Philanthropy and Law in South Asia: Recent Developments in Bangladesh, India, Nepal, Pakistan and Sri Lanka

This report analyzes recent developments in state-nonprofit relations, regulation of the nonprofit sector and philanthropy in five South Asian countries - Bangladesh, India, Nepal, Pakistan, and Sri Lanka. Different situations in the five countries have determined state-sector relationships there. The report includes information on registration and incorporation, governance requirements, board, trustee and staff issues, tax treatment, regulation of foreign and domestic donations, regulation of special sectors and nonprofit self-regulation. With important caveats relating to contexts, circumstances and developments in these countries, certain common themes have emerged. These include;

• Continuing conflict over foreign donations;
• New initiatives to regulate the burgeoning microcredit and microfinance sector;
• Continuing debate over tax exemption for nonprofit and philanthropic entities, tax deductibility for donations and for-profit business activities by nonprofit organizations;
• Overlay of new money laundering legislation, including conflict over the role and autonomy of the voluntary sector;
• Emerging new forms of regulation and regulatory bodies;
• Continuing reform of company legislation and the channels for nonprofit activity opened under new company acts or amendments;
• Continuing interest in self-regulation and accreditation mechanisms.