NON-PROFIT MANAGEMENT CONTEXT: MIDDLE EAST AND NORTHERN AFRICA
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April 14, 2018
Introduction
The increase in the number of global challenges facing developing and underdeveloped countries has led to growth of relief and humanitarian organizations. Nonprofits institutions and nongovernmental organizations are some of the leading entities that provide world aid and other support services to needy regions. A nonprofit organization (NPO) is an institution that has no business or profit intentions but seeks to develop and sustain social issues through crafting collaborative efforts to alleviate challenges and problems.[1] The objectives of most NPOs is informed by the imbalances in the development and advancement in economic and social aspects in the world.
Majority nonprofits in the world focus on poverty eradication, provision of education facilities in the less developed countries, provision of better health, creating an inclusive society, advocating for human rights for the oppressed in dictatorial society, and creating a place for women and disadvantaged social groups. Modern institutions have focused on creating a balance in lifestyle and standards of living between the developing and developed world[2]. This explains the reason why most NPOs originate from the more advanced countries such as America, Canada, and Europe.
The increase in specific social and health problems such as untreatable diseases, poverty, hunger, floods, political oppression, and poor economic levels has led to growth of specific nonbusiness entities that focus on such particular issues. The increase in international nonprofit institutions has also facilitated governments in developing regions to create avenues for growth of internal and regional relief and humanitarian programs. Popular NPOs rely on contributions from volunteers and donors to meet their objectives, an aspect that has seen limited growth of internal charity entities. However, large international nonprofits operate under parent organizations that may be business entities. The huge donors in these NPOs include global multinationals such as Walmart, Toyota, Apple, Facebook, and Google that allocate some of their profits to charities and humanitarian aid.
Africa still remains the region with the highest number of nonprofits organizations followed by the Latin America and Middle East. Most of the prominent NPOs in the world are based in America and Europe. By the end of 2017, the NPO activities in Middle East and Northern Africa focused on education, poverty, health, and housing. These efforts have been complimented by the entry of Asian nonprofit institutions that are focused on provision of solar power to support learning and environment conservation. In efforts to compete with the western world, China, Japan, and other Asian countries have expanded their humanitarian activities in Middle East and Africa leading to diversity of services provides by the NPOs in these countries.
Historical Development of Nonprofits in the Middle East and Northern Africa
Wang points out that the influx of nonprofits in Middle East and North Africa dates back to the period after independence[3]. The social, political, and economical systems in most countries were unstable and required external aid to reboot the critical operations. However, the population that lived in rural and remote areas lacked essential services and commodities such water, food, sanitation, education, and health facilities. The plight of women and children also facilitated the entry of NPOs in these regions to offer supportive services through collaboration with governments and local social institutions.
According to Wang[4], Middle East attracted more nonprofits that focused on the human rights for women and the girl child. The strict religions and fundamentalist believes as well as civil wars in the region denied women and children access to basic services such as education and health care. These institutions sought to engage the governments and political administration to expand the facilities and provide more avenues for women and children to participate in the economic and political lives. While the operations of these NPOs are still challenged due to the civil and political unrest, they have continued to influence the position of women in the society.
Importantly, regional organizations have provided support in education and healthcare services leading to improvement of education levels in the Middle East countries. Afghanistan has been a huge beneficiary of the American nonprofit organizations that have used the presence of the US military troops to reach more regions and provide opportunities for women and children to access education and healthcare. Importantly, the institutions continue to impact the lifestyles leading to suppression of the fundamentalist and theocratic beliefs. On the other hand, Northern Africa has posted similar challenge over the years with Libya, Egypt, and Tunisia involved in significant political unrests that have resulted in wars and other conflicts. The religious systems in these countries have also oppressed the women and children denying them basic rights that are available to men.
Shaw[5] notes that the increased levels of poverty in marginalized areas, as well as the lack of education, water, and health care facilities in such areas, created an imbalance in social and economic development. Therefore, nonprofits that focused initial efforts in Africa sought to fight poverty, illiteracy levels, and provide better healthcare services to the poor and marginalized. Such perennial social, political, and economic challenges have placed Middle East and North Africa as the leading regions in the world with the highest presence of international nonprofit organizations. Understandingly, the regions are served by similar institutions that operate collaboratively. Studies have shown that the implementation of humanitarian projects in Middle East and North Africa has considered the two regions as a single program target[6].
However, there are specific organizations that are specific to each region depending on the definite needs and objectives of the NPOs. The America-Mideast Educational and Training Services, Inc. (AMIDEAST) is one of the top NPO in the Middle East that creates and strengthens cordial relations between America and Middle East & North Africa through educational training and skill exchange programs. Anna Lindh Foundation is another organization that promotes integration, relations, and coexistence between cultures through respect dialogue and diversity[7].
The Middle East Youth Initiative offers economic empowerment and inclusion of young people in the region through building partnerships and strategic alliances among policy makers, investors, youth leaders, governments, civil society, academics, and the private sector while the Said Foundation targets the children towards assuring a better future for them by investing in their education, development, and understanding of important cultures. Save the Children Sweden: The Middle East Chapter provides programs to uplift and sustain better living conditions for children in difficult situations. The program has been expanded in North Africa to promote the abilities of parents and guardians in achieving better lives for the children.
Northern Africa is served by similar organizations that have comparable objectives and goals. The Action for Africa is a nonprofit organization that supports productive and healthier young lives through supporting early child development, education especially for girls and orphans who have higher risk of illnesses, social violence, and neglect. The Fistula Foundation focusses on restoring health for African women suffering from obstetric fistula[8]. The nonprofit organization is a response to the increased number of women who deliver without medical help due to unavailability of facilities or resources.
World Conservation Network (WCN) has programs in Northern Africa that include the identification and preservation of endangered specifies of wild animals and their habitants such as lions, elephants, cheetahs, and rhinos. The NPO promotes coexistence between local population and wildlife through sensitization and awareness programs. The Search for Common Ground (SFCG) is another Northern Africa and Middle East nonprofit organization that seeks to improve women participation in the social, economic, and political processes. The institutions focus on rights of women through inclusive dialogues with leaders in various sectors[9]. Therefore, the historical development of nonprofits in the Middle East and Northern Africa has been facilitated by the recurrent social and economic issues facilitated by poor governance and improper use of available resources[10].
Philanthropic Traditions
The operations of global nonprofit organizations have been lauded for excellent management, control, and coordination. Denhardt, Denhard, and Aristigueta[11]assert that top performing NPOs across the word are better organized that some governments and other critical authorities in the developing countries. The strict regulations, traditions, and principles that are used by these institutions have facilitated their effectiveness in operations and excellence in services. Notably, the countries of origin have huge impacts on the traditions and strategies of management and operations. For instance, nonprofit organizations originating from the United States are likely to uphold the equality, inclusivity, and fairness in provision of various services as compared to internal organizations in the targeted areas that may be affected by the various social and economic difficulties such as corruption and discrimination.
According to Wolf, nonprofit organizations and nongovernmental institutions operate on similar principles and traditions that aim to correct social evils and achieve balance in provision of services[12]. Majority of nonprofit organization in Middle East and Northern Africa seek to understand the plight of neglected members of the society then provide aid to uplift and improve their social and economic conditions through educational opportunities, health, housing, and integration in the modern society. In the contemporary society, majority of nonprofits use similar management styles that include identification of projects, implementation, evaluation, and recruitment[13].
The resemblance of Middle East and Northern Africa in terms of political frameworks, economic patterns, social environment, and religious systems helps the NPOs to interrelate in the provision of the elected services. The common types of philanthropic and humanitarian traditions that have been used by NPOs operating in the Middle East and Africa include relief principle, improvement tradition, social reform, and response principles. These traditions dedicate the selection of needy population and regions, setting of targets and objectives, as well as sourcing for finances[14] and other resources.
The relief tradition is commonly used by most NPOs to introduce their humanitarian services and understand the populations and systems in the interested areas. Budrys states that philanthropy as relief relates to the charitable act to eliminate human suffering among targeted population[15]. The principle is commonly propagated by organizations affiliated to churches and other religious institutions. The Bible teaching on compassion and sharing has informed the use of this tradition among institutions that have strong ties to religious institutions or are funded by the church.
The main objective of many nonprofit organizations in the Northern Africa and some parts of Middle East focuses on alleviating poverty through provision of basic amenities such as food, water, and housing. This core aim of these institutions advances the use of the relief tradition. Nonprofit organizations that user this tradition include World Vision, Red Cross, World Relief, Direct Relief, Care International, Save The Children, among other NPOs. The level of effectiveness in the operations of these NPOs is pegged on the number of individuals reached through the relief programs and the positive impacts of such projects.
The other tradition common in philanthropic activities in the Middle East and North Africa is the improvement principle. This tradition is often used by the modern organizations and includes providing adequate tools for the neglected, poor, and marginalized individuals to aid them develop a better future live. The tradition is advanced through the provision of educational opportunities, lighting services, health care facilities, scholarships, trainings, and awareness programs.
The contemporary NPOs are adopting this tradition to match their mission and strategies that require creation of sustainable economic and social developments for the population in remote and poor regions. The collaboration between these institutions and the government to improve the quality of health care, education, literacy, sanitation, and provision of water resources fits in the improvement tradition. Empowering the population will reduce the overreliance on external help in the future through creation of a self-sustainable society[16].
The social reform tradition recognizes poverty, illiteracy, religious discrimination, and racial differences as the huge challenges facing developing and underdeveloped countries. Social reform includes initiating and supporting social change due to the impact that the society has on other aspects of growth, development, and inclusion[17]. Establishing accurate and proper social values and rules is significant in the functioning of social, political, and economic systems. The focus of social changes stems from the rapid global transforms that are expected to create a unified society bound by similar social aspects. The nonprofit institutions that propagate the social reform tradition tend to lean more on human rights and elimination of discrimination in the society.
The last philanthropic tradition prevalent among the NPOs operating in Africa and Middle East is the response principle. This tradition includes investing to change the perceptions and opinions of individuals, societies, and institutions towards adopting a common agenda in the achievement of mutual goals. The institutions are involved in sensitizing the public on their rights, need for their participation in the various national aspects, and encouraging children to pursue education as some of responsive strategies that the organizations have used to create a unified society that is able to establish and achieve mutual goals[18].
Key Features of the Regulatory and Tax
The success of nonprofit organizations is guaranteed by the availability of a friendly and legal regulatory system that enables such organizations to operate and adhere to the internal, national, and international regulations. The exceptional function of NPOs has led to the development of specific regulations and guidelines to guide their activities in the targeted regions. While the Middle East and the Northern Africa regions have received many nonprofit institutions, the increased presence is not facilitated by the laxity of laws, regulations, or the protocols needed to allow and manage the operations of the these relief entities[19].
The regulation of NPOs varies from region to region due to the diversity in political, policy, regulatory, and income laws. The universal goal for majority of nonprofit organizations has led to unification of taxation and regulation mechanisms that seek to create a global environment where the organizations can work without excessive control and monitoring.[20] The high number of conflicts between the nonprofits and governments in the Middle East and Africa stem from the differences in regulation and taxation[21]. Some governments have mandated all organizations in their territory to pay and file tax returns to support the government activities.
However, the vital element of these regulation processes is the exemption from income and other forms of taxes by the government and other entities. The objective of these NPOs has informed the decision by international society to exempt them from levies on their incomes that come from projects, sponsors or donors. While some countries and regions have indirectly dictated the utilization of the funds collected by these organizations, nonprofits select the appropriate projects to invest in economic, social, education, infrastructure, religious, and research settings.
Nevertheless, the exemption from tax system is subject to application by the NPO and subsequent review and approval by the government. In the United States, the Internal Revenue Service (IRS) is responsible for receiving tax exemption application from NPOs then vetting such organizations to determine their operations, sources of revenue, expenditure, and other financial processes before issuing them with tax exemption certificates[22]. The governments have a regulatory role of examining and reviewing the operations of these institutions to ensure that they abide by the mission, objectives, and strategies[23]. There are various cases where business frauds have registered NPOs with a mission of executing illegal business in foreign countries as well as evasion of taxes.
Notably, nonprofit organizations working in the Middle East have faced the same procedures in complying with the regulations and tax systems. In these regions, the tax authorities or services work with the NPO organizations to provide exemptions on the payment and filing tax returns. The lifting of tax levies for the international relief organizations in these regions has been attributed to high number of humanitarian activities in Middle East and Africa. More institutions are preferring countries that have fewer restrictions on financial control and other regulations that may limit the implementation of social and economic projects[24].
However, organizations that do not deliver their mandate in uplifting the lives of the population may be forced out of these regions through imposition of taxes rendering the operation futile[25]. The exemption from taxes is a method by governments to enable the nonprofit organizations to expand their activities in the humanitarian, development, and relief efforts. Additionally, the sources of finances for the institutions has also been considered in exempting them from income levies due to the understanding that majority of donors and volunteers are subjected to normal incomes taxes such as Pay as you Earn or income withholding taxes.
On the other hand, the regulation of nonprofit organizations in Northern Africa and Middle East is carried out by specific government authorities that oversee the operation of these institutions. The authorities ensure that the NPOs meet their objectives in the charters agreed with the governments. Importantly, the organizations are not allowed to interfere with the national political, social, and economic landscape[26]. The mandate of most NPOs includes providing relief, response to calamities, and supporting social processes such as education and healthcare. The governments have strict rules to bar the organizations from interfering with the major sectors in the politics and economy[27].
Nonprofit organizations that participate in the political processes such as campaigns and election have often found them deregistered and blocked from operating in these regions. This also applies to such institutions that go beyond the agreed charters and scope of work. The struggles between governments in developing countries and NPOs has resulted from the increased activities by these entities such that the population will view the NPOs as more important in uplifting their lives leading to conflicts and eventual registration of such institutions. Potluka, Spacek, and Schnurbein[28] point out that the position of the nonprofit organizations should be assistive, not major roles in changing the population perception or impact the direction of development policies and strategies.
Other regulations include solicitation of funds within the regions covered or outside such areas. The institutions must understand and adhere to such policies to avoid creating tensions between countries. For instance, the civil wars prevalent in the Middle East determine which countries the NPOs should engage in seeking financial or material support[29]. The self-regulation among these organizations is also recommended by experts and analysts due to the closed nature of their operations. While the government have laws and rules that guide the operations of NPOs, such regulations only apply to general processes with control and management of internal activities left to the organizations to manage. The NPOs operating in Middle East and Africa have shown high self-regulation levels leading to their success in meeting their goals and objectives.
Core Policy Postures
The social, economic, and political environments in Middle East and Northern Africa have influenced the management and structuring of the nonprofit institutions that have presence in the regions[30]. Middle East countries have strong religious background and views as well as the extensive oil resources but weak political systems that culminate to offer unstable environment for positive operations of foreign NPOs. Nations such as Qatar, Saudi Arabia, and United Arab Emirates are extremely wealthy in oil deposits and other resources despite their poor administration.
The economic policies and political regulation have impacted the introduction of humanitarian and relief programs because proper administration of the available resources is able to sustain the whole population through better lifestyle without outside help[31]. The regions that have developed economies through high GDPs attract fewer nonprofit institutions due to the improved social and financial power in the population. The countries usually develop and implement policies on external aid organizations based on their levels of political, social, and economic development.
Similarly, Northern African countries such as Egypt, Libya, Algeria, Tunisia, Sudan, and Morocco have comparable environments that determine the success of NPO operations. Sheehan[32] notes that the widespread social challenges such as corruption impact the introduction of essential operation in these countries. The styles and types of governments have also obstructed the management and functions of the NPOs in North Africa. The various core economic, political, and social policy postures and positions impact the managements, organization, and capabilities of the nonprofit organizations[33].
The management and regulation policy frameworks have increased micromanagement of many nonprofit organizations and NGOs in Africa and Middle East. Countries with volatile political systems such as Iran and Iraq have influenced the operations of these institutions though direct interference with their management styles and planning of operations. The fact that majority of NPOs working in these regions originate from the west create the need by these nations to direct all the operations due to ill relations between Middle East and western powers[34].
Fundraising policies relating to the procedures and rules on raising resources for the various humanitarian projects have also impacted the capabilities of the NPOs. Most organizations are used to an environment where they are free to solicit funds from various sources that may not be authorized by the governments such as churches, communities, and schools. However, most developing countries will limit the number of sources that the organizations can use to collate their funds thus impacting on the organizations of projects as well as the capacities to meet the targeted populations and regions[35]. The NPOs cite the restriction on collection of funds as the major challenge facing their operations in the Middle East and African countries. The poor relationships among countries in these regions also reduce the number of donor and volunteers.
On the other hand, fiscal policies in any country also impacts the operations of nonprofit organizations because the revenues collected and expended by such institutions is not considered in annual government collection and expenditure. The regulation by many governments in the Middle East and African countries determine the cumulative revenues and expenses for the country, therefore, requiring the NPOs to provide their financial statements and reports which may pose adverse effects to their future capabilities[36].
Through exposing their financial reports, the institutions will reveal the allocation for resources to various regions and social challenges thus creating perceptions by the government and the public of their operations. NPOs prefer using their internal management styles and structures to decide on the use of their finances without any oversight or control from government or other external entities. The other core policies that have impacted the management styles, operations and organization of activities include the selection of projects and regions to service, dictation on the expenditure, and the operational and financial reviews.
Comparison with Standard Western Nonprofit Management Model
According to Irwin[37], the standard Western nonprofit management model includes a board that is charged with strategic running of the institution in the various regions selected as candidates for the humanitarian aid. The boards are usually composed of founders and major financiers of the institutions. The structure of the board determines the success of the operations though the development of various committees that are charged with separate responsibilities that cultivate to the mission, vision, and core values of the NPO.
This management model has been considered effective in the United States, Europe, and other countries have implemented all the aspects of the system. The finance, program, planning, fundraising, personnel, and executive committees are some of the critical elements in this management model.[38] However, the entry of the western NPOs in foreign regions such as Africa and Middle East include influences on the implementation of these management styles leading to adoption of local models that have adverse impact on the eventual outcomes of the programs[39]. It’s imperative that these nonprofits stick to their management and operational styles considering that the goals of the projects are based on these styles. However, some of these style shave proved unviable in some countries such as Libya, Iraq, and Iran where the levels of common languages, social aspects, political ideologies, and other processes impact the implementation of programs
Notably, cultivating public confidence is important in achieving the set objective with the minimal modification of standard management models. The accountability levels in NPOs is very important in informing the donors, volunteers, and other stakeholders on the utilizations of their resources and the actual health, education, or social impacts that they have contributed to the population. Significantly, the management and control of these organizations should not be entirely left to volunteers and local personnel in these regions. Many NPOs have reported change of their program objectives due to the individuals charged with running projects in the remote areas. Reporting is very vital in management of projects that are spread across many communities to ensure that the injection of the resources is yielding the expected outcomes.
While the NPOs are not business entities, their management and operations should meet the requirements of profit organizations because they work with finances, personnel, infrastructure and other resources thus required to be responsible in terms of professionalism and financial control. The personnel and other human resources should include experts in employee relations, project management, accounting, management, coordination, risk management, and auditing to ensure that the operations of the institutions meet the required standards and can be comparable to business entities.
Conclusion
The management of nonprofit organizations in Northern Africa and Middle East has been subject to various internal and external issues that have impacted the execution of various projects and programs. The nature of the political environment, religious systems, and the cultural background has affected the entry and presence of these NPOs. The notable civil wars in the Middle East and Some parts of North Africa has also resulted to limited relief and humanitarian programs implemented in these regions. However, the study has identified the key philanthropic aspects that have guided the success in improving the people lives and guarantying their human rights.
Relief, improvement, social reform, and response principles are some of the humanitarian features that are considered in management and operations of the nonprofit organizations in the selected regions. Importantly, the regulatory framework by the home and host governments has also affected the organization and management of nonprofit institutions operating in North Africa and Middle East regions. These countries have facilitated a cordial environment for the institutions through a framework of policies and regulations that prevent maltreatment while affording them access to the government infrastructure and resources required in reaching most remote areas.
The exemption from any form of taxes and levies both at the institutional and employee level encourages initiation of more programs that results in economic and social benefits for the host population. The paper has also highlighted how the various economic and political policies impact the management and functioning of the NPOs. The financial, regulation, economic, and fundraising procedures determine the levels of investment. Governments that are extremely strict on the work of external stakeholders create challenges for these institutions to achieve their goals.
The diversity of polices in the Northern Africa and parts of Middle East regions is considered the major influencer of humanitarian and relief organizations. The level of poverty that does not correspond to the value of available resources is used to shield more NPOs from accessing such countries. The mismanagement and misappropriation of natural resources due to poor political administration and instability creates an economy with few wealthy individuals and many middle and low income earners. The analysis of the standard Western nonprofit management model compared the changes that the NPOs have made to ensure full assimilation in the targeted regions through understanding the local political, social, and economic systems.
However, the relevance of the board as the steering organization of all operations for nonprofit organizations is still critical to guide proper selection, financing and implementation of valuable and needed programs. Therefore, the success of managing nonprofit organizations in the Northern Africa and Middle East region is pegged on the relation that the entities creates with the governments as well as the adherence to the conventional management models and regulation that have helped the institutions succeed in other regions.
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[1] Kinzey, Ruth. Promoting Nonprofit Organizations: A Reputation Management Approach. (New York: Routledge, 2013), 17.
[2] Fishman, James, Schwarz, Stephen, and Mayor, Lloyd. Nonprofit Organizations: Cases and Materials. (New York: Foundation Press, 2015), 42.
[3] Wang, Jiane-Ye. What Drives China’s Growing Role in Africa? (Washington: International Monetary Fund, 2007), 58.
[4] Wang, Jiane-Ye, 56.
[6] Hoque, Zahirul, Parker, Lee. Performance Management in Nonprofit Organizations: Global Perspectives. (New York: Routledge, 2014), 78.
[9] Halpem, Mafred. Politics of Social Change: In the Middle East and North Africa. (New Jersey: Princeton University Press, 2015), 112.
[10] Driver, Carolyn. Guidelines for Writing Successful Grant Proposals for Nonprofit Organizations. (Bloomington: AuthorHouse, 2010), 121.
[11] Denhardt, Robert, Denhard, Jane, Aristigueta, Maria. Managing Human Behavior in Public and Nonprofit Organizations. (Thaousand Oaks: SAGE, 2012), 26.
[12] Wolf, Thomas. Managing a Nonprofit Organization: Updated Twenty-First-Century Edition. (New York: Simon and Schuster, 2012), 57.
[14] Weikart, Lynne and Chen, Greg. Budgeting and Financial Management for Nonprofit Organizations. (Thousand Oaks: SAGE, 2012), 84.
[15] Budrys, Grace. How Nonprofits Work: Case Studies in Nonprofit Organizations. (Lanham: Rowman & Littlefield, 2013), 18.
[16] Svara, James. The Ethics Primer for Public Administrators in Government and Nonprofit Organizations. (Burlington: Jones & Bartlett Publishers, 2014), 66.
[17] Hoque, Zahirul, Parker, Lee. Performance Management in Nonprofit Organizations: Global Perspectives. (New York: Routledge, 2014), 14.
[18] Halpem, Mafred. Politics of Social Change: In the Middle East and North Africa. (New Jersey: Princeton University Press, 2015), 46.
[19] Svara, James. The Ethics Primer for Public Administrators in Government and Nonprofit Organizations. (Burlington: Jones & Bartlett Publishers, 2014), 37.
[20] Anheier, Helmut. Nonprofit Organizations: Theory, Management, Policy.(New York: Routledge, 2014), 132.
[21] Osula, Bwamwell, Ng, Eddie. “Toward a Collaborative, Transformative Model of Non-Profit Leadership: Some Conceptual Building Blocks.” Leadership in Non-Profit Organizations, 4, no. 2 (2014): 91
[23] Singh, Ardhendu. “Conducting Case Study Research in Non-Profit Organizations”, Qualitative Market Research: An International Journal, 17 no. 1, (2014): 79
