Saudi Arabia is strengthening its regulatory and governance framework for charitable fundraising as part of efforts to protect donors\u2019 money, curb unauthorized campaigns and prevent the misuse of nonprofit activities for unlawful financial practices.<\/p>\n
The National Center for Non-Profit Sector Development (NCNPD) has introduced the proposed \u201cDonation Collection Governance Rules\u201d through the \u201cEstithmar\u201d public consultation platform, inviting feedback and recommendations as part of efforts to strengthen transparency, compliance and oversight across the nonprofit sector.<\/p>\n
The proposed framework covers the various stages of fundraising, from licensing and campaign advertising to receiving and disbursing donations, with the aim of protecting donors and beneficiaries while strengthening public confidence in the nonprofit sector.<\/p>\n
The proposed rules establish a more structured framework for fundraising and emphasize that collecting donations must be carried out under an appropriate legal basis and valid authorization.<\/p>\n
Entities seeking to conduct fundraising activities would also be required to meet governance and compliance requirements, obtain the necessary approvals and submit plans outlining the objectives of fundraising campaigns and how the collected funds will be used.<\/p>\n
A fundraising license would remain tied to its approved purpose or activity, while changes to its scope or use outside the authorized purpose would require the relevant approvals.<\/p>\n
The framework is designed to protect nonprofit organizations and donors from unauthorized fundraising and unlawful financial practices while ensuring that donations are directed toward the purposes for which they were collected.<\/p>\n
One of the key tools available to donors is \u201cDonate Safely,\u201d a service operated by the National Center for Non-Profit Sector Development that allows users to verify the validity of fundraising licenses and access detailed information about the organization and its authorization.<\/p>\n
The service allows users to search using an organization\u2019s name, donation license number, donation website or entity registration number, helping donors verify a campaign before making a contribution.<\/p>\n
The official database can provide information including license status, the purpose of the fundraising campaign and the beneficiary organization. In some cases, it also provides additional details such as the target amount, spending plan and bank account associated with the authorized campaign.<\/p>\n
The proposed governance framework places greater emphasis on accuracy and transparency in fundraising advertisements, while restricting misleading, exaggerated or inaccurate content that could create a false impression about a campaign.<\/p>\n
The rules also seek to prevent the exploitation of vulnerable individuals or sensitive social and health circumstances for fundraising purposes and to ensure that advertising practices respect beneficiaries\u2019 dignity.<\/p>\n
The measures come as digital fundraising campaigns become increasingly widespread, making verification of an organization\u2019s identity, license and donation channel an important safeguard against fraud.<\/p>\n
The governance framework extends beyond financial controls to cover the way beneficiaries are represented and how their information is used in fundraising campaigns.<\/p>\n
The proposed rules establish safeguards around the use of beneficiaries\u2019 images and personal circumstances, particularly where such content could compromise their dignity or exploit their vulnerability to influence donors.<\/p>\n
They also address the use of personal data in promotional communications, supporting greater privacy and reducing unauthorized use of individuals\u2019 information.<\/p>\n
Another key element of the framework is financial transparency.<\/p>\n
Fundraising campaigns would be expected to provide donors with clearer information about the campaign\u2019s financial target, the amount already collected, the remaining amount needed to reach the target and the costs associated with the campaign.<\/p>\n
These requirements are intended to give donors a clearer understanding of how campaigns are managed and reduce the risk of conflicts of interest or the use of donations for purposes outside the stated objectives.<\/p>\n
The proposed rules also regulate relationships with marketing and advertising providers involved in fundraising campaigns, including restrictions aimed at preventing arrangements in which marketing compensation is directly linked to a percentage of donations collected.<\/p>\n
The governance framework also extends to in-kind donations, establishing requirements for receiving, documenting, storing and sorting donated goods.<\/p>\n
Licensed organizations would be required to issue official receipts and provide appropriate storage and sorting facilities while complying with relevant technical and health requirements.<\/p>\n
The rules also regulate donation collection containers and the information displayed on them, while establishing procedures for dealing with in-kind donations that cannot be used, ensuring that any proceeds are directed to beneficiaries or handled within the applicable regulatory framework.<\/p>\n
Saudi Arabia\u2019s regulatory framework emphasizes the importance of donating through official and licensed organizations and channels, rather than transferring funds to personal accounts or responding to unknown links and messages.<\/p>\n
The Kingdom provides several official donation platforms covering different areas, including Ehsan, Jood Housing, and Sahem, operated by the King Salman Humanitarian Aid and Relief Centre, among other regulated channels.<\/p>\n
Verifying a campaign through \u201cDonate Safely\u201d remains an important step before making a contribution, particularly when a fundraising campaign is encountered through social media or digital advertising.<\/p>\n
The measures are particularly significant given the risks associated with the misuse of donation channels for fraud, money laundering or other unlawful activities.<\/p>\n
By strengthening requirements governing licensing, advertising, collection and disbursement, Saudi Arabia is seeking to establish a more robust framework that supports legitimate charitable work while protecting donors, beneficiaries and nonprofit organizations.<\/p>\n
The framework also strengthens the ability of regulators to monitor donation flows and verify the entities collecting funds and the purposes for which those funds are being used.<\/p>\n
The proposed rules reinforce a straightforward message for donors: a campaign should not be considered legitimate simply because it appears credible or presents a compelling humanitarian story. Donors should verify the organization, its license and the official donation channel before transferring funds.<\/p>\n
The \u201cDonate Safely\u201d service provides an official mechanism for checking fundraising license status and accessing information about authorized organizations, giving donors a practical tool for making safer and more informed decisions.<\/p>\n
The strengthened governance framework therefore goes beyond regulating fundraising itself. It aims to build greater trust in charitable activity, protect donors\u2019 funds and beneficiaries\u2019 dignity, reduce opportunities for fraud and exploitation, and support the development of a more transparent and sustainable nonprofit sector in Saudi Arabia.<\/p>\n","protected":false},"excerpt":{"rendered":"
Saudi Arabia is strengthening its regulatory and governance framework for charitable fundraising as part of efforts to protect donors\u2019 money, curb unauthorized campaigns and prevent the misuse of nonprofit activities for unlawful financial practices. The National Center for Non-Profit Sector Development (NCNPD) has introduced the proposed \u201cDonation Collection Governance Rules\u201d through the \u201cEstithmar\u201d public consultation platform, inviting feedback and recommendations as part of efforts to strengthen transparency, compliance and oversight across the nonprofit sector. The proposed framework covers the various stages of fundraising, from licensing and campaign advertising to receiving and disbursing donations, with the aim of protecting donors and<\/p>\n","protected":false},"author":1,"featured_media":58359,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[224],"tags":[],"class_list":["post-58358","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kingdom"],"yoast_head":"\n