18
October
2023

Protecting civil society – Update 2023

Civil society organisations struggle to maintain an environment safe from threats and attacks. FRA’s sixth annual update on civic space explores the challenges for organisations across the EU. While there has been significant development since FRA began monitoring the situation in 2018, civil society organisations remain under immense pressure. Abusive lawsuits and attacks against those involved in migrant search and rescue at sea are just some of the challenges identified. This report presents ways forward to protect civil society and human rights.

To engage in human rights work, CSOs need financial, human and material resources and access to national and international (public and private) funding; the ability to travel and communicate without undue interference; and the right to benefit from the protection of the state.

The Organization for Security and Co-operation in Europe’s ODIHR and Venice Commission guidelines on freedom of association note that “the ability to seek, secure and use resources is essential to the existence and operation of any association”. Access to and the use of funding provide associations with the means to operate and pursue their missions and are therefore inherent elements of the right to freedom of association.[153] OSCE (2015), Joint guidelines on freedom of association, Warsaw, OSCE/ODIHR.

In addition, the Council of the European Union recently acknowledged “that civil society actors at all levels need appropriate and sufficient human, material and financial resources to carry out their missions effectively and that the freedom to seek, receive and use such resources is an integral part of the right to freedom of association”.[154] Council of the European Union (2023), Council Conclusions on the application of the EU Charter of Fundamental Rights; The role of the civic space in protecting and promoting fundamental rights in the EU, 24 February 2023.

As regards financial resources, typically CSOs rely on funding and income from a variety of sources. These include the public sector, international organisations, individual donors, foundations and philanthropic organisations, corporations, membership fees and income-generating activities.

Finding and accessing resources remains an ongoing concern for CSOs.[155] FRA’s 2018, 2021, 2022 civic space reports.
In FRA’s 2022 civic space consultation, 58 % of responding organisations often or sometimes experienced obstacles to accessing resources/funding.[156] FRA’s 2022 civic space consultation.


FRA’s 2022 consultation shows that the major challenges for national and local organisations in 2022 were connected to difficulties in finding funding relevant to their work (67 %) (Figure 8). Other recurrent difficulties concern applying for funding (complicated application procedures, limited administrative capacity to apply) (42 %), using the funding received (lack of core funding, lack of follow up funding, too short funding cycle) (33 %) and accessing funding (publicly available information difficult to find, overly restrictive eligibility criteria, rules on foreign funding) (32 %).

The results reveal some differences between EU-level and national-level organisations. National organisations encountered challenges in finding funding relevant to their work, and using funding, more frequently than international/EU organisations, while organisations at international/EU level seemed to have more difficulties applying for funding than national and local organisations.

Figure 8 – Difficulties CSOs face with regard to funding (%)

 

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A bar chart shows the different types of difficulties faced by organisations working at the national/local level compared to those working at international/EU level. The results are described in the text in the two paragraphs preceding the figure. 

Notes: Question: “In the last 12 months, did you experience any of the following difficulties when trying to find and access funding?” National, N = 152; EU, N = 52.

Source: FRA’s civic space consultation 2022

CSOs also report discriminatory or restrictive funding practices in a number of Member States. These affect, in particular, CSOs working on gender equality and LGBTIQ+ issues, and those working with migrant communities and religious minorities. Generally, more funding seems to be available for CSOs providing social services than for those conducting advocacy and watchdog activities, building their own capacity as organisations and carrying out activities such as strategic litigation. There is very little funding for security and resilience of CSOs themselves.

As regards the funding landscape, there were few changes in 2022. One notable development was related to funding to support those who were displaced as a result of Russia’s war of aggression against Ukraine. A few Member States also provided energy subsidies to businesses and non-profit organisations.

After a broad participation process with CSOs, the German government introduced a bill to promote democracy and diversity, to advance political education and to prevent extremism by supporting the efforts of civil society. The German Bundestag is currently debating the bill. Whether the goal of providing long-term sustainable funding can be achieved depends primarily on the funding guidelines related to the law. 

In Luxembourg, the state budget for 2023, approved in December 2022, provides for new funding specifically dedicated to human rights organisations. This specific funding was created following the publication of an open letter, in August 2022, calling for public support for human rights organisations in Luxembourg. The Czech Ministry of the Interior excluded NGOs from the list of applicants eligible for funding for providers of legal aid for migrants in 2022. That decision could affect the quality of services provided to migrants.[157] Franet [Institute of Sociology of the Czech Academy of Sciences] (2022), An update on developments regarding civic space in the EU and an overview of the possibilities for human rights defenders to enter EU territory - Czechia;  Franet [Estonia Human Rights Centre] (2022), An update on developments regarding civic space in the EU and an overview of the possibilities for human rights defenders to enter EU territory - Estonia; Franet [University of Luxembourg] (2022), An update on developments regarding civic space in the EU and an overview of the possibilities for human rights defenders to enter EU territory - Luxembourg. .

There were, again, some developments related to tax regimes and charitable status. For instance, in Germany, charitable organisations are allowed to pursue non-partisan and charitable purposes under the legal framework. Amendments to the Fiscal Code Implementation Decree in January 2022 reiterates that ‘political purposes’ do not count as charitable activities. According to CSOs, the stated goal of the German government’s coalition agreement to modernise charity law or remove the uncertainty around political activity arising out of the Federal Fiscal Court’s jurisprudence was not fulfilled by these amendments. According to the German government, the amendments implement the Federal Fiscal Court’s jurisprudence and according to the financial authorities there are no known problems in practice. The coalition agreement includes provisions for charitable organisations to have a tax-exempt status. The schedule and the contents of the implementation are not yet certain.

In Ireland, under the provisions of the Charities Act 2009, the advancement or promotion of human rights is not considered to be a charitable purpose. The General Scheme of the Charities (Amendment) Bill 2022, published on 29 April 2022, proposes to change this. If enacted, it will allow human rights organisations to apply for charitable status using ‘the advancement of human rights’ as their charitable purpose, rather than relying on an existing charitable purpose. While this has been welcomed, CSOs remain concerned about the continued limitations ono the political advocacy work of charities. In Italy, Decree-Law No. 73 of 21 June 2022 on urgent measures on tax simplifications was approved. The decree-law introduced several measures simplifying the tax regime applied to CSOs.[158] Franet [Greman Institute for Human Rights] (2022), An update on developments regarding civic space in the EU and an overview of the possibilities for human rights defenders to enter EU territory - Germany; Franet [Irish Centre for Human Rights, University of Galway] (2022), An update on developments regarding civic space in the EU and an overview of the possibilities for human rights defenders to enter EU territory - Ireland; Franet [Fondazione “Giacomo Brodolini”] (2022), An update on developments regarding civic space in the EU and an overview of the possibilities for human rights defenders to enter EU territory - Italy.

There have also been some developments in the areas of foreign funding, anti-money laundering and terrorist financing. The Swedish government announced its intention to initiate an inquiry into the possibilities of introducing a ban on the use of foreign fundingby religious communities and other CSOs connected to extremism, including Islamic extremism. It also investigated how the criteria for state grants could be strengthened to ensure that CSOs receiving support from the state adhere to democratic values.[159]Franet [Raoul Wallenberg Institute of Human Rights and Humanitarian Law] (2022), An update on developments regarding civic space in the EU and an overview of the possibilities for human rights defenders to enter EU territory - Sweden;  Regeringkansliet (2019), Democratic conditions for contributions to civil society (Demokrativillkor för bidrag till civilsamhället).

At the same time, FRA’s research identified a range of positive developments. Several countries improved their general funding frameworks, while others explored a more favourable taxation framework for CSOs.

A number of funding programmes were launched in 2022, notably in support of CSOs conducting activities to support displaced people from Ukraine.[160] See Franet’s reports. For instance, in Estonia, an amendment to the Income Tax Act came into effect. The amendment allows legal persons to make tax-free donations for Ukraine through seven named associations. Furthermore, donations made through certain NGOs are exempt from income tax.[161] Franet [Estonia Human Rights Centre] (2022), An update on developments regarding civic space in the EU and an overview of the possibilities for human rights defenders to enter EU territory - Estonia.

The increasing pressures on CSOs have prompted donors to try to provide dedicated support to CSOs and human rights defenders.

Project funding remains one of the main ways in which donors try to support civil society. However, evidence suggests that CSOs continue to face challenges regarding both limitations in the type of activities that are being fund and CSOs’ ability to access to this funding (see Figure 8). These problems are exacerbated in cases where civic space is already under pressure.[162] FRA’s 2022 civic space consultation.

As regards the type of activities CSOs fund, they are often focused on human rights-related services and to a lesser extent on advocacy and watchdog activities aimed at improving human rights. Few donors have made funding available specifically for addressing civic space pressures, including through civic space advocacy and litigation, supporting the safety and resilience of CSOs and their members, and dedicated capacity building.[163] See, for example, European Commission (2023), Summary Report, A thriving civic space for upholding fundamental rights in the EU: looking forward - Follow up seminars to the 2022 Report on the Application of the EU Charter of Fundamental Rights (forthcoming).

In addition, CSOs face challenges in accessing the funding available.[164] See Chapter 4.1. For example, there are difficulties in finding relevant information; overly restrictive eligibility criteria; complicated application and reporting procedures; rules on foreign funding, which need to take into account relevant Court of Justice of the European Union case law;[165] CJEU, C78/18, Commission v. Hungary, 18 June 2020. and a lack of transparency and discrimination in funding allocation.[166] FRA’S 2022 civic space consultation. Often, small CSOs have to compete for funding against with large organisations with more resources, who may have more capacity for conducting fundraising activities. CSOs also report that project funding is often inflexible and does not allow them to react to the changing human rights environment fast enough. They suggest that core organisational and infrastructure funding would allow them to better navigate the complex environment and address newly emerging issues.[167] European Commission (2023), Summary Report, A thriving civic space for upholding fundamental rights in the EU: looking forward - Follow up seminars to the 2022 Report on the Application of the EU Charter of Fundamental Rights (forthcoming); European Civic Forum and Civil Society Europe (2023), ‘How can we enable, protect and expand Europe's civic space, to strengthen democracy, social and environmental justice? Recommendations for the European Commission’; and European Youth Forum (2017), ‘Policy paper on the Erasmus+ successor programme’, Council of Members/Extraordinary General Assembly, Cascais, Portugal, COMEM 0119-17-FINAL, 23-25 November 2017.

There has so far been little strategic coordination and cooperation among donors supporting human rights CSOs and human rights defenders under pressure across the EU. Private philanthropies coordinate to some extent through the networks the Philanthropy Europe Association (Philea) and European Funders for Social Change and Human Rights (Ariadne) and through the international Funders Initiative for Civil Society, (FICS) which is specifically focused on defending and expanding civic space.[168] See the Philea, Ariadne and Funders Initiative for Civil Society websites. Initiatives such as Civitates (see Promising practice box on Civitates) are joint efforts by private donors to address democratic decline and civic space issues in the EU.[169] See the Civitates website. However, none of them include any of the major public donors in the EU – such as the European Commission, the European Economic Area and Norway Grants, and the United States Agency for International Development – or Member State public funding.

The absence of regular coordination among and between major public and private donors may lead to overlaps and gaps in terms of themes, types of activities, and geographical areas that funding covers.[170] European Commission (2023), Summary Report, A thriving civic space for upholding fundamental rights in the EU: looking forward - Follow up seminars to the 2022 Report on the Application of the EU Charter of Fundamental Rights (forthcoming).

In this context, a few donors have developed specific approaches to providing support to CSOs and human rights defenders under pressure, with the overall aim of enabling them to continue doing their human rights work. The support includes dedicated funding for civic space projects, such as advocacy and strategic litigation around an enabling environment; security and resilience-related capacity building in the area of civic space; funding for cooperation among organisations; support for improving the resilience of organisations and people; specific grants for addressing security concerns; and innovative ways of providing core funding.

Promising practice – European Commission funding for civic space projects and support for NGO networks

The European Commission’s CERV programme was launched in 2021 and will provide €1.56 billion in funding over seven years.

In 2021, CERV launched its first call to support local, regional and/or national CSOs through cascading grants. The first call for proposals to protect and promote EU values, particularly targeted at grassroots, small, remote and rural organisations. These organisations tend to have more limited capacity and funding sources than others. A second Union Values call is expected to be published in autumn 2023.

CERV launched its first dedicated funding call for promoting rights and values by empowering civic space in spring 2023, with a similar call expected to follow in spring 2024. Projects “should promote rights and values by empowering civil society actors to work together at the local, regional and national levels” and “help [in] creating a channel of communication with the EU level to report on the state of the civic space in their countries and voice their concerns”.

CERV also provides institutional funding for umbrella networks of NGOs.

Source: European Commission (n.d.), ‘Promoting rights and values by empowering the civic space

If capacity building is funded, the types of activities supported are often of a specific, technical nature (how to write a funding proposal, how to communicate, how to conduct advocacy with policymakers, legal training, etc.). Funding for other types of capacity building that are equally crucial to counter civic space pressures is harder to find.[171] European Commission (2023), Summary Report, A thriving civic space for upholding fundamental rights in the EU: looking forward - Follow up seminars to the 2022 Report on the Application of the EU Charter of Fundamental Rights (forthcoming). CSOs under threat could notably benefit from support in developing their capacity to protect themselves against threats and attacks offline and online, in countering smear campaigns, defending themselves against SLAPPs, and in crisis communication, crisis management and organisational development.[172] See, for example, Stefan Batory Foundation, Open Society Foundations and International Renaissance Foundation (2023), Learning for the future – Protection and security for civil society activists at risk in Europe (unpublished).

 

Promising practice – Training for CSOs on tackling smear campaigns

The Civil Liberties Union for Europe (Liberties) offers dedicated training and capacity-building activities to CSOs to enable them to defend themselves against smear campaigns. The training is based on Liberties’ guide to messaging for progressive CSOs facing smear campaigns. The Oak Foundation funded the creation of the guide Liberties offers training to CSOs free of charge with the support of the Oak Foundation and the European Commission's CERV program.

Source: Butler, I. (2021), How to talk about civic space: A guide for progressive civil society facing smear campaigns, Berlin, Civil Liberties Union for Europe

 

Promising practice – Security grants

In 2022, Open Society – Europe and Central Asia (OSECA) started to provide targeted funding aimed at increasing the resilience of CSOs, helping activists to continue their work in a safer environment. The funding is provided in the form of a special ‘security top up’ that is added to grants provided to partner organisations. In 2022, OSECA supported 27 groups in central and eastern Europe, Italy and Greece with such top ups, with amounts ranging from USD 10,000 to USD 50,000 (a total of USD 350,000 per year). The grants allowed them to formulate strategies for carrying out work needed to increase their organisational preparedness and to enable them to respond effectively to challenges related to security or the well-being of their staff. OSECA takes a holistic approach to protection, considering physical and digital aspects of security with well-being, financial sustainability, protection from legal attacks or smear campaigns and working conditions.

Source: OSECA

Supporting the individual and collective resilience of CSOs – including through network building, facilitating cooperation and conducting peer learning activities – increases their capacity to deliver.

 

Promising practice – Civitates: Funding for cooperation

Civitates is a philanthropic initiative promoting democracy and civic space in the EU. It pools funds from multiple private philanthropic donors. Since becoming operational in 2018, it has supported 50 organisations in 18 countries with a total amount of € 10 million

One of Civitates’ focus areas is “civic power”. To achieve this, the initiative supports cross-sectoral coalitions that operate at national level. Its work includes reactive and proactive elements aimed at building organisations’ resilience and their capacity to stand up against the deterioration of democratic values and civic space.

In addition to providing funding, Civitates, through its Funding Plus approach, offers opportunities for beneficiaries to learn, reflect and connect. It does so notably through organising grantee gatherings and learning initiatives.

Source: Civitates (n.d.), ‘Civitates

When trying to strengthen civil society under pressure, it is also important to consider the need for appropriate support infrastructure – that is, funding for organisations (or projects) that focus on delivering targeted capacity building, providing counselling services, ensuring CSO-focused organisational development, enabling cooperation and coordination, and performing risk assessments (e.g. as regards security threats, legal issues, cyber challenges, human resource needs).

 

Promising practice – Capacity building coupled with network building

The Recharging Advocacy for Rights in Europe (RARE) programme seeks to build the capacity of human rights defenders from across Europe to react jointly and more effectively to threats to human rights and the rule of law. At the same time, it aims to build strong relationships and alliances among participants, to enable them to support and empower and support each other when they are in need. The programme’s 2022-2024 cycle is funded by a range of public and private donors: Stiftung Mercator, Open Society Foundations, National Endowment for Democracy, USAID, the Foreign Ministries of Germany and the Netherlands, ERSTE Stiftung, Heinrich-Böll Stiftung, Friedrich-Ebert-Stiftung, Dutch Postcode Lottery, Oak Foundation, Oxfam Intermon, Civitates) and The programme is co-organised by partners from academia and civil society – the Hertie School, the Hungarian Helsinki Committee, the Netherlands Helsinki Committee, the Helsinki Foundation for Human Rights in Poland and Oxfam Novib.

Source: Hertie School (n.d.), ‘What is RARE?

Donors face the issue of not only which type of activities to fund but also how to provide funds in the most efficient and effective way. When asked about their views on necessary changes to funding mechanisms, respondents to FRA’s consultation mostly point to the need for more core/infrastructure funding instead of project funding (65 %) (Figure 9). Respondents also say that they would benefit from longer funding cycles (34 %), more funding for advocacy (28 %), no co-funding requirements (27 %) and a higher allocation for salaries (25 %). In addition, respondents indicate the need for more funding for capacity building (18 %) and the use of lump sums (16 %).

Figure 9 – CSOs’ perception of necessary changes in funding in 2022 (%)

 

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A bar chart shows the percentage of organisations would be important. The text describing the results is in the preceding paragraph.

Notes: Question: “What changes in funding would be the most important for your organisation?” N = 297.

Source: FRA’s civic space consultation 2022

The issue of how to fund CSOs goes beyond mere technical questions on the implementation of funding. Donors are seeking to find ways to apply impact-based indicator frameworks, to mainstream non-discrimination into funding and to support new forms of activism such as social movements and online activism.[173] Interviews with representatives of donors and grantees (Ariadne, Mott Foundation, Civitates, European Center for Not-for-Profit Law); European Commission (2023), Summary Report, A thriving civic space for upholding fundamental rights in the EU: looking forward - Follow up seminars to the 2022 Report on the Application of the EU Charter of Fundamental Rights (forthcoming); European Civic Forum and Civil Society Europe (2023), ‘How can we enable, protect and expand Europe's civic space, to strengthen democracy, social and environmental justice? Recommendations for the European Commission’. They are also considering how grantees can be asked to declare or advertise funding sources in a way that does not put grantees at risk. For example, 30 % of respondents in FRA’s 2022 civic space consultation who experienced threats and attacks say that these were related to specific sources of funding for their organisation.[174] Ibid.

 

Some private donors have developed a specific approach to funding known as ‘trust-based funding’. Key features include (1) the multi-year funding period in which the grantee deploys the funding where it best sees fit, (2) the reduction of paperwork through simplified approaches to applications and reporting, (3) donor transparency and open communication, (4) donors truly knowing their grantees and building a relationship, (5) feedback loops and continuous learning cycles and (6) responsive, adaptive, non-monetary support to bolster leadership, capacity and organisational health.[175] Trust-Based Philanthropy Project (n.d.), ‘A trust-based approach; and National Philanthropic Trust (2022), ‘Trust-based philanthropy: A primer for donors’, 16 March 2022.

Finally, donors can support CSOs under pressure in a range of ways beyond funding, for example by:[176] European Commission (2023), Summary Report, A thriving civic space for upholding fundamental rights in the EU: looking forward - Follow up seminars to the 2022 Report on the Application of the EU Charter of Fundamental Rights (forthcoming).

  • conducting political advocacy with governments, defending the added value of CSOs;
  • raising public awareness of the role and importance of civil society’s work and its contribution to human rights and democracy;
  • informing themselves and others about challenges and pressures on civic space;
  • developing civil society, conducting outreach across regions, building the capacity of organisations and coaching grantees;
  • consulting meaningfully with CSOs before, during and after the funding period to ensure that the funding is best targeted;
  • including civil society representatives in their conversations with states/ministries.

Promising practice - Civil society involvement in the European Youth Foundation of the Council of Europe

The European Youth Foundation (EYF) is a fund established in 1972 by the Council of Europe to provide financial and educational support for youth activities. It specifically targets youth organisations including national and international youth NGOs and networks from 50 countries that are signatories of the European Cultural Convention, including the 46 Council of Europe member states.

The EYF is an example of how public funding mechanisms can include civil society organisations at all its stages for better and relevant outcomes. Unique to the EYF is the Programming Committee on Youth (CPJ), the decision-making body on EYF grant allocations. The CPJ establishes and monitors the budget and programmes of the two European Youth Centres in Strasbourg and Budapest. The CPJ consists of eight government representatives and eight non-governmental youth organisations’ representatives. The European Youth Forum is involved as an observer, represented through the Council of Europe’s youth sector co-management system in the spirit of participatory democracy.

Source: Council of Europe (2023), European Youth Foundation.