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Nonprofit Self-Regulation in Comparative Perspective
Israeli Center for Third Sector ResearchMarch 2008
Mark Sidel
University of Iowa
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For Nonprofits,A New Self-Regulation Imperative –
Around the World
Why are Nonprofits focusing on Governing Their Own Sector in
Addition to Government Regulation?
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Why Self-Regulation?
• The Problem – Even Crisis – of Nonprofit Accountability and Legitimacy in Some Countries
• Increasing Government Intervention
• Increasing Media Scrutiny
• Increased Nonprofit Scrutiny of its Own
• The New Context of Counter-Terrorism
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The Multiple Motivationsfor Nonprofit Self-Regulation
• Sectoral Defense Against Encroaching Regulation
• Improving Standards in the Sector and Weeding Out Weaker Actors
• Reshaping Public Perception of the Sector
• Public Education for Nonprofit Organizations, Boards, and Staff
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The Multiple Motivationsfor Nonprofit Self-Regulation
• A Means or Condition for Accessing Government or Donor Funding
• Learning Opportunity for Nonprofits and Networks
• Market Mechanism to Exclude Unproductive Actors
• Market Mechanism to Exclude Competitive Actors, Benefitting Remaining Players
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The Multiple Motivationsfor Nonprofit Self-Regulation
• Competitive Opportunity for Self-Regulatory Service Providers
• An Opportunity for Differential Government or Legislative Preference for Certain Networks or Service Providers
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Typologies of Nonprofit Self-Regulation
• Voluntary or Required
• Guidelines, Voluntary Codes of Conduct, Codes of Conduct with Certification, Organizational Certification to Standards, Accreditation, Rankings and Ratings
• National, Sub-Sectoral, Sub-National?
• Carrots? Conditioning of Donor Funding, Government Funding, Tax Status
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Nonprofit Self-Regulation in Comparative Perspective:
The United States
• Long History in the United States, Especially Sectoral
• Growing Pressure from Congress and the Press
• Senate Finance Committee
• Staff Recommendations
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The United States (continued)
• Panel on the Nonprofit Sector and Independent Sector
• Principles for Good Governance and Ethical Practice: A Guide for Charities and Foundations (2007)
• The Contours of the Debate over the Principles for Good Governance and Ethical Practice
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Key Problems for Nonprofit Self-Regulation in the U.S.
• The Question of Enforcement
• The Problem of “Layering” – Multiple Systems for Local, Sub-Sectoral, and National Self-Regulation: Example: “Iowa Land Trust”
• The Burden on Local, Smaller and Advocacy Groups
• Guarantor of Quality – or of Market Position?
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Key Problems for Nonprofit Self-Regulation in the United states
• The Emergence of Self-Regulatory Entrepreneurs
• Does Self-Regulation Discourage Diversity in Approach, in Participation, in Goals?
• Self-Regulation and The Role of Education for Nonprofit Boards, Leaders, and Staff
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The Philippines
• Earliest Models of Nonprofit Self-Regulation in Asia, in a Society with a Vibrant NGO Culture
• Self-Regulation with Government Support: A Challenge or Boon to Collective Action
• Government Determination of Tax Status Devolved to the Nonprofit Sector Through Self-Regulation
• The Philippine Council for Nonprofit Certification (PCNC)
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The Philippines
• Best Example Worldwide of Government-NGO Collaboration on Self-Regulation
• Standards and Implementation through PCNC
• Issues: Labor Intensive; Easier for Larger Groups?; Conflicts Within the State
• The Merged Model of Collective Action and Government Support
• The PCNC Throughout Asia
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India
• Multiple Experiments, Multiple Motivations
• Overall, Collective Action for Sectoral Self-Defense to Forestall Stricter Government Regulation
• Also Increasing Public Trust, and Quality
• The Variety of Typologies
• Voluntary Guidelines; Information Provision, Certification; Standards and Enforcement
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India
• From Guidelines to Standards: A Long and Tortuous Process
• Three Models Today
• “Intranet” Self-Regulations: Donors Governing Recipients
• Code of Conduct, Standards, and the Struggle for Enforcement: The Credibility Alliance
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India
• Transparency as a Self-Regulatory Tool: Guidestar India (and earlier initiatives)
• The Government’s Attitude Toward Self-Regulation: National Policy on the Voluntary Sector
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Pakistan
• Self-Regulatory Initiative Along Philippine Lines: Collective Action and Tax Status
• A Slow Process
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Cambodia
• Self-Regulation as Collective Action to Defend and Unify a Fractured and Attacked Sector
• Earlier Efforts
• Code of Ethical Standards and Minimum Standards for NGOs in Cambodia
– Goals, and the Struggle for Implementation
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Advantages and Obstaclesto Self-Regulation
• The Educational Function
• The Unifying Function
• The Standard Setting Function
• Utility vis-à-vis Government
• Utility vis-à-vis the Public
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Advantages and Obstaclesto Self-Regulation
• The Transition to Enforcement
• Financial Sustainability of Self-Regulatory Models
• Scaling Up
• “Layering”: Multiple and Overlapping Self-Regulation Systems in One Country
– National, Sectoral, and Sub-National
– Donors, Regulators, and Self-Regulators
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Issues in Self-Regulation
• Enforcement
• Outliers Don’t Obey Anyway
• The Burdens on Local and Smaller Groups
• Does Nonprofit Self-Regulation Discourage –Even Prevent – Innovation and Non-Mainstream Practices?
• Is Nonprofit Self-Regulation Unfriendly to Advocacy?
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The New Context for Nonprofit Self-Regulation: Counter-Terrorism• The Collective Action Paradigm: Network
Activity to Forestall Stricter Regulation
• The U.S. Example: Layers of New Regulation and Requirements after September 11
• The Sectoral Response in the U.S.:
Principles of International Charity
• Fear and Self-Regulation: The United Way
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Counter-Terrorismand Nonprofit Self-Regulation
• Principles of Accountability for International Philanthropy (EFC and COF)
• UK Charity Commission: Enhancing Self-Regulation, Preserving Enabling Environment
• Montreux Initiative and Humanitarian Forum
• Self-Regulation as a Real Measure to Prevent Terrorist Financing, or a Tool in Dialogue with Government?
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The Complex Future for Nonprofit Self-Regulation
And my thanks to ICTR and all of you
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