Somaliland International Democratization Support Strategy - page 46

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0.6% of the total disbursed. The challenge is bringing aid in line with national
priorities and needs. The
National Development Plan
is expected to provide the
guidance needed for alignment.
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The NGO Act does not place any legal limits on the financing of civil society; despite
increasing suspicion towards international donors, there are no restrictions on or requirements
for receiving foreign grants.
The NGO Act also provides for other sources of revenue, including income generation (as
allowed under Article 26); anecdotal evidence suggests that some organizations do charge for
services or otherwise run related business-like activities, such as small-scale production that
may benefit both organizational sustainability as well as targeted beneficiaries. Other forms of
fundraising do take place, but remain embryonic, including business contributions and
individual philanthropy.
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While there do not appear to be any incentives for businesses or
individuals to contribute to civil society organizations, the income tax law does exempt
charitable and welfare institutions from income tax as well as from custom duties for office and
project equipment.
In addition, Article 28 of the NGO Act calls for the establishment of an NGO fund, to be
supported by the government, donors and the private sector, to strengthen service delivery
among local NGOs. Its current status – including specific sources of support, criteria for
selection, and mechanisms for transparency – remains unclear.
Alliances and Strategies
Separate from the
National Development Plan
, there is no official strategy – advocated by civil
society, the government, or international donors – that specifically addresses the development of
the sector. The absence of such a strategy inhibits understanding of the role of civil society and
the concrete steps that could be taken to ensure the sector’s strength and sustainability. The key
priorities articulated by the
National Development Plan
include:
Implementing the NGO Act;
Increasing coordination between NGOs and the government;
Ensuring alignment between national priorities and international programs;
Expanding sustainable sources for NGO financing;
Building the capacity of local NGOs; and
Conducting regular monitoring and evaluation.
As a cross-cutting actor, civil society continues to play a key role in the development of other
sectors, including youth, education and health, both in advocating for certain policies and in
delivering specific services. Civil society is particularly credited with putting gender equality
86
National Development Plan
, p. 241.
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At this stage, community-based organizations – both closer to the public and farther removed from international
donors – may be more likely to receive these alternative forms of support.
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