المملكة: Urgent – Regulations for the Associations Support Fund.. Prohibition of conflicts of interest and investments that violate Sharia and regulations

The National Center for the Development of The Non-Profit Sector The “Associations Support Fund” regulation, with the aim of establishing an integrated institutional framework to support civil society associations and empower them financially and administratively, enhance their development contribution and raise their operational efficiency, in line with the goals of developing the non-profit sector and enhancing its social and economic impact.

The regulation included a wide range of support areas and work mechanisms, the Fund’s competencies, the organization of its bodies, and the tasks of the committee supervising it, which reflects a strategic direction towards building a sustainable support system. It is based on governance, transparency, and measuring impact.

The regulations stipulate that the Fund shall support programs and projects that contribute to the growth and development of Associationsand strengthening their institutional capabilities and development contributions, in addition to supporting initiatives that contribute to the development and sustainability of the associations’ financial resources, thus reducing their dependence on limited funding sources and enhancing their ability to continue.

Support for civil society associations

Support includes programs that aim to develop and qualify workers in associations and develop their functional capabilities, in addition to supporting studies and research that contribute to developing the associations’ work and programs, thus consolidating a work approach based on knowledge and scientific analysis.

The scope of support was extended to include volunteer initiatives associated with associations, which contribute to improving the level of volunteer work within them, as well as supporting emerging associations and building their institutional capabilities in a way that enables them to achieve their goals efficiently and sustainably.

The regulation also affirmed support for associations in the field of investment and social innovation, and developing their means to achieve their goals, in a direction that enhances the shift from the traditional pattern of charitable work to a development model based on sustainability and innovation.

The fourth article of the law entrusted The Fund has multiple specializations to achieve its objectives, the most prominent of which is providing support to associations in accordance with a policy approved by the Council, owning, possessing, mortgaging and selling movable and immovable funds in accordance with what the Council decides, and accepting donations, gifts and endowments according to the rules regulating that.

The Fund is responsible for developing its resources and working to achieve its financial sustainability, and investing its funds collected from donations, gifts and endowments, in addition to the surplus funds from dissolving the associations, taking into account the creation of the necessary reserves and avoiding risks. Potential.

The regulation authorized the establishment of specialized sub-funds to support specific associations or specialized types of associations, in addition to concluding partnerships and agreements that contribute to achieving the fund’s objectives, providing advice and technical support to associations in the field of financial sustainability, and evaluating their financial conditions.

The specializations included building and designing various enabling interventions to enhance the level of financial sustainability and identifying best practices in this field, designing and implementing training programs to enhance institutional capabilities, conducting studies and research in the field of empowering associations, and following up and evaluating support. The provider and its direction are consistent with development priorities and plans.

The Fund’s Organs

The regulations specify the Fund’s organs, as it consists of a committee headed by a chairman appointed by the Center’s Board of Directors from among its members or others, and its membership includes a legal representative, a representative specialized in social and development work, another in economics and investment, in addition to the CEO of the Centre, a representative from the Social Development Bank, and a representative from the Ihsan platform.

The committee is in charge of Nominations and Rewards The Center determines the candidates and submits their names to the Council to approve the formation of the committee, while the committee chooses at its first meeting a vice-chairman from among its members, and the head of the committee appoints a secretary who will undertake the work of the secretariat according to the specified tasks.

The regulations set the duration of membership in the committee at three years, renewable once, with the Council determining the members’ rewards. It also specified cases of termination of membership, including repeated absence without excuse, or harming the Fund’s interests, violating the regulations, or requesting an apology for membership, with Providing the appointment of a replacement for the remaining term.

Article Nine entrusted the committee with the tasks of supervising the Fund, reviewing its work, and submitting recommendations to the Council, in a way that enhances the achievement of its goals and raises the level of its performance.

Among its most prominent powers is recommending the adoption of the Fund’s strategy, plans and programmes, the general policy for managing, preserving and investing its resources, the annual budget, administrative and financial policies, investment plans, and disclosure and transparency policies.

Its powers include adopting policies to empower associations, Following up on supported programs and projects and measuring their impact, partnership policies, grant powers matrix, and the fund’s performance report in preparation for inclusion in the centre’s annual report, in addition to agreements and memorandums of understanding, accepting endowments, gifts and donations, opening bank accounts, reviewing the CEO’s periodic reports, adopting work guides and procedures, and seeking the help of consultants and experts.

Flexible meeting mechanisms and governance controls. Minutes

The regulations organize the committee’s meetings so that periodic meetings of no less than four meetings are held annually, at the invitation of the Chairman of the Council or the Chairman of the Committee or at the request of three of its members, with the permissibility of holding meetings in person or remotely using technical means.

Decisions are issued by a majority of votes, and the side of the Chairman of the meeting prevails in the event of a tie, and the member has no right to abstain from voting except in cases of conflict of interest. The regulations also permitted voting by passing in urgent cases in accordance with specific controls that ensure all members are informed and approved.

It specified the tasks of the committee chairman in managing the meetings, supervising decision-making, following up on their implementation, and representing the committee before the council, while affirming the tasks of the members in cooperating to achieve the Fund’s objectives and actively participating in the meetings and studying the referred issues.

As for the secretary of the committee, his duties include preparing agendas and reports and circulating them, preparing and distributing minutes of meetings, and coordinating with invited parties, And follow up on the implementation of decisions, and provide members with an updated record of implementation follow-up at the end of each quarter.

Mechanisms for following up on implementation and removing obstacles

The regulations obligated the Secretary of the Committee to raise any obstacles facing the implementation of the Committee’s decisions and recommendations to the Chairman of the Committee, including cases of delay in implementation, while communicating the Committee’s recommendations, decisions, and the outcomes of its meetings to the Board of Directors for information, and to the relevant authorities in the executive management to take the necessary measures.

In this context, the article stipulates The fourteenth contains precise controls for preparing minutes of meetings, as a record must be prepared for each meeting that includes its title, number and date, the date, time and place of the meeting, the names of those present and absent, an introduction explaining the topic and its facts, the legal basis for forming the committee, the topics included, discussions and deliberations.

The minutes include the committee’s final recommendation supported by the merits, reasons and documents, the reservations expressed by the members, the results of the vote, the members’ signatures with an indication of any reservation, and a statement of whether the signature In person or by circulation in accordance with the statutory controls.

The regulations allowed members to propose amendments to the minutes within three working days of receiving them, and they become final if no amendments are proposed during this period after approval by the Chairman of the Committee. In the event of objections, the amendment shall be made with the approval of the majority of members, without prejudice to the wording or content of the decision that was voted on.

All relevant documents shall be attached to the minutes, and the recommendations reached by the committee shall be submitted to the Council to take whatever it deems appropriate in terms of acceptance, rejection, or preservation, with the issues in which the decision has not been decided or that involve critical risks being referred within three days from the end of the meeting, and documented in the record of follow-up of the implementation of the decisions.

Conflicts of interest and confidentiality of information

Article Fifteen stressed the principle of avoiding conflicts of interest, so that a member of the committee shall not have a direct or indirect connection to the work or contracts carried out on behalf of the Fund or the Center.

In the event of a conflict on a topic on the agenda, the member must disclose it before the discussion, record this in the minutes, and abstain from voting. If a member suspects the existence of a conflict, he must request an opinion from the Chairman of the Committee.

Article sixteen emphasizes the confidentiality of information, as members are obligated to maintain the confidentiality of what they become aware of by virtue of their membership, and not to disclose, declare, or exploit that information or deal with it with the media. This obligation continues even after the end of membership, with members obligated to sign a special declarations and commitments form for that.

Chapter Three stipulates the appointment of an executive president of the Fund by a decision of the Council or his delegate. With the definition of his powers, benefits, and entitlements, he will be responsible before the Council and the Committee for the management of the Fund, the regularity of its work, and the implementation of its policies, regulations, and decisions within the limits of the powers granted to him.

His duties include preparing the Fund’s strategy, plans, and programs, implementing the general policy for managing, preserving, and investing resources, preparing policies and submitting them for approval, preparing the matrix of grant powers, implementing budgets and following up on actual performance, preparing annual financial statements and submitting them to the Audit Committee, and preparing the budget. discretionary.

He supervises the implementation of policies, conducts investment studies, submits periodic reports on administrative and financial performance, submits the annual report within 90 days of the end of the fiscal year, approves disbursement orders according to the approved budget, supervises the Fund’s employees, and represents it before the judiciary and authorities inside and outside the Kingdom, with the possibility of delegating some of its powers after the Council’s approval.

Article Nineteen specifies the Fund’s financial resources, and includes what is allocated to it in the state budget, donations, gifts, and endowments. According to the regulations, the funds that transfer to it after the dissolution of the associations, the returns on its investments, and the revenues from fees and taxes allocated to it by the state.

The fiscal year of the fund corresponds to the fiscal year of the state, while the first year begins from the date of implementation of the regulations until the end of the following fiscal year. The Fund is committed to the conditions of donors and donors to the conditional funds, and to the provisions of Islamic Sharia in disbursing Zakat funds.

Article Twenty-One permits the investment of the Fund’s funds in multiple areas, including cash and cash equivalents, fixed-return securities, investment funds, real estate, and development projects.

Article Twenty-Two prohibits entering into investments that violate Islamic Sharia, or in companies or assets. In violation of the regulations, or in securities in which trading has been suspended, or investment outside the Kingdom, reflecting a conservative approach that balances return and risk management.

Support Controls and Cases of Prevention and Blocking

The regulation organized in its fifth chapter the mechanisms for supporting associations, as it is required that the association’s license be valid and approved, that it be registered in the Fund’s electronic portal, that it complete the support form within the specified periods, that it have an active bank account registered with the Center, and that it fulfill all conditions in accordance with Approved policies, and must not contain any legal or financial observations or violations.

Article Twenty-Four allows the Fund to withhold support in the event of a breach of support controls, or providing inaccurate or incomplete data, or requesting support that was previously granted once, or applying for more than one support at the same time according to the Fund’s discretion.

Article Twenty-Five stipulates cases of withholding support, including suspicion of financial or administrative violations, misuse of the Fund’s name, or non-compliance. In accordance with the regulations, or issuing a decision to suspend the association’s work, or to use support for purposes other than those specified, or to fail to submit reports on time, or to prove that false or misleading information was provided.

The Fund is obligated to notify the association of the blocking or prohibition decision with a reason, with the possibility of lifting the decision if the association proves that the violation has been corrected. The Fund also has the right to recover the support or what remains of it in the event of a final decision to block or prohibit it, or in the event of the association being voluntarily or compulsorily dissolved.

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