The establishment of a legislative framework for institutionalized, regular dialogue between non-governmental organizations (NGOs) and the state, for a strong civil society in Cyprus, meaning a potent organized social action of groups or individuals for the common good, is the primary goal of the Civil Society Advocates Foundation, as stated by its president, Eleni Karayianni, to “Φ” newspaper. In her message stressing the need for dialogue and cooperation, Dr. Anastasia Michaelidou Kamenu, the head of the Department of Associations, Clubs, and SMEs at the Ministry of Interior, promptly expressed her willingness to comment on the views and positions of Civil Society Advocates as presented in a recent document titled “10 Myths and Realities about Non-Governmental Organizations” released by the Foundation.
The document was prepared within the framework of the European project “For a Strong Civil Society: Practicing Politics and Strengthening Skills for the Empowerment of Civil Society” in Cyprus. The project is funded by the Active Citizens Fund Cyprus program, which is financed by Iceland, Liechtenstein, and Norway.
It should be noted that the Civil Society Advocates group has been registered as a Foundation since 2018, in accordance with the relevant law of 2017 for Associations and Foundations. As emphasized by Ms. Eleni Karayianni, the group’s president, they aim to contribute to the empowerment of civil society organizations and the improvement of the framework in which they operate through their voluntary actions. The founding members of the group, along with President Eleni Karayianni, are Marina Vasilara as Vice President, Maria Tsiarta as Secretary, and Klairi Papazoglou as Treasurer.
Differences, mode of operation, and independence
As emphasized by Eleni Karayianni, non-governmental organizations, meaning the organized civil society, play a crucial role in a society, as they represent the voice of independent active citizens and engage in various fields, providing services, programs, and policy recommendations. However, there are many myths, misunderstandings, and misconceptions about NGOs, some of which are addressed in this document, while also presenting their role and significance in a contemporary society.
Myth 1: There is no difference between the terms “non-governmental organization” (NGO), “charitable organization,” and “civil society.”
Reality: While there are some commonalities, these terms are not synonymous. There is a general impression that NGOs mean “Non-Profit Organizations” and that these organizations mainly consist of charitable organizations. However, the acronym NGO stands for “Non-Governmental Organization” in English and “Μη Κυβερνητική Οργάνωση” in Greek. NGOs are inherently non-profit and independent of government services and structures. Charitable organizations are NGOs that, due to their nature, are approved by the Ministry of Finance. Not all NGOs are charitable organizations. All NGOs are part of civil society (Κοινωνία των Πολιτών – ΚτΠ), a term that has now been established and refers to all forms of social action carried out by individuals or groups not connected to the government or governed by it. Often, politicians, journalists, and ordinary citizens refer to “civil society” when they want to refer to “the general public” or even to voters, indicating that there is still a long way to go for a proper understanding of what civil society truly means and to use the term correctly in Cyprus.
Myth 2: All non-governmental organizations operate under the same regulations and regime.
Reality: NGOs have different legal forms in Cyprus. They can be Associations, based on their members, with at least 20 members and a five-member Board of Directors. They can be Foundations with a three-member Board of Directors but without members. They can be Unions/Federations, where their members are other legal entities, i.e., other NGOs. Finally, they can be Non-Profit Companies and Beneficiary Foundations. This translates into different modes of administration and decision-making, as well as different legal obligations.
Myth 3: Non-governmental organizations do the same work as the government, so why should they exist?
Reality: NGOs contribute to the well-being of society and strengthen pluralism and democracy, but they never replace the government. Many NGOs provide services to citizens that are not adequately offered by public services, such as social benefits, healthcare, and specialized support for specific groups (e.g., people with disabilities). NGOs are independent entities that often pressure the government to improve the well-being of society while offering specialized services and expertise. They also play a significant role in important social and political issues, where an independent voice is necessary, such as human rights, poverty reduction, gender equality, environmental protection, as well as cultural and artistic matters. In every modern state, efforts are made to empower the independent voice and action of NGOs, and there is often dialogue and close collaboration between the state and these organizations in shaping policies. In Cyprus, there is still progress to be made in this area.
Myth 4: Non-governmental organizations should rely on volunteering and not employ people.
Reality: Although most NGOs in Cyprus rely solely on volunteers, it is commonly accepted that employing staff enhances an organization’s ability to achieve its long-term goals. Employing people does not mean that an organization ceases to be non-profit. Furthermore, when an organization employs staff, it has the flexibility to offer even more specialized services to the public, contributing to a more effective implementation of its goals.
Financial oversight, funding, and transparency
Myth 5: Non-governmental organizations make significant profits, and there is no financial oversight.
Reality: By law, NGOs are entitled to have a surplus in their accounts, which, however, should be used solely for their purposes. What they are not allowed to do, as it would result in losing their non-profit status, is to distribute profits to their members or Board of Directors. All registered NGOs have a legal obligation to submit annual reports, including their financial accounts. Those who fail to meet these obligations can be removed from the relevant registers.
Myth 6: Non-governmental organizations secure significant funding from Cyprus and abroad.
Reality: The majority of NGOs rely heavily on volunteerism and contributions. Only a small number of organizations are able to obtain and utilize funding, either from the Republic of Cyprus or from highly competitive funding programs to support their actions. In the case of funded NGOs, their financials are strictly monitored to ensure the funds are used for the intended purposes. Moreover, all NGOs are now required by law to submit annual financial reports and, in many cases, audited accounts. The government and international organizations stress the need for transparency and accountability both in the operation of NGOs and the use of their financial resources.
Myth 7: Non-governmental organizations operate unchecked, and their role in Cyprus is suspicious.
Reality: NGOs often engage in political pressure and criticism on various issues, which can make them targets on different levels. However, the legal framework ensures sufficient transparency and control. Reports from Moneyval in 2019 and 2022 on NGOs in Cyprus indicated that the government’s control measures may discourage or hinder NGOs, as all organizations are treated as “high risk.” These reports recommend the establishment of proportional and objective risk criteria, along with close cooperation between organizations and the government to develop good practices. Our position is that the government’s practices may pose a risk of stifling NGOs and violating their rights.
Myth 8: Foreign governments and organizations fund NGOs to promote their own interests.
Reality: NGOs seek funding from both local and international sources for their programs. Funding is provided based on competitive criteria, and the financial accounts of NGOs receiving funds are submitted annually to the relevant authorities, providing information about their objectives, funding sources, and amounts. There is no evidence to support the claim that NGOs use their funds for purposes other than their intended activities.
Myth 9: Many NGOs are funded by organizations that also finance terrorism and/or launder “dirty” money.
Reality: To address this concern, both foreign and Cypriot governments have increased their scrutiny of NGOs. International organizations stress that control measures must be proportionate to the type of activities each organization conducts. The latest Moneyval reports for NGOs in Cyprus showed that the government’s control measures might discourage or hinder NGOs, as they are all treated as “high risk.” The reports recommend establishing proportional and objective risk criteria, as well as close cooperation between organizations and the government to develop good practices. Our position is that the government’s practices may pose a risk of stifling NGOs and violating their rights.
Myth 10: There are too many NGOs in Cyprus compared to our population.
Reality: The operation of NGOs is protected by the human right to associate, recognizing their contribution to the common good. Internationally, there are no criteria determining the number of NGOs in a country relative to its population. Furthermore, this right is protected by Article 20 of the Universal Declaration of Human Rights (which Cyprus has ratified), as well as other international agreements and conventions that Cyprus has ratified.
Friendly environment and non-profit organizations
“I agree with what has been mentioned in the ‘Myths 9 and 10’ by the Civil Society Advocates Foundation,” states Dr. Anastasia Michaelidou Kamenu, Director of Associations, Foundations, and SMEs at the Ministry of Interior, in her note to ‘F’ newspaper. Regarding ‘Myth 1,’ she emphasizes the following: “I would start by saying that I consider the term ‘non-profit’ more representative of these organizations since their core existence is based on ‘not seeking financial gain.’ I do not agree with those who claim that NGOs can engage heavily in profit-seeking activities to support their purposes. Revenues should come from auxiliary activities; otherwise, NGOs would turn into companies that merely express their social programs through activities known as ‘Corporate Social Responsibility (CSR).’ On the contrary, unlike companies that aim for profits for their shareholders/owners but also demonstrate sensitivity through CSR programs, NGOs allocate their resources and efforts to non-profit but beneficial activities and may occasionally support their work with some income-generating activities. The purposes of non-profit organizations can be philanthropic, activist, environmental, social, and other beneficial goals.”
Regarding ‘Myth 2,’ she highlights that “there are indeed different types of non-profit organizations.” Regarding ‘Myth 3,’ she notes: “Non-profit organizations often assist the actions of the state. Other times NGOs act as the voice that discusses with government bodies or authorities, or they challenge certain decisions. In one way or another, they are an essential part of society and have a crucial role to play. Therefore, the state, in general, and the government should facilitate their action, allowing them to operate in a friendly environment.” Regarding ‘Myth 4,’ she underlines that “going back to the concept of ‘non-profit,’ NGOs indeed heavily rely on the action of volunteers. However, they can also employ staff, provided that this personnel performs beneficial activities based on the organization’s goals. In the legislation, Foundations are prohibited from paying salaries to their Board members. Therefore, we have purely voluntary action in this case. The same does not apply to Associations, although this is desirable. Generally, when the Ministry recognizes that the salary expense is a significant part of an NGO’s expenditures, it may consider that there is a business entity beneath the NGO’s facade. This is not absolute, but an indication.”
The very important role of NGOs
Regarding ‘Myth 5,’ she states that “a non-profit organization cannot have a surplus for several years. This could indicate that something may not be going well and that we might be talking about ‘profit-seeking.’ Logically, a non-profit organization does not want to have a surplus, as it could immediately use it to expand its beneficial actions. There are, of course, cases where savings help build a project over a few years, such as a medical center. Everything is related to the goals.”
Regarding ‘Myth 6,’ she notes that “many government departments provide grants to NGOs, and NGOs certainly rely on the contributions of their volunteers and donors. As the Ministry of Interior, we are responsible for the licensing of fundraising events. Fundraising events are one way for NGOs to collect funds to support their specific purposes.” Regarding ‘Myth 7,’ she observes that “there are NGOs worldwide that play a very significant role, and there are NGOs that use the legal environment offered to them to engage in illegal or criminal activities. We must consider this normal and everyone should operate based on this reality. Controls are, therefore, necessary. “Finally, commenting on ‘Myth 8,’ she states that “funding NGOs through European programs is a very healthy way of functioning. On the other hand, the movement of capital abroad should take place through the banking system of the countries of origin and destination of the money. Not only NGOs can be used as vehicles for financing terrorism and money laundering, but also companies, trusts, etc. That is why NGOs, as legal entities, have obligations to maintain a register of their actual beneficiaries, which, in this case, are the members of the Board of Directors, but also significant donors or beneficiaries.”
Source: Philenews
