What Lies Ahead for the Egyptian Philanthropic Sector?

(Nick Scott is the assistant to the publisher at Philanthropy News Digest. This is his first post for PhilanTopic.)

While it remains to be seen whether widespread hopes for a more inclusive, democratic Egypt are fully realized, there are reasons to be optimistic. Assuming a positive outcome, the legal environment for foundations and nonprofits could become much more favorable in the coming years. Even with the political obstacles erected by the Mubarak regime, however, philanthropy in Egypt has been growing over the past decade or so. With that in mind, now seems like an opportune time to take a look at what has been going right in Egyptian philanthropy, obstacles to the sector's continued growth, and what the future may hold.

Success Stories...

Long thought of as a leader in the Arab world, Egypt is emerging as a leader in the Arab philanthropic world as well. It is home to the Gerhart Center for Philanthropy and Civic Engagement at the American University in Cairo and boasts long-established and effective foundations like the pioneering Sawiris Foundation, established by the Sawiris family after the UN Millennium Summit in 2000 to address the country's unique development goals. And while more money overall may be awarded in oil-rich states like the UAE, Egyptian philanthropy has made significant progress in recent years.

Charity is not a new concept in Egypt. The country -- indeed, the entire Islamic world -- has a long tradition of religious charity. Individual giving in the form of zakat -- a type of religiously mandated alms-giving -- totals an estimated $1 billion (USD) annually in Egypt, making it far and away the country's largest charitable outlet. Charitable foundations are a much less established tradition, although the sector has been expanding rapidly. There are currently well over four hundred registered foundations in Egypt, and the number continues to grow. But while the field is relatively young, with many Egyptian foundations still finding their way, a more open political system would remove many of the roadblocks preventing them from realizing their full potential.

The median age in Egypt is just twenty-four, which should come as no surprise to those who watched as hundreds of thousands of young Egyptians flocked to Tahrir Square to protest the autocratic rule of President Mubarak. Not surprisingly, there has been a significant increase in the number of youth-led Egyptian social services groups in recent years. Traditional ways of doing charity may have excluded young people in favor of older, more experienced leadership in the past, but today's Egyptian youth no longer are content to sit on the sidelines. Organizations such as Resala, a social services group, have emerged as popular outlets for Egyptian youth eager to do good in their communities and feel a sense of social inclusion. Resala boasts over 100,000 members and has programs focused on poverty alleviation, literacy training, and services for the disabled.

Barriers...

Despite the mostly positive outlook, philanthropy and the NGO sector in Egypt are still tightly regulated by the Ministry of Social Solidarity. NGOs operate in an extremely restrictive legal environment that limits membership/fees, methods of revenue generation, and public fundraising efforts. The ministry also has the right to oversee and control NGO finances and must approve any foreign funds awarded to Egyptian NGOs. As a result, foundations that operate in Egypt sometimes choose to base themselves outside the country in order to avoid excessive and sometimes arbitrary government oversight and restrictions.

Indeed, ambitious plans for programs like education or health reform are often avoided by foundations out of concern that government bureaucrats will make their implementation too difficult. Another concern among some is that foreign development agencies sometimes crowd out indigenous organizations and stifle the development of local NGOs.

When, for example, Molly Schultz Hafid interviewed Egyptian nonprofit professionals in 2009 about the potential for community-based philanthropy in the country, she heard things like: "I don't see [community-controlled] philanthropy working as well here simply because there is more apathy. You have to have a sense of citizenship." While an understandable sentiment, not everyone feels so discouraged. The success of organizations like the Maadi Community Foundation demonstrates that there is an interest in community-based philanthropy despite the obstacles imposed by the state. An Egypt whose citizenry felt they had a real stake in the government could well be an Egypt that sees a rapid increase in community foundations, as young people begin to believe they have an opportunity to participate in civil society and make a difference.

In closing...

The philanthropic sector in Egypt is still young and there's room for improved practice, more transparency, and greater effectiveness. Schultz-Hafid's 2009 study Emerging Trends in Social Justice Philanthropy in Egypt offers five excellent recommendations. Still, less government regulation and legal handcuffing could go a long way toward making those recommendations easier to implement and accelerate the growth of the field. Another great source for background information is Gerhart Center founding director Barbara Ibrahim's paper From Charity to Change: Trends in Arab Philanthropy.

If much still hangs in the balance politically, we should note and applaud the fact that Egyptian philanthropy has been getting more organized and strategic -- trends likely to continue into the future.

--Nick Scott

Comments

[Brad Fallon]

The peaceful revolution in Egypt surely did mark very significant changes among themselves and to other countries as well. The trends will surely spread not only among Egyptians but to the surrounding nations. Nice post.

[Allison Wood]

Great post, Nick. You're right to focus on the role of youth in Egypt going forward - I think the revolution has not only empowered youth, giving them a sense of control of their own destiny, but also inspired a greater sense of nationalism that could potentially inspire many young people to consider contributing and improving their communities in ways they had not previously. Hopefully regulations will be relaxed sooner rather than later to facilitate this.

[Nick Scott]

Brad,

Thanks -- it certainly looks to be going that way, although I fear in Libya we are seeing that other regimes are willing to be more violent in order to retain their grip on power.

Allison,

I completely agree -- Egyptian society has traditionally been pretty hierarchical with regard to class and age....I think the generation that has grown up entirely under Mubarak has rejected that idea, and now believe they can actually shape the future of their lives and their country.