Non-governmental organisations (NGOs) have played an important role in Cambodia's development since the early 1990s. Yet despite their significant contribution to food security, health and education, NGOs have operated without clear oversight or guidance. Given the recent friction between human rights NGOs and the government, the first draft of a new NGO law released in December 2010 was surprisingly mild, mainly providing a clear foundation for organisations that had previously been hampered by overlapping government jurisdictions and unclear regulations. However, aspects of the draft law are controversial.

The new law will put NGOs under the authority of the Ministry of the Interior, but, according to the draft, the registration fee will be determined by an Inter-Ministerial Proclamation signed by the minister of interior and the minister of economy and finance. A requirement that foreign NGOs must not let spending on administration exceed 25% of their total budget may be well received by critics of wasteful organisations. But projects sometimes necessitate complex administration, and some organisations claim that they are forced to make unofficial "facilitation payments", most of which are defined as "administrative".

Another loosely worded requirement stipulates that NGOs should employ Cambodian members of staff or workers "to the maximum extent possible", and that the number of staff should be "proportionate to the plan[ned] project or programmes". Experience suggests that some unscrupulous officials may use such conditions to extract unofficial fines. In addition, the economy and finance ministry and the National Audit Authority may "examine the financial status reports and properties" of NGOs. It should also be noted that NGO staff must disclose their assets under the Anti-Corruption Law, a measure that has been widely interpreted as being in retaliation for some organisations' criticism of the Cambodian government.