The Legal and Regulatory Framework For The NGO in Bangladesh

Operations Management of NGOs
The Legal and Regulatory

Framework for the NGO in
Bangladesh
Regulatory Agencies related with Legal and Regulatory framework of
NGOs in Bangladesh
1. The Non-Government Affairs Bureau (NGOAB)
2. Department of Social Welfare (DSW)
3. Department of Women and Children Affairs
4. The Government NGO Consultative Council (GNCC)

The Non-Government Affairs Bureau (NGOAB)
The Non-Government Affairs Bureau (NGOAB) was established in 1990

with the authority to register and regulate all NGOs that seek or receive
foreign funds. The 1978 Ordinance, amended in 1982, is the basis for the
registration.
Roles of Non-Government Affairs Bureau (NGOAB)
This agency was established in 1990 to oversee the FDR and FCR
Ordinances. NGOAB was set up in the Prime Minister’s Office in 1990.
According to the World Bank’s 1996 study, the rationale for setting up
NGOAB was the “huge backlog of projects pending Government approval”
under the then-existing system, which required multiple levels of
government review. All sources refer to NGOAB as being set up to be a
“one-stop shop” for NGOs seeking and administering foreign funds. Social
Welfare Department.
Roles of Non-Government Affairs Bureau (NGOAB)
The Government assigned NGOAB all responsibilities under the FDR and
the FCR, but it was, of course, never the only “stop” an NGO would need to
make on its way to carrying out its activities in Bangladesh. All NGOs
seeking to be legal entities would also have to establish themselves under the
Societies Act or the Companies Act. And NGOs engaged in activities
defined by the Social Welfare Ordinance would still have to register with the
Social Welfare Department.
Functions of Non-Government Affairs Bureau (NGOAB)
I. Administer laws relating to NGOs in Bangladesh
II. Provide one stop service to NGOs for registration and project processing
III. Provide secretarial service to the advisory committee for NGO Affairs
IV. Approval of project submitted by the NGOs and release of funds
V. Approve appointment and tenure of services of expatriate officials and

consultants
VI. Review/examine/comments on the reports and statements submitted by

NGOs
Functions of Non-Government Affairs Bureau (NGOAB)
VII. Coordinate, monitor, inspect and evaluate NGO operations
VIII. Identify and approve chartered Accountants for auditing NGO accounts
IX. Collection of fees/service charges from NGOs
X. Carry out field level inspections of NGO income and expenditure
XI. Maintain liaison with the NGOs and donor agencies
XII. Examinations/disposal of reports on the functioning of the NGOs
XIII. Examine and take necessary action on the basis of reports

Department of Social Welfare (DSW)
The principal work of the Directorate of this Department is to register and to

deal with those NGOs whose purpose in to render welfare service in the fields
listed above; the DSW also dispenses public funds under a program of
government assistance to social welfare NGOs.
When an applicant applies for registration to the DSW for registration, the
officers, departmental clerks, who are the best-informed people with respect
to the process, give the applicant both oral and written guidelines. If the
application form meets the guidelines, the inspector and the field officer of
DSW process the application and inspect the NGO’s offices.
On the basis of their report and site inspection, the decision on registration is
taken. If there is some problem or objection to registration or in the
application form, the DSW says that it works with the NGO to correct and or
amend its application.
The DSW also works with NGOs to develop their constitutions, though there
is no indication that any formal recommendations are made with respect to
internal governance standards. All registered NGOs must file annual reports
and audited accounts at the end of every year.
The DSW was the power to inspect the books of accounts and other records
of the agency, the securities, cash and other properties held by the agency and
all related documents.
NGOs cite frequent delays and problems with registration, including rent-
seeking by DSW officials.
NGOs and others report that the DSW has only infrequently conducted audits
of registered NGOs and that it does not have adequate capacity to do its work
properly.
Department of Women and Children Affairs
In addition to the NGOAB and the Department of Social Welfare, the

Department of Women and Children Affairs takes an active interest in NGO
activities in Bangladesh, especially those affecting women.
The department maintains a register of NGOs and provides assistance in

coordination and providing resources and skills. It also channels Bank project
funds to NGOs for operating micro-credit to the rural poor.
The Government NGO Consultative Council (GNCC)
In order to provide a forum for open dialogue between the Government and
the NGOs, GOB has established the Government NGO Consultative Council
(GNCC) by a Gazette notification, dated 17th October 1996.
Functions of Government NGO Consultative Council (GNCC)
I. To increase mutual understanding and cooperation between GOB and the

NGOs for the overall development of the country
II. To identify and discuss issues which impede GO-NGO cooperation and
develop an improved policy and institutional environment for GO-NGO
cooperation
III. To suggest modalities for greater involvement of NGOs in national

development
Functions of Government NGO Consultative Council (GNCC)
V. To propose measures to simplify and improve the regulatory system for

creating and enabling environment for governing NGO activities
VI. To suggest measures to strengthen the monitoring and evaluation capacity

of the NGOAB partner NGOs with a view to ensuring accountability and
transparency for development assistance funds
Problems of the Legal Framework
It does not:
 Permit easy, quick, non-discretionary establishment with full legal
personality of a membership or non-membership not-for-profit organization
to engage in any lawful activity
Provide that a not-for-profit organization must be organized and operated

primarily for not-for-profit purposes
Clearly forbid the distribution of income from a not-for-profit

organization
Assure the independence and accountability of boards of directors of not-

for-profit organizations
It does not:
 Require all not-for-profit organizations to have internal governance rules
that allocate rights, duties, and responsibilities is a clear, reasonable, and
flexible manner
 Clarify that directors have fiduciary duties of due care and loyalty
Establish clear rules that not-for-profits must follow for dealing with
conflicts of interest
Establish clear and consistent financial accounting standards for all not-for-
profit organizations
It does not:
 Require minimal external accountability and transparency for ordinary not-
for-profit organizations, with higher standards for public benefit organizations
 Provide adequate tax incentives for the not-for-profit sector.

Recommendations to Solve the Problems
O To stop the tradition of advice and opinion about the activities of NGOs
O To enact rules and regulations by the leading representative of the NGO’s

(ADAB, FNB) and Govt.
O To make a networking body of the NGO’s
O By stopping the influence of politics
O Role of NGO’s should be supportive; controlling mechanics of monitoring

should be reviewed so that NGO’s can work with their own value and
identity.
Recommendations to Solve the Problems
O The public representative of Govt. should be elected from experienced

person of NGO’s
O Every NGO has self regulating body who will monitor the activities of
NGO’s regularity
O To introduce one stop service system.
O To submit the supervisory report to social welfare department after

registration to prevent cheating.
O Activities should be implemented per Govt. National plan.

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Operations Management of NGOs

The Legal and Regulatory

1. The Non-Government Affairs Bureau (NGOAB)

2. Department of Social Welfare (DSW)

3. Department of Women and Children Affairs

4. The Government NGO Consultative Council (GNCC)

The Non-Government Affairs Bureau (NGOAB) was established in 1990

IV. Approval of project submitted by the NGOs and release of funds

V. Approve appointment and tenure of services of expatriate officials and

VI. Review/examine/comments on the reports and statements submitted by

IX. Collection of fees/service charges from NGOs

X. Carry out field level inspections of NGO income and expenditure

XI. Maintain liaison with the NGOs and donor agencies

XII. Examinations/disposal of reports on the functioning of the NGOs

XIII. Examine and take necessary action on the basis of reports

The principal work of the Directorate of this Department is to register and to

In addition to the NGOAB and the Department of Social Welfare, the

The department maintains a register of NGOs and provides assistance in

I. To increase mutual understanding and cooperation between GOB and the

III. To suggest modalities for greater involvement of NGOs in national

V. To propose measures to simplify and improve the regulatory system for

VI. To suggest measures to strengthen the monitoring and evaluation capacity

Provide that a not-for-profit organization must be organized and operated

Clearly forbid the distribution of income from a not-for-profit

Assure the independence and accountability of boards of directors of not-

 Provide adequate tax incentives for the not-for-profit sector.

O To enact rules and regulations by the leading representative of the NGO’s

O To make a networking body of the NGO’s

O By stopping the influence of politics

O Role of NGO’s should be supportive; controlling mechanics of monitoring

O The public representative of Govt. should be elected from experienced

O To introduce one stop service system.

O To submit the supervisory report to social welfare department after

O Activities should be implemented per Govt. National plan.

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