The International Journal of Not-for-Profit Law has an article by Uttam Uprety titled, A Reflection on the Legal Framework for Civil Society in Nepal, that provides a good overview of the sector. Despite the growth of civil society organizations (CSOs) in Nepal, the sector still faces many challenges.
As a philanthropic advisor, I naturally focused on the donor and fundraising areas in the article:
* Registered CSOs are permitted to fundraise if they receive prior permission from the proper authorities. However, the process of registering as a CSO and receiving permission to fundraise contains many administrative hurdles.
* All CSOs need prior approval from the Ministry of Finance and the Social Welfare Council to receive foreign grants.
* CSOs in Nepal have been criticized for their lack of transparency, accountability and reliability and that they are too donor-driven.
* CSOs submit audited reports to the concerned authority and while a few disclose publicly how they spend funds received, many do not.
* Very few organizations “have initiated a public and social auditing process where they present the financial transactions and respond to the queries raised.”