The management of the National Center for the Development of the Non-Profit Sector approved the fundraising regulations for charitable faces, with the aim of raising the level of commitment and transparency in non-profit organizations in collecting donations, ensuring the rights of donors and benefiting from donations for the purposes designated for them, increasing the level of control over donation programs, and codifying high-risk practices To prevent money laundering and terrorist financing, to seek governance in collecting cash and in-kind donations, and to raise awareness of non-profit organizations about donation mechanisms. Okaz sources revealed that the regulation is effective from today (Sunday), and it consists of 24 articles, clarifying the mechanism and requirements for collecting donations, governance and organization of work, and implementation is carried out by licensed legal entities, intermediaries and individuals.
The executive instructions described the fundraising activity as an organized activity to request money from the public, in cash or in kind, for a charitable or public benefit, by urging natural or legal persons to donate to a specific entity, and for a specific purpose, at a specific time. The provisions of the instructions apply to Saudi establishments and individuals inside the Kingdom.
According to the executive instructions, practicing activity is limited to Saudi establishments, and Saudi individuals may practice activity after obtaining a license.
The executive instructions of the fundraising regulations set out the conditions for the establishment to obtain a license, submitting an application through the center’s approved channels, the establishment’s registration certificate, and an approved bank account number for the purpose for which the donation is to be collected, and it is required that there be an action plan that explains the purpose of the donation collection in accordance with the establishment’s objectives and method. , its time period, the beneficiary category, the value of the targeted donation amount, the method of calculating the cost of managing the donation, the mechanism for refunding the donation to the donor, the donation disbursement plan and its duration, the mechanism for verifying that the donation has reached the final beneficiary, the means of announcing the donation and its cost, the policy of redirecting the donation amount to another project, and the approval of the technical supervising authority The program or activity for which it is intended to collect donations should be required, and the instructions required individuals to obtain a license to fulfill the conditions, and the instructions stressed that the conditions of the license are inherent to its validity, and in the event of a violation of any of the conditions, the license may be withdrawn, the collection of donations stopped, the proceeds confiscated, and spent for the purpose The donor to him – if possible – or spend it in charitable causes that he sees.
The executive instructions indicated that the license shall be issued by the center in the name of the establishment or individual for a maximum period of one year or the availability of the target amount, whichever is earlier.
The instructions permitted submitting a request to cancel the license, in accordance with controls, including clarifying the purpose of canceling the license, and a detailed statement of all donation amounts that include expenses and available amounts. After the center’s approval or depositing it in the center’s bank account, the council will spend it for the donated purpose or spend it on charitable causes that it deems appropriate.
In the event that there are available or unspent sums of money allocated for zakat, the licensee shall deposit them with the General Authority for Zakat, Customs and Tax, with the exception of civil associations.
The instructions indicated that the license is considered null if the license expires without being renewed, or if the facility is dissolved or merged, or if the target amount is available.
5 ways to fundraise
The regulations stipulated that the collection of donations be in five ways: depositing through banking services such as bank transfers or checks, or the establishment’s online store, or electronic payment via smart devices, text messages, or the establishment’s electronic points of sale. The instructions stressed that the zakat must be deposited in the zakat account, and only licensed NGOs may collect and receive cash donations through their headquarters or branches after taking the donor’s data, and prohibiting deposits from abroad, and the licensee is prohibited from accepting deposits, remittances, or checks received from outside Kingdom except after the approval of the center, and it is also prohibited to collect cash donations, with the exception of civil associations that are licensed to collect or receive cash donations through their headquarters or branches. It is prohibited to deliver, present or disburse donations to any person or entity outside the Kingdom without the approval of the relevant authorities.
Obligations of the licensee to collect
The regulations oblige the licensee to collect donations for charitable entities to clarify the fundraising project’s work plan, confirm the donor in receipts with serial numbers, the donor receives a hard or electronic copy of it, obtain the donor’s approval on the policy of redirecting the donation amount he donated to another project, and stop collecting donations when the license expires. Or the availability of the target amount, whichever is earlier, and disbursement of donations for the purpose specified for it, and providing the center with a detailed semi-annual financial report showing the aspects of disbursement and surplus amounts, for projects and programs whose implementation period exceeds one year, and providing the center with a report on fundraising within (30) days from the date of completion. The license or every (6) months if the license period is more than (6) months, provided that it includes a bank statement for the account designated for fundraising according to the license for cash donations, and a fundraising record that includes each donation process (donation source, donation channel, value Cash donation or estimated division of in-kind donation, date of donation), receipt vouchers for cash donations or receipt vouchers for in-kind donations.
It is also required to provide the center with a report on the disbursement of donations within (30) days from the date of the end of the disbursement of donations according to the disbursement plan approved in the license, or every (6) months if the period of the disbursement plan is more than (6) months, and it includes a bank statement of the account that was made Allocating it to fundraisers according to the license for monetary donations, from which the disbursement is made. A record of the disbursement of donations for each disbursement item, including: (the name of the item, the amount of the disbursement item), and a record of the beneficiaries.
Donation media
The instructions indicated that donations for certain seasons must be spent in the seasons designated for them, for example, but not limited to: fasting breakfast, zakat al-Fitr, Eid clothing, and others. The surplus from seasonal donations is redirected to another project after obtaining the approval of the center, with the exception of zakat. The licensee must deposit the surplus of the seasonal donations allocated for zakat to the General Authority for Zakat, Customs and Tax, and civil associations are excluded from this clause. Spending it for the donated purpose or spending it in charitable causes that he sees. And taking into account the instructions regulating each means, the invitation to collect donations must be through local media, local telecommunications companies, billboards, utility bills, publications prepared by the licensed party, and the establishment’s social media platforms And the website and any other means chosen and approved by the center. In all cases, the declaration must include the necessary data such as the name of the donated establishment, the establishment registration number, the license number, and the authorized bank account number of the licensee related to the donation. And an electronic link showing the work plan of the donation project. And the value of the target donation amount and the address of the main headquarters of the facility, or its branches. The means of communication of the establishment and information about the purpose for which the donation is to be collected, the beneficiary category and the duration of the donation.
Observance of public taste
The executive instructions of the Fundraising Regulations for Charitable Objects, when designing and promoting a fundraising advertisement, stressed the necessity of adhering to morals and public decency, issuing any other licenses from the relevant authorities, and adhering to their requirements.
The facility may announce through an intermediary the collection of donations after the approval of the center and fulfillment of the necessary conditions, including the existence of a contract or agreement between the establishment and the intermediary to announce the collection of donations. The advertiser must be legally licensed by the relevant authorities. With an explanation of the cost of the advertisement and obtaining the center’s approval thereof.
The center is responsible for following up the performance of the licensee and verifying his compliance with the provisions of the Regulations for Collecting Donations for Charitable Objects and the provisions of these instructions. Penalties are applied for any violation of the provisions of the regulations or executive instructions according to the schedule of violations and penalties specified in the instructions.
25 classifications of violations
According to the “Okaz” monitoring, the schedule of violations and penalties consists of 25 classifications and descriptions of violations, including the violation of practicing activity with a revoked license, receiving donations without a permit, calling for the collection of donations by other than specified means, accepting or delivering money transfers or making donations outside the Kingdom without obtaining The approval of the center, collection of cash donations except for civil associations, failure to provide the center with a detailed financial report, failure to record the donor in receipts with serial numbers, collection of donations in an irregular way, announcing the establishment through an intermediary to collect donations without the approval of the center, and penalties for the first time ranging from fines From 2,500 to 4,500 riyals and doubled when the violation is repeated. Some penalties included confiscation of funds in some cases. Each stakeholder has the right, within (60) days from the date of notification of the violator of the violation, to object before the Objections Committee regarding violations of the regulations for collecting donations in charitable causes and its executive instructions. The Committee is before the Administrative Court within (60) days from the date of its approval by the Center.
The violating center shall be notified after (60) days have elapsed from the date of notification of the violation of the obligation to pay, and the center shall have the right to take the necessary measures before the competent court to seize the violator’s funds within the limits of the value of the violation in accordance with the State Revenue Law and its implementing regulations.
