Egypt NGO Sector

Introduction

Civil associations or non-governmental organizations (NGOs) not only provide social and cultural services to a community, but they can also serve as instruments for democratic development. For this reason, in authoritarian states NGOs are generally controlled by the government to prevent them from becoming focal points of political reform. Along these lines, in Egypt, where political power is held almost exclusively by the president, NGOs are subject to substantial government interference. Despite this interference, in recent years the Egyptian NGO sector, while continuing to provide a variety of community services, has begun to serve as an outlet for those seeking social and political change. However, to make an impact on the development of Egyptian society NGOs must overcome a difficult political and social environment, legal and funding restrictions, and extra-legal barriers to registering and operating an NGO.

Egyptian NGOs

Since the early 20th century, NGOs have been an integral part of Egyptian civil society in providing social aid and services to the community. Egypt’s early NGOs arose as ethnic and religious organizations. In particular, Islamic NGOs have long been an important part of Egypt’s charitable system. In the last two decades, the numbers of all types of NGOs have increased with corresponding growth in the diversity and scope of their activities, the amount of funds they receive and distribute, and their impact on society. According to the Egyptian government, there are approximately 17,000 NGOs registered and operating in the country. The NGO community consists mostly of “small community-based organizations that concentrate on service delivery and social assistance.” NGOs in Egypt work in many fields, including “health care, education, job training, child care, elder care, welfare, legal assistance, human rights, access to credit (especially for women), water, irrigation, environmental and other social and economic services to a largely poor population.”

In Egypt, NGOs can generally be categorized into five major groups: development organizations, Islamic NGOs, advocacy groups, Coptic NGOs, and business associations. Development organizations are connected to the government and provide social welfare services. Islamic NGOs are the “most active and well-organized,” and are best able to obtain funds, from individuals and other Muslim countries, and recruit qualified professionals. With the widest popular base of NGOs in Egypt, Islamic NGOs provide a variety of services, including health and education services. Advocacy groups include human rights, environmental and some women’s rights groups. Rather than providing community services, advocacy groups focus on exposing matters of public policy and pushing the government for social and political reform. Even though advocacy groups have grown in number in recent years, they still make up a small percentage of NGOs and are dependent on foreign funds. Coptic NGOs consist of some of the largest NGOs in Egypt, but are also small in number and dependent on donations from the West. Like Islamic NGOs, Coptic NGOs have been noted for their contributions to health and education. Business associations, although treated like NGOs under the law, are really interest groups and do not serve the “community at large” like other types of NGOs. Excluding the first and last category, the growth of these NGOs in number and impact has increased the tension between the NGO community and Egypt’s authoritarian government and within the NGO community itself.

Political & Social Environment

To operate, NGOs must navigate through the political and social environment of Egypt. The Arab Republic of Egypt, while nominally governed by three separate branches of government, is in practice controlled by the President who maintains a tight authoritarian grip over political and social society. Since 1981, following an increase in sectarian violence and the assassination of President Anwar Sadat, President Hosni Mubarak has ruled Egypt under a state of emergency, which ostensibly gives the President military control over the country. The emergency laws restrict basic rights; prohibit public meetings, strikes and demonstrations; allow political activists to be tried in military courts; and censor the media on the basis of national security. While the rights of freedom of assembly and peaceful demonstration are guaranteed under the Egyptian Constitution, the Gathering Law, an emergency regulation, requires notice to be given to security forces prior to any public meetings and gives police the right to prevent or dissolve meetings by force “if necessary.” In the last two years, President Mubarak has enacted legislation to reform presidential elections and the judiciary; however, in reality, the new laws have not improved the pace of democratic reform. Indeed, in early 2007 the government pushed through several amendments to the Constitution of Egypt which further consolidate power within the executive and may eventually place greater restrictions on civil liberties. Critics charge that these constitutional amendments codify some of the government’s emergency powers in the Constitution. The fear of NGOs serving as the center of political opposition has caused the Egyptian government, typical for autocratic regimes, to distrust the NGO community. Outside observers have described the NGO community as being “tightly controlled” by the government.

According to these reports, the Egyptian government has long sought to interfere in the management and operation of NGOs and has targeted certain types of NGOs, such as women’s groups, religious organizations, and human rights groups, for government and bureaucratic intrusion. This hostility towards NGOs has also colored the perception of NGOs within the broader society.

With encouragement from the government, public opinion of the NGO sector is distrustful. Most NGOs are heavily dependent on foreign funds, which come mostly from the West. This dependence along with the government’s ability to influence the media encourages hostility towards NGOs and activists and leaves them open to the charge that they are acting on behalf of Western governments, particularly the U.S. According to an Egyptian sociologist, this gives rise to suspicions in the community about the purpose and identity of NGOs.

Within the NGO community itself, experts believe that government interference and NGO dependence on foreign funds produces competition for survival and a lack of pluralism among [NGOs]. In addition, there has been increasing division and hostility between Islamic and secular NGOs over their different visions of a desirable society. This has led to more members of the community identifying only with the NGOs that share their religious or ethnic background. According to a study of NGOs in Egypt, this struggle for survival [within the political and social atmosphere] diverts the attention of NGOs from their actual objectives.

Legal Framework

The rights of Egyptians to private assembly, to associate, and to create syndicates and unions is guaranteed in the Constitution of Egypt. The Constitution also protects basic freedoms, including freedom of speech, press, and literary and scientific research. NGOs and their activities in Egypt are governed by Law No. 84 of the Year 2002 on Non-Governmental Organizations (“Law 84/2002”), and the related Executive Statute on Law No. 84 of 2002 (Ministry of Insurance and Social Affairs Decree No. 178 of 2002). NGOs must register with and are regulated by the Ministry of Insurance and Social Affairs (MISA).

Law 84/2002 superseded the previous laws governing NGOs: Law No. 32 of 1964 (Law 32/1964) and Law No. 153 of 1999 (153/1999). Law 32/1964, enacted in 1964, was similar to the current law and in some cases more restrictive; for example, NGOs could not be established “if the community [did] not need its services” and there were only 12 specialized fields in which NGOs could act. Law 153/1999 was enacted in May 1999 to replace Law 32/1964. However, it was struck down by Egypt’s Supreme Constitutional Court in March 2000 because the law had not been approved by the Upper Chamber of Parliament as required by the Constitution. The NGO community considered Law 153/1999 to be more stringent than Law 32/1964. For example, Article 11 of Law 153/1999 prohibited political activities, which could include the activities of advocacy groups. Law 84/2002 is largely based on Law 153/1999. Upon its enactment in 2003, all existing NGOs had to re-register and harmonize their statutes with Law 84/2002. Additionally, all NGOs using alternative legal structures had to amend their statutes and register under Law 84/2002. Previously, NGOs could register as civil companies or law firms to avoid the stricter requirements governing NGOs; however, Law 84/2002 closed that loophole. Like the previous NGO laws, Law 84/2002 places restrictions on the operation, management and finances of NGOs.

Under Law 84/2002, direct authority over NGOs and their activities was transferred from the courts to the MISA. Within the law the basis for the government’s power over the NGO community resides in two main areas: (1) the ability of the MISA to select NGO leaders and (2) the MISA’s control of the financial resources available to NGOs. MISA’s financial monitoring takes “three forms: (1) directly supervis[ing ]NGOs’ budgets and expenditures, (2) allocat[ing ]government grants, and (3) control[ling] foreign funding.” The law also gives the state new powers to reject the registration of NGOs, dissolve existing NGOS, and monitor activities. In addition, Law 84/2002 contains an Article 11, similar to Law 153/1999, prohibiting political activity.

Registration of NGOs

Under Law 84/2002, NGO registration is mandatory. Unregistered NGOs are prohibited. The law divides NGOs into two types: (1) associations and (2) non-governmental private institutions or foundations. Once an NGO is registered it receives an official registration number. Associations

An association must have 10 or more people to register with the MISA and a written set of articles of incorporation. The articles of incorporation must include:

1. the name of the association and its purpose;
2. the field of work, scope of activities and geographic region of the NGO;
3. the association’s address;
4. the names, ages, nationalities, professions, and addresses of the founding members;
5. the NGO’s financial resources;
6. the association’s method for selecting and removing members and the definition of a quorum;
7. the rights and duties of its members;
8. the association’s system of financial control;
9. the rules for amending the articles of incorporation, forming branches, and terminating the NGO;
10. the person in charge of acquiring the quality of public benefit; and
11. the name of the representative of the group of founders.

The NGO’s application for registration must include:

1. 2 copies of the articles of incorporation, signed by the founders;
2. declarations from each of the founders stating that the articles of incorporation contain the required information;
3. the association’s deed;
4. 2 copies of the by-laws or internal regulations;
5. 2 copies of the list of the names of founders (indicating quadruple name), their ages, nationalities, professions, and addresses;
6. a declaration from each founder that there is no judgment against him or her;
7. the name of a representative of the group; and
8. proof of the deposit of 100 Egyptian pounds in the Fund for Support of Associations and Non-Governmental Institutions.

The application should be filled out in pencil to allow for changes.

Application Review Process

The MISA is required to record the date the application is submitted and return a copy to the applicants. The name of the NGO must then be checked to make sure it is not already being used. After the submission of its registration papers, an NGO’s premises must be inspected. After inspection, the founders must review the application with an MISA official who will instruct the applicants on any objections the MISA has to the application or the articles of incorporation. Objections to the articles of incorporation must be in writing. If the NGO does not make requested changes, the matter will go before a three-person dispute resolution committee.

Grounds for Rejection of Application

The MISA can reject an application if it finds the application violates Article 11 of Law 84/2002. Under Article 11, an NGO may not:

1. engage in military activities,
2. threaten “national unity” or violate “public order or morals,”
3. exercise “any political” or union activity, or
4. make a profit.

The MISA must announce its decision accepting or rejecting an application within 60 days of submission or the application will be considered accepted. If the MISA rejects the application, it must state its reasons in writing. The NGO has 15 days to remove the violating provisions. If the applicants do not make the requested changes, the MISA may submit the matter to the dispute resolution committee or the NGO may appeal the rejection directly to the administrative court. Foundations

Foundations, nonprofit organizations established by a fund similar to a trust, are the most popular form of NGO. Under Law 84/2002, foundations are less accountable to the state than associations. Nonetheless, some of the provisions that apply to associations apply to foundations, including Article 11. In addition, foundations also must submit disputes with the MISA to a three-person dispute resolution committee rather than the administrative court. A foundation may be established by one or more persons and, like an association, must submit a written set of articles of incorporation to the MISA, which include:

1. the name of the organization, the geographic scope of its work, and its address;
2. the purpose of the organization;
3. a statement of its funds and property; and
4. the organization of administration, i.e., the method of appointing the head of the board of trustees and its members and directors; the time period a trustee serves; and the procedures for renewing a trustee’s term and handling a vacancy on the board.

The articles of incorporation for a foundation may also be an official document or a will. To register with the MISA, the founder or chairman must submit:

1. 2 copies of the articles of incorporation or 2 copies of the deed or will,
2. the deed of occupancy, and
3. proof of the deposit of 100 Egyptian pounds in the Fund for Support of Associations and Non-Governmental Institutions.

The MISA must record the date the application was submitted and return a stamped copy to the founder. Similar to the registration of associations, the MISA has 60 days to accept or reject a foundation application. If no decision is made within that time, the application will be deemed accepted. Foreign NGOs

Foreign NGOs may be licensed to operate in Egypt if they have an agreement with the Ministry of Foreign Affairs (MFA) and the MISA approves. A foreign NGO may request permission to work in Egypt through the MFA by submitting:

1. the citation to an appropriate treaty that allows the foreign NGO to work in Egypt,
2. a description of the nature of its activity,
3. the NGO’s means of finance,
4. a copy of the NGO’s by-laws, and
5. a copy of the NGO’s formal decision to work in Egypt.

The MISA has 15 days to provide an opinion to the MFA. The agreement between the NGO and the MFA will provide the geographic limits, scope, and time period allowed for the NGO’s work in the country. NGO Unions

Under Law 84/2002, NGOs must establish unions or umbrella organizations for each specific field of work and geographic region to serve as a representative for that group of NGOs. The responsibilities of these unions include coordinating efforts of the NGOs and performing social research. The NGOs must submit the names of the organizations to be included in the union and the MISA will group the organizations by their chief activity. Only one regional union in each governorate is allowed for all NGOs and only one specialized union is allowed in the country for each field of work.

Law 84/2002 also established the General Union of Associations and Non-Governmental Institutions (General Union) in Cairo (similar to Jordan’s “General Union of Voluntary Associations”), a government organized representative body for all NGOs in Egypt. The General Union consists of elected members from Egypt’s NGOs and its duties include, setting a general role for NGOs, helping NGOs develop financial resources, and reorganizing training programs for NGO employees. The board of directors of the General Union is made up of 30 members: 19 members elected from NGOs and 11 members, including the chairman, appointed by the President of Egypt. One of the General Union members sits on the three-person dispute resolution committee established to hear complaints between the MISA and NGOs. General Union representatives must also be consulted by the government on certain occasions, such as the government-ordered dissolution of an NGO or the appointment of a board member.

Organization of NGOs According to Law

In general, an NGO is governed by a board of directors or trustees. Law 84/2002 specifies the organizational framework for the governing bodies of NGOs in Egypt. Particularly, the MISA has the power to determine the makeup of an NGO’s board. Associations

In associations, the board of directors must consist of more than five, but less than 15 people. The initial board must serve a term of three years, and thereafter, board members must serve six-year terms, one-third of which must be up for election every two years. The NGO must supply the MISA with a list of the nominations for board members 60 days before the election. Within seven days, the MISA or “any interested person” will notify the NGO which nominees must be removed from the list for not fulfilling the nomination requirements. The law does not require the objecting party to specify clear grounds for removal. If the nomination is not removed, the matter will be submitted to the dispute resolution committee. The committee has 10 days to make a decision, which the parties may appeal to the administrative court within seven days. The MISA also has limited powers to appoint members to the board of directors, for example when a quorum cannot be met to hold a meeting. Foundations

In foundations, the board of trustees must consist of at least three but less than 15 trustees. The founder appoints the initial board who serve a three-year term. Thereafter, the trustees must serve six-year terms with one-third being up for renewal every two years. In a foundation, there are no board elections. The founder must submit the names of the trustees to the MISA and notify the MISA of any changes to the board. Under Law 84/2002, the MISA cannot object to the leadership of a foundation. However, the MISA has the power to appoint a trustee if the NGO is unable to do so. Management of NGOs According to Law

In general, the board of directors manages an NGO’s affairs to realize its objectives. The board makes decisions related to the NGO’s work, prepares the annual budget, and organizes monthly meetings. The general assembly of an NGO, which includes the board of directors and its members, is the arena for discussion and new ideas, election of the board, and approval of the budget and other financial matters. Law 84/2002 specifies the governance and administrative procedures for the board of directors and the general assembly of NGOs in Egypt. Associations

MISA authority over the management of an association includes the power to specify:

1. the procedures for holding an annual meeting of the general assembly and the constitution of a quorum,
2. the procedures for holding board meetings,
3. the fields of work and affiliations of an association, and
4. the procedures for keeping records at the association’s place of business.

Meeting Procedures

The board of directors of an association must call an annual general meeting (AGM) of the general assembly to consider the NGO’s balance sheet, the final accounts, the board’s report for the year’s work, and the auditor’s report, as well as to elect the board and discuss other issues. For a decision to be made at the AGM, for example approval of the budget, a majority of the members present must vote for it. A copy of the minutes of the AGM must be submitted to the MISA within 30 days of the meeting. The MISA may convene an AGM if it deems it necessary.

According to the law, the board of directors must also meet every three months with a majority of directors being present. If the board cannot reach a quorum, the MISA may appoint a board member. At these meetings the board may prepare internal regulations, appoint workers, set up exhibits and parties, approve contracts and agreements, determine the amount spent on daily expenses, prepare the closing accounts, and draft the budget. The board must inform the MISA of any decisions or resolutions it or the AGM makes within 30 days.

The MISA may object to a decision of an association’s board of directors or general assembly within 10 days of notice of the decision. If the NGO does not withdraw the decision, the matter must be brought before the three-person dispute resolution committee. The law does not require the MISA to provide an explanation of its objections. Fields of Work and Affiliations

Under Law 84/2002, associations “may carry out any activity that leads to the realization of its purposes.” The list of social development fields an NGO may participate in include: “educational, health, cultural, or social, economic or environmental services, consumer protection, enlightenment as to the constitutional or legal rights, social defense, or human rights.” When applying for registration, an association must indicate its field(s) of work. Despite the number of fields allowed in Law 84/2002, the MISA may or may not approve each requested field of work for a particular association. After registration, an NGO is not allowed to expand its work into any new project areas not part of its original mandate or work in more than one governorate or “beyond the limits” of its local governorate without MISA approval. An association must submit to the MISA a request to add a new field or governorate to its mission. The MISA must respond with a decision within 30 days. An association also needs MISA’s permission to affiliate with an international organization. To affiliate with an international organization, an NGO must notify the MISA of the name, nationality, location, purpose, and country of the international organization. The MISA has 60 days to provide a decision. Recordkeeping

An association must maintain certain documents at its headquarters, including a copy of the by-laws, a list of members, a list of the board of directors, a register of the AGMs, a register of the board’s meetings, accounts of the association’s revenues and expenses, the association’s bank book, a list of the NGO’s property, the association’s deeds and bills, a register of visits, and a register of donations. Members of an NGO may request to review these documents. The MISA has the power to determine who else may enter the NGO’s premises and review the documents. Foundations

The governance and administrative requirements for foundations are less strict than for associations. Like associations, foundations may work in several scopes of activities that further its purpose. The law is silent as to any procedure for expanding the scope of the work of a foundation. The board of trustees of a foundation must meet twice a year and within four months of the end of the financial year to consider the NGO’s financial accounts. There is no comparable provision in Law 84/2002 for foundations describing the duties and responsibilities of trustees or the NGO’s duty to notify the MISA of its decisions. A foundation may merge with another NGO if: #the founder requests the merger, #the board of trustees of the other NGO approves, and #the MISA approves.

The MISA has 30 days from notification to approve the merger.

Dissolution of NGOs According to Law

Under Law 84/2002, the MISA can dissolve an NGO any time it finds that the organization is performing an illegal activity. A dissolution order is appealable to the administrative court. Associations

The members of an association can vote to dissolve an association at the AGM. The MISA may also dissolve an association without a court order and liquidate its property on six grounds:

1. the NGO disposed of property other than for its objectives,
2. the NGO acquired foreign funds without approval,
3. the NGO violated the law, public order or morals
4. the NGO affiliated with an international organization without approval,
5. the NGO violated Article 11, that is, it threatened “national unity,” violated “public order or morals,” or engaged in political activity; or
6. the NGO accepted foreign funds without approval.

The MISA may also dissolve an association if the board does not hold an AGM for two years or fails to harmonize its by-laws with Law 84/2002. The MISA’s decision to dissolve an association is appealable to the administrative court. Foundations

The board of trustees of a foundation may vote to dissolve the organization. The MISA may also dissolve and liquidate a foundation if it finds that the NGO violated Article 11, that is, it threatened “national unity,” violated “public order or morals,” or engaged in political activity. After providing the NGO with notification of its decision and reasons for dissolution, the MISA must give the foundation an opportunity to make a statement. The foundation may appeal the dissolution order directly to the administrative court. Penalties

Law 84/2002 imposes individual criminal penalties on associations and foundations alike for non-compliance with the law, including fines and prison terms. Criminal penalties for individuals including the leaders, members and employees of an NGO as opposed to administrative penalties charged against the organization make establishing an NGO personally risky for those involved in an NGO should they be found in violation of Law 84/2002. There are three levels of penalties. For not registering an NGO or violating article 11, an individual could receive up to one year in jail and a fine of 10,000 Egyptian pounds. If a registered NGO violates the law, violates a court order suspending or dissolving the NGO, receives foreign funds without approval, speculates with NGO funds, or disposes of property marked for liquidation, an individual could receive up to six months in jail and a fine of 2,000 Egyptian pounds. If an NGO performs work before it is registered, affiliates with an international organization without approval, liquidates property in violation of the law, or merges with another NGO without approval, an individual could receive up to three months in jail and a fine of 1,000 Egyptian pounds. Funding

In Egypt, there are several sources of funding for NGOs, including: #MISA grants, # membership fees, # revenue from services, # sales of products, and # donations. Law 84/2002 gives the MISA authority to

1. control an NGO’s access to all of these sources,
2. control an NGO’s management of its finances,
3. control foreign funding,
4. define fundraising requirements, and
5. specify financial accounting procedures.

An NGO must be registered and have a valid registration number to accept and receive funds or grants. Generally, foreign funding is the main source of income for NGOs in Egypt. Under the law, an NGO cannot receive foreign funding without prior approval from the MISA. Associations

Associations may receive domestic donations, that is, donations from natural persons, either Egyptians or foreign nationals, in Egypt. To receive a domestic donation, the NGO must notify the MISA of the source and value of the donation. Alternatively, associations cannot receive foreign funding or send funds abroad without MISA approval. For every foreign grant an NGO must submit a request for approval with the MISA containing the name, country, and head office of the foreign donor; the activity and purpose for the funding; and the amount of the donation. The MISA must provide a decision within 60 days. If a foreign donation is received prior to approval, the funds must be reserved in a special account, which cannot be accessed until approval. However, NGOs may receive foreign funds if the foreign donor has an agreement with the MFA and the MISA is notified first. For both domestic and foreign grants, an association must deposit its funds in a bank and can only spend the money on realizing the NGO’s purpose. The association may invest its funds, but it cannot speculate with the funds.

Fundraising

An association may engage in fundraising activities if the NGO receives prior approval from the MISA. To request approval the association has to submit a request to the MISA detailing the activity, method, time period, and location of the fundraising. The MISA has 15 days to provide a decision. If the MISA approves of the fundraising, the NGO must submit its receipts to the MISA for endorsement. In its authorization, the MISA will provide the time period, location, and number of receipts allowed for the fundraising activity. The NGO must submit its final accounting to the MISA within 60 days from the end of the fundraising period. Financial Records

One month prior to the AGM, the board of directors must submit the closing accounting and supporting documents of an association to a registered accountant. The annual balance sheet, closing accountings, report of the board’s activity for the year, and auditor’s report must then be submitted to the general assembly and the head office of the association eight days before the AGM. Foundations

The legal restrictions on a foundation’s funding are more flexible than for an association. A foundation may receive additional funds or property from its founder(s) if the MISA is notified. Foundations may receive funds from third parties if the MISA approves. The trustees must submit a request for approval, which includes the name, address, nationality and shares of the donor and the conditions set by the provider. The MISA has 60 days to provide the foundation with a decision. With regards to its financial documents, a foundation must receive approval from the MISA of the NGO’s annual balance sheet and periodic financial statements. A copy of the foundations financial statements must be sent to the MISA 15 days before a board of trustees meeting. Fund for Support of Associations and Non-Governmental Institutions

Law 84/2002 established the Fund for Support of Associations and Non-Governmental Institutions. The fund is made up of state funding, donations, revenue from the property of dissolved NGOs, and additional duties. The board includes 13 members accountable to the MISA: five board members selected from NGOs and eight members appointed by the MISA. The MISA has jurisdiction over the fund and controls the dissemination of grants from the fund to NGOs. Taxes

Registered NGOs in Egypt are generally exempt from most taxes and receive reduced utility rates. Under the Income Tax Law No. 91 of 2005, income tax-exempt entities include non-profit educational establishments, NGOs established according to Law 84/2002, and non-profit entities exercising social, scientific, sports or cultural activities. NGOs are also exempt from registration and booking fees, stamp taxes, custom duties, and real estate taxes, and they receive a 25% discount on railway shipments. Further, NGOs registered under Law 84/2002 receive reduced charges for telephone, water, electric, and gas utilities. As for charitable donations, donations that do not exceed 10% of the donor’s net profit or income, which are given to registered NGOs, educational institutions, hospitals, and scientific research institutions, are deductible.

Barriers To Practice

Beyond the legal requirements there are several practical obstacles that Egyptian NGOs experience in the management and operation of their organizations. The most significant is the reported activity of the security services in Egypt rejecting applications, vetoing board decisions, and investigating leaders. Another considerable challenge is the Egyptian bureaucracy, which under Law 84/2002, has the power to interfere in the internal decisions of an NGO. In addition, MISA bureaucrats and governorate administrations have reportedly applied the law arbitrarily and interpreted vague provisions against NGOs. Moreover, as with many bureaucracies, inefficiency and corruption further encumbers NGO registration and operation. For years the judiciary in Egypt has been the traditional protector of NGOs against this government intrusion; however, the courts have also become vulnerable to government hegemony. These difficulties lead many NGOs to eschew operating in an open and accountable manner, which undermines the public support that they need to persevere. Security Services

Despite the lack of a legal justification for their interference, Egyptian security services appear to routinely review and reject NGO registration applications and board nominees. In practice, applications for registration submitted to the MISA are forwarded to the State Security Investigations bureau (SSI) of the Ministry of the Interior, which has units within the MISA, and other security services. According to reports, the SSI has rejected applications based on the identity of NGOs’ founders and board members. For example, the Helwan Foundation for Social Development was told it could only register if the NGO removed two founding members, one because of her “political activities,” at the behest of the security services. In another case, the nomination of Safaa Murad, a prominent feminist and human rights lawyer, to the board of the Arab Women Alliance Association was excluded from the election based on SSI objections. Reports have also indicated that objections by the SSI appear to be applied arbitrarily and written reasons are rarely given beyond that the application violated Article 11 of Law 84/2002. For example, the MISA rejected the re-registration of a long-running NGO, the New Woman Research Center (NWRC), based on a letter from the SSI that gave no reason for rejection other than that it did not agree to the registration. After more than a year of legal and bureaucratic wrangling, including a favorable ruling by the administrative court, the NWRC was allowed to register. Nonetheless, even after registration NGOs are subject to the close monitoring of their leaders, activities, and funding by the security services. The Bureaucracy and Administration of the Law

Under Law 84/2002, NGOs need permission from the MISA to perform basic operations, such as receiving donations, and to make many internal decisions. For example, the government can block the board of director’s management of the NGO by requiring approval weeks in advance for directors to be elected or by vetoing board decisions. Additionally, the MISA must give prior permission for any NGO to accept a foreign grant and maintains the authority to monitor an NGO’s work and documents related to projects funded by that grant. NGOs report frequent and long delays in obtaining permission for their activities. Furthermore, the internal structure of an NGO is limited by the highly specific organizational formation required by Law 84/2002, as well as by the requirement to join government-sponsored unions or federations at the local, state and national level. The unclear and discretionary wording of Law 84/2002 also allows it to be applied in a broad and arbitrary way by the government employees administering the law while technically still complying with the law. Most experts believe the motive behind Law 84/2002 was to “weed out undesirable organizations,” especially human rights groups, and that the government is using Article 11 as a “catch-all” to block registration of unfavored NGOs and control public life and political debate. In particular, Article 11 gives the MISA wide discretion to interpret the “political nature” of NGO work. Human rights groups whose activities could be interpreted as political may be and have been denied registration on that basis. Moreover, as one researcher noted with “vague terms[, such as ‘national unity’ or ‘public order or morals’ as also found in Article 11,] Egyptian courts are unlikely to reverse Ministry decisions.” Further, the inefficient and time-consuming procedures and corruption in Egypt’s bureaucracies exacerbate the political and legal obstacles faced by NGOs. One study reported there have been instances of groups waiting for three months without receiving acknowledgement from the MISA that their applications have been filed, even though upon submission the MISA is required to time-stamp the application and return it to the NGO. For example, the MISA initially refused to stamp the application of the Helwan Foundation for Social Development when it was presented for submission until pressured to do so. Additionally, according to a report, in certain cases the MISA has returned applications as incomplete within the 60 day deadline rather than accepted them and been bound by the time limit. The Judiciary

In the past, Egyptian courts have been the main protector for the NGO community against security intervention and government intrusion. Under the courts’ decisions favoring democratic reform, with which the government has complied, NGOs have been allowed to emerge and grow, and activists have had an “institutional opening” to challenge the government and its regulations. However, in recent years the government has sought to neutralize the judiciary’s ability to protect NGOs from government interference by choosing a Chief Justice who is a close ally of the President and attempting to restructure the court to lessen the judiciary’s independence and its ability “to confront executive abuses of power.” More recently, Egypt’s judges have clashed with the government over these attempts to diminish their autonomy by staging demonstrations and sit-ins. In response, the government included, among the constitutional amendments passed in early 2007, an article severely reducing the judiciary’s role in monitoring elections. If the Egyptian government succeeds in dominating the judiciary, NGOs will lose one of their few protective shields. NGO Accountability

The political, legal, and social environment in Egypt for NGOs creates a circular detrimental effect on NGO accountability: NGOs are treated with suspicion which leads them to behave in ways that seem to prove that NGOs cannot be trusted. Specifically, reports indicate that the government’s wide power to directly interfere within an NGO and the fear of retribution for failing to predict how the MISA will apply the law hinders transparency and accountability and promotes “self-censorship and uncertainty” within the NGO community. Many NGOs choose to censor themselves and avoid work in political or social advocacy which attracts government attention. Other NGOs attempt to circumvent the law by, for example, accepting money from donors in ways that hides the funds from government scrutiny. Observers have found that the restrictive and undemocratic environment also promotes an internal NGO organization that is also undemocratic, namely lacking interaction between the NGO and its beneficiaries, concentrating decision-making in a few hands, and disregarding systems of internal accountability. Lack of transparency and confidence in the management of NGOs undermines public trust, which makes garnering support within society for NGO autonomy more difficult.

Conclusion

Egyptian NGOs must overcome the difficult political, social, and legal environment, and the practical barriers to operating a non-profit organization in Egypt if they are to play a role in the democratic development of Egypt. Egyptian NGOs have long provided social services and aid to their communities, and in modern times have moved into political and social advocacy. Since then, the Egyptian government has regarded the NGO community as a potential threat to its exclusive control of the state and sought to weaken groups that it disfavored. To maintain a tight control over NGOs, the Egyptian government has used the law to limit the organizational and financial options open to NGOs and keep a hand in any internal decisions of governance and administration made by an NGO. Additionally, interference by the security services, a cumbersome and difficult bureaucracy, a weakened judiciary, and a lack of public accountability have lessened the impact NGOs have had on improving the Egyptian political culture. However, while the immediate future for NGOs in Egypt looks dark, NGOs continue to be one of the few instruments available to Egyptians to advance reform, thus, there is little choice for NGOs but to continue to find ways to do their work within and without the system and hope for brighter days ahead.

References

Abdelrahman, Maha M. Civil Society Exposed: The Politics of NGOs in Egypt. London, New York: Tauris Academic, 2004.

Elbayar, Kareem. “NGO Laws in Selected Arab States.” International Journal of Not-for-Profit Law, 7 (Sept. 2005) 3-27.

Human Rights Watch. “Egypt: Margins of Repression, State Limits on Nongovernmental Organization Activism,” July 5, 2005.

Mobarak Ibrahim, Nada, Aurelie Lachant, and Lara Nahas. “NGOs as Civil Society Actors on Media Policy Change in Egypt: Capacity Building within a Contextual Framework.” London School of Economics, Development Studies Institute, May 6, 2003.

Moustafa, Tamir. “Law Versus the State: The Judicialization of Politics in Egypt.” Law and Social Inquiry, 28 (2003): 883-930.

Statutes

President’s Order on Law 84 of 2002(can be found at http://www.icnl.org/knowledge/library/index/php).

Law No. 84 of the Year 2002 on Non-Governmental Organizations (can be found at http://www.icnl.org/knowledge/library/index/php).

Executive Statute on Law 84 of 2002 (Ministry of Insurance and Social Affairs Decree No. 178 of 2002) (can be found at http://www.icnl.org/knowledge/library/index/php).

Income Tax Law No. 91 of 2005 (can be found at http://www.mof.gov.eg/english/htmlaw).

External Links

Government

Egypt Government Sites http://www.egypt.gov.eg/english/info/directory.asp.

Egypt State Information Service http://www.sis.gov.eg.

Ministry of Finance http://www.mof.gov.eg/english

Ministry of Foreign Affairs http://www.mfa.gov.eg/mfa_portal/ar-EG/.

Useful Links http://www.mfa.gov.eg/MFA_Portal/en-GB/Useful_Links/.

Ministry of Insurance and Social Affairs, NGO Service Center http://www.egyptngosupport.org/.

Egypt’s NGO Law 153/1999 http://www.ngolaw.org.eg/.

Other

Arab Network for NGOs http://shabakaegypt.org.

Arab NGO Network for Development http://www.annd.org.

Human Rights First, Middle East Initiative, Human Rights Defenders in Egypt (and see related material) http://www.humanrightsfirst.org/middle_east/egypt/hrd_egypt.htm.