المملكة: Developing the investment of endowment funds…new amendments to the Endowment Authority system
The Authority is responsible for supervising and inventorying endowments within the Kingdom, developing existing endowment formulas, issuing fundraising licenses, and licensing providers of basic endowment services.
The Authority’s Council works to approve the regulations, rules, and instructions regulating the sector, the Authority’s strategy and organizational structure, approving the financing of endowments and projects, or accepting endowments, gifts, donations, wills, and aid allocated to the Authority.
According to the system, the Authority protects endowments, the terms of the endowments, their documentation, and their implementation, and cases of infringement upon them, as well as unknown or infringed endowment assets, the mechanism for recovering them, and noting the actions occurring in the records of the endowed assets with the competent authorities..
The Authority works to protect troubled endowments and diminishing returns, develop investment tools through endowment funds, financing markets, partnerships, and other licensed investment tools, protect endowment revenues and their fairness, organize its documentation, determine the categories of its expenditures, verify that the superintendent takes into account the rights of the endowment beneficiaries, document them, etc. Exchange them, and update them periodically.
The system permits the management of the investment of endowment assets by whomever is designated by the donor, and he must comply with the provisions of the endowment system and the relevant statutory provisions.
The Authority’s funds are deposited in independent accounts with the Central Bank of Saudi Arabia, or any of the banks licensed in the Kingdom, and are disbursed to the Authority and its employees in accordance with the financial regulations approved by the Council.
Adherence to the conditions of the donors
The system stressed that the Authority must adhere, in all its actions and investments, to the conditions of the donors, in a manner that does not conflict with the provisions of Islamic Sharia and relevant regulations..
It also required compliance with the endowment’s condition and not harming the beneficiaries of the endowment. The Authority may deduct a percentage not exceeding (20%) of the annual surpluses from the revenues of an endowment or endowment group over which it supervises; To invest it in order to develop an endowment or other endowments that it supervises; The deducted percentage must be returned to the endowment account within a period of 5 years – maximum – from the date of deduction.
Annual net profit ratio
The system stipulates that the revenues collected from activities that fall within its jurisdiction shall consist of a percentage determined by the Council not exceeding (10%) of the net annual revenue of the endowments that the Authority supervises, after deducting the operational burdens associated with these endowments..
He explained that among the revenues are those collected in exchange for the management of the endowments that the Authority is entrusted to manage, the returns received from the Authority’s investments of its funds, the returns on investing the Endowments’ funds – deposited with it – that are not subject to the supervision of the Authority, and the endowments, gifts, donations, bequests, and aid allocated to them.
The system excluded the charitable endowment and the charitable share in the joint endowment, which are registered with the Authority, from the provisions of the judicial costs system.
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