المملكة: Prohibition of collecting donations outside the headquarters without a license… and precise requirements for campaigns

Adopt Council of MinistersExecutive regulations for the fundraising system, with the aim of enhancing governance and transparency in the charitable and non-profit sector, and developing an integrated legislative framework that regulates fundraising operations Donationsin various forms, whether in cash or in kind, and defines campaign controls and disbursement and oversight mechanisms, ensuring the protection of donor funds and raising the efficiency of institutional work in the non-profit sector.

The adoption of the regulation comes within the Kingdom’s efforts to develop the legislative environment for the non-profit sector, enhance the reliability of donation channels, and ensure that funds are directed to those entitled to them according to precise controls, in a way that supports social development goals and enhances public confidence in the charitable system.

Organizing fundraising through Electronic channels

The regulation stipulates that collecting donations from licensed entities takes place through financial transfers using approved electronic channels, which include the official websites and applications of the licensed entities, national government fundraising platforms, and licensed platforms of the non-profit sector, in addition to automated teller machines, text message services, and point-of-sale devices.

The regulation obliges the licensed entities to include their websites and applications with the Saudi domain name, in a way that enhances digital reliability and raises the level of protection. And safety for donors.

Strict controls for in-kind donations

With regard to in-kind donations, the regulations stressed the need for licensed entities to adhere to the regulations related to the nature of the donated materials, and to obtain in advance the necessary government approvals if the type of donations requires it.

It prohibited entities from collecting in-kind donations outside their main headquarters or branches except after obtaining official approval from the licensed entity, while obliging them to provide detailed data including collection sites, The national address, coordinates, means of advocacy used, and their financial costs, if any.

Regulating the reception of donations from outside the Kingdom

The regulations approved a new mechanism to regulate the receipt of donations from outside the Kingdom, by requiring the licensed entity to coordinate with a specialized committee before issuing approval.

The committee is headed by the National Center for Non-Profit Sector Development, and the membership of representatives from the Ministry of Interior, the Ministry of Foreign Affairs, the Ministry of Islamic Affairs, Call and Guidance, the Presidency of State Security, and the Authority. General Endowments, along with any other relevant government agencies, to ensure that requests are studied from various legal, security and organizational aspects.

Precise requirements for fundraising campaigns

The regulations set detailed requirements for requests to hold fundraising campaigns, which included requiring the licensed entity to submit the decision of its board of directors to approve the campaign, the bank account allocated to it, and its approved annual budget, in addition to an integrated plan that clarifies the campaign’s objectives, duration, target amount, and beneficiary groups. And the mechanisms for disbursing funds and verifying their arrival to the beneficiaries.

The authorities were obligated to identify the names of the Saudis responsible for managing the campaign and disbursing its funds, and to submit an economic feasibility study if the campaign is designated for investment projects.

Mandatory information in approval decisions

Under the regulations, the decision to approve the establishment of any fundraising campaign must include clear information that includes the name of the licensed entity, the approved bank account number, the purpose of the campaign, the beneficiary categories, and the names of those responsible for it, in addition to the date Its beginning and end, and the entity’s official means of communication.

Entities were obligated to notify the licensed entity immediately after the end of the campaign, whether by the end of its duration or by achieving the target amount, whichever comes first.

Procedures for canceling campaigns and transferring donation funds

The regulations allowed licensed entities the ability to cancel fundraising campaigns before they start or during their implementation, provided that clear justifications are provided and a detailed statement of the proceeds of donations, what has been spent, and what remains. Including.

In the event that it is not possible to spend the donations for the purpose for which they were collected, the regulations obligate the entities to transfer the funds to a special account in accordance with the instructions of the Central Bank of Saudi Arabia if they are cash, or to transfer the in-kind donations to locations determined by the licensed authority, with the entity bearing the costs of storage and preservation.

It explained that redirecting donations in these cases is done according to the condition of the donor, if any, and if that is not possible, they are directed to the legally specified charitable causes after coordination with government agencies.

Regulating means of advocacy and collecting donations

The regulations also expanded means of calling for fundraising, to include national government donation platforms, government digital channels, and even the packaging of goods and products, provided that prior approval is obtained from the licensed entity.

It obligated entities to obtain approval before contracting with other parties to call for fundraising on their behalf, in a way that enhances control and prevents any irregular practices.

Determining the means of disbursing confiscated donations

And regulated The regulation also includes a mechanism for disbursing the proceeds of donations confiscated by a judicial ruling, as it stipulates that they be directed to various charitable fields, and includes legitimate purposes such as zakat, sacrifices, and expiations, and charitable purposes such as sponsoring orphans, establishing mosques, and watering water, in addition to non-profit purposes such as health and educational projects and infrastructure development.

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