The article examines systemic challenges to the effectiveness of human rights activities carried out by civil society institutions in Russia, with a focus on the North Caucasus Federal District (NCFD). It analyzes objective (geographical, historical-cultural, economic) and subjective (low legal literacy, lack of public trust) factors hindering the development of the non-profit sector. Special attention is paid to the NCFD, where civil society institutions face aggravated challenges due to high conflict potential, dependence on federal subsidies, the influence of traditional clan structures (teips, tukhum), and legal fragmentation. Based on identified issues (including the low ranking of NCFD regions in NGO development ratings), solutions are proposed to enhance the human rights function through legislative reforms, sustainable financing, reduction of administrative barriers, and adaptation to regional realities.