Through the Looking Glass: European Perspectives on Non-Profit Vulnerability, Legitimacy and Regulation

Abstract:     
"To what extent is it acceptable in the interests of the greater public good for national or international regulatory regimes to affect the manner in which international charities achieve their missions?" Policymakers may argue that competing public interests demand regulatory oversight of charities. Nonprofits may concede the argument in favour of regulation if two conditions are met – first, that the reality of the supposed threat is supported by empirical evidence; second, that the measures are proportional to the likelihood of the alleged threat occurring.

This paper explores these issues in the context of EU regulation of nonprofits, outlining the still-evolving European policy on non-profit regulation and tracing the emergence of the European response in the aftermath of 9/11 and the issuance of FATF Special Recommendation VIII. The paper reviews recent moves by the European Commission away from initiatives linked to the war on terror towards a policy grounded in broader accountability and transparency goals inspired by financial propriety, and considers the impact of these developments from the perspective of affected NGOs and national regulatory authorities.

Number of Pages in PDF File: 46

Accepted Paper Series