Overview
There is a general failure to tap into domestic resources, which is deemed an indispensable contributor to the resilience of civil society and sustainable development in Africa.
Freedom of association, as recognized in some international and regional treaties, provide a legal basis for the protection of civil society organizations (CSOs). In 2021, STAR-Ghana Foundation partnered the African Philanthropy Network (APN) under the Giving for Change project to undertake a multi-country assessment of the legal environment for giving in eight (8) countries across Africa, Asia, and North America.
The assessment revealed that legal frameworks at the national level have failed to protect this right and/or do not provide an enabling environment for domestic resource mobilization and community philanthropy to thrive.
People are willing to donate for good causes, but CSOs in many countries face serious barriers that prevent them from accessing these resources. Despite this, there is evidence of communities mobilizing resources for developmental initiatives.
This article explores the context of domestic resource mobilization in Ghana. The reflections captured were in contribution of STAR-Ghana Foundation, to a panel discussion at the 2022 APN Assembly in Uganda.
Eunice R. Agbenyadzi, Head of Programmes, STAR-Ghana Foundation at the APN Assembly in 2022
What are the advantages of DRM to growing philanthropy in Africa?
Civil Society Organisations (CSOs) in the Global South have come from a history and do live in the reality, where their work is largely supported/financed by external donors. This is also true for southern governments.
Structured and professional CSOs are highly dependent on foreign donors, even in the context of declines in donor support to southern countries.
The discussion of domestic resources mobilization is not new. In 2006, more than three quarters of Ghanaians were reported as donors or donating resources to others (CIVICUS, 2006) including sending money to their families, engaged in community labour, and responded to public appeal to address communal challenges.
There is already a context where people will give to support a common cause. However, it is important to delink the way of living of Ghanaians and Africans (we provide care giving, take care of family members through school, among others) from philanthropy, and for clarity, social justice philanthropy, which transcends addressing practical individual needs to fostering public good and addressing systemic barriers that keep people poor and excluded.
CSOs have faced criticisms about their legitimacy and whose interest they serve. The common saying, that whoever funds you owns you, has been used by governments to accuse CSOs of doing the biddings of external donors.
Communities have also used this to make demands of CSOs, for example asking for ‘payment’ fees for participating in events and activities that are intended for community development. Again, whilst accountability can be balanced, oftentimes, CSOs have tended to prioritise upwards accountability to donors, at the expense of the communities they serve. Local philanthropy can become a tool for addressing these legitimacy challenges of CSOs.
By adopting local philanthropy as a key implementation strategy, CSOs can better engage their communities and constituents to support the work of CSOs through the 3Ts- talents, treasures, and time. With these, communities shift from merely being ‘recipients’ to becoming ‘investors’ or change agents, which gives them more power to own their development and transformation.
Furthermore, if CSOs are funded by their constituents there is flexibility in determining the priorities of their constituents, allowing communities to set the agendas and priorities for their development.
Ibrahim-Tanko Amidu, Executive Director, STAR-Ghana Foundation
Why do some initiatives receive more support than others? What drives giving in Africans and communities.
The STAR-Ghana Foundation experiences reveals the sense that people are moved to give for ‘tangible’ things. Philanthropists, including individuals and institutions are motivated to give to things they can see, feel, or touch. The Foundation’s partnership with Community Development Alliance (CDA), in 10 communities in the Sisala West and Daffiema/Bulssie/Issa districts of the Upper West region of Ghana witnessed indescribable enthusiasm of community members towards the call for mobilizing to fill basic infrastructural gaps. Over months, community members came together to provide labour, resources (building materials) to put up a Community Health-based Planning Services (CHPS), compound and to rehabilitate deplorable roads within their communities.
Secondly, trust is a currency in giving. Simply, communities give to organisations or facilitators they trust. And locally rooted organizations tend to receive more trust from communities, probably because of relationships and networks established.
Another partner of the Foundation, Songtaba, works on a culturally sensitive issue (witchcraft accusations). However, when the Foundation piloted local giving in some selected communities, it received an overwhelming response of community members to be engaged as community volunteer educators, as well as donations to support inmates of alleged witches’ camps. Community members openly narrated that they responded because ‘Songtaba’ is one of their own.
Furthermore, when there are incentives associated with giving, such as tax rebates and branding, for example, philanthropists, especially those with business interests are motivated to give for public good.
How supportive and conducive is the legal environment for CSOs to operate and mobilise more and better domestic resources to solve Africa’s systematic issues?
STAR-Ghana Foundation and the APN collaborated to undertake a study theme ‘Enabling Environment for Local Philanthropy in Ghana’. Among some of the findings was the need to have legal regimes for tax rebate for CSOs. CSOs in Ghana are generally registered as companies limited by guarantee and hence, different from corporate institutions. Although CSOs are recognized as charity organizations and are entitled to tax exemptions, such as value added tax (VAT) on goods and services, most often, they are not able to access this relief due to administrative and bureaucratic barriers. For their own sustainability, in addition to influencing social policies, CSOs must get more and more involved in economic and tax policies as well.
Despites several attempts, there exists no framework for governing the civil society sector, in its uniqueness. There is neither code for self-regulation that CSOs can sign onto. The Not-for-Profit Policy, however, responds to gaps, such as fostering coordination and relationships between CSOs and government. The absence of legal framework and self-regulation compounds the challenges of accountability and legitimacy of the sector.
What are the key lessons learnt over the years? What are some of the best practices in this space that can be scaled and supported? Examples of the policy change, influence on Government.
In terms of best practices, STAR-Ghana Foundation is creating partnerships with civil society to learn and practice local philanthropy as one of the tools for transforming and sustaining the civic space. The Foundation has contributed to the emergence of Communities of Practice in local philanthropy which serve as hubs for knowledge exchange and knowledge development among community groups and CSOs. Learning should be nurtured to help ground and upscale local giving for public good.
Whilst CSOs draw its dynamism from its diversity, it can also lead to fragmentation of efforts towards achieving social change. There is currently no professional CSOs body for purposes of self-regulation and broad mobilization of CSOs in Ghana on social and economic policies. Specifically on economic policies, there are only few CSOs involved in conversations around taxation, compared with the business sector represented by its professional bodies, lobbying for their interests. For its own sustainability, CSOs presence and influence in tax policies must be intensified. Tax policies impact operations of CSOs. They impact their ability to raise local resources, including through crowdfunding sources. For CSO to be able to do this, it needs new skills set to analyse and engage in debates on taxation.
Conclusion
This paper has discussed STAR Ghana Foundation’s experiences in promoting local philanthropy. It has suggested that local philanthropy thrives on trust and whilst in the short term it meets practical needs- ‘tangible outputs’ for communities, it can also be developed as a tool, in the long term to promote social justice. Supportive legal and policy environment is pre-requisite for developing capacities of local philanthropy as a tool for development, and this would require that CSOs voice and influence in economic policies is leveraged, so policies facilitate and not inhibit potentials for local philanthropy to thrive.
