------------------5

The RAF (2004) was adopted to replace the 1988 Regulations on Foundations (enacted by the State Council on
September 27th, 1988). Under the 1988 RAF, the Foundation was a special category of Social Organizations.
Consequently, the term “Social Organization” in other laws and regulations has usually been used to include
Foundations. But the 2004 RAF no longer describes Foundations as a special category of Social Organizations.
Foundations are in somewhat of a legal limbo, in theory if not in practice, because they are not mentioned in the
General Principles of Civil Law.
6

to some of the same taxes as NPOs.
Legislation enacted in 2001 established a fifth type of NPO, the public benefit or charitable trust,which resembles the charitable trust in common law. The government has yet to implement thelegislation, so this form of NPO does not yet exist in practice. It may prove important in the future.
Trade unions, religious organizations, and political parties have limited interactions with foreign

10

grant makers and are beyond the scope of this note.
Similarly, specific rules may apply in certain cities and provinces. These rules are available in
Chinese on the websites of the local Civil Affairs Authorities. This note focuses solely on national
legislation.
Finally, State Council Regulations on NPOs are in the process of review and possible revision, so
local experts should be consulted if more information is sought on these regulations.

1-1-5 The Tax Laws
1. Income Tax Exemption
China has three categories of income tax: Enterprise Income Tax, Foreign Invested Enterpriseand Foreign Enterprise Income Tax and Individual Income Tax.
Under Paragraph 1, Article 8 of the Public Welfare Donations Law, the “state encourages thedevelopment of public benefit undertakings, and grants support and preferential treatment topublic benefit Social Organizations and public benefit nonprofit Institutions”. This law establishes
benefits relating to Enterprise Income Tax [Article 24], Individual Income Tax [Article 25], andImport Duties and VAT [Article 26], but the specifics of the exemptions are set forth in other laws
and regulations.
On January 1st 2008, the Enterprise Income Tax of PRC, Article 9, 26 came into effect, amending
the original law. Originally, the Enterprise Income Tax applied to all enterprises, whether or not they
had legal personality, as well as to “all other organizations” with income [Interim Regulations on
Enterprise Income Tax, Article 2]. This was interpreted to include NPOs. Under Article 26 of the newamendments, not-for-profit organizations are exempt from income tax provided that they meet
relevant provisions. Specifically, the income of "qualified not-for-profit organizations" is exempt
from Enterprise Income Tax.
According to the Regulation on the Implementation of the Enterprises Income Tax Law on the
People's Republic of China, the term "qualified not-for-profit organizations" refers to an------------------------------------------------------------6

Civil affairs authorities who oversee NPOs use the term “minjian zuzhi,” which literally means civilian

organizations; it may also be translated as civil society organization, non-governmental organization, or
not-for-profit organization. This category covers Social Organizations, Foundations, and Civil
Non-Enterprise Institutions, but not Public Institutions.

organization that concurrently meets the following conditions:1) It has completed the registration for not-for-profit organizations according to law;2) It engages in public interest activities or not-for-profit activities;
3) Income obtained is used entirely for the public interest or not-for-profit undertakings asregistered, approved or stipulated in the charter, with the exception of reasonable expenses

11related to the organization;4) Properties and the benefits thereof are not to be distributed;5) Pursuant to the registration, approval or stipulations of its charter, the surplus properties of theorganization after write-off shall be used for public interest or not-for-profit purposes or shall be
donated via the Registration Administrative Organ to another organization of the same nature
and with the same tenets, and shall be publicized to the general public;6) No sponsor shall reserve or enjoy any property rights to the properties the sponsor gave to theorganization in question; and
7) Expenses for the salaries and fringe benefits of staff members are controlled within prescribed
limits, and none of the organization's properties shall be distributed in any disguised manner.
The measures for determining whether a not-for-profit organization meets the criteria describedin the preceding paragraph are to be formulated by the competent department of treasury andtaxation of the State Council in collaboration with the other departments of the State Council.
The term "qualified income of the not-for-profit organization" does not include income of thenot-for-profit organization arising from profit-making activities unless it is otherwise set forth by thecompetent department of treasury or taxation of the State Council.
Although in theory all of an NPO's income is subject to Enterprise Income Tax, a 1997 Ministryof Finance and State Administration of Taxation circular provides a broad exemption to NPOs
[Circular Concerning Related Issues of Collection of Enterprise Income Tax to Institutions and Social
Organizations]. To implement this circular, the State Administration of Taxation adopted Methods ofAdministration on the Collection of Enterprise Income Tax to Institutions, Social Organizations, andCivil Non-Enterprise Institutions. According to these two documents, NPO's donations, financial
support from the government, membership dues and some other income are free from Enterprise
Income Tax.

2. Deductibility of Charitable Contributions
Payers of Individual Income Tax can deduct up to 30 % of their taxable income for public benefit
contributions to NPOs [Regulations for the Implementation of the Individual Income Tax Law, Article24]. Payers of Enterprise Income Tax can deduct up to12 % of their taxable income [Enterprise
Income Tax Law, Article 9].
According to the Regulation on the Implementation of the Enterprises Income Tax Law of thePeople's Republic of China, the term "public interest donations" as used in Article 9 of the EIT Law
refers to donations made by an enterprise via "public interest social bodies" or the people's
government on the county level or the instrumentalities thereof to the public interest undertakings
as prescribed in the Law of the People's Republic of China on Donation to the Public Interest
Undertaking.

12The term "public interest social bodies" includes any foundation or charity organization that
concurrently meets the following conditions:1) It is lawfully registered and has the status of a legal person;2) It serves the purpose of promoting public interest and does not adopt profit-making as its
purpose;3) All of its assets and profits belong to the legal person;4) Its proceeds and operational surpluses are used primarily for the cause for which the legal
person was established;5) The surplus property after the termination of the enterprise is not distributed to any individualor profit-making organization;6) The organization refrains from engaging in any business that does not relate to its purpose of
establishment;
7) It has a sound financial and accounting system;
8) The donor does not participate in the distribution of the property of the social body in any way;and9) Other conditions as prescribed by the departments of treasury and taxation of the State Council
in collaboration with the civil affairs department of the State Council in charge of theadministration of the registration of social bodies.
To date, the State Administration of Taxation has made determinations regarding the eligibility
7of organizations to receive tax deductible contributions on a case-by-case basis. The development
and publication of procedures for application of eligibility of tax deduction of charitable donations is
expected in the near future.
Payers of Foreign Invested Enterprise and Foreign Enterprise Income Tax can also deduct up to
12 % of their taxable income [Enterprise Income Tax Law, Article 9]. The Enterprise Income Tax Law
has replaced the Regulations for the Implementation of the Foreign Invested Enterprise and Foreign
Enterprise Income Tax.

------------------------------------------------------------7

In 2003, the state tax authorities allowed a full range of tax benefits for donations to only 12

designated NPOs, while this number increased to 24 in 2006.

3. Indirect Taxes: Business Tax, Value Added Tax, and Import Duties
The PRC subjects certain sales of goods and services to Business Tax (which relates to provisionof services) and VAT (which relates to sales of goods), and offers few exemptions.
The general Business Tax law exempts NPOs and other entities that engage in nursing, medical,
educational, cultural, or religious activities or activities in which services are performed by the13disabled [Interim Regulations on the Business Tax, Article 6].
Goods sold within China or goods imported from abroad are subject to VAT. Article 16 of theInterim Regulations on the Value Added Tax exempts from VAT goods for scientific research,experimentation and education, antique books and goods imported by organizations of the disabled
to be used specifically for the disabled. Imported goods donated by foreign governments andinternational organizations are also exempt from the VAT under Article 16.
Goods donated by foreign governments and international organizations are also exempt from
customs duties [Customs Law, Article 56].
Certain donations are also exempt from customs duties and VAT [Public Welfare Donations Law,
Article 26]. In 2001, the Ministry of Finance, the State Administration of Taxation, and the Customs
General Administration jointly issued “Interim Methods of Customs Duties Exemption of DonatedGoods for the Purposes of Poverty Relief or Charity”. This exemption applies to goods donated bypeople outside China that are accepted by the government or by “Social Organizations establishedwith the permission of competent departments of the State Council, whose purposes are
humanitarian, poverty relief or charity” [Public Welfare Donations Law, Article 5]. The Customs
8

General Administration enacted implementing rules, under which the exemption applies only toseveral national-level SOs, including the Red Cross Society of China, the All-China Women’sFederation, the China Disabled People’s Federation, the China Charity Federation, the China Primary
Health Care Foundation and the Soong Ching Ling Foundation. Most NPOs are excluded.
According to other rules made by the Customs General Administration, goods are exemptedfrom customs duties and VAT if (1) they are imported by scientific research institutes or schools, (2)they are directly for scientific research or education and (3) they cannot be produced in China.

4. Other Taxes
NPOs also qualify for exemptions from other taxes, including Real Estate Tax, Urban Land Use
Tax and Tax on Acquisition of Real Estate.

------------------------------------------------------------8

Methods for the implementation of the “Interim Methods of Customs Duties Exemption of DonatedGoods for the Purposes of Poverty Relief or Charity”.

5. Double Tax Treaties
China and the United States have entered into a double-taxation treaty, but it does not
specifically address the deductibility of contributions by US residents and businesses to NPOs.

6. Foreign Organizations and Grants

14

There are no clear rules about the status of foreign associations in China, and their status issubject to case-by-case scrutiny and discretion of the Ministry of Civil Affairs and other competentauthorities.
Foreign exchange is under relatively tight government control in the PRC. The donated foreignexchange from abroad should be exchanged for Chinese Renminbi (RMB) in one of the specifiedbanks [Regulations on Foreign Exchange, Article 10; Rules of Administration of Purchase, Sale andPayment of Foreign Exchange, Article 9].
There are no special rules that regulate the receipt of foreign grants by domestic organizations.

1-1-6 The concern of NGO development in China
Concerning NGO development in China, it is very difficult for us to make precise predictions. But
I would like to make a SWOT analysis on future trends.
In terms of strengths of NGO development in China, there are five main points worth
mentioning:
1) Capacity building improves for most chinese NGOs,
2) The focal point of activities shifts in order to better meet the demands on grassroot level,3) The professional team to take part in the NGOs,
4) NGOs learn more from stakeholders like the governmental agencies, the business sector andinternational society and5) more volunteers get involved in NGO activities.
Refering to NGOs’ weaknesses, there are also five main problems to mention:1) NGOs lack a clear mission,2) They lack a long-term strategy,3) They lack operational experience like knowledge about good governance,4) They lack transparency and accountability and5) Last but not least they require professional human recourses, but the low salaries NGOs only
can afford to pay make it hard to attract professionals.
The opportunity of NGO development in China, Chinese NGO also shows internationalization
feature with the economy globalization, NGO can get the international resources both fundresource and mechanism for NGO development. There are still opportunities to improve the legal
environment for chinese NGOs. Particularly the new political concept of building a socialistic
9

harmonious society opens up new possibilities to NGOs. According to the CCP’s decision in its 6th
Plenary Session of its 16th Central Committee, the Chinese Government will promote NGO
development. For example, this year the new Enterprise Income Taxation Law approved by the
National Peoples Congress (NPC) in March 2007, will come into effect. It says that enterprise's
expenditures for public welfare and donations up to an amount of 12 % of the total annual profits15

are permitted to be deducted. In comparison to the prior reglementations, it is an enhancement of
9 percent points, that means from 3 % to now 12 %. This is a really important change andadvancement for NGOs und their future development. The introduction of WTO mechanisms will aswell further deepen market economy reforms and push forward NGO development. The economy
advancement in east China, improvement of people’s moral standard and the constantly growing
middle class will also encourage NGO development in China.
Concerning the threats NGO development in China, the social recognition of NGOs is rather low.
With influenced by the social accountability system, it is hard to establish the accountability system
of NGOs. NGOs lack strong support networking. The legal framework lack policy regulations andimperfect of legal environment. The research and supporting for NGOs lag behind its development.
The administration system also limits the development of NGOs and the government declines or isunable to take on the responsibility of NGOs administration. The awareness of civil society is weak
and volunteerism is government-oriented. NGOs.

1-1-7 The most appropriate legal framework
According to our analysis, Chinese NGO development is still in its initial development phase.
Given the dynamic economic development in China, NGO would have more opportunities todevelop in the future. Chinese NGO would play an increasing role in the cooperation with
International NGO and donor organizations. There are many suggestion is the most appropriate
legal framework including the tax system which will guarantee and promote NGOs’ activities in
China. The main suggestion is as following;

1. Defining the concept of NGOs, and further clarifying the pubic welfare nature of NGOs.
The beneficiaries of a public welfare organization should be unspecific individuals and groups;
any individual or organization that meets the conditions required by its aim and for the service
could enjoy its assistance. The fund of NGOs comes from the society, and goes for the society. For
example, foundation is defined in the Regulation as “a non-profit corporation which is established interms with the Regulation and engaged in activities for pubic welfare with donations given by
natural persons, corporations or other organizations”. The Regulation prescribes that “the charter of------------------------------------------------------------9

Chinese Communist Partya foundation should identify its public welfare nature, and should not have any content to set any
specific natural person, corporation or organization as its beneficiary, which has differentiatedfoundations from other trust and investment fund, profit-making foundation and other civil
mutual-benefit organizations. Given the charitable nature, public funding foundations could raisefund from the public. The property of a foundation must be protected and be used for public

16

welfare purpose. The Regulation also prescribes that “the property and other incomes of afoundation is protected by law, and should not be distributed among the members, seized or used
for other purposes by any organization or individual” and that the “remained property of a nullified
foundation should be used for public good in accordance with its charter’.

2. Expanding channels of funding and mobilizing social resources for public welfare
Public welfare undertaking is for public good. To have maximum utility of social resources, theRegulation on Foundation has for the first time divided foundations into two types: public funding
foundations, which could raise funds from the public, and non-public funding foundations, which
are not allowed to raise funds from the public. Non-public funding foundations are established withfunds provided by individuals or organizations, including enterprises, and should not raise funds
from the society. The idea of non-public funding foundations is to provide a way for some richindividuals and enterprises so that they could pay back the society. The Regulation on foundation
has defined non-public foundations differently from public foundations in terms of their conditions
for registration and the use of their funds. China had 643 registered non-public foundations by theend of 2008.
At the same time, to be adjusted to the situation that some foreign public welfare organizations
will conduct activities in China after China’s entry of WTO, the Regulation does not limit the original
countries and regions of foundations, allowing foreigners to found foundations or establish
representative offices in China, China had 11 registered foreign foundations representative offices
by the end of 2008.

3. Working out the principle of publicity and transparency to further regulate the activities of NGOs.
NGOs are welfare organizations serving the public. They have strong social responsibilities andhigh attention from the public. Whether their activities are regulated relates to the protection of
welfare resources, the NGO’s credibility and development of public welfare work. Therefore, a NGO
must be self-disciplined and be supervised and monitored by the public. For examples, theRegulations on Foundation provide that “a foundation should conduct its activities according to its
Charter and follow the principles of publicity and transparency”. In order to embody the principle, italso stipulates corresponding rules concerning self discipline of foundations and supervision by
governments and the public to ensure the regulation, publicity and transparency of foundation’s
activities. Taking into account of the features of organizational structure of the public welfare
corporation, the Regulations provides a specific chapter titled "Organizational Structure", which
stipulates clearly that the Board of Directors is the decision-making organ in a foundation. Relevant
rules are formulated with the focus on regulating the constitution of the Board, procedures of
discussion and decision-making, establishment of supervisors and their functions, as well as17

concrete rules to avoid interest friction among staff. It also states that registration andadministration organs should supervise and administer the activities conducted by a foundation inline with its Charter. A foundation must be annually inspected and its financial situation must be
examined by taxation and accounting administrations according to law. After annual inspection by
the registration and administration organs, a foundation is required to publicize its annual reportthrough the media designated by its registration and administration organ for inquiry andsupervision by the public. When raising funds from the society, a public funding foundation should
publicize the activities they plan to undertake with the money raised and detailed expenditure plan.

4. Making clear the principle of tax preferential policies, strengthening the support to taxation andthe work of supervision
Foundations commit themselves to public welfare undertakings. As a general practice indeveloped countries, preferential treatment on taxation is one important means used by thegovernment in supporting the undertakings of welfare. In recent years, China has issued, one after
another, some preferential policies on taxation to encourage its development. For instance,“Regulations on the Implementation of Individual Income Taxes Law of the People’s Republic ofChina” stipulates that “If the amount of donation of the taxpayer under an obligation is less than
30% of his taxable income to be declared, it can be deducted from the amount of his taxable
income”; It is stipulated that enterprises should budget their donation expenditure on social
welfare and social relief in accordance with relevant regulations of the country. If the expenditure isless than 12% of the amount of taxable income of an enterprise in the same year, the actual
expenditure can be classified as non-business expenditure and be deducted from the calculation of
the income tax that should be paid by the enterprise. It has been made clear that the interest
income on fund deposit in financial institutions by foundations that are registered with the Ministryof Civil Affairs should not be calculated as the taxable income of the income tax of an enterprise forthe time being. All these policies on taxation have greatly promoted the development of theundertakings of public welfare. However, as the policies were not systematically developed, someproblems occurred in the implementation of the policies. In this Regulation, it is stipulated that“Foundations, donors and beneficiaries may enjoy tax preferential treatment by laws andadministrative regulations”. Now the Ministry of Finance and the State Taxation Administration as
well as the Ministry of Civil Affairs are working out the concrete measures on preferential taxation.
While enjoying tax preferential treatment, foundations should by law make tax registration and be
under the supervision of taxation authorities. The taxation authorities may require thosefoundations violating regulations to pay back the taxes exempted under the tax preferential policies.
In general, tax preferential policies are formulated to promote the development of foundations andenhance the supervision on foundations at the same time.

18

Finally, NGO development need hard work from internal and need support from external in
China. The social impact will be to achieve through NGOs external environmental changes and NGO
activism’ efforts. I believe that NGO can become the real actor for Chinese economic development
and social progress in the future.

------------------------------------------------------------1

Haoming Huang, Vice-Chairman & Executive Director of China Association for NGO Cooperation (CANGO). He also

is an adjunct professor of the NGO Research Center, Tsinghua University and adjunct professor of the School of
Public Policy and Management, Beijing University of Aeronautics & Astronautics. Other associate positions are thefollowing ones: member of the board of directors of the Asian NGO Coalition for Agrarian Reform and Rural
Development (ANGOC); advisor of China Foundation for Poverty Alleviation; member of the board of directors ofChina Association of International Trade; member of the Western Returned Scholars Association; executive memberof the Council of China Reform Forum and member of the China National Committee for Pacific Economic
Cooperation, Human Resources Development Sub-Committee. His numerous publications are about topics such as
NPOs in the UK (2009), NPOs in Japan (2007), Businesses and Civil Society (2005), NPOs in Germany (2005), Strategic
Planning for Non-Profit Organizations (2003), Cooperation and Communication between Chinese and Foreign NGOs
(2001) and Practice and Management for international NGO Cooperation (2000). Huang received his Master’s
Degree in Public Policy & Management from the USA Carnegie Mellon University in 1995.

19

NGO Development and Legal
System in China
Haoming HUANG
China Association for NGO Cooperation (CANGO)

NGO development Overview in
China• China had 432,000 registered NGOs by
the end of 2009
• including the 239,000 for socialorganization• 192,000 for private non-enterprise
entities• and 1,846 for foundation20

NGOs not registered as per
government’s requirement• NPOs registered with industrial and commercial
authority• urban community organizations at grassroots level• public benefit and mutual aid organizations in ruralcommunities• farmer economic cooperation organizations• urban and rural religious groups• foreign-funded organizations in China• foreign chambers of commerce in China and so on• It is estimated conservatively that the number of such
NGOs is over one million at present

How NGO work in China• NGOs are active mainly in the following fields• social services (44.63%)• survey and research (42.51%)• industrial associations and societies (39.99%)• legal counseling and service (24.54%)• policy counseling (21.88%)• poverty reduction (20.95%)

21

Chinese NGOs concentrate theiractivities• Women and children’s rights• Environmental protection• Poverty reduction• Education• Floating population• Disable peoples support• Health Care , particular, AIDS prevention andtreatment.

The main role of NGOs
• To use their extensive social network andfunds raised to provide more perfect services
and products for the public, particularly fordisadvantaged groups in social sector where
government has devolved its power• To influence the direction of policy making
and establish restrictive and supervisory
mechanism with government and enterprises

22

Main performance in 2009
• CANGO continued to consider fundraising as theessential work and developed new channels ofinternational cooperation• In 2009, CANGO received funding for 20 new
projects with an increase of 23% compared to 2008
• In 2009, CANGO received funding amounting to
39.49 million Yuan The projects covered– poverty alleviation– environmental protection– NGO capacity building– corporate social responsibility– support to disabled people

To raise funds for Wenchuan Earthquake andactively participate in relief action• Just after the earthquake hit Wenchuan on
May 12th 2008, CANGO immediately set up
an emergency team to carry out relief work
• CANGO raised funds amounting to 47.24
million Yuan from international agencies,
international NGOs, enterprises both at home
and abroad as well as from the public• The Ministry of Commerce granted CANGO
an honorary certificate for its contributions

23

Green Commuting Project• There were rather tangible results in collaborating
project execution. In 2009, CANGO in cooperation
with Environmental Defense Fund of the US and theTransportation Research Institute of Tsinghua
University jointly developed an online carbon
calculator of Green Commuting on “People’s” website,which gained strong support and active participationfrom the public.
• As a group participant, the Green Commuting
Network was nominated candidate of “the Annual
Figure of Green China of 2009”.

Adhering to the principles of prioritizing
service• according to different requirements of the member
organizations, CANGO actively provided all-roundservices to the member organizations– including project support– funding assistance– international cooperation– information dissemination and channeling– professional consultancy• Besides, CANGO made its member organizations
play an active role in project implementation. The
member organizations had been connected to 25 of
45 projects executed by CANGO in 2009, whichamounted to 55% of the total

24

The legal framework of all kinds ofNGOs in China• Social Organizations (SOs).
– The Social Organization, which is essentially an
association, is the primary NPO form in the PRC– Social Organizations are formed to advance “thecommon desires of their members.”– They may be formed for mutual benefit or publicbenefit– In 1998, the State Council promulgated the“Regulations on Social Organization
Administration”, which is the second administrative
regulation of its kind

Private non-enterprise entities(PNEs).
• PNEs are "social institutions established by Enterprises,
Institutions, Social Organizations or other social forces as wellas individual citizens using non-state assets and conducting
non-profit-making social service activities”– Private schools– private not-for-profit research institutes– and private not-for-profit hospitals

A PNE, like a Social Organization and a Foundation,is subject to the joint oversight of a Registration and
Administration Organ and a Competent Business Unit
• The same time, 1998, the State Council promulgatedthe “Regulations on private non-enterprise entities
Administration”, which is the first administrative
regulation of its kind•25

Foundations• A Foundation is a not-for-profit organization that
promotes public benefit undertakings. Its assets are
donated by individuals, legal persons, or otherorganizations [Regulations on the Administration ofFoundations (RAF), Article 2]• An organization cannot be a Foundation if
established with appropriated state funds.
Foundations, like Social Organizations, are regulated
by both a Registration and Administration Organ andby a Competent Business Unit•

Foundations• In many laws and regulations issued prior to the 2004
Foundation Regulations (such as the Public Welfare
Donations Law or PWDL), the term "Social
Organization" included Foundation• The new Foundation Regulations distinguish between
public foundations and private foundations, with theformer now subject to strict regulation of their publicfundraising. In 2004, the State Council promulgatedthe “Regulations on Foundation Administration”,
which is the second administrative regulation of its
kind

26

the public benefit or charitable trust• Legislation enacted in 2001 establisheda fifth type of NPO, the public benefit orcharitable trust, which resembles thecharitable trust in common law• The government has yet to implement
the legislation, so this form of NPO does
not yet exist in practice• It may prove important in the future

the Public Institution• A fourth type of organization, the Public
Institution (shiye danwei), is a quasigovernment agency, formed by thegovernment and generally staffed withgovernment employees• They are discussed in this Note because theyfrequently receive grants from foreign donors
and are subject to some of the same taxes as
NPOs

27

Special requirement for NGO• Finally, State Council Regulations on
NPOs are in the process of review andpossible revision, so local experts
should be consulted if more information
is sought on these regulations

Income Tax Exemption• China has three categories ofincome tax:
– Enterprise Income Tax– Foreign Invested Enterprise andForeign Enterprise Income Tax– and Individual Income Tax

28

The Public Welfare Donations Law• Under Paragraph 1, Article 8 of the Public Welfare
Donations Law, the “state encourages thedevelopment of public benefit undertakings, andgrants support and preferential treatment to publicbenefit Social Organizations and public benefit
nonprofit Institutions.”• This law establishes benefits relating to Enterprise
Income Tax [Article 24]• Individual Income Tax [Article 25], and Import Duties
and VAT [Article 26]• but the specifics of the exemptions are set forth inother laws and regulations.

the Enterprise Income Tax of PRC• On January 1, 2008, Article 9, 26 came into effect,
amending the original law. Originally, the Enterprise
Income Tax applied to all enterprises, whether or notthey had legal personality, as well as to “all otherorganizations” with income [Interim Regulations on
Enterprise Income Tax, Article 2].
• this was interpreted to include NPOs
• Under Article 26 of the new amendments, not-forprofit organizations are exempt from income tax
provided that they meet relevant provisions• Specifically, the income of "qualified not-for-profit
organizations" is exempt from Enterprise Income Tax

29the term "qualified not-for-profit organizations" refers to anorganization that concurrently meets the following conditions:
1.
2.
3.
4.
5.

6.
7.

It has completed the registration for not-for-profit organizations according tolaw;
It engages in public interest activities or not-for-profit activities;
Income obtained is used entirely for the public interest or not-for-profit
undertakings as registered, approved, or stipulated in the charter, with the
exception of reasonable expenses related to the organization;
Properties and the benefits thereof are not to be distributed;
Pursuant to the registration, approval or stipulations of its charter, the surplus
properties of the organization after write-off shall be used for public interest or
not-for-profit purposes or shall be donated via the Registration Administrative
Organ to another organization of the same nature and with the same tenets,
and shall be publicized to the general public ;No sponsor shall reserve or enjoy any property rights to the properties thesponsor gave to the organization in question; andExpenses for the salaries and fringe benefits of staff members are controlled
within prescribed limits, and none of the organization's properties shall be
distributed in any disguised manner.

Deductibility of Charitable Contributions• Payers of Individual Income Tax can deduct
up to 30 percent of their taxable income forpublic benefit contributions to NPOs
[Regulations for the Implementation of the
Individual Income Tax Law, Article 24].
• Payers of Enterprise Income Tax can deduct
up to12 percent of their taxable income[Enterprise Income Tax Law, Article 9].

30

public interest social bodies
•
•
•
•
•

It is lawfully registered and has the status of a legal
person;It serves the purpose of promoting public interestand does not adopt profit-making as its purpose;
All of its assets and profits belong to the legal
person;Its proceeds and operational surpluses are usedprimarily for the cause for which the legal person
was established;
The surplus property after the termination of theenterprise is not distributed to any individual or
profit-making organization;

public interest social bodies••••

It has a sound financial and accounting system;
The organization refrains from engaging in any
business that does not relate to its purpose of
establishment;
The donor does not participate in the distribution of
the property of the social body in any way; andOther conditions as prescribed by the departmentsof treasury and taxation of the State Council incollaboration with the civil affairs department of theState Council in charge of the administration of theregistration of social bodies.

31III. Indirect Taxes: Business Tax, Value
Added Tax, and Import Duties• The general Business Tax law exempts NPOs and other entities
that engage in nursing, medical, educational, cultural, or
religious activities, or activities in which services are performedby the disabled [Interim Regulations on the Business Tax,
Article 6].
• Goods sold within China or goods imported from abroad are
subject to VAT. Article 16 of the Interim Regulations on the
Value Added Tax exempts from VAT goods for scientificresearch, experimentation, and education; antique books; andgoods imported by organizations of the disabled to be used
specifically for the disabled. Imported goods donated by foreign
governments and international organizations are also exempt
from the VAT under Article 16.
• Goods donated by foreign governments and internationalorganizations are also exempt from customs duties [Customs
Law, Article 56].

Certain donations are also exempt from customs duties andVAT [Public Welfare Donations Law, Article 26].
• In 2001, the Ministry of Finance, the State Administration of
Taxation, and the Customs General Administration jointly issued
Interim Methods of Customs Duties Exemption of DonatedGoods for the Purposes of Poverty Relief or Charity• This exemption applies to goods donated by people outside
China that are accepted by the government or by “Social
Organizations established with the permission of competentdepartments of the State Council, whose purposes are
humanitarian, poverty relief or charity” [Public Welfare
Donations Law, Article 5]. The Customs General Administration
enacted implementing rules• under which the exemption applies only to several national-levelSOs, including the Red Cross Society of China, the All-China
Women’s Federation, the China Disabled People’s Federation,
the China Charity Federation, the China Primary Health Care
Foundation, and the Soong Ching Ling Foundation. Most NPOs
are excluded

32goods are exempted from Customs
Duties and VAT• According to other rules made by the
Customs General Administration, goods are
exempted from Customs Duties and VAT if• (1) they are imported by scientific research
institutes or schools• (2) they are directly for scientific research or
education• (3) they cannot be produced in China.

VI. Foreign Organizations andGrants• There are no clear rules about the status of foreign
associations in China, and their status is subject tocase-by-case scrutiny and discretion of the Ministryof Civil Affairs and other competent authorities.
• Foreign exchange is under relatively tightgovernment control in the PRC. The donated foreignexchange from abroad should be exchanged for
Chinese renminbi (RMB) in one of the specifiedbanks [Regulations on Foreign Exchange, Article 10;
Rules of Administration of Purchase, Sale andPayment of Foreign Exchange, Article 9].
• There are no special rules that regulate the receipt of
foreign grants by domestic organizations.

33

The concerning of NGO
development in China• the strengths for NGO development in China– the capacity building increase for most Chinese
NGOs– the work priority change to fit the demand fromgrassroots– the professional team to take part in the NGOs
– the NGO learn more from stakeholders like thegovernmental agencies, business sector,
international society– the more volunteers involved NGOs.

the NGOs weakness in China,• there are also five main problem,– lack of the clear mission, long-term
strategic, lack of the operational
experience like the good governance– lack of transparency– lack of accountability– professional human recourses– the low payment for staff in NGOs makes it
hard to attract professional resources

34

The opportunity of NGO development in
China• Chinese NGO also shows internationalization
feature with the economy globalization, NGO
can get the international resources both fundresource and mechanism for NGO
development• There are still possibilities and space toimprove of the legal environment of Chinese
NGOs, particularly, the new politicalguarantee for building socialistic harmonious
society——the decision of CCP's sixth
plenary of sixteen session the year 2006

Chinese Government will encourage theNGO development from this decision• 2008, the new enterprise income taxation law
approved by the National Peoples Congress (NPC)
the March of year 2007, As regards an enterprise's
expenditures for public welfare donations, the portion
within 12% of the total annual profits is permitted to
be deducted. The comparison with the last vision
about the rate, it is increasing to 12% from 3The
introduction of WTO mechanism will further deepen
the marketing economy reform and promote NGO
development in China• The economy advancement in east China,
improvement of people’s moral standard• the increasing of middle-class will encourage NGO
development in China.

35

the threats NGO development in
China• the social recognition of NGOs is rather low• With influenced by the social accountability system, it
is hard to establish the accountability system ofNGOs. NGOs lack strong support networking• The legal framework lack policy regulations andimperfect of legal environment• The research and supporting for NGOs lag behind its
development• The administration system also limits thedevelopment of NGOs and the government declines
or is unable to take on the responsibility of NGOs
administration• The awareness of civil society is weak andvolunteerism is government-oriented. NGOs

The most appropriate legal
framework• Defining the concept of NGOs, andfurther clarifying the pubic welfare
nature of NGOs
• Expanding channels of funding andmobilizing social resources for
public welfare

36

The most appropriate legal
framework• Working out the principle of publicity
and transparency to further regulate
the activities of NGOs
• Making clear the principle of tax
preferential policies, strengthening
the support to taxation and the workof supervisionconclusion• Finally, NGO development need hard workfrom internal and need support from external
in China. The social impact will be to achievethrough NGOs external environmental
changes and NGO activism’ efforts• I believe that NGO can become the real actor
for Chinese economic development andsocial progress in the future37

1-2 Accountability, Legitimacy and Transparency in China’s Society
Organizations
It is of real importance for society organizations in China to have a good understanding about
the concepts of accountability, legitimacy and transparency.
General speaking, the concept of accountability denotes the ability of an organization orindividual to account for achieving objectives of a mission, activity or event carried out by
non-profit organisations (NPOs) or non-governmental organisations (NGOs). Normally there areseveral elements for this concept, including public welfare, charity organization, influence ofresources, good governance and self-performance.
Regarding the ‘accountability problem’ in China, there are two main issues, on the one handinternal requirement, and on the other external monitoring. For example, internal requirement isinvolved by the work team of one organization, including the board member, supervision member,working staff as well as advisors and volunteers. For external monitoring of an organization, there
are donor organzations or support organizations as well as agreements with service providers,
including governmental organizations, media sector, donor organizations as well as individual
supporters.
There are many cexamples about NPO accountability issues, the following is one typical case1study: A Case of Nonprofit Accountability: Hu Manli Incident
In 1999, Hu Manli, founder of China Green Shade Children’s Village (CGSCV), went to Lijiang,
Yunnan Province. Hu rose to fame for adopting several hundred orphans and was reputed as“Mother of China”. For this trip, she was representing United Moms Charity Association (UMCA), an
American charity organization headed by Zhang Chunhua, to build orphan schools. Over the pastseven years, Hu was repeatedly questioned by Zhang and others about her management of theorphan schools and use of donations. The war between the “United Moms” (UMCA) and the“Mother of China” spanned seven years.
“For these many years, Hu Manli has embezzled a lot of money from donations. We’ll stop her.”
Zhang Chunhua, who’s Chinese American, murmured while reading the official documents with amagnifier.
Hu Manli had been a symbol of grass-root philanthropy in China. This middle-aged woman was
known for her commitment to Chinese orphans and was named “Mother of China” in public-interest
ads broadcast on CCTV. Seven years ago, however, her reputation was overturned by Zhang
Chunhua, who entrusted her to build orphan schools in Lijiang.

------------------------------------------------------------1 Translated by Stella Zhou of Harvard University. © Hauser Center at Harvard.

38

Zhang was president of UMCA based in the United States. UMCA once helped Hu set up Lijiang
United Moms Charity Association and entrusted her to build Lijiang National Orphan School Overthe past seven years, however, after Zhang discovered Hu’s misconducts – embezzling donations forboard expenses and education as well as muddling up the books, she started to disclose Hu’s
misdeeds. We also held doubts toward Hu’s charity after participating in the investigations after
2001.
Finally, Zhang received the document from the Lijiang government
It said that the city government would take over Lijiang National Orphan School starting April 1.
For some reasons the takeover was postponed, but officials from the city government statedthat “(the government) is destined to take over the school in a couple of days”, and would ensurethat “the school operates normally, the donations made good use of, and the city government be
responsible for all expenses if donations are unavailable”
Such determination to take over the orphan school resulted from the previous year’s audit of
Hu’s charity. The audit looked into the financial revenues and expenditure of the orphan school since
its establishment and till August 31, 2006.
The audit revealed: Hu faked financial accounts and make the around 330,000 yuan
(approximately $48,316) of public donations appear to be her personal donation; withdrew about
100,000 yuan (approximately $14,641) from orphans’ personal accounts with copies of passbooks;
evade over 430,000 yuan (approximately $62,958) from fixed assets check; Hu also bought around
280,000 yuan (approximately $40,996) commercial insurance for over ten orphans and listed it as
one-time expense of the school. However, she left out the bonuses from the insurance accounts andhind the fact the premium for the insurance will be fully refund in five years; the revenues of thecomputer services department were also unstated.
The audit also revealed that illegal receipts, in the form of general receipt, payment orders, andmerchandise transfer slips, amounted to 420,000 yuan (approximately $61,493), among which up to
170,000 yuan (approximately $24,890) was stated receipts of consecutive numbers from one seller.
“Such a big amount was stated on consecutive receipts, mostly likely a result of accounting fraud
before the audit.”
Zhang Chunhua proved it with another evidence she discovered. Comparing the 2006 audit
report to the one issued by the Lijiang Audit Bureau in 2000, an additional 100,000 yuan
(approximately $14,641) in the 1999 and 420,000 yuan (approximately $61,493) in the 2000 board
expenses were found during the 2006 audit.
The audit bureau also has no right to investigate into Hu’s personal assets. We knew in 2002
that Hu owns a luxurious house occupying over 320 square meters and worth of over 500,000 yuan
(approximately $73,206) in Lijiang
We also know from somebody who once lived with Hu that she purchased another two houses

39worth of around 400,000 yuan (approximately $58,565) under the name of her mother Wang
Fengqin and her adopted son Chen Bin
She also sent her daughter Gui Tiantian to study in New Zealand high school. Her daughter isabout to graduate from college now.

This case demonstrates that many issues need to be discussed regarding accountability of CSOs,
including the legitimacy and transparancy.
With regard to legitimacy, it is getting more important for Civil Society Organizations in China tounderstand the role for organizational governance. The legitimacy for CSOs in China has threeelements: the legal requirement, ownership for organization and representatives. Up to now,CANGO established six sub networks, including China Civil Climate Action Network (CCAN), Water &Future Forum, Green Commuting Network, Cooperate Social Responsibility Network, Capacity
Building NGO Network as well as Effectiveness Aid Network.
The China Association for NGO Cooperation (CANGO) is a non-profit, membership organization
operating nationwide. CANGO was founded in 1992 and registered with the Ministry of Civil Affairs(registration number 3340), and is audited according to Chinese laws. As of end of July 2010,
CANGO has 135 member organizations across China.
CANGO's mission is to create a strong, empowered network of Chinese NGOs to address poverty
alleviation, environmental protection and social development, particularly in China's poor, remoteand minority-inhabited areas. CANGO acts as an intermediary agency and partners with foreign
NGOs, bilateral and multilateral organizations and Chinese NGOs to enhance fundraising, provisionof technical support and capacity building of grassroots NGOs in China.
Since it’s founding, CANGO has developed and maintains good relations with 160 foreign NGOs,
bilateral, and multilateral organizations through its day-to-day operations. By the end of December
2009, CANGO raised RMB Yuan 472 million from 87 donor agencies for project implementation. The
local matching fund has reached RMB Yuan 280 million. Almost 100 counties from 30 provinces,autonomous regions, and municipalities were involved in the projects.
The task and direction for CANGO will be to promote China’s civil society development and toprovide an experience exchanging and information-sharing platform for Chinese NGOs.
Transparency is new concept in China, because of its dependence on the mediation in society.
However, governmental action has been concerned with these issues, examples are legal
requirements for charity organizations, information sharing, evaluation action of professional
experts as well as annual reviews for each organization. The second component is the realimportant one: it is public requirement with monitoring and evaluation by media sectors, donor
requirements, audit requirements and volunteers support.
It is still very difficult for many Chinese NGOs to have clear processes to guarantee

40

accountability. For examples, good governance may influence the organization’s development,
including the board member role and obligations, this is first one. The second one is to establish
professional teams, particularly focusing on NGO’s capacity building. The third one is an externalmonitoring role, including by governmental organizations, media, and donor organization as well as
individual sector.

41

Accountability, Legitimacy andTransparency in China
Huang Haoming
China Association for NGO
Cooperation

AGNA Asia Regional Meeting inToronto on 18 August 2010

Accountability

 Concept
Public welfares
Charity Organization
Resources influenceGood governanceSelf-performance
AGNA Asia Regional Meeting inToronto on 18 August 201042

Accountability Problem
Internal

External

requirementmonitoring Board Governmental

member
 Supervision
member Working staff
 volunteersorg.
 Media sector
 Donor section
 Individual
powers

AGNA Asia Regional Meeting inToronto on 18 August 2010

A Case of Nonprofit
Accountability: Hu Manli Incident
 In 1999, Hu Manli, founder of China Green Shade
Children’s Village (CGSCV), went to Lijiang, Yunnan
Province. Hu rose to fame for adopting several hundredorphans and was reputed as “Mother of China”. For thistrip, she was representing United Moms Charity
Association (UMCA), an American charity organization
headed by Zhang Chunhua, to build orphan schools.
Over the past seven years, Hu was repeatedly
questioned by Zhang and others about her managementof the orphan schools and use of donations. The war
between the “United Moms” (UMCA) and the “Mother ofChina” spanned seven years.
AGNA Asia Regional Meeting inToronto on 18 August 201043

 “For these many years, Hu Manli has embezzled a
lot of money from donations. We’ll stop her.” Zhang
Chunhua, who’s Chinese American, murmured
while reading the official documents with a magnifier.
 Hu Manli had been a symbol of grass-root
philanthropy in China. This middle-aged woman was
known for her commitment to Chinese orphans andwas named “Mother of China” in public-interest ads
broadcast on CCTV. Seven years ago, however, her
reputation was overturned by Zhang Chunhua, who
entrusted her to build orphan schools in Lijiang.
AGNA Asia Regional Meeting inToronto on 18 August 2010

 Zhang was president of UMCA based in the UnitedStates. UMCA once helped Hu set up Lijiang
United Moms Charity Association and entrusted her
to build Lijiang National Orphan School Over the past seven years, however, after Zhang
discovered Hu’s misconducts – embezzling
donations for board expenses and education as
well as muddling up the books, she started todisclose Hu’s misdeeds. We also held doubts
toward Hu’s charity after participating in theinvestigations after 2001.

AGNA Asia Regional Meeting inToronto on 18 August 201044

 Finally, Zhang received the document from the Lijiang
government
 It said that the city government would take over Lijiang
National Orphan School starting April 1.
 For some reasons the takeover was postponed, but
officials from the city government stated that “(thegovernment) is destined to take over the school in a coupleof days”, and would ensure that “the school operates
normally, the donations made good use of, and the city
government be responsible for all expenses if donations
are unavailable”
 Such determination to take over the orphan school
resulted from the previous year’s audit of Hu’s charity. The
audit looked into the financial revenues and expenditure of
the orphan school since its establishment and till August
31, 2006.

AGNA Asia Regional Meeting inToronto on 18 August 2010

 The audit revealed: Hu faked financial accounts andmake the around 330,000 yuan (approximately$48,316) of public donations appear to be her
personal donation; withdrew about 100,000 yuan
(approximately $14,641) from orphans’ personalaccounts with copies of passbooks; evade over
430,000 yuan (approximately $62,958) from fixed
assets check; Hu also bought around 280,000 yuan
(approximately $40,996) commercial insurance forover ten orphans and listed it as one-time expense of
the school. However, she left out the bonuses from theinsurance accounts and hind the fact the premium forthe insurance will be fully refund in five years; therevenues of the computer services department werealso unstated.
AGNA Asia Regional Meeting inToronto on 18 August 201045

 The audit also revealed that illegal receipts, in theform of general receipt, payment orders, andmerchandise transfer slips, amounted to 420,000
yuan (approximately $61,493), among which up to
170,000 yuan (approximately $24,890) was statedreceipts of consecutive numbers from one seller.
“Such a big amount was stated on consecutive
receipts, mostly likely a result of accounting fraud
before the audit.” Zhang Chunhua proved it with another evidence
she discovered. Comparing the 2006 audit reportto the one issued by the Lijiang Audit Bureau in
2000, an additional 100,000 yuan (approximately$14,641) in the 1999 and 420,000 yuan
(approximately $61,493) in the 2000 board
expenses were found during the 2006 audit.
AGNA Asia Regional Meeting inToronto on 18 August 2010

 The audit bureau also has no right to investigate into
Hu’s personal assets. We knew in 2002 that Hu
owns a luxurious house occupying over 320 square
meters and worth of over 500,000 yuan
(approximately $73,206) in Lijiang
 We also know from somebody who once lived with
Hu that she purchased another two houses worth ofaround 400,000 yuan (approximately $58,565)
under the name of her mother Wang Fengqin andher adopted son Chen Bin
 She also sent her daughter Gui Tiantian to study in
New Zealand high school. Her daughter is about tograduate from college now.
 (Translated by Stella Zhou of Harvard University. ©
Hauser Center at Harvard. )AGNA Asia Regional Meeting inToronto on 18 August 201046

Legitimacy: CANGO’s Framework
GeneralGeneral Assembly
Assembly ofof CANGOCANGO
MemberMember Organizations
Organizations
Board
BoardofofDirectors
Directors
NGO
NGO
Cooperation
Cooperation
Forum
Forum

PublicPublicRelation
Relation

Secretariat
Secretariat

Project
Project
Training
Training
Management
Management

Executive Board
Council
CouncilofofAdvisorAdvisorResearchResearch International
International Financial
Financial

AGNA Asia Regional Meeting inToronto on 18 August 2010

Transparency
 Governmental action
 Charity org. requirement
 Information sharing
 Evaluation action of professional expert
 Annual review

 Public requirement
 Media monitoring and Evaluation
 Donor requirement
 Audit requirement Volunteers support
AGNA Asia Regional Meeting inToronto on 18 August 201047

Suggestions
 Good governance Board member role and obligation

 Professional teams
 Capacity building External monitoring
 Governmental org
 Media
 Donor Individual support
AGNA Asia Regional Meeting inToronto on 18 August 2010

Thank you very much for yourattention!
Q&A
hmhuang@cango.org

AGNA Asia Regional Meeting inToronto on 18 August 201048

1-3 Innovative ways of information sharing and promoting participation
Green Commuting Campaign---Clean Air for LifeIn recent years, ecological and social problems caused by the global climate change are growing
prominently. Therefore, how to control and reduce greenhouse gas emissions to combat the climatechange threat has become a hot topic of global concern. What kind of innovative ways of
information sharing and promoting participation for low-carbon development we can develop? In
June 2006, based on the results of rigorous samplings, monitoring and lab analysis, as well as an
in-depth study on the health impacts of air pollutants, China Association for NGO Cooperation(CANGO ） cooperated with Environmental Defense Fund (EDF) ， launched the “Green
Commuting” campaign in Beijing.

What is Green Commuting?
The concept of "Green Commuting" refers to commuting by a relatively environmentallyfriendly way, through carbon emissions reduction and carbon neutrality to achieve sustainable useof environmental resources and the sustainable development of transportation. The main contentsof "Green Commuting" include the following aspects:
1) If conditions permit, using low energy consumption and less carbon intensive forms of transport
as much as possible, such as travel by public transport, drive energy efficient cars, carpooling(the shared use of a car by the driver and one or more passengers), ride bicycles or even walk,and reduce the carbon emissions generated by commuting -- that is carbon emissions reduction
through green commuting.
2) Purchasing carbon offsetting credits through professional organizations. The professionalorganizations carry out planting trees and other programs in order to help offsetting the carbon
emissions generated from commuting, to further achieve the objective of protecting theenvironment – that is carbon neutrality through green commuting.
On June 1st, 2006, the “Green Commuting, Low Carbon Footprint Action” was jointly launchedby CANGO and EDF, and gained great support from all walks of life. Similar activities also came into
people’s view after that, such as “Green Commuting, Golden Autumn”, “Green Commuting,
Running to Olympics”, “Green Commuting-No Driving for One Day”. Immediately, nearly 30
institutions and enterprise units made commitment to join the action.
On June 1st, 2007, CANGO and EDF jointly launched “Green Commuting Network”. The network
office was established at CANGO. All NGOs in China can apply to become a network member. Now,
the network already includes 18 NGOs from major cities in China. All of them were performing
creatively while implementing this project, and spread their continuous innovate projects acrossthe country. Each year the network promotes one specific topic. In 2007, the topic was “Companies

49

promise to participate Green Commuting”; in 2008 the topic was “Green Commuting, Green
Olympics”; in 2009 the topic was “Find Green Commuting Star in China”.
Besides, the network members organized all kinds of local environmental-friendly activities. For
instance, Shanghai Exchange Centre Oasis Ecological Protection conducted the “Green Commuting,
Ecological Conversation Education Project” in schools, expecting that children could practice “green
commuting” under the guidance of their parents; in Guangxi Province, The Women’s Federation of
Nanning City, Guangxi Province conducted “Green Commuting, Singing Folk Songs”, which allowed
local singers of national minorities writing folk music to popularize the concept of green
commuting; Green Friend Association from Hebei Province, and Jiamusi ESCO Sustainable
Development Association separately set signs designed for green commuting in public places, toencourage people to commute by bus, etc.
All the activities above have proved that the popular topics, such as the Kyoto Protocol, slowing
down global climate change, saving energy and cutting down pollution discharge are not so far fromour everyday life, that is, in order to improve air quality, taking “green commuting” into action is
one of the effective ways to relieve environmental pollution.
On early April, 2008, the Online Carbon Emission Reduction Calculator officially was launchedon PEOPLE.com, which was jointly developed by CANGO and the Institute of Transportation
Engineering, Tsinghua University. This event symbolized the initiation of “Green Commuting, Low
Carbon Footprint Action”. During the implementation of “Green Commuting, Low Carbon Footprint
Action”, we received great support from all walks of life. On the basis of statistical analysis to online
data supplied by Institute of Transportation Engineering, Tsinghua University, this activity lasted 9
weeks, from July 20th to September 20th, totaling up to 45 working days. The number ofparticipants amounted to 81670, and carbon dioxide emissions from commuting were reduced by
8895.06 tons. In order to encourage much more people to join this action, we organized a lotteryon the Online Carbon Emission Reduction Calculator System from July to September 2008. Nearly
600 participants won the prize ── PUBLIC TRANSPORTATION CARD (commemorative version)! On
October 31th, 2008, a special meeting for “Green Commuting, Low Carbon Footprint Action:
Greenhouse Gas Offset” was held in Beijing, and the statistical carbon offset volume was identified
by participating experts.
Since the 2008 Summer Olympic Games, the Beijing municipal government had increased its
prestige among civilians, as well as gained tremendous potential support from enterprises. The
government continuously published a series of policies to encourage people to practice “green
commuting” after the Olympic Games, such as “No Driving Day Per Week” and encouraging thedevelopment of enterprises producing bicycles for public use. All these policies have been a kind of
support to the Green Commuting Network. Meanwhile, with public service announcement, thePeople’s Daily News called for “Taking Action to Practice ‘Green Commuting’, Less Pollution, A

50

Clearer Beijing” .
Then, in December 2008, the 8,895 tons of carbon emission reduction credits, which thecampaign created, calculated and verified by the Transportation Research Institute at Tsinghua
University, was put on auction at the China Beijing Environment Exchange (CBEX). In August 2009,
Tianping Auto Insurance Co (TPAIC), a Shanghai-based insurance company purchased this carbon
credit, for an amount of 277,600 RMB to help TPAIC to offset all its carbon emissions from daily
operations between 2004 and 2008, making the company the first carbon-neutral company in China.
Based on this fund, CANGOs "Green Commuting Special Fund", abbreviated as CANGO Green
Commuting Fund, registered with the Ministry of Civil Affairs. This fund aims to cooperate with local
and overseas environment charity organizations to promote the "Green Commuting" concept, andaccepts the donation and sponsorship of domestic and foreign social organizations, enterprises,
institutions and individuals.
In the year 2010, the Shanghai World Expo is a major world event. It takes a long period, large
number of visitors from home and abroad pay high attention to the Expo's environmental problems.
The Chinese Government actively encourages and promotes various forms of voluntary emission
reduction activities, and the Central and Shanghai Municipal Government put forward a "Low
Carbon Expo" requirement. The Shanghai Municipal Government “2010 energy conservation andclimate change priorities arrangement" clearly promotes the "World Expo Green Commuting" andcarried out "Voluntary Carbon Emission Reduction" activities.
Transportation carbon emission of more than 70 million visitors account for the majority ofcarbon emissions emitted during the World Expo. For this reason, the Shanghai World Expo
Coordination Bureau, the Shanghai Environmental Protection Bureau and the Green Commuting
project have jointly initiated the “World Expo Green Commuting” Program. The project aims tobuild the low-carbon and green Expo, advocates public for the greener World Expo, and contributeto a greener Shanghai.
The World Expo Green Commuting project was launched on May 5, 2009, the famous green star
Zhou Xun as the first "World Expo Green Commuting Ambassador", has been successfully carriedout a jointly operation of environment protection called "Green Commuting Visiting the World
Expo" across the Yangtze River Delta; planted a "World Expo Green Commuting Forest "; issued a"
World Expo Green Commuting Transit Card (general souvenir card)”; developed a "Green
Commuting Carbon Calculator"; issued a "World Expo Green Commuting Guide". At the same time,
the World Expo Green Commuting projects, together with the participation of schools, communities
and enterprises, have looked into the whole society to create a new trend of "Low Carbon World
Expo, Green Commuting".

51

Attachment: Introduction of World Expo Green Commuting Low Carbon Transit Card
The travelling of visitors to the World Expo is a major source of carbon emissions. Combinedwith "World Expo Green Commuting" activities which promotes social voluntary emission offsetting,the issuing of low carbon transit cards (including a ton of carbon dioxide credits) is an important
carrier and effective way to implement voluntary emission offsets. Meanwhile, issuing this specialtransit card spreads the dual philosophy of "Low Carbon Transport" and "Green Commuting", aswell as achieving the useful initiative of "Low Carbon World Expo”.
The ‘World Expo green commuting low carbon transit card’ (which includes one ton of carbon
dioxide credits) is a "mini" memorial transit card. In addition to all the functions played by ordinary
public transit cards, the card contains one ton of carbon credit. The ‘Shanghai public transit
memorial card’ is the carrier of Low Carbon Transit Card, and buyers donate a certain amount offunds with every purchase to the usage of environmental charities in order to neutralize theircarbon emissions caused by commuting. Meanwhile, it offsets the transportation carbon emission
during World Expo as a contribution. The card is priced at RMB40, of which RMB20 covers the
production cost of the card which goes to the transit card company, and the other RMB20 covers
the cost of one ton of carbon credit which will be used for purchase of certified carbon dioxide
credits.
Low-carbon green lifestyles and consumption models can be promoted more broadly throughout
this activity. It also helps Expo visitors to achieve "green commuting carbon emissions reductions"(by using the transit card to travel with public transport) and "green commuting carbon neutrality"(through the voluntary purchase of carbon credits to offset one ton of carbon dioxide emissions
from their trip). Every ton of carbon embedded by the cards is linked to a registered and verified
carbon credit. By going to the official Green Commuting Website (www.cleanair.net.cn) or thepartners’ websites and typing in the registration number, buyers can find detailed information of
the credits, such as sources, location and implementation of the offset projects. A transparent
publicly available information system helps to ensure that the buyers of the cards will find out
where their contributions go to by simply going online.
In sum, this new method for NGOs is of real importance to attract public participation, support
decision making for policy level as well as environmental movement, so Green Commuting
campaign and low carbon is one of many case in China.

52

Innovative ways of information sharing
and promoting participation

Huang Haoming
China Association for NGO
Cooperation (CANGO)
2010 08 18 AGNA Asia Toronto

1

Green Commuting Campaign
People’s Health
Information sharing

Public Benefit
Self-interesting
HealthCampaign

Social policy
Changing

To Change
Peoples’ Behavior
Citizen participation2010 08 18 AGNA Asia Toronto

53

2

Clean Air for Life
•Clean air is a vitalelement of a health life.
Each day, an average
adult breathes
approximately 20,000
times and 1515-20 cubic
meters of air.
•Air pollution fromboth mobile andstationary sources has
significantly
undermined urban
citizens’
citizens’ desire to enjoy
clean air.

Oct.12,2004,Beijing

Oct.12,2004,Beijing
2010 08 18 AGNA Asia Toronto

3

The comparison of pollution level of PM10 between
Beijing and the cities in developed countries
Beijing
Paris
Sydney0.2

3conc.of PM10（mg/m ）

0.25

0.15

0.1

0.05

20
01
.1
20
01
.2
20
01
.3
20
01
.4
20
01
.5
20
01
.6
20
01
.7
20
01
.8
20
01
.
20 9
01
.1
0
20
01
.1
1
20
01
.1
2
20
02
.1
20
02
.2
20
02
.3
20
02
.4
20
02
.5
20
02
.6
20
02
.7
20
02
.8

0

Fig. 1.5 Comparison of monthly average of PM10 between Beijing,Paris and Sydney
2010 08 18 AGNA Asia Toronto

54

4

Vehicle increase in Beijing
since 1980
million

4

4
3.5
3

3
2.5
2

2
1.44

1.5
0.98

1
0.5

1.58 1.7

0.5

0.1
0
1980 1990 1995 1999 2000 2001 2002 2007 20090.1－
－1 million, 16years ； 2－
－ 3 million, 4 years

(年
年)

1－
－2 million , 6 years; 3—4 million, 2.5 years
2010 08 18 AGNA Asia Toronto

5

Pollutants from vehicle

Crankcase vapor
Tail gas

Gasoline vapor

Primary pollutants：CO，VOC，Pb, NO, SO2, CO2, PM, etc.
Secondary pollutants：O3，NO2，PM，SO42- etc.
2010 08 18 AGNA Asia Toronto

55

62005－－2006 Research, the effects of PM fromtraffic on human health ： monitoring the air
quality and counting vehicle flow near road2010 08 18 AGNA Asia Toronto

8

2010 08 18 AGNA Asia Toronto

956

Launching Ceremony of Green Commuting
Campaign，Campaign，June 1，
1， 2006
2006年
2006年6月1日，绿色出行启动仪式
2010 08 18 AGNA Asia Toronto

10

The Green Commuting Network
Founded 2007-06-01

2010 08 18 AGNA Asia Toronto

57

11Nanjing’s Activities

2010 08 18 AGNA Asia Toronto

12

Xiamen’s activities

2010 08 18 AGNA Asia Toronto

58

13Green Olympics and Green Commuting

Contributing to greening Beijing
Olympic Games
Offset the carbon emission of
Olympic Games.

2010 08 18 AGNA Asia Toronto

14

OnlineCalculator
Emissions
Reduction
Credits

Green Olympics and,Enjoy low-carbon lifestyleBusinessvoluntary
ActionCitizenvoluntary
Action2010 08 18 AGNA Asia Toronto

59

15

2008.03.07，visit of
Journalists organized by
BOCOG

2008.07.26， Press
Conference by BOCOG

2010 08 18 AGNA Asia Toronto

16

Launch on April 3rd, 20082010 08 18 AGNA Asia Toronto

60

17Comparison between two Different
Periods

2010 08 18 AGNA Asia Toronto

19

Carbon Emission Reduction
Total participants: 35 companies and 81410
employees (citizen participation) The length of the campaign: 45 days
 Total Carbon reduction:
 11020 tons of CO2 (compared with status quo)
 31840 tons of CO2 (compared with individualcar driving) 11020 Ton
 31840 Ton


8000 Ton carbon, Tianpin Company
voluntarily buy with 280,000 RMB Yuan
2010 08 18 AGNA Asia Toronto

61

20

Residential place distribution

2010 08 18 AGNA Asia Toronto

21

Working place distribution

2010 08 18 AGNA Asia Toronto

62

22

Public policy changing about thecity administration
Parking fee: (newpolicy)

Parking fee:( before
policy)if near subway
 2 RMB Yuan for one
station, yourhour (10times
payment is only 2
difference)
RMB Yuan for one
 5 RMB Yuan for one
dayhour (if you spend 3
 If near downtown forhours for parking in
13 areas, yourdowntown, you needpayment is 10 RMB
increase payment 25
Yuan for first one
RMB Yuan, 2.67
hour, and second
times difference
hours for 15 RMB2010 08 18 AGNA Asia Toronto
23
Yuan for one hourPublic policy changing
To reduce the car on
the streetThe every car shall bestop one time for one
week to unable to drivefrom 7-20 within five ringareas in Beijing forworking time

To increase the public
investment for subway
and bus system

To use low price forsubway and bus
 Subway for 2 RBM Yuan
with no limitation foryour distance Bus cost for 40 centwith no limitation foryour distance To concern the low
income group for social
equity

2010 08 18 AGNA Asia Toronto

6325Conclusion
Information sharing
Self interest

Innovation way

Public interest

Citizen participation

Action planning2010 08 18 AGNA Asia Toronto

26

Thanks for Your Attention!

2010 08 18 AGNA Asia Toronto

6427

2. India
Harsh Jaitli
Voluntary Action Network India (VANI)

2-1 Civil Society in India

Civil Society in India
Harsh Jaitli
VANI
VOLUNTARY ACTION NETWORK INDIA

Civil Society Structure in India• Traditional Associations• Religious Associations• Social Movements• Membership Associations• Intermediary• Government/ Private Sector Sponsored
VOLUNTARY ACTION NETWORK INDIA

65

Regulatory Mechanism• Societies Registration Act, 1860
• Trusts• NonNon-Profit Companies• Approx NumberNumber- 3.3 Million (Estimate)• Income Tax Act• Foreign Contribution Regulation Act
VOLUNTARY ACTION NETWORK INDIA

Challenges (Socio-Economic)• Rising Private Sector/ Individual Wealth• Educational Discrepancy• Wide Spread Poverty• Failure of Delivery of Services• Social Alienation
VOLUNTARY ACTION NETWORK INDIA

66

Challenges (Regulatory)• Out Dated Acts
• Income Tax Dispute• Tightening Regulations• Direct Taxes Code• No-Nodal Ministry• Administrative Reform Commission
VOLUNTARY ACTION NETWORK INDIA

Challenges (Resources)• Shrinking Foreign Aid• Major Aid Directly to Government• SubSub-Contractor Relationship

VOLUNTARY ACTION NETWORK INDIA

67

Impact on Civil Society• Shrinking Space• Dependency on Government• New Actors• Security Issues• Competency Gap• High Expectation• New Avenues
VOLUNTARY ACTION NETWORK INDIA

Challenges Before Civil Society• Strengthening/ Reforming State Institutions• Assuring SelfSelf-Governance of public
Institutions• Defining “Public Good”
Good” from vantage point ofvoiceless and marginalized• Assuring Accountability
VOLUNTARY ACTION NETWORK INDIA

68

Role of VANI
• Strengthening Voluntary Sector• Articulating Voice of Sector

VOLUNTARY ACTION NETWORK INDIA

69

2-2 Accountability, Legitimacy and Transparency (India)

Accountability, Legitimacy
and Transparency (India)
Harsh Jaitli
VANI
VOLUNTARY ACTION NETWORK INDIA

From the State• Capacity Building of Elected Representatives• Use of Legal Provisions• Evidence Based Actions• Campaigning and Advocacy• Disseminating Information
VOLUNTARY ACTION NETWORK INDIA

70

Accountability & Transparency(From Civil Society)• High Visibility• Public Accountability• Role Model• Diversity within the Sector
VOLUNTARY ACTION NETWORK INDIA

Methods• Compliance• Sharing of Information• Stakeholder Participation• Accountable Governance system• Accreditation System
VOLUNTARY ACTION NETWORK INDIA71

Legitimacy Question• Relates to Accountability & Transparency• Right to Represent Marginalized• Questioning Status Quo• Elected Representation• Influencing Public Opinion
VOLUNTARY ACTION NETWORK INDIA

72

2-3 Information Dissemination & Participation

Information Dissemination& Participation
Harsh Jaitli
VANI

VOLUNTARY ACTION NETWORK INDIA

Generating Information &Knowledge• Popular Knowledge Vs Dominant Knowledge• Myths Vs Reality• Evidence based Advocacy• Participatory Research

VOLUNTARY ACTION NETWORK INDIA

73

Methods• Use of Technology (Website, FB, Blogs)
Blogs)• Popular Publications• Linkages with Academia• Linkages with Media• Popular Arts (Theater, Songs)
VOLUNTARY ACTION NETWORK INDIA

Mobilization• Through Participatory Research• Information Dissemination• Demystification• People Led Campaign
VOLUNTARY ACTION NETWORK INDIA

74

3. Nepal
Dala Rawal
NGO Federation of Nepal

3-1 Major Highlights of NGO Federation of Nepal
3-1-1 for Peace and Constitution
Sustainable development of a society entails an active participation of civil society organizations(CSOs) in the development works. As an arena of community organizations, professionalorganizations, social movements and community action groups, civil society organizations canrepresent and participate with the government in its actions and for democracy and human rights.
Likewise, the CSOs tend to influence the national level policy design and implementation.
Significantly, CSOs create a larger synergy in a country in conflict and in transition. In the present
transitional context of Nepal, CSOs have a great role to play ensuring that the transition, an
opportunity, herald inclusion, equity and development to all through peace and constitution.
Especially through the April Uprising in 2006, the role of the CSOs has been profusely
appreciated. In the course, NGO Federation of Nepal (NFN) has mobilized thousands of people
throughout the country in coordination with federations, alliances and networks for advocacy,
lobbying, campaigns and pressurizing. The programmes have aimed to link the national level
development processes with the local for democracy, human rights, rule of law, and for constitution
making and peace building. Instilling awareness, the CSOs have been involved mobilizing theexcluded and the marginalized groups for their rights.
The programmes have created platforms that facilitate interactions in the local and national
levels. The collective campaigns and voices have contributed in getting the voices of the people
heard in the national level and more specifically in order to address the issues and concerns of all
the groups and communities in the new constitution.
Having acknowledged that strong civil society involves strengthened CSOs, NFN programmes
have focused on the capacity building of its member organizations and the CSOs.
Precisely, NFN has prioritized presently its engagement on inclusive and democratic constitution
drafting and the establishment of sustainable peace. Thus, institutionalizing the achievements ofdemocratic struggles, the new constitution must ensure the equitable development of Nepali
society.

75

National Civil Society Conference Held
Leaders of Civil Society Organizations (CSOs), human rights and social activists apart frompeople from different groups and communities from all the 75 districts descended in Kathmandu toattend National Civil Society Conference which was organized by NGO Federation of Nepal (NFN).
The conference was organized through April 26-27, 2010 by NFN.
On the occasion civil society leaders, human rights activists, constitution drafters, foreigndignitaries, leaders of the major political parties and the Chairperson of the Constituent Assembly
Subas Nembang ventilated their grievances and opinion on issues of human rights, social justice,
constitution making and the peace process apart from lamenting the unfolding political scenario.
The convention also consisted of two thematic sessions: “Peace process and new constitution
making: Challenges and opportunities” and “Issues of economic, social and cultural transformationin the new constitution.”
At the end the conference came up with a resolution on some contemporary issues.

3-1-2 Together for Constitution and Peace
NGO Federation of Nepal organized a national level civil society conference in Kathmandu
through April 20-21, 2009. The event was inaugurated by President Dr Rambaran Yadav.
Representatives from civil society organizations throughout the country participated in the
program to discuss and identify appropriate strategy to mobilize people in the process ofconstitution making. The major focus of the program was to bring in the local social activists andnational activists together to devise common minimum strategies for civil society outreach andformulate guidelines in enhancing people's participation in the making of a new constitution.
Chief guest President Dr Ram Baran Yadav including leading leaders like Madhav Kumar Nepal,
Congress leader Arjun Narsingh K.C and Maoist leader C P

Gajurel expressed their solidarity with

the NFN and demonstrated commitment to remove all the hurdles that are affecting the peace
process.
They also expressed commitment to respect and abide by the historic Comprehensive Peace
Accord (CPA) in all its letter and spirit. Representatives from diplomatic corps, UN agencies, donor
communities, lawyers, academicians and civil society leaders attended the event.
The inaugural session was followed by extensive working sessions with theme being “People's
participation in constitution making process: Opportunities and challenges”, “Issues of inclusion in
new constitution: Civil society concerns”, “Discourse on federalism and state restructuring” and“Human rights and impunity situation in Nepal: Opportunities and challenges”.
Given the issues debated, the sessions helped explore issues on constitution making in anaccessible and engaging modality. The last day of the event was devoted formulating strategies forsocial mobilizations and to draft action plan for the regional and local level endeavors in this76

connection.

District Level Networking Conference
NFN organized a one-day public interaction programme in all the 75 districts relating people's
concern in the new constitution. Following the Constituent Assembly schedule, effective from 1
November 2008, a joint civil society delegation coordinated by NFN submitted therecommendations to 10 thematic CA committees on 26th February 2009 in Kathmandu prior to thefirst outreach of CA members in districts. NFN District Chapters were able to hold an extensive'Recommendation Hand-Over Programme to the CA Members' when they were in the districts
seeking people's opinion to be incorporated in the new constitution.

Towards an Inclusive, Participatory and Democratic Constitution Making

How NFN has demystified arcane terms for common people
NFN undertook the task of evolving common understanding among the people oncontemporary and widely debated issues of what federalism is all about and which model to go for,what makes democracy as inclusive and what is participatory constitution building at regional,
district and constituency levels.
The vehicle is the broad-based civil society networks which have been effectively mobilized toachieve the objectives.
Significant in this connection is the conduct of a five-day long regional level Training of Trainers(ToT) on issues of federalism, inclusive democracy and participatory constitution making in
June-July 2009. They were organized in each region by involving CSO activists, local NGO activists
and media representatives.
The efforts were aimed at engaging all men and women from diverse religions, ethnic,
geographic and political backgrounds so that no one feels left out from the process.
Moreover, it was also designed to ensure that everyone realizes that his/her aspirations andconcerns are reflected in the new constitution.
The exercise involved roping in locally based organizations for social mobilization component.
This was done believing that doing so would help the cause of influencing the thinking of the local
people in favor of inclusive democracy and promotion of human rights. It was the bid to give theexercise to participatory touch.
The conduct of ToT has been found to have boosted the understanding on the concept offederalism, inclusive democracy and participatory constitution making.
The belief that federalism, inclusive democracy and participatory constitution making were
technical and political issues has been demystified now. Since the entire discussion on these rather

77unheard of issues was conducted in commoner's language, it has helped the common people tounderstand the concepts and internalize them.

District Level Training
A two-day district level training/workshop was organised followed by a one-day interaction with
political parties and representatives of local governments in all the districts. The district trainings
were organised consecutively with the Regional Level ToT.
The trainings brought in people representing local NGOs, alliances and networks including
media persons working around issues of marginalised and excluded groups and communities todiscuss ways to enhance people’s participation at district level political processes.
According to the number of constituencies in each district, from 10 to 30 representatives took
part in the programme. The trainings were moderated by a team comprising of participants who
were trained during the Regional Level ToT along with other relevant district level experts.
The participants of district level training, as part of the trainings, developed in each district aplan of action to strategise the constituency level mass mobilisation in all the 240 constituencies bymobilising a huge number of people and CSOs at large.

Feedback Workshops in the Draft Concept Papers
NFN organized two days' feedback workshops on the draft concept papers of various
committees of the CA in seventeen districts throughout the country through the months March andApril.
On the first day, participants from different sectors were divided into different groups to discusson the trends and progress in the constitution making process. They analyzed on the constitutional
provisions included in the draft of different CA committees with a focus on the draft ofFundamental Rights Committee. They identified the positive elements in the drafts and the gaps
from their perspectives. The groups came up with some suggestions to be included in theconstitution in order to ensure their fundamental rights in the new constitution.
On the second day, the findings of the first day by different groups were presented to theConstituent Assembly members present in the respective programmes. After the grouppresentations, floors were open to provide feedbacks to the leaders of political parties and CA
members.

Determination of federal States and Concepts of Political Parties
Fixing the number of provinces, giving them names and delineating the geographical areas forthe provinces are the most disputed issues when it comes to writing the new constitution. All
political parties have come up with divergent views on carving out new states. The subject has

78caused rift even within the parties — Unified CPN-Maoist, Nepali Congress and CPN-UML.
On this backdrop, Forum for Human Rights and Democracy (FOHRID), NGO Federation of Nepal
and INSEC organized jointly an interaction programme on December 2, 2009 in Kathmandu. The
programme firstly aimed at understanding the proposals of different political parties relating tofederal system in Nepal. Secondly, it aimed to present to the political parties some seminal andexpert views and facts on these complex issues.
Chandra Dev Joshi, CA member from Communist Party of Nepal Unified, stood strongly against
delineating the federal states on ethnic bases. Narayandutta Bhatta, CA member from Rashtriya
Janashakti Party, also agreed that the restructuring of the state on line of ethnicity is the continuityof the domination and exploitation of minority by the majority. On the other hand, Santabahadur
Nepali, CA member from Rastriya Janamorcha, stressed that federal system is not suitable for acountry like Nepal. However, B. P. Yadav, who represents Madhesi Peoples' Rights Forum (MPRF) in
the CA, was critical of bringing federal system to dispute.
Binod Kumar Bhattarai, CA member of Nepali Congress suggested that federal system andcommunity rights should be considered separately. Likewise, Lucky Sherpa, Constituent Assembly
Member from CPN (UML), said that federal states should be framed maintaining the cultural
identity, addressing the voices and concerns of the people of all the cultural and geographicalcommunities, administrative feasibility, and the access to the resources.
NFN President Dr Netra Prasad Timsina stressed on the need of formation of a high-levelcommission to recommend the overall restructuring of the states. He urged the political parties tobe serious about these issues. In this great mission of constitution building, he assured civil society
organizations will leave no stone unturned in facilitating the process.

NFN garners commitment for timely constitution
Leaders of the major political parties expressed their commitments to promulgate the new
constitution on time while speaking at an interaction program organized by Campaign forConstituent Assembly (CCA) in coordination with NFN on 4 August, 2009 in Kathmandu.
The interaction session “Timely Constitution: A Civic Concern” saw civil society leaders
expressing doubts on the claims coming from representatives of the political parties that they candraft and promulgate the new constitution within the stipulated time-frame.
Nepali Congress (NC) leader Arjun Narasingh K. C. and CPN-UML leader Keshav Badal spoke on
the occasion.
Civil society leaders appealed for the unhindered functioning of the Constituent Assembly
before the nation can achieve its great mission. They said that it should be able to address theissues and concerns of the people rather than that of a particular party.

79

Women Conference
NFN organized a women conference entitled "Constitution Making and Women Rights:
Opportunities and Challenges" on 28th April 2010 in Kathmandu. The major objective of theconference was to share about the opportunities and challenges being faced by the women CA
members as well as woman rights activists of Nepal in ensuring the woman rights in the new
constitution.
The program was organized in the presence of women activists from the 75 districts of Nepal
along with the women CA members and the representatives of the organizations working on theissues of women in the upcoming constitution of Nepal. CA members Binda Pandey, Shanti Adhikari
and Mohamadi Sidiqui shared about the current status and updated about the ongoing peace andconstitution writing processes. They also shared the challenges and opportunities they are facing as
women CA members in addressing the issues of women and their rights. The representatives fromthe organizations working on the issues of women and focusing to the constitution writing process
presented about the positive as well as the negative aspects of the reports submitted by thethematic committees. They also provided some feedbacks that can be incorporated in order toaddress the women's issues and ensure the woman rights in new constitution.

3-1-3 Campaigns and rallies
NFN is constantly engaged in organizing campaigns and rallies mainly focused on the issues of
constitution making, peace process, human rights, good governance and rule of law. It hasorganised and coordinated sit-in programmes, press-meets, mass rallies, mass meetings and has
issued press releases in response to the events at various times. Especially on the occasions ofdemocracy day, republic day, human rights day, thousands have participated in the programmes andrallies organized in coordination with other networking federations, alliances and civil society
organizations.

Civil Society Steps Up Pressure
Thousands of people joined the rally organized on 19 March 2010 by various civil society
organizations. The rally was organized in order to put pressure on the political parties and the CA
members to prioritize the constitution making process and promulgate the new constitution within
the stipulated time of 28 May 2010. The rally kicked off from Bhrikutimandap, marched throughPutalisadak and Bagbazar before reaching Shantibatika at Ratnapark.
Many civil society organizations, professional organizations, federations, alliances and the public
took part in the rally which was coordinated by NFN.

80

New Constitution and Peace: Basis for Democracy
Loktantra Diwas 2010
The civil society celebrated the fourth Loktantra Diwas (Democracy Day) on 24 April 2010
demanding the new constitution and the logical conclusion of the peace process. Civil society
leaders, human rights activists, professionals, journalists and the common people convened at
Ratna Park at 7:30 in the morning. They flew balloons with banners hanging on them. The banners
read 'Loktantra Day 2010'. At the end, the civil society leaders, professionals and media persons
addressed the programme.
Most of the speakers agreed that timely promulgation of the new constitution is essential forthe institutional development of federal republic democratic system in Nepal.
"Basis of federal democratic republic: New constitution building and sustainable peace" was theslogan of the programme which was coordinated by NFN.

3-1-4 NFN Launches Human Rights Discussion Series
NGO Federation of Nepal (NFN) has set in motion a series of discussion programmes on thevarious facets and issues of human rights. Such discussion programmes will focus on the specifichuman rights issues.
First in the series, it has organized on 24 June 2010 a consultation workshop on 'The Need andForm of Child Protection Policies in NGOs' in coordination with CWIN, a member organization of
NFN concerned especially with child workers in Nepal.
The presentation by Tarak Dhital, General Secretary of CWIN, made a significant part of the
programme. His simplified presentation helped the audience to add to their knowledge of childrights. He discussed on conceptual development process of child rights, international agreements
and conventions Nepal has agreed on and various aspects of child rights. Bringing to fore the legal
provisions on child rights in Nepal, he suggested that it is us who should begin the mission now.
Madhav Pradhan, President of CWIN, said that coordination and cooperation is required among
the civil society organizations/NGOs in order to introduce child protection policies in theseorganizations. Sumnima Tuladhar, who is the Executive Coordinator of CWIN, said child protection
policy has failed to come in the national level in spite of the ongoing advocacy and lobbying. She
expects a sizeable coverage and effectiveness of the child protection policies and programmes
provided that they are executed through NFN and its member organizations.
Some remarkable ideas and inputs were received from the participants as well. Durgamohan
Shrestha, NFN Bhaktapur President, pointed out the need of delineating ways to punish theperpetrators of child rights. Another participant Luva Raj Neupane assessed that the childprotection policies will be much effective if they are introduced by the government. Likewise,
Roshani Karmacharya from NFN Lalitpur suggested that there should be instantly recognizable ways81

to find out the violations of child rights. Navaraj Lamichhane, Midwestern Regional In charge of NFN
central committee, recommended NFN build a monitoring mechanism of the child rights violations.
Having made an assessment of the programme, NFN Secretary General Sharmila Karki said thatsuch workshops can have significant impacts in improving the child rights violation. She added all
the levels and organizations need child protection policies and the protection of children.
A draft of the child protection policies was also distributed in the programme. It was assessedthat all the CSOs can formulate their own policies. NFN President committed that NFN will make its
own policies for the protection of child rights in the central level and encourage and support its
members to do the same.

The series will help to sensitize the NFN member organizations on different aspectsof human rights issues and facilitate in preparing the rights-friendly policy in theirorganization.
Major Publications-Briefing Papers
Briefing papers on 'inclusive democracy', 'federalism' and 'participatory constitution making'aim to establish a uniform understanding of these concepts and trigger discussions amongst experts
and policy makers at the national level in order to build a common understanding of these terms
amongst themselves.
-Sachetak and Proaction
The mouthpieces of NFN as they are, Sachetak and Proaction are published regularly.

-Posters
Posters, pamphlets and IEC materials are developed based especially on the theme of
constitutional issues, participatory constitution making, inclusion and democratic practices.

82

Towards Inclusive and Democratic Nepal:

Strengthening Civil Society movement for
promoting democracy and justice in Nepal

NGO FEDERATION OF NEPAL
18th August, 2010, Toronto

Political And Economic Transition In Nepal

83Nepal at Present• 3.4 million people go hungry every night.
• 25% people are landless.
• 754 Nepali workers died in 2009 in Gulf
country.
• 2.65 cases of gender violence reported everyday.
• 16.4% of Price Rise in food and beverage
items.
• 14% Inflation in 2009/2010.
• 2.6 Million Child Labor at present in Nepal.
• 18.3% Unemployment to population ratio.
• 316,465 metric tons (MT) of food deficit thisyear.

Civil Society movement in Nepal• Restoration of Democracy in 1990
• Royal take over 2005
• People movement 2006
• Human Rights, Democracy and social justice• Federations & Alliances• Dalits & indigenous nationalities• Associations of disabled persons•

Users' associations• Youth, student and trade unions• Women groups• Religious associations

84

What We Did / Doing
National, Regional and local level advocacy

Networking and Joint Civil Society Campaign for peaceand new constitution85

Demonstration and mass mobilization about Peace,
Democracy and Social Justice

7

Civil

Societyperspective

of

MDGs

in

Nepal

8

86

Media Mobilization about new constitution

9

Advocating inclusive and democratic
Constitution Making process

1087Mobilization of grass route civil society for Peace,
Inclusive democracy and new constitution11

Mass rally, Public demonstration and Public
hearing of constitution and state restructuring

88Pressuring to Governments for change policy
and programs

What We Achieved
•
•
•
•
•
•
•

Millions people are aware of the need forjustice, democracy, human rights and peace
Coalition among key civil society institutions
and political parties strengthened
People could express their concerns andpropose their agenda
People’s agenda for democracy, peace anddevelopment promoted
People demonstrated strong commitment
and conferred solidarity for the movement
Civil Society has played a significant role inbroadening the civil society spaces
Success CA election with Inclusive manner 14

89Key Issues of Civil Society in Nepal
Guarantee of human rights, peace, democracy and justiceInstitutionalized democratic republic through new constitutions
restructuring of the state with Inclusive manner
Post conflict development and justice
Trade justice and Debt cancellation
Unconditional and quality aid
Federal restructuring of the state and guarantee of people’s
sovereign rights over resources
consensus building among the political parties for bringing
constitution as planned
Guarantee of food sovereignty of the people
Constitutional guarantee to pro-poor development
Proportional representation of people from all castes, class,gender ethnicity in policy making and implementation level
Accountable local government
Implementation of commitments related to MDGsLand reform
Access to basic services

















Challenges
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

Lack of consensus among the political parties for bringing
constitution as planned
Political instability, focused on government making
Frequently amended CA schedule
Respect for diversity and autonomy
Fighting authoritarian legacy
Making the political parties accountable to their commitments
Making inclusive and democratic new constitution
Linking communication from local to international levels
Institutionalization of democratic values and principles
Upholding people’s voices and maximizing their involvement
Different issues emerging.
How to manage diversity
Difficulties of making single voice
Political parties are divided with different issues.
Some CSOs voice also divided with different issues
Reconfiguration of Civil Society
16903-2 LTA Situation in Nepal

LTA Situation in Nepal

NGO FEDERATION OF NEPAL
18th August, 2010, Toronto

Situation of LTA in Nepal• Nepal is in the cross road in the political,
economical and social transition• Changing context (From constitutional monarchy
to democratic republic Nepal) but all institutions
and structure remain to be the Same
• Increasing impunity day by day• Many illegal insurgent groups existing andincreasing., extortion, abduction and all forms ofinsecurity continue to be exist• In the transition period State Accountability
appear to be weak.

91

Situation of LTA cont……..
• Most of the government budget of the last 3
years remain to be on spent this year 60% andlast year 75 %(development budget for basic
service and local development)• People are deprived of basic services and rights• Political parties do not have transparent andaccountable ( PM election have been defeated
5th time)• CSOs is promoting institutional good
governance• Political vacuum of Local government

Current Economic Situation in Nepal• 3.5% Economic Growth this year (GDP).
• Increasing Migration of Skilled and Unskilled
Manpower.
• Feminization of Agriculture.
• Unbearable rise in Price of Food items.
• Rs. 259.68 billion (41%) of Trade Deficit due to Heavy
Import and less export.
• Remittance Income to total GDP – 19%.
• Only 60% Budget Spent in Local Development.

92

Strategies dimension of LTA• CSOs facilitating for LTA• CSOs facilitating dialogue between various
actors towards building ‘LTA’• State accountable for delivering different
social services• The national discourses on political transition,
Sustainable Peace, state restructuring andcivic spaces in general• Grassroots Mobilization• Capacity Building of all stakeholders

933-3 Innovative way for information sharing

Innovative way for information
sharing

NGO FEDERATION OF NEPAL
18th August, 2010, Toronto

Government level• Rights to Information Act passed bygovernment but it to be put for proper
implementation• Put bigger board of Citizen chartered at every
govt. office• Public hearing about political appointment

94

Civil Society• Confederation of CSOs at local, regional, andnational level• NFN 75 Chapter, 5 region, 5 Civil society
Knowdge centre• Movement from Below• Civil society mobilized people and interaction
with CA members• Million of people are mobilized forconstitution writing processing• Service monitoring system at district level

Organizational Structure• Membership Organization• National convention• Annual General meeting• Executive Board• Advisory Comittee• Management Departments• Regional Committees• District Captures

95

NFN organization and information system
National convention
Annual General meeting
Executive Board

Regional Committee

Departments
Advocacy & Networking

DistrictCaptures

Regional
Resource
CenterCommunication & Documentation

Organization development

Center Secretariat

Women rights

IMAC

Executive

Social Inclusion

FAHR

Capacity Building

Continue……
IMAC

FAHR

Publication
Finance & Administration
Management Information
SystemHuman Resources

Library

Movements and Advocacy

96

4. Philippines
Sixto Donato C. Macasaet
CODE-NGO

1

4-1 Philippine Civil Society Organizations (CSOs)
In this presentation on the non-governmental organizations (NGOs) or civil society organizations(CSOs) in the Philippines, we will first look at definitions of some important terms. Then, we will
discuss the important characteristics of CSOs, the advantages that development NGOs have and thechallenges that they face. We will end with a short description of our organization, the Caucus ofDevelopment NGO Networks (CODE-NGO).

4-1-1 Definitions
An often used definition of civil society and how it can be differentiated from the state and thebusiness sector is that “the State concerns public action for public good, the Market is about private
action for private good, while civil society is private action for public good (see for example N.
Perlas).
Based on the broad meaning of civil society, CSOs in the Philippines would include a very diverse
set of organizations such as socio-civic organizations (Lions Club, Rotary Club, etc.), religious groups,
professional associations (lawyers’ and dentists’ associations for example), business chambers andclubs, non-profit schools and hospitals, people's organizations (associations of farmers, fishers,
drivers, neighborhood associations, etc), development NGOs and many others.
An important sub-set of the broad CSO or NGO sector would be what in the Philippines is called
development NGOs.

Development NGOs would include non-profit organizations that arecommitted to and working for economic, political and socio-cultural development that base theirwork on a clear belief in the need for systemic and structural change in society even though their
particular organization may be focused on one or a few aspects of that change. In other words,
development NGOs are not content only with dole-outs or occasional activities to help the poorsuch as intermittent medical clinics or livelihood seminars. Development NGOs are often more
institutionalized and often (but not always) have a few full-time staff. The term “development
NGOs” is also used in the Philippines to refer to “people’s organizations” and cooperatives with the------------------------------------------------------------1

Paper presented by Sixto Donato C. Macasaet, Executive Director of CODE-NGO, at the meeting of

the Affinity Group of National Associations (AGNA)–Asia on August 18-19, 2010 in Toronto Canada.

97

characteristics described above.

4-1-2 Number and Characteristics of CSOs
It is very difficult to get clear and updated data on the number of CSOs in the Philippines.
Most of the government statistics on CSOs are dated and are not totally reliable, although there arenow efforts to improve this.
In a study done by Dr. Ledivina Carino of the University of the Philippines in 2002, she estimatedthe total number of registered and unregistered CSOs in the country, or more particularly the
number of NGOs (defined in the study as intermediary or 3rd party organizations, that is, providing
services to others), people’s organizations (defined as membership organizations, mostly of thepoorer sectors), non-stock associations and cooperatives at between 249,000 - 497,000. (It must
be noted that while the study was published in 2002, it used government statistics as of 1997.)
Carino determined that around 40% of this number is made up of unregistered people’sorganizations (POs), mostly small community-based or sector-based associations. Aroundone-fourth are registered POs, 15% are non-stock corporations, 14% are NGOs and 8% arecooperatives.

Graph 1. Composition of Philippine CSOs (Carino, 2002)

There is however a need to review these figures. Carino’s study cited government (Securities
and Exchange Commission) data as showing that the registered non-stock corporations, includingNGOs and POs, as of June 2002 were 152,535. But after the SEC started delisting inactive andnon-reporting organizations, this has since gone down to around 89,000 in 2007-2008.
A study by CODE-NGO in 2009 showed that the four government agencies that register different
types of organizations have these figures for registered organizations as of 2007-08 -98a) 89,000 non-stock, non-profit corporations (including NGOs and POs) – Securities and Exchange
Commission (SEC)b) 70,000 cooperatives - Cooperative Development Authority (CDA)c) 5,000 homeowners associations – Housing and Land Use Regulatory Board (HLURB)d)15,000 workers organizations and trade unions – Department of Labor and Education (DOLE)
The same CODE-NGO study showed that the non-stock and non-profits registered by the SEC aremostly small, with a median annual revenue of only P100,000 or USD 2,200 and median assets of
only P750,000 or USD 16,000.

Development NGOs
On the other hand, CODE-NGO’s data base, which includes data collected from 444
development NGOs (including POs and cooperatives) in 2006 shows that the average annual
revenue of these organizations is 8 Million Pesos or USD 178,000 and that their average assets
amount to P30 Million (667,000 USD). This data base also includes information on staffing from
643 development NGOs which show that the average staffing of these development NGOs is 8
full-time staff, 2 part-time staff and an additional 2 full-time project-based staff.

This data

supports the perception that the development NGOs (as we have defined them here) are more
institutionalized compared to the general sector of SEC-registered non-stock and non-profit
associations, or the broad NGO or CSO sector.
Many of these development NGOs are also quite old. A CODE-NGO survey of its members in2003 found that 31% of its member NGOs were more than 15 years already at that time and only
15% were new (5 years old or less).
A study by the Association of Foundations (AF) and CODE-NGO in 2001 showed that a big
majority (77%) of the development NGOs was involved in education, training or human resource
development and 56% were engaged in community development. Other major involvements ofdevelopment NGOs were sustainable development and environment, health/nutrition, enterpriseand livelihood development, gender and development, social services, micro-finance, cooperative
development and community organizing.
This continues to this day.

Development NGOs are involved in all aspects of life: economic,

political, socio-cultural, at all levels: barangay (village), municipal, provincial/city, regional, national,
international and can be found in all places: in urban and rural communities, and in the lowland,
upland and coastal areas.

4-1-3 Advantages of Development NGOs
Development NGOs continue to be important actors in Philippine society despite the many
challenges that they face. This is because of their distinct advantages:

99a) they are flexible and innovative – this is partly because most of them are small and also becauseof the passion and commitment of their staff,b) they regularly interact and are immersed with the basic sectors and poor communities so thatthey are able to partner and work closely with them and they bring fresh perspectives to manyof society’s problems,c) they are relatively independent from political interests – this helps them to keep focus onserving the poor and vulnerable peoples and also allows them to become objective “monitors”
and “watchdogs” of government policies, programs and projects,d) most of their workers are deeply committed to serving and working with the poor and are
passionate advocates for social justice and development,e) most of them continue to have a culture of simplicity, service and risk-taking, andf) they are experienced and skilled in organizing, facilitating, participatory processes andparticipatory leadership.

4-1-4 Challenges for CSOs and Development NGOs
What are the important challenges that CSOs and development NGOs face? These are a) Decline in funding for CSOs
External funding for CSOs in the Philippines has declined since the 1990s, when the Philippines,
despite the marked inequality and considerable poverty in the country, was classified as a low
middle income country because of its average income per capita.

As early as 2001, the

AF/AF/CODE-NGO survey found that only 48% of development NGOs consider themselvesfinancially sustainable, 30% are unsure and 13% are not stable at all.
There have been efforts to promote local and diaspora philanthropy targeting local and overseas
Filipinos, but this has not yet taken off to such an extent as to compensate for the decline inexternal funding. This has affected the financial sustainability of CSOs, with many of them being
forced to close or to operate with limited or no full time staff.
b) Need to continue to strengthen self-regulation and internal management/ governance
The legitimacy, accountability and practice of good governance among CSOs continue to beraised every now by various quarters – including politicians, bureaucrats and businesspersons who
are reacting to accusations of corruption or passionate critiques against their policies and programs
along with the well intentioned who see or hear dubious or clearly corrupt practices of some CSOs.
Thus, there have been recurrent attempts by government to impose more stringent and often
inappropriate regulations on CSOs.
CSOs have responded to this in the past through codes of conduct and policies on self-regulation
within some CSO networks as well as the Philippine Council for NGO Certification (PCNC).
However, the reach and effectiveness of these still need to be improved In order to protect the100good name of the CSO sector and also to guard against unwarranted and inappropriate government
regulation.
c) Need to attract more of the young generation
Also since the 1990s, many CSO leaders have noted that it is now relatively more difficult to
attract the youth, especially the “best and the brightest” into CSO and development NGO work.
The idealist youth of the 1970s and 1980s, given the constrained development and political space
under the martial law regime at that time, seemed naturally drawn to CSOs and development NGOs.
The current atmosphere of formal political freedoms as well as the many other options(distractions?) in an ICT- enabled global environment seem to work against CSOs and NGOs.
d) Balancing partnership and “watchdog” roles of CSOs
With newly elected President Benigno Simeon “Noynoy” Aquino III ushering in a governmentthat has pronounced its openness to partnerships with the citizenry and CSOs in its anti-corruption
and anti-poverty programs, many opportunities for CSO – government partnerships have been
opened.
This is a welcome development, but at the same time it brings into focus again the challenge for
CSOs to balance partnership with government for development and their role as “watchdogs”.
There have been instances in the past when CSOs that entered into partnerships with government
agencies and units found it very difficult – and sometimes impossible – to criticize even the worst
practices of such agencies because of the desire to preserve good working relations or the need tocontinue receiving funding support for the organization or to preserve the “gains” under suchpartnerships (e.g. approval of policies or projects, distribution of land, etc).
In a broader sense, the challenge here is to balance the CSOs’ active engagement in public
governance, politics and elections to pursue reforms and development –and- the autonomy of CSOs
from political parties and the government.
There are of course many other challenges that CSOs need to face in the effort to work for social
justice and development in the Philippines. But hope lies in their commitment and passion,
experience and skills, and in their willingness to take risks and to innovate.
------------------------------------------------------------About CODE-NGO
The Caucus of Development NGO Networks (CODED-NGO) is the largest development NGO
network in the country. Its membership is composed of 6 regional networks and 6 major national
networks, with 1,600 primary NGOs, co-ops and peoples organizations all over the country.
CODE-NGO was established in 1991 with this vision – mission:“We dream of a society…
That promotes the total well-being of the Filipino people and the full realization of our humanrights, where social justice and equitable distribution of wealth prevails, where the basic needs of101

the broad majority are met and fulfilled, along with maintaining the sustainability of human survival,
where all spheres of national development are participated in by all sectors, where the culture of
the Filipino peoples are continuously promoted and enhanced.
We commit ourselves to-taking civil society leadership in policy advocacy and partnership building in the public arena, as
well as developing the capacity and accountability of our member networks towards the realizationof a peaceful, just and sustainable Philippine society.”102

Philippine CSOs

Sixto Donato C. Macasaet
CODE-NGO (Philippines)
August 2010

Outline of Presentation
 Definitions
 Number and Characteristics of CSOs/

Development NGOs
 Challenges facing NGOs
 About CODE-NGO

103

State, Market andCivil Society the State concerns public action for

public good, the Market is about private action for

private good, and Civil Society is private action for

public good

NGOs/CSOs broadly defined
includes: socio-civic organizations, religious groups,
 professional associations,
 business clubs, non-profit schools and hospitals
 people's organizations
 development NGOs
 others104

Development NGOs
 important sub-set of civil society(plus POs and co-ops)
 committed to and working for economic,

political and socio-cultural development
 more institutionalized often (but not always) with full-time staff

Number of CSOs
(2002 study by L. Cariño)
total no. of NGOs*, POs, non-stock associations andcooperatives: 249,000 - 497,000 as of 1997

*defined as all intermediary or 3rd party organizations (ie. providing services to others)

105Number of CSOs
Carino study cites SEC data on nonstocks as of June 2002:
152,535

But SEC official in 2007/08:
only around 89,000

Number of CSOs
Registered Organizations (2007-08)-89,000 non-stock, non-profit
corporations-70,000 cooperatives-5,000 homeowners associations-15,000 workers organizations andtrade unions

106

Characteristic of non-stocks*-most are small>median income is P100,000 or
USD 2,200>median assets = P750,000 or
USD 16,000*CODE-NGO/UK-CC, 2008

CODE-NGO Database (2006)
 444 dev. NGOs (incl. Co-ops, POs)-ave. assets: P30 Million (667,000
USD)-ave. annual revenues: P8 Million(178,000 USD) Average Staffing (643 orgs)-8 full-time staff, 2 part-time++ 2 project-based staff

107

1
0

CODE-NGO Survey (2003)
 31% of its member NGOs are morethan 15 years old only 15% are new, being 5 years oldor less

 43% of these NGOs have a full-time

staff of 10 persons or less only 15% have more than 20 staff
1
1

CSOs – in 1987 Constitution“The state shall encourage
non-governmental,
community based or
sectoral organizations that
promote the welfare of thenation.”(Art. II, Sec. 23)

108

NGOs’ Work*
 77% - education, training and HRD
 56% - community development
 Others - sustainable development andenvironment, health/nutrition,enterprise and livelihood development,
gender and development, social
services, micro-finance and cooperative
development*AF/CODE-NGO, 2001

NGOs' Work (2) in all aspects of life: Economic,

Political, Socio-Cultural
 at all levels: barangay, municipal,
provincial/city, regional, national,
international
 in urban areas, and lowland,
upland and coastal areas

109

Distinctive Advantages of NGOs (1)Small and flexible, and innovative
Interaction and immersion withthe basic sectors/ poor
communities
Relative independence frompolitical interests

Distinctive Advantages of NGOs (2) NGO workers’ deep commitment
 Culture of simplicity, service andrisk-taking
 Skills in organizing, facilitating,participatory processes,
leadership

110

Challenges Facing NGOs (1)a) Decline in External Funding for NGOs
-External funding has declined since the
1990s-AF/CODE-NGO survey: only 48% of NGOs
financially sustainable, 30% are unsureand 13% are not stable at all

Challenges Facing NGOs (2)b) Need to continue to strengthen self
regulation and internal management/
governancec) Need to attract more of the young
generation

111

Challenges Facing NGOs (3)d) Balancing:-active engagement in politics andelections to pursue reforms anddevelopment – AND – autonomy of NGOs
from parties and the government-partnership with government fordevelopment – AND – role as“watchdogs”

Caucus of Development NGO Networks

112

The largest
development NGO
network in the country.

Membership:
6 regional networks
6 major national
networks
Consisting of 1,600
primary NGOs, co-ops
and peoples
organizations.

113

VISION FOR PHILIPPINESOCIETY
We dream of a society…
That promotes the total well-beingof the Filipino people and the full
realization of our human rights.
Where social justice and equitable
distribution of wealth prevails.
Where the basic needs of the broad
majority are met and fulfilled, alongwith maintaining the sustainabilityof human survival.

VISION FOR PHILIPPINESOCIETY

Where all spheres of national
development are participated in by
all sectors.
Where the culture of the Filipino
peoples are continuously
promoted and enhanced.

114

MISSION
We commit ourselves to-taking civil society leadershipin policy advocacy andpartnership building in the
public arena, as well as developing the capacity andaccountability of our member
networks
towards the realization of apeaceful, just and sustainable
Philippine society.

115

1

4-2 Legitimacy, Transparency and Accountability of CSOs – Philippines
First, let us define these terms – legitimacy, transparency and accountability. The Asia PacificPhilanthropy Center (APPC) has these definitions -a) Legitimacy – refers both to derived legitimacy, which comes from legal registration andadherence to laws of CSOs, and generated legitimacy, which includes support from stakeholders,knowledge or expertise, relationships, trust and credibility, integrity and reputation of CSOs,b) Transparency – the extent and quality of information on activities and resources that anorganization is willing to disclose, and the mechanisms for accessing such information, andc) Accountability – this includes 4 types:- Financial: answering for the use of resources,- Performance: Documenting and reporting results vis-à-vis expectations, goals, targets andquality standards,- Voice: Veracity of what one says, and authority with which one speaks, and- Accountability to improve: responding to feedback and assessments and reporting on actions
taken.

4-2-1 Issues on LTA of CSOs
What then are the issues related to the legitimacy, transparency and accountability of CSOs in
the Philippines today?
The first issue regarding CSO legitimacy is the apparently increasing number of “pseudo-CSOs orNGOs”. These are CSOs that are registered with government agencies for dubious purposes,
including to serve as conduits of public funds to be siphoned by politicians and government officials.
Recent corruption scandals in the country such as the so-called “fertilizer scam” which involved P
740 Million involved the use of such questionable CSOs.
Related to this, another issue is the relatively low compliance among CSOs with government
reporting requirements and weak monitoring by government. While there have been efforts inrecent years to improve on this, the government’s regulatory bodies for CSOs – the Securities andExchange Commission (SEC), the Cooperative Development Authority (CDA), the Housing and Land
Use Regulatory Board (HLURB) and the Department of Labor and Education (DOLE) - have been
hindered by limited resources from enforcing strict compliance with reportorial requirements and------------------------------------------------------------1

Paper presented by Sixto Donato C. Macasaet, Executive Director of CODE-NGO, at the meeting of

the Affinity Group of National Associations (AGNA) Asia on August 18-19, 2010, in Toronto, Canada.

116

from looking into these reports to prevent abuse and misuse.
A third issue that affects CSO legitimacy is the poor financial sustainability of many CSOs andtheir dependence on a few donors. This sometimes leads to questions about their autonomy fromsuch donors, whether foreign or local, institutional or individual, and their donors’ personal ororganizational agendas.
Regarding transparency among CSOs, the major issue seems to be the reluctance of many CSOs,
2

particularly “development NGOs” to disclose their financial reports to the public. This reluctanceseems to be related to the fear that such disclosure may lead to unrealistic expectations on the partof the public in terms of the grant or loan funds or services that they could provide. Another fear
seems to be that such transparency could lead to unwarranted and burdensome investigations bygovernment agencies.
The issues concerning CSO accountability are accountability systems that are too
donor/funder-focused, lack of Board accountability, difficulty in defining and operationalizing public
accountability and the tendency, in terms of performance accountability to focus on process rather
than outcomes.
Many CSOs, being dependent on donors, tend to define their accountability too much in termsof their donors, to the neglect of their accountability to their Boards, their staff, to the public andthe government and especially to their partner communities or sectors.
It is also too often the case that many CSO Boards are not so active and become mere
figureheads who do not exercise their duty to ensure the accountability of the organization – andthey usually get off free even when the organization suffers fraud or misuse or neglect of resources
because the dominant thinking is that they are “only Board members” who are not so involved, and
it is really the Executive Director or President or Secretary-General who is in command andresponsible.
CSOs would in principle agree that they are also responsible to the public because of theirnature as organizations “imbued with public interest”. However, there is as yet no clear definitionof this principle, much less a mechanism or process to make this a reality.

------------------------------------------------------------2

This excludes cooperatives, at least those that regularly conduct annual membership assemblies,

since they are required by law and co-op practice to render reports at such assemblies;
they are required to post a copy of their audited financial reports at their offices.

117

in addition,

Finally, CSOs focus on the development process, which they believe should be participatory andempowering. While this is crucial and valid, this has often been taken to the extreme that CSOs do
not clarify and measure the development outcomes that they commit to in their work and forwhich they are also accountable.

4-2-2 Improving LTA among CSOs
How have Philippine CSOs tried to improve LTA among themselves?
First, various CSO networks have developed their codes of conduct and the implementing rules
and mechanisms for this. CODE-NGO, for example, formulated the Code of Conduct
for Development NGOs in 1991. This code and its implementing rules have been signed by all
the member networks of CODE-NGO and mechanisms such as the Commission on Internal Reform
Initiatives (CIRI) and PCNC certification targets have been agreed upon.

(See below for a

discussion on PCNC or the Philippine Council for NGO Certification.)
There have also been Board Governance Seminars to improve the capacity of the Board
members. CSO networks have also developed members monitoring tools and systems to track thecompliance of their members with good governance practices (e.g. annual assemblies, submissionof annual reports and audited financial statements, etc).
CSOs in the Philippines have also conducted studies on the government regulatory framework
for CSOs, identified and developed policy recommendations to improve CSO regulation and haveheld dialogues/ meetings with government agencies.
Also, in 1998, CODE-NGO and several other CSO networks in the Philippines formed thePhilippine Council for NGO Certification (PCNC), a certification body that looks into the governanceof CSOs, is directed and managed by CSOs with government participation and is legally recognizedby the government.
Cooperatives in the country have also developed a self-rating system (called COOP-PESOS) withthe participation and support of the government.

4-2-3 Challenges
Challenges remain for the promotion of LTA among CSOs in the Philippines.
There is a need to build consensus among CSOs and government on the appropriate mix ofgovernment regulation and self-regulation by the CSO sector. The extreme of heavy handed andalmost always inappropriate government regulation of the sector should clearly be avoided.
However, it is also clear that the other extreme of only CSO self regulation without any role forgovernment would also be open to abuse and conflicts of interest. Defining the correct middle
ground would then be the challenge.
It is also important in the immediate future that Board accountability for the performance of118

their organizations must be increased and improved.
Finally, it is crucial to more effectively link CSO LTA efforts to increased access to funds andimproved financial sustainability such that improved LTA actually and more immediately leads totangible benefits for CSOs.

119

Legitimacy, Transparency
and Accountability ofNGOs – Philippines

Sixto Donato C. Macasaet
CODE-NGO – Philippines
August 2010

NGO Legitimacy- Derived: legal registration, adherence tolaws- Generated: Support from stakeholders,knowledge/expertise, relationships, trust andcredibility, integrity and reputation

120

NGO Accountability- Financial: Answering for the use ofresources- Performance: Documenting and reporting
results vis-à-vis
expectations, goals, targets and quality
standards- Voice: Veracity of what one says, andauthority withwhich one speaks

NGO Transparency- Extent and quality of information on
activities and resources that anorganization is willing to disclose, andthe mechanisms for accessing suchinformation

121

Issues: Legitimacy- increasing number of “pseudo-NGOs”- low compliance with government reporting
requirements and weak monitoring bygovernment- donor dependency/ poor financial
sustainability

Issues: Accountability- Donor/funder-focused accountability systems- Lack of Board accountability- Difficulty in defining public accountability- Tendency to focus on process rather thanoutcomes122

Issues: Transparency

Reluctance of NGOs re disclosure offinancial information

Improving NGO L-T-A

Code of Conduct for Development NGOs andimplementing rules> Signed by all member networks of CODE-NGO• Board Governance Seminars• Members Monitoring System• Development of a Performance Monitoring Tool
• Study on Government Regulatory Framework forNGOs and Dialogue with Government Agencies

123Improving NGO L-T-A


Philippine Council for NGO
Certification (PCNC)
COOP-PESOS rating system forcooperatives

Continuing Challenges
Defining appropriate mix of government regulationand self-regulation
Increasing Board accountability for the performanceof their NGOs
Linking more effectively NGO L-T-A efforts toincreased access to funds and improved financial
sustainability

124

1

4-3 Information Sharing and Participation - Among Philippine CSOs
First, let us explain the challenging context of informational sharing and participation among
CSOs in the Philippines.
The population of the country is quite large – there are now more than 90 million Filipinos.
Then, the people and CSOs are spread across 10 major islands and more than 7,000 other islands.
The country also has numerous CSOs (once estimated at 250,000 to 500,000), which are also very
diverse in what they believe in and in what they do.
The country also has poor inland and water transportation infrastructure and improving but
limited information and communication technology (ICT) systems.
So, what have been the traditional methods for information sharing and participation to bridge
across these many constraints? They includea) local, regional and national consultations and forums,b) thematic discussion and working groups,c) regular general assemblies of CSO networks, andd) newsletters and other publications.
These have been proven to be effective, but are also quite costly.
Thus,in recent years, with the advent of improved ICT systems, new methods have also been trieda) internet based e-groups,b) E-newsletters/ website, andc) Simultaneous regional assemblies/ consultations linked via video-conferencing.
However, these are still limited by ICT access constraints among CSOs, especially the smaller
ones and also by the heavy workload of many CSOs which means limited time in the offices and in
front of their computers.
Thus, these challenges remain for more effective information sharing and participation among
CSOs in the country:- maximizing ICT – this would include improving the access of CSOs to ICT hardware as well asbuilding up their capacity and skills to use ICT for information sharing and for discussion acrossgeographical areas- forming / strengthening regional/ provincial networks – given the country’s population andgeography, provincial and regional level CSO networks remain important because they can moreeasily sustain information sharing and discussions among organizations in their areas; the------------------------------------------------------------1

Paper presented by Sixto Donato C. Macasaet, Executive Director of CODE-NGO, at the meeting of

the Affinity Group of National Associations (AGNA) Asia on August 18-19, 2010 in Toronto, Canada.

125

national networks could then more easily link such local networks to each other for nationwide
information sharing and discussions among CSOs.

126

Information Sharing
and Participation
S.C. Macasaet
CODE-NGO – Philippines
August 2010

Challenges to Info Sharing & Participationi-90 million Filipinos-numerous and diverse
CSOs-7,000 islands-poor transportation
infrastructure-improving but limited ICT
systems127

Traditional Methods-Consultations: local, regional, national-Thematic groups-General Assemblies++newsletters/publications*constraints: costly

Newer Methods-E-groups-E-newsletters/ website-Simultaneous regional assemblies/
consultations linked via video-conferencing*but all still limited (access constraints,
heavy workload, etc)128

Challenges-maximizing ICT for information sharing
and participation-forming/strengthening regional
and provincial NGO networks

1295. Japan
Yoshiharu Shiraishi
The Japan Association of Charitable Organizations (JACO)

5-1 The Situation of Civil Society in Japan
2010 AGNA Regional Meeting of Asia
Japanese Canadian Cultural Center, Toronto
18th August 2010

The Situation of Civil Society in Japan

Yoshiharu Shiraishi
The Japan Association of Charitable Organizations

5-1-1 JACO as an umbrella organization
The Japan Association of Charitable Organizations, commonly called JACO, is a registered Public
Interest Corporation (PIC) which gives voice and support to civil society.
JACO, established in 1972, is the largest umbrella body and is also PIC’s only umbrella body in
the PIC sector of Japan with more than 1,600 dominant organizations in membership at present,
and is fulfilling its mission by undertaking a wide variety of activities covering a diverse range of
CSOs. The new PIC laws went into effect in December 2008, and JACO was recognized and granted
its new legal status as PIC by the PIC Commission, as the first one under the new legal scheme in
March 2009.
Our new goal is to promote and support public benefit activities operated by PICs andcontribute further development of whole the third sector in Japan. To achieve this goal, we aregoing to have three main programs including,
1. Dissemination and enlightenment program on civil public benefit activities

1302. Operational support and capacity development program for civil public benefit activities
3. Promotion of research and advocacy campaign program on civil public benefit activities,
organizations and systems

Basic Fact about JACO

1

- Established in 1972
- Recognized as newly reformed PIC by PIC Commission- National wide remit- 1600 approx member organizations- 30 staff- ¥ 200 million approx. income
Role: give voice and support to civil society
Purpose: promoting and supporting public benefit
activities operated by PICs and contribute
further development of whole the CSO
sector in Japan.
Our programs:-Dissemination and enlightenment program on
civil public benefit activities-Operational support and capacity development
program for civil public benefit activities-Promotion of research and advocacy campaign
program on civil public benefit activities,
organizations and systems

5-1-2 Radical Reform of PIC
1. Japanese CSOs basic institutional structure (1997)
Japan is now in a period of major change regarding the legal system for citizens’ activities.
Before 1997, corporate status was regulated by both the Civil Code and the Special Laws.
The Civil Code, which is the body of law regulating incorporation, applies only to nonprofit
public interest corporations – incorporated foundations and incorporated associations recognizedby an authorizing governmental agency.
The Special Laws regulate the incorporation of nonprofit organizations whose primary activities
are not necessarily for the public interest. Each of the Special Laws was made to give legal-person
status to those special-purpose organizations. The special laws designate the legislation governing
establishment and the authorizing agency, taking into account individual organizational objectives.
For example, private schools are regulated under the Private School Law, social welfare corporations
are regulated under the Social Welfare Services Law, and religious corporations are regulated under
the Religious Corporations Law. After the World War II, various legal system such as “Religious
Corporation Law, 1946”, “Consumer Life Cooperative Union Law, 1948”, “Private School Law, 1949”,“Medical Law, 1950”, “Social Welfare Services Law, 1951”, “Revision to the Construction Property
Division Law, 1984”, “Revision to the Regional Local Autonomy Law”, “Relief and Rehabilitation

131

Enterprise Law, 1995” were established as the Special Law under the Civil Code. Each of them isregulated by different laws so that governance framework and the extent of transparency imposedby each law are different one by one. This legal framework is a significant characteristic of Japan,
because in most countries charitable and nonprofit organization is unified as one.
The concept of non-profit in Japan is this; PIC, other special PICs and newly created legal entity
in 1998, Specified Non-profit Corporation (SNPC), are charitable and nonprofit organizations. Being
nonprofit means that economic benefit to members is not among the aims of the organization andthat organizational income is not shared with members. Being nonprofit does not mean that anorganization cannot engage in profit-making activities; it means that the organization must use its
income for the public good.
2

Radical reform of PIC
Japanese CSOs Basic Institutional Structure (1997)
Areas in which PICs, NGOs and NPOs exist

Regular Corporations

Public Interest Corporation

Stock Company
Company with limited liability

Special Public
Interest Corporations
Private School Corporation
Social Welfare Corporation
Religious Corporation
Medical Services Corporation
The Relief andRehabilitation Corporation

Cooperative Societies

Management Unions of
Condominium
Community Based organization

For the Public

General partnership
Limited Partnerships

For Profit

2. Japanese CSOs basic institutional structure (2001)
In 1998, the Act on promotion of Specified Non-profit Activities went into effect, and also, SNPCApproved system was created in 2001 and SNPC captures a better tax benefit if they are approved
by Japanese tax office.
In 2001 another type of nonprofit organization, the Intermediate Corporation was added to thelegal framework, and has been used by citizens to establish mutual benefit organizations. The
process for establishing such organizations is a certification process. This legislation was needed tofill the gap in the legal framework, which did not at the time provide for non-public interest legal
entities to be established.

132

3

Japanese CSOs Basic Institutional Structure (2001)
Areas in which PICs, NGOs and NPOs exist
Public Interest Corporation

Intermediary Corporation

Regular Corporations
Limited Company
Company with limited liability

Approved SNPCSpecial Public
Interest Corporations
Private School Corporation
Social Welfare Corporation
Religious Corporation
Medical Services Corporation
The Relief andRehabilitation Corporation

Specified Non-profit Corporation

Cooperative Societies

Management Unions of
Condominium
Community Based organization

For the Public

General partnership
Limited Partnerships

For Profit

3. Japanese CSOs basic institutional structure (2008)
There had been no systematical change for PIC system since the civil code for PICs wasestablished in 1896. However, new three laws (“General Incorporated Association and Foundation
Law”, “Charitable Status Recognition Law”, “Relative Transition, Modification & Repeal Law”) were
finally enacted in 2006 and newly reformed PIC system took effect on December 1, 2008. It involves
Intermediate Corporation under the Intermediate Corporation Act and PIC under the Civil Code
Article 34.
The legal entity of Intermediate Corporations automatically transferred to the new legal entity
called General Non-profit Corporation under the General Incorporated Association and Foundation
Law. The General Incorporated Association and Foundation Law permits nonprofit organizations toapply for registration at the Registry Office, after a notary has inspected the corporate documents
for conformance with the law.
Old PICs require to be transferred their legal entity as well. If they wish to have new public
interest status, they need to be recognized by a new independent body called Public Interest
Corporation Commission (PIC Commission), which is similar to the Charity Commission for Englandand Wales, or there are some possibilities to become other legal entities such as general non-profit
corporation, SNPC or break up.
Introduction of a new application system for charitable and nonprofit organization that seeks to
be classified as recognized PICs. This status is determined by a PIC Commission as I mentioned. The
Commission has been established in the Cabinet Office and it includes a mix of academics, lawyers,

133certified CPA and sector professionals.
Public interest status is determined at the national level or prefectural level. The law states thatthe seven members appointed by the Prime Minister are to exercise their authority independently
and are to have excellent knowledge and experience for law, accounting or activity pertaining to
PICs. The commission is to take the determinations of public interest status. The terms of office forcommissioners is three years but they may be reappointed. As a result of the first expiration of theterm of commissioner on April 1, 2010, three commissioners were reappointed and fourcommissioners were newly appointed by the Prime Minister as shown below.
■Reappointed PIC Commission board members
Mr. Morio Ikeda, an executive advisor of Shiseido Co. Ltd., (chair of PICC)
Ms. Takako Amemiya, a former professor of Meiji-gakuin University (deputy chair)
Mr. Masayuki Deguchi, a former professor of the National Museum of Ethnology■Newly appointed PIC Commission board members
Mr. Yutaka Hori, a lawyer
Mr. Tatsuaki Kitachi, certified public accountant
Ms. Izumi Kadono, a professor of Seisen University
Mr. Hidekazu Kaito, a former of Takashima city mayor.
This time, respectable members have chosen as PIC Commission board members and people on
the line believe that they will carry out their work from real world standpoint. However, it will benecessary to monitor the movements of their recognition work.
The Commission must judge according to clear requirements and not exercise discretion. Public
interest requirement is includes;
1. having a charitable purpose as the organization’s primary purpose
2. the benefit must be provided for many and unspecified persons
3. charitable activities of the organization must constitute the majority of thecorporation’s overall activities
4. the organization may not make a profit from its charitable activities
5. although an organization may carry out profit-making activities, the profits must in
principle be used only for the charitable purposes of the organization
6. There must be no risky investments, etc., that would tend to harm the possible
retention of assets for carrying out the charitable purposes
7. and meeting the non-distribution constraint.
In this sense, the new PIC system has received constant attention from the general public.
------------------------------------------------------------* There are also 47 Council Organizations established at each of the local prefectures for the purpose of
dealing with the matters that are caused to belong to its authority by Charitable Status Recognition Law.

134

4

Japanese CSOs Basic Institutional Structure (2008)
Regular Corporations

Areas in which PICs, NGOs and NPOs exist
Public Interest Corporation

General Non-profit Corporation

Approved SNPCSpecified Non-profit Corporation

Limited Company
Company with limited liability

Special Public
Interest Corporations
Private School Corporation
Social Welfare Corporation
Religious Corporation
Medical Services Corporation
The Relief andRehabilitation Corporation

Cooperative Societies

Management Unions of
Condominium
Community Based organization

General partnership
Limited Partnerships

For the Public

For Profit

5-1-3 Chronological events of PIC & SNPCThe activity of SNPC is very similar to PIC in terms of the subject what they do, because theobjectives for both legal entities could do any activities for charitable purposes. Therefore, theGovernment started to realize that it is necessary to put SNPC to be involved with PIC systematical
5

Chronological events of PIC & SNPC
Public Interest Corporation

Specified Non-profit Corporation

Types

Association, Foundation

Association

1896

Implementation of the Civil Code1998

Implementation of the SNPC Law
PIC Reform
Implementation of the PIC Laws
× Absorption?

2008
2010

as it isas it isFor more information about radical reform of Public Interest Corporation;
Ohta Tatsuo 2010: Toward New Paradigm for Public Benefit Society at Citizens’ Initiative– From standpoint of drastic PBC reform –, Social Design Review, 1.
Kala W. Simon 2009: Enabling Civil Society in Japan: Reform of the Legal and Regulatory
Framework for Public Benefit Organizations, Journal of Japanese Law, 27.

135

reform. Although some sector professionals from SNPC were not happy about the Government
decision because the location of PIC was more close to the government (but not any more though),therefore they did some advocacy campaign regarding this matter. In fact the Government decided
not to put SNPC in the PIC systematical reform even they look like the same characteristically.

5-1-4 Purpose of the entity
1. Public Interest Corporation and Intermediate Corporation (before the legal reform)
As I explained in the last few pages, the legal framework was exceptionally complex. There were
ten forms of legal entity that could be called nonprofit corporations including PIC which was
required under Civil Code Article 34 to have permission to be established and other PICs (Private
School Corporation, Social Welfare Corporation, etc) under the special laws. Except for SNPCs andsmall community groups, these all were required a high level of government involvement anddiscretion in the process of establishment and oversight of a legally registered entity.
In addition, it should be noted that until 2001 no non-profit legal entity in Japan was permitted
to be established as a mutual benefit organization. Passage of the legislation in 2001 temporarily
remedied this defect. As a result, new legal entity called Intermediate corporations was newly
created to cover mutual benefit activities to establish non-profit organization. Although, theenforcement period of intermediate corporation act was quite short, started from 2001 up to 2008,
and it had been involved in the process of PIC reform.
6

Purpose of the entity: 1
Public Interest Corporation (before the legal reform)
Governing Law (Date): Civil Code, Article 34 (1898-2008)
Purpose: Associations and foundations with the objective of worship,
religion, charity, education, arts and crafts, and other activities for
public interest, and not for profit.
Central permitting body: Competent Government Agencies
Permitting standard: Permission
Intermediate Corporation (before the legal reform)
Governing Law (Date): Intermediate Corporation Act (2001-2008)
Purpose: It has been used by citizens to establish mutual benefit
organizations.
Central permitting body: No particular regulatory authorities
Permitting standard: Registration

136

2. Public Interest Corporation and General Nonprofit Corporation (after the legal reform)
After the new PIC law took effect in 2008, emergent PIC and General Non-profit Corporation
were created. As heretofore, PIC and General Non-profit Corporation have two types oforganizations “Incorporated Association” and “Incorporated Foundation”. An incorporated
association is defined as an organization of people who assemble for the sake of a certain nonprofit
objective. An incorporated foundation is defined as an organization that manages and uses its
endowments according to the aims of its contributors. To become General Nonprofit Corporation,
registration at the registry office is required, and for these organizations or newly establishedorganization, it will be necessary to apply for the recognition at the PIC Commission to berecognized as new PIC.
7

Purpose of the entity: 2
Public Interest Corporation (after the legal reform)
Governing Law (Date): Act on Authorization of Public Interest Incorporated
Association and Public Interest Incorporated Foundation (2008)
Purpose: Associations and foundations with the objective of 22
purposes of activities (see page 22) for public interest, and not for profit
Central permitting body: Public Interest Corporation Commission
Permitting standard: Recognition
General Non-profit Incorporation
Governing Law (Date): General Incorporated Association and Foundation Law(2008)
Purpose: There are no limitations concerning the purposes and activities ofthat corporation , except the non-distribution constraint on surplus fundevery year.
Central permitting body: No particular regulatory authorities
Permitting standard: Registration

3. Social Welfare Corporation and Private School Corporation
Social Welfare Corporation and Private School Corporation are special PICs that organized andregistered pursuant to special laws developed in connection with Cuivil Code Article 34.
The basic framework of the existing social welfare system of Japan was created in the 1940s as
an emergency measure to cope with various problems of those days involving the war wounded,orphans, poverty and so on, and Social Welfare Corporation under the Social Welfare Business Law
was created to promote social welfare activities in the nation.
Private School Corporation was created in 1949. The purpose of this law is to establish andoperate kindergarten, elementary school, middle school, high school or university. A private nurseryis being under the jurisdiction of the Ministry of Health, Labour and Welfare.

137

8

Purpose of the entity: 3
Social Welfare Corporation
Governing Law (Date): Social Welfare Business Law, Article 22 (1951)
Purpose: Corporations established under the law with the objective of social
welfare businessCentral permitting body: Ministry of Health, Labour and Welfare
Permitting standard: Approval
Private School Corporation
Governing Law (Date): Private School Law, Article 3 (1949)
Purpose: Corporations established under the law for the purpose of
establishing a private school
Central permitting body: Ministry of Education, Culture, Sports, Science andTechnology
Permitting standard: Approval

4. Religious Corporation and Medical Corporation
Religious corporation and Medical Corporation are also special PICs that organized andregistered pursuant to special laws developed in connection with Civil Code Article 34.
Religious Corporation is created in 1951, having the purpose of evangelizing, conducting
religious rites, and educating and nurturing believers. The number of Religious Corporation isextremely large. It counts 182,868 in 2006.
Medical Corporation, established in 1950, is associations and foundations whose objectives areto establish a hospital or clinic where doctors and dentists are regularly in attendance, or a facility
for the health and welfare for the elderly.

138

9

Purpose of the entity: 4
Religious Corporation
Governing Law (Date): Religious Corporation Law, Article 4 (1951)
Purpose: Corporations having the purpose of evangelizing, conducting
religious rites, and educating and nurturing believers
Central permitting body: Ministry of Education, Culture, Sports, Science andTechnology
Permitting standard: Certification
Medical Corporation
Governing Law (Date): Medical Law, Article 39 (1950)
Purpose: Associations and foundations whose objectives are toestablish a hospital or clinic where doctors and dentists are regularly inattendance, or a facility for the health and welfare for the elderly
Central permitting body: Ministry of Health, Labour and Welfare
Permitting standard: Approval

5. Public Charitable Trust and Approved Community Based Organization
Trust Law established in 1922 regulates the Public Interest Trust System but this system was not
actually implemented until 1977. Public Charitable Trust operates trusts with the objectives ofworship, religion, charity, education, arts and crafts, and other purposes in the public interest.
10

Purpose of the entity: 5
Public Charitable Trust
Governing Law (Date): Trust Law, Article 66 (1923)
Purpose: Trusts with the objectives of worship, religion, charity, education,
arts and crafts, and other purposes in the public interest
Central permitting body: Competent government agency
Permitting standard: Permission
Approved Community Based Organization
Governing Law (Date): Local Autonomy Law 260 (2) (1991 amendment)
Purpose: Organizations formed by residents of a community
Central permitting body: Mayor or town or village headperson
Permitting standard: Notification

139

Approved Community Based Organization is a charitable and nonprofit organizations formed byhomeowners of a community in the same district or a certain place in a town or village.

6. Relief and Rehabilitation Corporation and Specified Non-profit Corporation
An additional type of PIC called Relief and Rehabilitation Corporation came into existence in1995 and it is one of the special PICs. The Relief and Rehabilitation Corporation, which is permitted
to be established under the Relief and Rehabilitation Enterprise Law, was added as another kind of
PIC. These organizations are designed to address the rehabilitation of imprisoned criminals; theyshould also be included in the lager group of what constitutes a PIC in Japan – as Special PICs.
Specified Non-profit Corporation is newly created legal entity established in 1998. Certificationby the prefectural governor’s offices is the only requirement for an SNPC to come into existence. In
2002 amendments were made to the SNPC Law and the tax law affecting SNPCs to address specificissues that had hampered the growth of the part of Japan’s CSO sector. Along with theseamendments to the SNPC Law itself, the tax law that applied to the approved SNPCs also underwent
revision during this time period. Although, the tax law was too restricted with regard to giving tax
benefits to SNPCs.
11

Purpose of the entity: 6
The Relief and Rehabilitation Corporation
Governing Law (Date): Relief and Rehabilitation Enterprise Law, Article
86 (1995)
Purpose: They are designed to address the rehabilitation of imprisoned
criminals.
Central permitting body: Ministry of Justice
Permitting standard: Approved
Specified Non-profit Corporation (SNPC)
Governing Law (Date): Act on Promotion of Specified Non-profit Activities(1998)
Purpose: Not-for-profit entities whose activities include those in promotionof health, education, community development, arts, culture, sports,
disaster relief, international cooperation, administration of organizations
engaging in these activities, etc. (17 examples after the 2002 amendments)
Central permitting body: Prefectural Governor
Permitting standard: Certification

5-1-5 CSOs in Japan
1. The number of organizations
As I explained in previous pages, there are many kind of charitable and nonprofit organizationsin Japan acting their charitable activities in the various fields of society; social welfare, education,140

environmental protection, human right, health, etc.
This table shows the number of organizations and the date of implementation by legal entities.
The total number of charitable and nonprofit organizations is approximately more than 320,000,
but if the unincorporated voluntary associations, approved community based organizations andother organization other than organizations listed below are included, the number will increase.
12

Civil Society in JapanThe number of organizations
Status of legal entities

Number of
The date of implementation
existing entitiesof the relative law

Public Interest Corporation
New Public Interest Corp.
General Corporation
Specified Non-profit Corp.
Medical Services Corp.
Private School Corporation
Religious Corporation
Social Welfare Corporation
The Relief andRehabilitation Corporation

23,856(2009)
335(2010)
8,963(2010)
36,620(2010)
41,720(2006)
7,884(2007)
182,868(2006)
18,634(2007)

1896*
2008
2008
1998
1948
1949
1951
1951

163(2009)

1995*New PIC laws and regulations are to be fully enforced on December 1st, 2008.
*Cooperative association, labour union, credit union, labour credit association,
benefit association and charitable trust are also non-profit organizations but they
are not in this list.

2. The size of expense and employees salary
The table shown below describes the size of expense and employees salary by legal entity.
In case of expenses, Medical Corporation indicates quite large amount of expenses, followed by
PIC, Social Welfare Corporation and Private School Corporation. Labor Organization and SNPC
indicate the smallest amount of expenses of all.
In case of employees salary, Medical Corporation indicates the largest amount of employees
salary, followed by PIC, Social Welfare Corporation and Private School Corporation. In contrast, theamount of employees salary for Community Based Group and SNPC is extremely small.

141

13

The size of expense and employees salary
Status of legal entities
Public interest Corp.
Society welfare Corp.
Religious Corp.
Labor organizations
Industry group
Medical services Corp.
Private school Corp.
Specified nonprofit Corp.
Community based group

Expense(billion yen）

20,33818,300
3,651
540
6,877
33,94010,876738
1,811

Employees
Salary (billion yen）
3,679
3,597
655
119
935
8,880
3,301
112
40

Source: Mitsubishi UFJ Research and Consulting (2008)

5-1-6 PICs a view point of statistics
1. The number of organizations
The figure shown below shows the changes of organization number by legal entities. The
number of PIC was increasing until the year 1998 but it started to decrease very slowly from 1999. It
15

PICs a view point of statistics
The number of organizations

GNC
PIC: Public Interest Corporation regulated under the Civil Code 34
New PIC: PICs are regulated under the new PIC laws including General Incorporated Association and Foundation
Law , Charitable Status Recognition Law and Relative Transition, Modification & Repeal Law.
SNPC: Specified Non-profit Corporation regulated under the Law to Promote Specified Nonprofit Activities.
GNC: General non-profit corporation that regulated General Incorporated Association and Foundation Law142is because the SNPC legal system was created in 1998. From 2000, the number of SNPC increased
rapidly because the citizens started to realize it is much easier to become incorporated association
if they apply for the SNPC, although the growth rate slowed down a bit since 2007.
The number of General Nonprofit Corporation accounts more than 7,000 in 2009 according to
the figure. At the present in 2010, the number of General Nonprofit Corporation reached 10,000.
However, new PIC, having best tax treatment of the four in the figure, increases very slow. Just 422
organizations recognized by PIC Commission since December 2008. The reason is that application
process is very much complex and getting public interest status is much more difficult. CSO sector
professionals have this situation as the key task.

2. The number of nonprofit organizations by legal status per government agencies
The figure shown below shows the number of organizations by legal status per government
agencies.
According to the figure, most of prefectural governments account for less than 1,000 but
prefectural government in populated regions such as Tokyo accounts for more than 12,000 which is
the largest number of all, and Osaka, Kanagawa, Hokkaido have larger number compare withothers.
16

National Government
Hokkaido
Aomori
Iwate
Miyagi
Akita
Yamagata
Fukushima
Ibaragi
Tochigi
Gunma
Saitama
Chiba
Tokyo
Kanagawa
NiigataToyamaIshikawa
Fukui
Yamanashi
NaganoGifu
Shizuoka
Aichi
Mie
Shiga
Kyoto
Osaka
Hyogo
Nara
Wakayama
Tottori
Shimane
Okayama
Hiroshima
Yamaguchi
Tokushima
KagawaEhime
Kochi
Fukuoka
Saga
Nagasaki
Kumamoto
Oita
MiyazakiKagoshima
Okinawa

The number of nonprofit organizations by legal status
per government agencies in 2010

Public Interest Corporation regulated under the new PIC laws
General non-profit corporation
Public Interest Corporation regulated under the old Civil Code Article 34
Specified Non-profit Corporation

The number of SNPC and old PIC authorized by prefectural governments is very large generally.
In contrast, in case of organizations authorized by Tokyo metropolitan (prefectural) government,
approximately 50% of nonprofit organizations are General Nonprofit Corporations and old PICs are143

covered only less than 10%. The organizational mix of national government is quite different fromother structures of organizational mix.

3. Percentage of legal status per government agencies in 2010
According to the structures of organizational mix except Tokyo, it is possible to say that SNPC
and old PIC are major groups, moreover SNPC is very popular in unpopulated regions. In case ofTokyo, about 53% of organizations are General Nonprofit Organizations and only 4% oforganizations are old PICs which is quite deferent from other prefectures structurally.
General Nonprofit Corporation is created in December 2008 and increased rapidly since 2008. It
will be the major organizational group near the future.
In case of the national government, about 75% of organizations are old PICs and SNPC indicatesless than 15%. The reason why the percentage of SNPCs approved by national government is quite
small is, there are not many organizations doing their activities in two more prefectures.
17

National Government
Hokkaido
Aomori
Iwate
Miyagi
Akita
Yamagata
Fukushima
Ibaragi
Tochigi
Gunma
Saitama
Chiba
Tokyo
Kanagawa
NiigataToyamaIshikawa
Fukui
Yamanashi
NaganoGifu
Shizuoka
Aichi
Mie
Shiga
Kyoto
Osaka
Hyogo
Nara
Wakayama
Tottori
Shimane
Okayama
Hiroshima
Yamaguchi
Tokushima
KagawaEhime
Kochi
Fukuoka
Saga
Nagasaki
Kumamoto
Oita
MiyazakiKagoshima
Okinawa

Percentage of legal status per government agencies in2010

Public Interest Corporation regulated under the new PIC laws
General non-profit corporation
Public Interest Corporation regulated under the old Civil Code Article 34
Specified Non-profit Corporation

4. The increase in organization number and the growth rate (2005-2010)
In case of Tokyo, 4,000 of nonprofit organizations are newly established since 2005, and growthrate is also very high. Even the organizations authorized by national government increased only
1,500. Most of organizations authorized by Tokyo metropolitan government probably are General
Non-profit Corporations.
Prefectural government in unpopulated area, the growth of organization number is very slow.
Particularly the growth of organization number of four prefectures including Aomori, Fukui, Tottori

144

and Shimane could not reach 100.
18

The increase in organization number and the growthrate (2005-2010)
A

A: The increase in organization number
B: The growth late

National Gov.
Hokkaido
Aomori
Iwate
Miyagi
Akita
Yamagata
Fukushima
Ibaragi
Tochigi
Gunma
Saitama
Chiba
Tokyo
Kanagawa
NiigataToyamaIshikawa
Fukui
Yamanashi
NaganoGifu
Shizuoka
Aichi

A

B(%)

B(%)

Mie
Shiga
Kyoto
Osaka
Hyogo
Nara
Wakayama
Tottori
Shimane
Okayama
Hiroshima
Yamaguchi
Tokushima
KagawaEhime
Kochi
Fukuoka
Saga
Nagasaki
Kumamoto
Oita
MiyazakiKagoshima
Okinawa

5. The number of organizations per Government agencies and charitable categories
New PIC has 23 and SNPC has 17 charitable categories. The meaning of those category numbers
shown in the lists below are indicated under the table.
19

The number of organizations per Government agencies
and charitable categories
Public Interest Corporation (newly recognized)
Category
National Gov.
Hokkaido
TohokuKanto
Tokyo
Hokuriku
Koshinetsu
Chubu
Kinki
Chugoku
Shikoku
Kyusyu
Total*See page 16 for the charity categories

Specified Non-profit corporation
Category
National Gov.
Hokkaido
TohokuKanto
Tokyo
Hokuriku
Koshinetsu
Chubu
Kinki
Chugoku
Shikoku
Kyusyu
Total*See page 16 for the charity categories

145

According to the list of PICs, 75 organizations are doing their charitable activities to promoteacademism and scientific technology. Only one PIC located in Kinki region doing activities to preventand eliminate unreasonable discrimination and prejudice by reason of race, gender or others. As I
mentioned, still 422 PICs exist at the present, therefore it is very difficult for PICs to cover all theactivities in every regions.
In case of SNPC, the largest number of organizations is 22,924 under the category 17 which are
doing their activities to promote health, medical treatment or welfare. All regions have a lot oforganizations doing charitable activities from category 1 to 17.

6. Regulation (PIC & SNPC)This is the list of regulation comparing with PIC and SNPC. These two legal entities provide very
similar services and programs to the general public but some part of the regulation is different as
you can see the list.
Firstly, permitting standard is different. To be PIC, it must be recognized by PIC Commission
which is independent regulator established in Cabinet Office or prefectural office. In case of SNPC, it
must be certified by Cabinet Office or prefectural office. It is more common for association andfoundation to apply to the PIC Commission, but some of associations apply to the Cabinet Office or
prefectural office to become SNPC.

Regulation (PIC & SNPC)
Public Interest Corporation

Specified Non-profit
Corporation

Governing law

Act on Authorization of Public
Interest Incorporated Association
and Public Interest Incorporated
Foundation *Act on Promotion ofSpecified Non-profit
Activities

Recognition

Recognized by PIC Commission

Authorized bygovernmental agencies

Type

Association & Foundation

Association

Activities

22 indicated *17 indicated

Political activities

Prohibited

Prohibited

Business activities

Permitted to some extent

Permitted to some extent

Residuary assets
distribution

Cy-pres

Cy-pres(support to specific parties)

146

20

21
Public Interest Corporation

Specified Non-profit
Corporation

2 or more

10 or more

The least number ofmembers

Qualification ofSpecial qualification to bemembers (association) permitted

Unfair qualification
constraint

Amount of endowment
3 million yen or more(foundation)

Not applicable*Act on Authorization of Public Interest Incorporated Association and Public Interest Incorporated Foundation isshown page 11.
*Charitable activities to be registered are shown below.

Reference■Charity category for Public Interest Corporation
1. Activities to promote academism and scientific technology
2. Activities to promote culture and arts
3. Activities to support persons with disability or needy persons or victims of accident, disaster or crime
4. Activities to promote welfare of senior citizens
5. Activities to support persons having will to work for seeking the opportunity of employment
6. Activities to enhance public health7. Activities to seek sound nurturing of children and youths
8. Activities to enhance welfare of workers
9. Activities to contribute to sound development of mind and body of the citizen or to cultivate abundant
human nature through education and sports, etc.
10.Activities to prevent crimes or to maintain security
11.Activities to prevent accident or disaster12.Activities to prevent and eliminate unreasonable discrimination and prejudice by reason of race, gender orothers13.Activities to pay respect or protect the freedom of ideology and conscience, the freedom of religion or of
expression
14.Activities to promote the creation of gender-equal society or other better society147

15.Activities to promote international mutual understanding and for economic cooperation to overseas
developing regions
16.Activities to preserve global environment or protect and maintain natural environment
17.Activities to utilize, maintain or preserve the national land
18.Activities to contribute to sound operation of the national politics
19.Activities to develop sound local community
20.Activities to secure and promote fair and free opportunity for economic activity and to stabilize andenhance the lives of the citizenry by way of activating the economy
21.Activities to secure stable supply of goods and energy indispensable for the lives of the citizenry
22.Activities to protect and promote the interest of general consumers■Charity category for Specified Non-profit Corporation
1. Promotion of health, medical treatment, or welfare
2. Promotion of social education
3. Promotion of community development
4. Promotion of science, culture, the arts, or sports
5. Conservation of the environment
6. Disaster relief
7. Promotion of community safety
8. Protection of human rights or promotion of peace
9. International cooperation
10. Promotion of a society with equal gender participation
11. Sound nurturing of youth
12. Development of information technology
13. Promotion of science and technology
14. Promotion of economic activities
15. Development of vocational expertise or expansion of employment opportunities
16. Protection of consumers
17. Administration of organizations that engage in the above activities or provision of liaison, advice, or
assistance in connection with the above activities■Public Interest Corporation Laws
(1) “General Incorporated Association and Foundation Law" (Act on General Incorporated
Associations and General Incorporated Foundations)This law is so to speak a general nonprofit corporation law. People can set up a general
nonprofit association or foundation simply by registration at the Public Registration Office, without148

any kinds of approval or permission by central or local government. There are no limitations
concerning the purposes and activities of that corporation, except the non-distribution constraint
on surplus fund every year.
(2) “Charitable Status Recognition Law" (Act on Authorization of Public Interest Incorporated
Association and Public Interest Incorporated Foundations)This law describes requirements and procedures necessary to a general incorporated
association or foundation that applies for obtaining its charitable status. For this purpose, the new
Public Interest Corporation Commission, which is a charitable status recognition committee as
Japanese version of the Charity Commission for England & Wales, inaugurated its start-up operation
with official appointment of seven commissioners as from April 1st 2007, prior to the new Charity
Laws going into effect in December 2008.
(3) “Relative Transition, Modification & Repeal Law "This law describes procedures for the existing Public Interest Corporations to convert their legal
status to a new one as above-mentioned. In the circumstances, the articles of Civil Code, which
define Public Interest Corporations, are to be abolished and meanwhile the “Specified Nonprofit
Corporation Law (which is so far generally referred to as the NPO law in Japan) remains as it is for awhile. In another word, citizens can choose two types of NPOs when they want to set up a
corporation with charitable purposes.
■Outline of new PIC legal scheme(1) Public Interest Corporation Authorization
General Incorporated Association or Foundation is an organization that has made anapplication for its set-up at a registry office. Meanwhile, Public Interest Incorporated Association
or Foundation (PIC) is a general incorporated association or foundation(GIO) that recognized by
Public Interest Corporation Commission under the Act on Authorization of Public Interest
Incorporated Associations and Public Interest Incorporated Foundations. Their activities must fallunder one of the headings shown on the appended table that relates to academic and scientificpromotion, art and culture or other public interests and must be the activities that contribute to thepromotion of benefits for many and unspecified persons of the general public.
*Article 4: GIO that operates the business for public interest purposes may be authorized by theadministrative agency.
The administrative agency shall grant PIC authorization if any GIO meets requirements forStandards for PIC Authorization. Criteria of these standards are as follows.
(i) Its principal objective is to operate the activities for charitable purposes.
(ii) It has an accounting base and technical capability necessary to operate the activities forcharitable purposes.

149

(iii) At its operation, it does not provide its members, councilors, directors, auditors, employees orother concerned persons specified by Cabinet Order with any special benefits.
(iv) At its operation, it does not engage in any act providing any donation or other special benefits
with any persons who run a stock company or other business for profit purposes or any otherpersons specified by Cabinet Order as ones that engage in any activity to seek interest for any
specific individual or entity; provided, however, that this shall not apply to cases in which itengages in any act providing a public interest corporation with any donation or other special
benefits for the activities with charitable purposes operated by the said PIC.
(v) It does not operate any speculative transaction, financing with high interest or other businesses
specified by Cabinet Order as ones being not suitable for maintaining the social trust of a PIC or
business that could be harmful to public policy.
*Skip the rest of articles (vi)-(xviii).
(2) Revenue of activity for charitable purposes
PICs shall not obtain revenue that exceeds an amount compensating the reasonable costs
required for operation of the above-mentioned activities for charitable purposes.

(3) Ratio of activities for charitable purposes
The expenditure ratio of the activities for charitable purposes each operational year shall be
50/100 or more.
(4) Restriction on possession of idle assets not used for charitable purposes
The amount of idle assets not used for charitable purposes of a PIC at the end of each businessyear shall not exceed an amount that is calculated, as the amount necessary to operatecontinuously in the following business year the activities for charitable purposes of the samecontents and scale as the activities for charitable purposes operated by the PIC in the business year
in question.
(5) Name
GIO that has received PIC authorization shall amend the legal status of GIO and its name into
PIC, respectively.
(6) Governing bodyCouncilors-The procedure of appointment depends on the articles of association or foundation (Directors
cannot elect councilors).
-a term of office should be 4 years in principle, but extendable up to 6 years.
Directors-must be elected by councilors' meeting-a term of office should be 2 years in principle, but able to be shortened up to 1 year.

150

Executive directors-must be elected by board of directors
Auditors-more than one must be elected by councilors' meeting (should not be elected from boardof directors).
-a term of office should be 4 years in principle, but able to be shortened up to 2 years.
(7)Accounting
should adopt "PIC Accounting Standards"(8) Disclosure
Should always prepare at office such documents as articles of incorporation; an inventory ofproperty; a name list of directors, auditors and councilors; financial statements; a document that
describes the standards for payment of the remuneration to directors, auditors and councilors;
annual report; and in addition to those items, other documents provided for in Cabinet Office
Ordinance.
These documents should be disclosed upon request of third parties and also must be submitted
to relevant authorities of which disclosure at web-site is recommended.
(source: Act on Authorization of Public Interest Incorporated Associations and Public Interest
Incorporated Foundations)151

5-2 Legitimacy, Transparency and Accountability in case of Japan
2010 AGNA Regional Meeting of Asia
Japanese Canadian Cultural Center, Toronto
18th August 2010

Legitimacy, Transparency andAccountability in case of Japan

Yoshiharu Shiraishi
The Japan Association of Charitable Organizations

5-2-1 Accountability and transparency in the Japanese CSO sector before 2008
1. Limited capacity for ALT within the PIC (up to 2008)
Before 2008, supervisory authorities controlled PICs through the regulatory management,
authorized PICs to establish its organizations, monitored PIC’s governance and checked theircharitable status according to the PIC system under the civil code enacted in 1896. PIC system wasalso based on such remarkable features as existence of sectionalism among regulatory government
offices and PIC’s governance led by each of government authorities, etc.
In this sense it was possible to say that there was a general tendency of state monopolizedcharitable and social service activities. As a result, most of PICs remained unaware of having a
responsibility to answer for particular performance expectations to specific stakeholders, and also,
it was difficult for PICs to have self-made governance and accountability system under thatsituations.
After the SNPC law took effect in 1998, the Japanese government initiated discussion to create
new PIC laws, and JACO conducted some independent researches on several topics and advocatedto government agencies if necessary.
It has been eight years since JACO started the research, and finally new PIC laws went into effectin December 2008. Japan now has a new independent regulator (PIC Commission) for charitable
activities by PIC, and the considerable growth in activities of PICs is expected hereafter.

152

Accountability and transparency in
the Japanese CSO sector before 2008

1

Limited capacity for LTA within PIC
PICs have been under the strict control by government offices
through the regulatory management.
Government made a discretionary decision to authorize
establishment of PICs.
Supervisory authorities monitored PIC’s governance and checked
their charitable status.
Existence of sectionalism among regulatory government offices.
PIC’s governance led by government offices.

2

The reason why PICs had poor LTA
Most of PICs remained unaware of having a responsibility toanswer for particular performance expectations to specificstakeholders.
It was difficult for PICs to have self-made governance andaccountability system under the above situations.
Government(supervisory authorities)
Parachutist, Subsidies,
Agent service fee

Await official
Instructions passively

PICs

In Japan, there was ageneral tendency ofstate monopolizedcharitable and social
service activities

Provide benefit
to society

Public2. What we have done to solve the issues existed before 2008
Since the early 2000s, JACO as the most advanced research institution in the field of PIC’s
self-regulation, has been working to promote a clear understanding by the PICs of Japan about theirself-regulatory mechanism.

153

In June 2001, JACO launched a project to study how the PIC system should function in the 21st
century and established its Steering Committee and two specific research groups on PIC sweeping
reforms as well as on governance. JACO also sent a mission to the US in April 2002 to study
organizational governance there and released a report titled “Considering the ideal future for the
PICs and its system” in November 2002. This report became theoretical support for putting forward
a proposal to government agencies with regard to PIC development from the perspective of PICs,
not from the view point of the government itself.
At the same time, JACO established three internal committees, legislative committee, taxation
system committee and compliance committee, to help implement PIC sweeping reforms.
Committee members discussed what governance of PICs should look like under the new system. In
particular, compliance committee members vigorously argued about code of ethics andself-regulatory mechanism and prepared several templates and guides related to compiling codes ofconduct and ethics, etc.
In the past, supervisory authorities monitored PIC’s governance and checked their charitablestatus, but the development of PICs led to strong demands for higher level of autonomy today.
However, it is also necessary for citizens to monitor and evaluate charitable organizations. As aresult JACO released a research paper entitled “Organizational Assessment of PICs” and created theorganizational assessment committee and study group in 2003 in response to this situation.

The

committee and study group conducted a robust discussion from various standpoints since April
2003 and prepared a final report in March 2004 that resulted in increased recognition of theimportance of having an information site and evaluation agencies for PICs in the CSO sector.
A research paper entitled “Setting-up an Organizational Assessment body for PICs” was initiatedand a study group was launched in July 2006 to examine the role of the information site andevaluation agencies for PICs. This study group released a final report which documented PICs
evaluation in April 2007.
While this research was being conducted, JACO also sponsored the GuideStar seminar held in
November 2006 where Buzz Schmidt, CEO of GuideStar International and two other senior officers
spoke on the significance of the disclosure of information by CSOs and the situations in othercountries those are party to the GuideStar International Alliance.
JACO believes that PIC directors have realised the need for such changes based on the values
and principles of self-responsibility and self-regulation which aid organizational autonomy. In lightof this, we came to the conclusion that as a national umbrella organization, JACO should assume
the responsibility of sending a mission to the US to conduct research on actual activities andmanagement of leading CSOs in the US from the view-point of internal governance, prior to our
new charity laws becoming effective as from December 1, 2008. We sent 15 members of theresearch mission in September 2008, and had the privilege of gaining some insight into the several

154

3

What we have done to solve the issues
JACO is the most advanced research institution in the field of PIC’s self-regulationand governance and we have research programs for emerging from its situation as
follows.
2001

Established steering committee and two specific research groups on PIC
sweeping reforms as well as on governance (2003*)

2002

Sent a mission to the US to investigate organizational governance
Established legislative committee, taxation system committee andcompliance committee

2003

Initiated a research titled “Organizational Assessment of PICs” andlaunched committee and study group (2004*)

2006

Initiated a research titled “Setting-up an organizational assessment bodyfor PICs” and launched study group (2007*); Sponsored the GuideStar
seminar held in Tokyo*Date of report appearance

4

2007

Sponsored “UK-Japan international symposia” (2008*)
Established financial accounting committee

2008

Sent a mission to the US (focused on organizational management,internal governance, disclosure and accountability) (2009*)
Sponsored a symposium “PIC sweeping reforms & new landscape of civilsociety”

2009

Implement code of ethics; Released the newest version of templates ofarticles of incorporation and several by-laws under the new laws for PICs
*Date of report appearance

issues particularly those that focused on management, internal governance, disclosure andaccountability by the CSOs in the US.
On 25th November 2008, a symposium entitled “PIC sweeping reforms and new landscape of155

Civil Society in Japan” was held in Tokyo, and discussed the most important issues PICs currently
face such as internal governance, LAT (Legitimacy, Transparency, Accountability), operational
efficiency, self-regulation and so on.
As I mentioned above, the new legal framework and taxation system for PICs became effective
on December 1, 2008. Simultaneously, JACO released the newest version of templates of Articles ofIncorporation and several by-laws under the new laws, which we recommend that PICs use as areference (Figure 3). JACO also launched a new non-profit database system called NOPODAS on
December 1, 2008 which will be described further below.
Self-regulatory initiatives and governance were the themes of a number of projects that we
worked on and JACO finally instilled the idea of self regulatory mechanisms for PICs through avariety of measures. However, some issues still need to be tackled as CSOs need to be able toaddress all these challenges in the 21st century.
Figure 1 Templates of Articles of Incorporation and several By-Laws which JACO prepared
1. Code of Ethics
2. Policy＆regulations on admission and withdrawal from membership for associations
3. Regulations on membership for foundations
4. Managerial regulation on the general assembly of members
5. Managerial regulation on the board of councilors
6. Managerial regulation on the board of directors
7. Regulations on compensation and expenses for association’s directors
8. Regulations on compensation and expenses for foundation’s directors
9. Authority of management policy for directors
10 .Policy on handling of endowments
11. Policy on assets management
12.Rules on the internal committees
13.Public disclosure policy
14.Privacy policy
15.Risk management policy
16.Regulations on whistle- blower protection
17.Audit charter

Figure 2 Code of Ethics of JACO
(Preamble)
JACO has done consistent charitable activities which contribute to the sound growth anddevelopment of Public Interest Corporations (PICs) and promote public welfare in Japan.
JACO needs to carry out its mission to promote charitable activities in light of the inceptionof the new PIC system and respond to the change in socioeconomic circumstances156

internationally and domestically.
With the above recognition of the current situation, JACO established the Code of Ethics
shown below to conduct charitable activities in a fair manner and in compliance with this code.
All office staff and members of the board have to realize our social mission and be fully
aware of our function and have to try to continue the constant efforts to improve self discipline
to make full use of the principles into their decision making and specific actions.
------------------------------------------------------------------------------------------------------th

The details of our new Code of Ethics came into effect on May 25 , 2009
- Mission & Social Responsibility of the JACO (Article 1)- Ensuring the Credibility & Confidence in the Society (Article 2)- Compliance with Laws & Regulations as well as the Articles & By-laws of JACO (Article 3)- Prohibitions of pursuing Individual Private Interests & Profits (Article 4)- Disclosure on the Probable Conflict of Interests (Article 5)- Thoroughness of Transparency & Accountability (Article 6)- Privacy Policy on Personal Information (Article 7)- Fostering the Self-Active Education & Personal Development (Article 8)- Ethical Practices Committee ( Article 9)- Improvement or Elimination of the Code (Article 10)

2. After the new law enforcement in 2008

Accountability and transparency in
the Japanese CSO sector after 2008
Regulation change in 2008
Public Interest Corp.
(before 2008)

Approval
Supervising

Competent Ministries
Local Governments

Public Interest Corp.
(after 2009)

Recognition
Watching

Cabinet Office
PIC Commission**Role & Function of PIC Commission
Recommendation Panel (in principle) on the regulatory actions
by Prime Minister
Recognition of PIC Status
Advisory Improvement of Operations
Various Orders & Instructions
Disqualification of PIC Status

157

5

6

After the new law enforcement in 2008
Most of problems are solved
No more under the strict control by government offices.
Independent committee makes discretionary decisions.
PICs now need to have self made governance & LTA
culture.
PICs now have responsibility to answer for particularperformance expectations to specific stakeholders.
PIC has the best taxation scheme than other CSO groups.
No more sectionalism among regulatory government
offices.

After the new PIC laws took effect in December 2008, several critical issues as described
previously were resolved. Charitable and nonprofit organizations now can apply for the recognitionof PIC status whenever they want to and PICs are now able to operate their organization under the
self-governance and self-regulation.

3. Emerging issue
However, most of PICs feel difficult to show initiative for establishing organizational governanceand self-regulation by themselves because of the PIC’s habitual reliance on the lead by government
authorities. And also the PIC reform created new kind of problems, such as PIC laws are too muchcomplicated to understand for charitable and nonprofit organizations and charitable activities arestrictly limited by the PIC laws. For example, application procedures for initial registration andannual reporting form thereafter are rather difficult and too much complicated. As a result, smallorganizations doing activities for charitable purpose cannot apply for the PIC recognition.
To resolve these problems, JACO started to provide such services as consulting, training
programs, providing guide books to improve the capabilities of PIC’s self-governance andself-regulation, and help PICs to enable their organizations to getting new PIC status. JACO was also
advocating on all PIC systematic matters representing the PICs and other charitable and nonprofit
organizations. As a result, PIC Commission started to gradually recognize charitable and nonprofit
organizations as PIC.

158

7

Emerging issue
Difficult to establish organizational governance and self
regulation because of the PIC’s habitual reliance on
government authorities.
PIC laws are too much complicated to understand for PICs
Charitable activities are strictly limited by the PIC laws
application procedures for initial registration andannual reporting form are rather difficult and too muchcomplicatedsmall organization can’t apply for new PIC status.

5-2-2 Legitimacy of JACO
1. Solidify position as the umbrella body of PICs
It seems that legitimacy is extremely important to civil society organizations particularly
national umbrella bodies. JACO is currently concentrating on associational connection to others
widely seen to be legitimate, and enhancement of ability to meet the interests of stakeholders fromthe view point of organizational legitimacy.
Umbrella body’s presence in the field of charitable and nonprofit organizations is indispensable
in creating standards which charitable sector can share with, sending voices to government
agencies to help revising existing laws for charitable and nonprofit organizations, and providing
wide range of information on charitable sector to the public. However, it would be meaningless if
the basis of organizational legitimacy is weak, because it would be difficult to make a voice onbehalf of all charitable and nonprofit organizations. Realistically, most of umbrella bodies abroadfeel very difficult to enhance their legitimacy therefore it seems to me that they need to face amonumental challenge to conduct a comprehensive deliberation on legitimacy in incremental
steps.
In case of JACO, more than 1,600 PICs out of 24,000 are its members and these members coveralmost all the leading PIC groups. However, even a large number of local PICs which comes under
the sub umbrella body of JACO members are included, it is still not good enough to make a voice
representing whole the PIC sector. For that reasons, it is necessary for JACO to promote relationshipwith non-members as well in order to collect voices from all PICs, and at the same time JACO also159

need to try to expand its membership share much bigger.
Strengthening cooperation and relation with stakeholders such as PIC Commission, national andlocal governments, commercial companies, citizens and other charitable and nonprofit
organizations is also a key issue. Particularly, making a good relationship with media is predictably
effective because the influence of media is extremely powerful to send a message to the public andgovernment agencies at the same time.
8

Legitimacy of JACO
Solidify position as the umbrella body of PICs
Government agencies

PublicPIC Commission
National, Local Governments
Direct access
Services for members

Sub umbrella
PICs

CitizenCommercial companies
Other CSOs

Media

JACO

Direct access(Umbrella body of PICs)

Services for non members

Sub umbrella
PICs

PICs

PICs

1600 organizations
PICs

PICs

More than 3000 organizations

21000 organizations

2. Stakeholders around JACO (to keep up legitimate organization as an umbrella body for the PICs)
JACO provides several support services to not only JACO members but also non-members toincrease the capacity of governance, such as…
- Supporting PIC to have self regulation- providing templates and lettering guide related to compiling code of conduct and ethics- supporting PICs to take their own decisions and actions- providing information about the result of research- carrying out campaign to raise organization’s awareness of Transparency- providing disclosing system
On the other hand, JACO receives voice including opinions and claims from PICs and forges a
convergence of them to make recommendations directly to supervisory authorities PIC Commission.
It is also important to provide PIC situational information to PIC Commission, and help theirdecision making from the charitable sector perspective. Strengthening PICs relationship with otherorganizations or government is also important to increase the capacity of organizational governance.

160

In this sense, JACO has a responsibility to boost the prosperity of the CSO community according to
the points explained previously.
9

Stakeholders around JACO (to keep up legitimate
organization as an umbrella body for the PICs)
JACO-provide PIC situational
information-Advocacy campaign (PIC laws,
accounting code, etc)
-help decision making-gather opinions
on particular
topics-satisfy a claim

Government(supervisory
authorities)-support to have self regulation-provide templates and lettering guiderelated to compiling codes of conduct
and ethics, etc.
-support PICs to take their own
decisions and actions-provide information about the resultof research-carry out campaign to raise organization’s awareness of Transparency-providing disclosing system

PICs-provide public services to citizens

Public5-2-3 Run for the PIC hub centre
1. In case of PIC information
We believe that charitable and nonprofit organization database system is one of the mosteffective tools which help to make a link to the government agencies, charitable and nonprofit
organizations and others, and to show them how much legitimate powers and extensive knowledgeof charitable and nonprofit organizations we have. Of course an organization that has database site
on behalf of CSOs can provide information on the situation of charitable and nonprofit
organizations, and gives comments and opinions to them according to the factual data. Providing
functions as a centre of general information and communication covering the broad range ofcharitable sector is also a part of focal point to appeal as an umbrella body. From this standpoint, it
is expected for umbrella organizations to have or control database system with legitimate powers.
In December 2008, when the new PIC system went into effect, JACO launched a new databasecalled NOPODAS, which is designed to provide comprehensive information on PICs. The ultimate
goal of the NOPODAS project is to cultivate the culture of giving in Japan, by encouraging PICs todisclose as fully as possible information on their operational and charitable activities. Information
on NOPODAS includes not only basic official and self-reporting data on 24,000 PICs as prescribed by
the new law but also general information on charitable and nonprofit organization in Japan.
JACO is the organization having a relationship with GuideStar International in Japan, and161

working together on the subject of database system.
10

Run for the PIC hub centre
In case of PIC information

JACO started to provide database system called “NOPODAS” for enhanced
transparency and disclosure. NOPODAS provides database which includes PIC
official data, self reporting data, organizational PR news and contents about CSO
sector of Japan.
Statistics Organization info.
PublicDonatorDonation info.

PR Info.
Profit sector Edification info.

Job info.

News & Topics

PICs

Event info.
CSOs

GovernmentMedia

2. Benefit of operating database system
Establishment of this database system had a great influence on awareness of JACO’s role andfunction in the civil society of Japan, because all sectors started to respect JACO as a sole and11

Benefit of operating database system
Creating database system called NOPODAS helped JACO to become a PIC
information hub centre.
Operating NOPODAS has caused a increase in legitimacy of JACO.
JACO created an opportunity for PICs to increase their LAT. (each PIC can put
their additional information into the database).
PIC Commission (Cabinet Office)

PICs

PIC basic
official data

PIC other
official data

Database
official data
Self reportingdata
PR news from
PICs

Contents
Feature articles
Organization profile
News
About PIC system
Publication
Grant info.
Statistics etc.

162

Internet

legitimate national umbrella body of PICs. In other words, JACO needs to take on an increasingly
important role, providing database site to all sectors and people on behalf of charitable andnonprofit organizations not only for enhancing its organizational legitimacy, but also for achieving aprosperous civil society in the country or in the world.

3. The reason why JACO had to develop NOPODAS
Sharing organizational information among PICs and citizens is important to enhancetransparency. At present, there are three ways to access to the PIC official data. However, only basic
official data is available from PIC Commission database site. Therefore the comprehensive databasesystem operated by charitable and nonprofit organization is very much expected to enhancetransparency in Japanese civil society from that stand point.
12

The reason why JACO had to develop NOPODAS
To support PICs’ LTA
To access to the PIC official data, we need to…
1. see PIC Commission database site, but only limited basic data isshown there
2. apply to the PIC Commission for more details
3. go to the said PIC office direct

It is not good enough to help PICs to increase LTA!
It is meaningless if…
1. public cannot get information when ever they want.
2. specific data is not on the database site.
3. PIC cannot upload announcement and message.

4. PIC needs DB site operated by PIC because;
We had several reasons why JACO needed to operate database site. It is because,
1. Government cannot make distinction, comparison or evaluation among CSOs to keep theplaying field level but JACO as charitable and nonprofit organization can.
2. JACO can provide opportunities and challenges affording PICs services to upload information or
announcement themselves using online editing tools. PIC can show what they are trying toachieve, how they operate their activities…
3. JACO can provide self reporting system to develop PIC’s autonomy and also voluntarily
submission data for making disclosure can give rise to responsibility.

1634. Government provides a minimum of data but PIC has an opportunity to provide a maximum ofdata to the public.
It is possible to grow the DB site with stakeholders.
13

PIC needs DB site operated by PIC because;
1. Government cannot make distinction, comparison or
evaluation among PICs to keep the playing field level but
JACO can.
2. PIC can provide opportunities and challenges affording PICs
services to upload information or announcement
themselves by using online editing tools. PIC can showwhat they are trying to achieve, how they operate theiractivities…
3. PIC can provide self reporting system to develop PIC’s
autonomy and also voluntarily data submission data formaking disclosure can give rise to responsibility.
4. Government provides a minimum of data but PIC has anopportunity to provide a maximum of data to the public.
5. It is possible to grow the DB site with stakeholders.

5. How can information disclosure help PICs to increase LTA and governance14

How can information disclosure help PICs to increase
LTA and governance
PIC shall be legitimate, transparent, accountable iforganizational report is open to the public because…
• PIC will be trusted and expected by stakeholders.
• PIC will be expected as a modest organization
enhancing openness and transparency.
• Providing data helps to have responsibility to answer forparticular performance expectations to stakeholders.
• Monitoring organization via DB site promotes PICs tohave a self regulation & governance• others

164

PIC shall be legitimate, transparent, accountable if organizational report is open to the public
because…
1. PIC will be trusted and expected by stakeholders.
2. PIC will be expected as a modest organization enhancing openness and transparency.
3. Providing data helps to have responsibility of answering for particular performance expectations
to stakeholders.
4. Monitoring organization via DB site promotes PICs to have a self regulation & governance5. others
As you can see, operating database system gives us an opportunity to be a information hub
centre and legitimate organization. Also, we can help PICs to have LTA and good governance by
providing services from database portal site.

165

5-3 Innovative ways of information sharing promoting participation2010 AGNA Regional Meeting of Asia
Japanese Canadian Cultural Center, Toronto
18th August 2010

Innovative ways of information
sharing and promoting participation

Yoshiharu Shiraishi
The Japan Association of Charitable Organizations

5-3-1 To promote participation
1. Underlying concept
One of the issues that national umbrella organization faces today is promoting participation andinformation sharing.
1

To promote participation
Underlying concept
Participation of PICs is very important to make nationalumbrella activities more effective and fruitful.
National umbrella openness is important for participants
to validate national umbrella legitimacy and integrity
to have confidence to support and join
This means “Information sharing ” is mandatory forpromoting participation by constructing the common
grounds of activity .

166

Participation of PICs is very important to make national umbrella activities more effective andfruitful. And national umbrella openness is crucial for participants to validate national umbrella
legitimacy and integrity, and to have confidence to support and join. So what I am trying to say is,
information sharing is mandatory for promoting participation by constructing the common groundsof activity.

2. JACO carries several participatory activities
JACO carries some participatory activities with involvement of charitable and nonprofit
organizations, such as 4 expert committees including Legislative committee, Taxation committee,
Compliance committee, Financial committee. Collaborative advocacy, several research projects &research missions, publications, symposia & seminars, and NOPODAS are also our major activities
for other charitable and nonprofit organizations or other sectors involved to grow a national
platform of CSO sector in Japan.
If we do not show openness to the public, charitable and nonprofit organizations or othersectors will not participate to JACO’s activities, and at the same time, JACO will lose the status of
legitimate organization.
2

JACO carries several participatory activities
4 expert committees
Legislative committee
Taxation committee
Compliance committee
Financial committee
Collaborative advocacy
Research projects & research missions
Publications
Symposia and seminars
NOPODAS

5-3-2. Innovative ways of information
1. From conventional ways to innovative ways
There are traditional ways of information sharing called conventional ways and another one
called innovative ways which is more like modern approach. Conventional ways were often used to167communicate and share information in the past, but at the present, following innovative ways is a
key issue for national umbrella organizations to not only communicate or share information but also
promote participation from all over the sectors.
Innovative ways of information exchange is two ways communication not one way, sending
message with pictures or videos not text data only, sending message via internet not paper based
and so on, and it is much easier to have communication each other and more effective if theinformation sharing style is more like innovative.
3

Innovative ways of information
From conventional ways to innovative ways

Conventional

Innovative

One way

Two waysText-baseMulti-media

Paper+ Internet/ Web

Isolated

Link and drill-downDistribution

Intensive

2. In case of GuideStar US
GuideStar US, a 501(c)3 organization in the United States, is a good example, because the way of
information sharing is very modern, and the style of their database site is more like innovative.
GuideStar US is an operator of database for charitable and nonprofit organizations. It is notproviding just organizational data but also the functions of information exchange between
charitable and nonprofit organizations and the public, information goes like back and forth. They
provide basic organizational text data, and also photos and videos which are uploaded by charitable
and nonprofit organizations themselves. GuideStar US is digitalizing organizational data from paper
based documents provided by tax authorities IRS and disclosing them in digital via internet. The
database site also has many links of sector information. It takes us to the webpage we wish to visit.
The status of GuideStar US is more like an information hub centre among people and sectors belong
to charitable related world.

168

4

In case of GuideStar US
Two ways: Not just providing data but also organization and public
can provide some information and messages.
Multi-media: Not just providing text data but also photos andvideos.
+Internet/Web: GuideStar US digitalized organizational data
provided from IRS and disclosing them in digital via internet.
Link and drill-down: GuideStar database system takes us to thedestination where we want to go or provide us any information
on non-profit.
Intensive: GuideStar US is an information hub center for nonprofits in the US.
The URL of GuideStar is as follows;
GuideStar US: http://www2.guidestar.org
GuideStar UK: http://www.guidestar.org.uk
GuideStar Isreal: www.guidestar.org.il

3. NOPODAS: Run for the PIC hub centre
The charitable and nonprofit organization database system “NOPODAS” started their operation
on December 1st 2008 and since then we have developed it as a participatory database site.
Organizational data and sector information all are provided to the general public as well as specific
5

NOPODAS: Run for the PIC hub centre
NOPODAS as a participatory project
Organizational data and sector info are provided by NOPODAS.
Several information are provided from PICs as well.
To be two ways
JACO started to develop NOPODAS as a community sitewhich public can join with to develop database together.
NOPODAS is well supported by a navigation service
It is cross-linked with other charitable related web pages inJapan and database system abroad.

The URL of NOPODAS is as follows: http://nopodas.com/

169

organizational data registered with PICs in terms of performing transparency. PIC itself can make anannouncement if they wish to. From here onwards, JACO is aiming to develop NOPODAS as acommunity site which the public can join with.
NOPODAS is well-supported by a navigation service. It links with other charitable related web
pages in Japan and abroad. You will know anything about information related to charitable sector
by accessing NOPODAS.
NOPODAS is still undeveloped database site if we compare with Guidetar US, but it grows step bystep although a little at a time.

5-3-3 NOPODAS database system
1. NOPODAS objective
This section introduces about the database system called NOPODAS. The objective of NOPODAS
is as follows,
1. to be a comprehensive portal site and database system which provides with information about
Japanese CSO sector including Public Interest Corporations (PICs) , so-called NPOs, etc..
2. To foster and promote giving culture in Japan by sending various information about the new
structure of legal frameworks and tax exemption.
3. To encourage PICs to disclose their activity data and meet their accountability requirements.
4. To enable users to search PICs and other non profit organizations together at the same time.
6

NOPODAS database system
NOPODAS objectives
To be a comprehensive portal site and database system
which provides with information about Japanese CSO
sector including Public Interest Corporations (PICs) , socalled NPOs, etc..
To foster and promote giving culture in Japan by sending
various information about the new structure of legal
frameworks and tax exemption.
To encourage PICs to disclose their activity data and meettheir accountability requirements.
To enable users to search PICs and other non profit
organizations together at the same time.

1702. Types of information retrievable on NOPODASNOPODAS is providing information on new legal framework, taxation system, donation,
charitable giving and granting information, publications, seminar & event information, topics &news and statistics of charitable and nonprofit organizations in Japan. NOPODAS is also linked to thecharitable related websites and acting as an information hub for charitable and nonprofit
organizations.
7

Types of information retrievable on NOPODASInterpretive information about CSO sector
New legal frameworks, Taxation system
Donation/Giving, Granting
Publications, Seminars, Events
Topics, News
Statistics

Links to other CSO Websites
To perform a general portal site for the CSO sector

3. Environments around JACO
In addition to NOPODAS, Japan has several database systems for charitable and nonprofit
organizations operated by Japan NPO center, Japan Foundation Center, PIC Commission, andCabinet Office. PIC Commission and Cabinet office disclose PIC and SNPC organizational data but
only basic organizational data is disclosed by them.
Japan NPO Center, a non governmental organization, operates database system for SNPC anddiscloses basic organizational data and other voluntary submission data such as financial, activities,
announcement and etc. Also Japan Foundation Center operates database for incorporated
foundation, and Tokyo metropolitan government operate the database system for social welfare
corporation. NOPODAS is the database system disclosing PIC basic organizational data and othervoluntary data such as financial, activities, announcement and etc.
Thus, many of database systems for charitable and nonprofit organizations exist in Japan andeach of them have several distinguishing characteristics as you can see the slides below.

171

8

Environments around NOPODASNOPODAS
System
PIC Information

SNPC
SystemOther
Systems
PIC Commission,
Japan Foundation Center,
Cabinet Office, etc.

SNPC Information

profit sector

CSO

donatorpublicmedia

government

4. Creating culture of voluntary submission
As I mentioned before, NOPODAS is quite different from other system operated by PIC
Commission. NOPODAS provides several kind of organizational and sector information to thegeneral public in real time but PIC Commission has only a limited disclose to the general public. This
9

Creating culture of voluntary submission

JACO

NOPODAS

News & Topics
Event
Self-disclosure info
How to help charities
Ask for donation
How to join volunteer
Publicize info
Grant info
Statistic

PICｓ

PIC Commissions(Recognizing PICs)

Other
Information

Basic
Information

PIC Commission
in Cabinet Office

172Internet(USER)

Basic
Information

part is one of the differentiations between NOPODAS and database system operated by PIC
commission.
It is necessary to look for something government cannot do, in order to make a position oneself
apart from the government or the rest. And we also need to enable government to understandwhat government can do or can not do and what charitable sector or private sector can do or can
not do. But this is only for the case of developing database system besides database system
operated by government.

5. Page sample (Top page)
All the functions of NOPODAS including organizational search and entrance of contents such as
news, close-up, statistics, etc., all are located in this page as shown below. It will take you directly tothe pages or other sites where you wish to go and search information. For example, it is easy toresearch how to donate, where you can donate, where you should donate for charitable andnonprofit organizations by taking a look at the NOPODAS database system.
If there is an announcement from organization, you will see it by clicking organization name ortitle located in the box called “several information from PICs”. The information of events &publications, job opportunity, grant information, etc. also are available on NOPODAS.

Page sample: top page

10
1

2

1. Home2. About PIC system
3. Donation & grant information
7
4. Organization search
5. Statistics
6. Custom search
7. Organization search
8(advanced, keyword, map, link to other DB)
8. Log in page for PICs
9
9. E-mail magazine
10
10.Sector Information (PIC system info.,
taxation system, legal system, movement ofcommission, how to apply for the PICs, etc.)
11.Donation & grant information (How to donate,
several ways of donation, how to look for
11
grants, etc.)
12.”Close Up” (same as no.15)
13.Information on CSO (consultation service,seminar & event, glossaries, statistics,
12
publications as a reference)
13
14.Link (major CSOs in JPN, PIC commission,
major CSOs in abroad)15.”Close Up” (same as no.12)
16.Corporate activities introduction
1417.”News & topics”
18.Announcement from NPODAS
19.The number of newly recognized PICs
20.Updated information from PICs
21.Several information from PICs

3

4

5

15

19

20
16

17

21

18

It is also possible to search charitable and nonprofit organizations by typing keywords in the freeword search blank box, then the system will response to your request, showing the list oforganizations you are looking for. If it is necessary to search organizations in a completely different173way, click on orange button in the free word search field on the top left and then the system will
give you four approaches to search organizations.
11Page sample: organization search

6.Page sample(Organization search)
This page will be shown by
clicking on orange button in thefree word search field on the top
left. On this page, it is available to

1. Q uick search
2. A dvanced search
3. Search from map
4. Search from ot her database
5. O rganization name
6. O rganization category
7. O rganization address
8. Coll ecting donati on
9. A pplying for grants
10. Recruiting volunteer
11. Recruiting staff
12. Search

1

2

3

4

10

11

5
6
7

search by quick search, advanced

12

search, search from map and
8search from other database system.

1

7. Page sample (Search result)

Page sample: search result

All search results will be shownin four items, organization category,organization name, office location
anddisclosing

items.

Iftheorganization discloses full items
such

as

basic

organizational

information,

9

2

3

4

12

1. Organization category
2. Name of organization
3. Office location
4. Disclosing items
A. Public Interest Incorporated Associ ation
B . Public Int erest Incorporated F ou ndation
C. General Incorporat ed Association
D. General Incorporated Foundation

A. B asic informati on
B . Organi zation information
C. Informati on of activ ities
D. Financi al information
E. Announc ement from organi zation

information,

information on activities, financial
information

andannouncementfrom organization, the organization
will be viewed in top front as describes below.

8. NOPODAS in the future (English version of NOPODAS)NOPODAS is developing and operating by two JACO staffs and providing additional stability to
the general public is one of the challenges facing NOPODAS team at the present.
JACO now has three plans to go. Developing English version of NOPODAS is one of the mostimportant project NOPODAS team has. Japanese version of NOPODAS is designed to provide
information in Japanese only, so that the English version of NOPODAS has to be developed as anindependent database system. It will be ready to provide organizational data of 60,000 of PICs and
SNPCs in a few months or years but it will start by providing only PIC organizational data at the
beginning of a new fiscal year.

174

13

NOPODAS in the Future: English version of NOPODASJACO started to develop English version of NOPODAS from this year.
It will come out in next year.
Cabinet Office

SNPC

SNPC basic
official data

SNPC otherofficial data

Database ENG
official data

Internet
Database JPN
official data, self reporting data,
PR news from PICs

PICs

PIC basic
PIC other
official data
official data
PIC Commission (Cabinet Office)

9. NOPODAS in the future (Develop as a community site)
JACO is also trying to develop NOPODAS as a community site. In this plan, we just do basic
operation and maintenance but the central players will be PICs and the general public.
14

NOPODAS in the Future: Develop as a community site
NOPODAS is now becoming as a tool to use information sharing
among PICs and the general public.

Present

Future

JACO

JACO

PICs

PICs

PublicPublic175

10. NOPODAS in the future (Online donating function)
In near the future, NOPODAS will achieve progressive steps in promoting giving culture throughcooperation with SNPC named Public Resource Center. They are a charitable giving operator which
is like Canada Helps, registered charity in Canada located in Toronto. If this plan comes off, people
will be able to donate directly to PICs using NOPODAS.
15NOPODAS in the Future: Online donating function
NOPODAS will achieve progressive steps in promoting giving culture
through cooperation with Public Resource Center.
Public Resource Center is a charitable giving operator.

SNPC

Public Resource Centre

Apply forthe test
Donation

SNPC

Charitable giving Information
online system Donation

Provision of the system

PICs

Registration*
Donation

JACO
Information

PIC
Donation

Donators*Newly recognized PICs already passed a rigorous screening. In fact, it is not necessary to
set up board of review to register PICs into database for online donation system.

176

6. Turkey
Derya Kaya
Third Sector Foundation of Turkey

6-1 Civil Society in Turkey

Civil Society inTurkeyAGNA Asia Regional Meeting,
18 August 2010177

About TUSEV

1

Our Programmes

1178Click to edit Master title style•

For further
information:

Click to edit Master text styles– Second level• Third level– Fourth level»

Fifth level

www.tusev.org.tr

1

Historical Background of the Civil Societyin Turkey

Foundations in the Ottoman Era• The Foundation was the most important philanthropic
institution throughout the Ottoman realms.
• More than 35,000 foundations were established andoperational throughout the Ottoman Era.
• The earliest documentation of a foundation in Anatolia dates
back to 1048 (during the Seljuk Empire)• In the year 1546 there were 2,515 foundations in Istanbul
alone.
1

179

Republican Era• Historically- Foundations since Ottoman Era, Associations in
the New Republic• 1960s - Traditional ‘charitable’ foundations, mainly thoseestablished by Turkey’s industrialists from the late 1960s
onwards• 1970s-1980s- Turbulent times politically and socially, causing
great restrictions on civic engagement• 1996 Habitat Conference- generated civic action• 1999 Earthquakes- generated civic response and awareness• 2001 EU Candidate for Accession and Copenhagen Criteriagenerated political will and momentum for democratic
reforms greatly affecting civil society
1

Today• 2000s – More enabling environment– 2004: Law on associations– 2008: Law on foundations• New roles for traditional foundations• More networks and cooperation with public and private
sectors– Education Reform Initiative• Improved international relations
1

180