Bhutan’s civil society sector, though modest in size, has steadily become an important partner in the country’s development journey. With 54 registered Civil Society Organisations (CSOs) currently operating across the nation, these groups play a complementary role to government efforts, particularly in areas related to social welfare, livelihoods, education, health, and environmental protection.
Registered CSOs in Bhutan are broadly classified into two categories: Public Benefit Organisations (PBOs), which serve the wider public, and Mutual Benefit Organisations (MBOs), which primarily cater to the interests of their members. While their mandates differ, both types share common challenges, most notably limited access to sustainable funding and persistent misconceptions about the role and accountability of civil society.
Oversight of the sector lies with the Civil Society Organisation Authority, which regulates registration, compliance, and governance standards. In recent years, the authority has introduced requirements such as endowment funds to strengthen the long-term financial stability of CSOs. While some organisations view this as a necessary step toward professionalism and sustainability, others argue that the requirement places additional strain on already resource-constrained groups, especially smaller and community-based initiatives.
Despite these hurdles, CSOs continue to demonstrate their relevance by closely engaging with communities and aligning their programmes with national development priorities. Many organisations rely on participatory approaches, research, and outcome-based monitoring to assess their impact, ensuring that their work remains responsive to local needs while supporting broader policy goals.
However, renewed scrutiny has emerged following observations from the Royal Audit Authority. A recent audit report highlighted gaps in the oversight of external funding received by CSOs, raising concerns about transparency and accountability. The report recommended mandatory declarations of foreign funding and regular audits to ensure proper use of resources—suggestions that have sparked discussion within the sector about balancing accountability with operational flexibility.
Leaders within civil society stress that stronger partnerships with government agencies, clearer regulatory frameworks, and diversified financing options are essential for the sector’s growth. They argue that an enabling policy environment—one that recognises CSOs as development partners rather than mere aid recipients—will be key to strengthening their contribution to Bhutan’s social and economic progress.
As Bhutan continues to pursue inclusive and sustainable development, the role of civil society is likely to remain under the spotlight. How effectively CSOs adapt to regulatory changes, funding pressures, and public expectations may determine not only their future, but also the depth of their impact on the communities they serve.
