CSO Sustainability Index-2011

What is the CSO (Civil Society Organization) Index? The report on the Sustainability Index covers issues on the development of civil society The Index is prepared by the data gathered in the last 15 years for 29 countries; it covers European and some Asian countries The assessment is based on a seven-point scale covering an amplitude of “increased resistance” and “in decline” through the following indicators: - Legal Environment - Advocacy -Organizational Capacity - Infrastructure -Financial Viability - Service Provision -Public Image 2

CSO – 2011 Assessment by Experts An assessment conducted by representatives in media, donor organizations, and NGOs from Baku and Şəki- Zaqatala region. 3

Assessment based on 7 categories 4 Legal Environment -Registration, -The Legal Framework -Administrative Barriers and State Intervention -Local Legal Skills -Tax Privileges -Revenues to be Received

CSO-Sustainability Economic growth in the last five years; NGOs have not benefited from this growth in GDP Of the 2725 registered NGOs, only 1350 submitted activity reports 1000 NGOs operate without any registration NGOs show activity in 24 fields 1,9 million people have benefited from the work of NGOs, and 250,000 have volunteered (source, State NGO Council) 6

Legal Environment -Registration 2009—162, 2010—124, 2011—103 NGOs were registered Non-commercial NGOs find their registration period to be 140 working days (according to some NGOs’calculations) In 2011, the Ministry of Justice asked for additional documents, such as—information on political affiliations, recommendations from government authorities or the State NGO Council In 2010 the government stopped the operation of two NGOs: - US-based National Democratic Institute (NDI) - Norway-based Human Rights House Network Positive Event – NGOs were taken out of the list of organizations that had to attend a mandatory audit

Number of Registered NGOs

Legal Environment State Intervention In legislation, there are no restrictions covering the official entities’ interference in the work of NGOs In order to hold events, regional NGOs in many cases have to ask permission from executive bodies Due to the fact that NGOs depend on local executive authorities, they engage in social activities, education, youth work, environment, but avoid political issues and human rights Taxes NGOs must pay taxes for grants and charitable activities Income tax is paid for the sale of goods and services Social investment is not exempt from tax

Legislative Initiative 2011-State NGO Council Law on Social Orders –delivery of social services Law on Public Participation –delivery of national programs and will allow NGO’s to participate in public work Law on Trade Unions –regulation of professional associations Corporate Social Responsibility (CSR)—describes what CSR is and recommends business bodies to work with NGOs 10

Organizational Capacity The government interferes in public and support groups Some NGOs have begun to use media NGOs lack management and strategic planning skills In practice, most NGOs do not fulfill their division of responsibilities Due to financial problems, there are few full-time workers In 2010, 3979 worked full-time, and 3031worked as volunteers NGOs operating in big cities have access to the Internet, offices, and technical advantages; however, those operating in the regions lack offices or function in inadequate conditions

Financial Viability Budget ( ) In 2011, of the 29 million AZN (approx. 37 million USD), 2,05 AZN were granted by the State NGO Council and the rest by international donor organizations In 2010, of the 30 million AZN (approx. 38 million USD), 2,1 million AZN came from the Sate NGO Council In 2009, of the 20 million AZN (approx. 25,5 million USD), 2,06 AZN were granted by the State NGO Council NGOs benefit mostly from grants from donor agencies or charitable funds The Open Society Foundation – Soros Fund The Open Society Foundation – suspension of the Soros Fond’s grant programs In 2010, the Fund allocated 2,8 million USD for fund projects In 2011, the Fund allocated 600,000 USD In 2012, only a program based on transparency operates

Financial Viability Primary Budget State NGO Council

Financial Viability Sources of Finance Grants are a significant part of NGOs’ budget Business have little interest in cooperating with NGOs According to the contracts signed dealing with oil, 4-5% of revenues from oil companies must be allocated for social investment Membership fees and donations are very small While Government funding for NGOs is still limited, with the Law on Social Orders NGOs will have increased opportunities to compete for government tenders Financial Reports In 2011, 1350 NGOs provided the report In 2010, 1/3 of NGOs provided the report Most NGOs do not have a full-time accountant Regional NGOs experience difficulties in sending their reports; they note that sometimes they have to send their reports 4-5 times

Advocacy The government is cautious in its cooperation with NGOs NGOs constitute 8/11 representatives of the State NGO Council NGO representatives participate in:  the Observatory Board of the Council of State Support to Development of Mass Media under the President,  the Observatory Council of the Social Development Fund of Internally Displaced Persons (IDPs),  the State Committee for Captive, Missing, or Hostage Citizens,  the Azerbaijan National Commission for UNESCO,  the Amnesty Commission,  the Education Commission,  the Council of Businessmen,  and the Heraldic Council. Legal Projects on:  “Law on the Right to Obtain Information,”  “Law on Mass Media,”  “Pedigree Stockbreeding,”  “Apiculture,”  And “Horse breeding” were prepared.

Service Provision In their activities, NGOs prioritize donor organizations Revenue from economic activity remains low NGOs provide a limited range of products and services for fees, such as training in the areas of accounting, information technology, and foreign languages “The Law on Social Orders” will give NGOs the opportunity to provide social services to the disabled, orphans, human trafficking victims, and the elderly

Infrastructure Resource Centers Resource centers function in a number of regional centers; they provide NGOs with offices and facilities and offer legal support Some local NGOs complain about the quality of existing resource centers -Trainings Trainings will be held on issues covering fundraising, management, accounting, and registration There is an insufficient number of trainers in the field of knowledge and skills -Coalitions In seventeen coalitions and networks 1,262 NGOs have joined The most active coalitions include the Extractive Industries Transparency Initiative, NGO National Forum, NGO Cooperation Alliance, and the NGO Coalition against Human Trafficking Regional NGOs rarely join coalitions -Partnership Local businesses show little interest in working with NGOs A few banks, oil companies, and mobile communication and oil companies that have clear Corporate Social Responsibility strategies show partnership with NGOs NGOs’ partnership with the government depends significantly on the state organization.

Public Image Print media, online television channels provide a satisfactory media outlet for NGOs Coverage of NGOs by state organizations and the business sector remains low Local authorities bring attention to the foreign funding of NGOs, and put restrictions on their work In February of 2011, the Entrepreneurship and Market Assistance Foundation launched the Charter of Responsibility with an order from the State NGO Council The Charter embraces the following:  the development and commitment to work ethics,  the identification of policies and practices,  the preparation of domestic and foreign reports,  the strengthening of mutual relations with interesting parties,  and taking into account international practices to increase the efficiency of NGOs.

Thank You ! 19