What is this guide?
As mounting restrictions increasingly hinder the ability of civil society organisations (CSOs) to operate, many are exploring alternative solutions to continue their work. This guide maps out common scenarios CSOs follow when their operations are restricted in their home countries, and provides resources to support informed decision-making on how to potentially continue their mission abroad.
The guide is continuously updated and is divided into:
- Part 1 describing the possible scenarios for your CSO with or without physical relocation of your staff and resources into another country; and
- Part 2 with strategic, legal and financial factors CSOs typically assess when selecting specific country(ies), and resources to help answer key questions stemming from these considerations.
We gathered the information in the guide directly from affected CSOs and we want to thank them for their contribution. The guide by no means aims to encourage CSO relocation, but views it as a last-resort solution that, unfortunately, many CSOs today are compelled to consider.
1. Scenarios
Here are some common scenarios to consider when planning your mode of operations:
With physical relocation of staff/resources
Registering a new organisation or a branch in a new country, and relocating staff and/or resources there, without closing down the organisation in the original country.
Applies when you are considering:
- Registering a new organisation or an affiliated/subsidiary/branch/representative office in a new country, and
- Relocating some staff members and/or resources to the new country, and
- Keeping also your organisation in the original country.
Why this option might work for you:
This scenario is primarily, although not exclusively, followed by larger CSOs that might have interest in maintaining the original organisation (for example because of property ownership) and at the same time have a capacity to administer a new organisation in another country to receive funding otherwise restricted in the original country.
The reasons for staff relocation might be different, including pursuing new advocacy and funding opportunities outside of the original country or limited physical safety issues relevant only for some (most exposed) staff members.
Terminating registration in the original country and operating as an unregistered group with partial relocation of staff and resources.
Applies when you are considering:
- Closing down a CSO or otherwise ceasing to operate (including when you are being forcefully deregistered) in the original country, and
- Continuing to operate as an unregistered group, and
- Relocating some staff members and/or resources to one or more new locations.
Why this option might work for you:
This scenario is typically used by smaller CSOs, when they have contacts/partners in the new country and do not need to register a new organisation to continue their work. These partners can help them by hosting the contracts/funding of the original organisation and distributing money to the original staff members through different partnership/freelancing agreements, depending on the applicable laws in the country.
The reasons for staff relocation might be different, including pursuing new advocacy and funding opportunities outside of the original country or limited physical safety issues relevant only for some (most exposed) staff members.
Terminating registration in the original country and registering a new organisation in another country or multiple countries with relocation of staff and resources.
Applies when you are considering:
- Closing down a CSO or otherwise ceasing to operate (including when you are being forcefully deregistered) in the original country, and
- Registering a new organisation in one or multiple countries, and
- Relocating all staff members and/or resources to one or more new locations.
Why this option might work for you:
Typically used by larger or smaller CSOs when they have to move all of their operation to a new country and formally register an organisation there for various reasons, including to continue directly administering their contracts.
The reasons for relocation might be different, typically, they involve physical attacks on the CSO and its staff/members or when the legal restrictions affecting the CSO are so severe in the original country that there is no possibility for the CSO to continue its operation.
Relocation of staff and resources to a new country, while maintaining formal registration in the original country.
Applies when you are considering:
- Maintaining the CSO registration in the original country, and
- Relocating all/part of staff members and/or resources to one or more new countries, and
- Not registering a new organisation in the new country (operating as an unregistered group or a foreign-registered organisation).
Why this option might work for you:
Typically used by CSOs whose staff members are under physical pressure/attacks, but the restrictions in the original country allow them (at least to some extent) to continue their operation.
This scenario requires for the new country to allow operation of unregistered groups or foreign-registered organisations.
Without physical relocation of staff/resources
Registering an organisation in a new country while keeping the CSO registration, staff and operations in the original country.
Applies when you are considering:
- Maintaining the CSO registration in the original country, and
- Maintaining staff members and resources in the original country, and
- Registering a new CSO/affiliated/subsidiary/branch/representative office or organisation and/or receiving resources in one or more new countries.
Why this option might work for you:
Similar scenario as the first one under physical relocation: for larger CSOs that have interest in maintaining the original CSO and at the same time it is able to administer a new CSO in another country that can, for example, receive funding otherwise restricted in the original country.
Applies to CSOs that are not in direct physical danger but decide to register a new organisation in other jurisdiction due to the restrictions in the original country (e.g. foreign funding restrictions).
Terminating registration in the original county and operating as an unregistered group, while maintaining staff members in the country original country.
Applies when you are considering:
- Closing down a CSO or otherwise ceasing to operate (including when you are being forcefully deregistered) in the original country, and
- Continuing to operate as an unregistered group, and
- Maintaining staff members in the original country, but receiving resources from abroad.
Why this option might work for you:
Similar scenario as the second one under physical relocation: Typically used by smaller CSOs, when the original organisation has contacts/partners in another country that can help them by hosting the contracts/funding of the original organisation and distributing money to the original staff members through different partnership/freelancing agreements. This scenario can be also used when the organisation does not have any existing contracts to transfer but is promised future funding that will be distributed to them through a partner organisation registered abroad.
Applies to CSOs that are not in direct physical danger but cannot further keep their formal registration in the original country because of the existing restrictions (e.g. foreign funding limitations).
Other scenarios
Setting up a different legal entity not affected by the restrictions (for example a for-profit company) in the original country while liquidating or keeping the original CSO.
Applies when you are considering:
- Closing down a CSO or otherwise ceasing to operate (including when you are being forcefully deregistered) in the original country, and
- Maintaing staff members and resources in the original country, and
- Registering a different type of legal form in the original country (e.g. a for-profit company)
Why this option might work for you?
This scenario might be used by CSOs in countries where non-profit organisations are subject to restrictions that are otherwise not applicable to other legal forms (for example a for-profit company). Typically, this could apply to CSOs in countries with foreign funding limitations that are specifically targeting non-profit organisations.
A scenario that allows for physical presence in the country, but might be challenging due to donor restrictions, applicable tax obligations and in general because of a different mode of operation.
2. Selecting a new location to continue your work: key questions and resources
When deciding where to continue your work, take into account these strategic, legal and financial considerations:
Strategic questions
For all scenarios
- What is the geopolitical situation in the country? Consider looking into:
- Whether the country is politically stable and generally follows its human rights commitments;
- Whether there is an enabling environment for civil society organisations to carry out their work;
- The existing relationships between your country of origin and the country you are considering to register in.
- Do you have existing ties in the country? Are there:
- Local partners or other groups you are interested to partner with;
- New donors or no major geographic restrictions for your existing donors to continue funding your work in the country;
- Other relocated CSOs, especially from your country of origin with experience of running a CSO in the country;
- People from your country of origin (diaspora).
- What is the geographic location? In some cases, CSOs prefer to stay close to their original country, while in others, they prefer some geographic distance.
- What is the cost of setting up in the country?
For physical relocation
And here are some additional strategic questions when you consider the physical relocation of staff and resources:
- What is the immigration process for your staff and their family members? Consider looking into:
- Conditions to obtain a visa/residency permit/international protection status for your staff members;
- Employment costs for your staff members, including health, social security and tax payments;
- Conditions to obtain visa/residency/permit/international protection status for your staff’s family members and conditions to access healthcare, education and labour market.
- What is the cost of living?
- What are the spoken languages in the country, can you speak one?
- Do you have a community of relatives, colleagues, friends in the country?
- Is the country safe (consider whether the country is part of bilateral or multilateral agreements on the exchange of information your original country is a member of)?
When liquidating the original CSO
If you consider liquidating the original CSO, consider these strategic questions:
- How can you ensure the continuity of your original CSOs’ activities and maintain its history?
- Consider the funding accessibility (donor presence). Talk to your donors about the possibility of transferring your existing programs to the new location.
Relevant resources
On political stability in the county:
On civil society enabling environment:
- Global: Civicus Monitor
- Selected regions: Civic Freedom Monitor - ICNL
- Eastern Partnership: CSO Meter
On available support networks: European Union Temporary Relocation Platform (EUTRP)
On immigration: Handbook on European law relating to asylum, borders and immigration - Edition 2020 | European Union Agency for Fundamental Rights
On cost of living: NUMBEO - Cost Of Living Comparison
Legal questions
For all scenarios
- Do you fulfil the minimum requirements for founders? Consider looking into:
- Restrictions on citizenship/residency of founders;
- Minimum number of founders;
- Legal capacity;
- Age.
- How long does it take to register an organisation and what is the cost of registration. Consider looking into:
- Possibility to register an organisation online or through an appointed representative;
- Legally defined timeline for registration vs. actual experience of groups with registration;
- Cost of the registration procedure and other costs, such as translations of documents or hiring a lawyer.
- Do you need to open an actual office in the country or is a virtual seat where you can receive registered mail sufficient? Consider looking into:
- Requirements for physical office in the country (home address, actual office space);
- Possibility to have a mailbox address or virtual seat.
- How complicated is the internal structure of the organisation and is an employee needed? Consider looking into:
- Requirements to have a full-time employee;
- Requirements to have a local resident/citizen on a board of the organisation or otherwise involved in the governance of the organisation;
- Liability of founders and statutory representatives.
- Can you legally pursue activities of my organisation in the new country? Consider looking into:
- Restrictions on the goals and activities of the organisation;
- Funding/income restrictions;
- Restrictions on the geographic scope of activities (for example, a requirement to have a portion of activities that are domestic).
- What is the administrative burden of running such an organisation and how much information about my activities do I need to publish online? Consider looking into:
- Narrative reporting requirements, including whether this information needs to be published online;
- Financial reporting, including tax reporting requirements;
- Any other reporting obligations (for example, on ultimate beneficial owner).
- Can you open an organisational bank account or otherwise receive funding? Consider looking into:
- Requirements for opening a bank account, including the requirement for physical presence and registration in the country;
- Requirements for the founders to be citizens of the country/have a residency;
- Alternative ways of transferring funds in case you are unable to open a bank account.
For physical relocation
And here are some additional legal questions when you consider the physical relocation of your staff and resources:
- What are the conditions for employing foreigners? Consider looking into:
- The conditions for issuing work permits in case you plan to relocate your staff;
- The tax, social security, and other related obligations of employers in the country to calculate your costs;
- Whether you can employ persons working from abroad in case you do not plan to relocate your staff and plan to hire them under a remote work contract. Look into hybrid models of cooperation contracts.
Relevant resources
On CSO registration: Global Nonprofits Guide
On empolyment issues: Global Employment Compass | PILnet
On banking issues: European Banking Guide for Nonprofits | ECNL
Financial viability questions for all scenarios
- Will you be able to finance your activities based on your main income sources? Consider looking into:
- Restriction on foreign funding;
- Restrictions/ permits of other types of income;
- Availability of tax benefits for donors (including foreign ones);
- Restrictions on conducting economic activities.
- How is income going to be taxed?
Relevant resources
This guide is available under the Creative Commons license: CC-BY 4.0 Attribution 4.0 International.