Indiana University-Purdue University Indianapolis (IUPUI) / The shrinking space for civil society and the increasing number of unfavorable legislation affecting the work of non-governmental organizations continue to be burning issues for global philanthropy. Using a case study approach, this thesis explores how democracies regulate the operation of foreign-funded non-governmental organizations in Hungary and Israel. This thesis examines what the presumed and real motivations of democratic governments are to adapt such regulations and how the political, economic and socio-cultural environments might influence their enactment. This thesis also compares the Hungarian and Israeli regulations to the 1938 Foreign Agents Registration Act.