New Saudi Fundraising Law to Address Irregular Practices and Combat Financial Misconduct

The National Centre for the Non-Profit Sector (NCNPS) has announced that the Fundraising Law, approved by the Saudi Cabinet on Tuesday, is designed to regulate fundraising activities for non-profit organisations and their campaigns.

The law aims to ensure that donations are used for their intended purposes, thereby protecting non-profit organisations and donors from irregular fundraising practices and illicit financial activities.

The law comprises 23 articles focusing on the regulation of fundraising processes and ensuring that funds are allocated according to donor specifications, as clarified by the NCNPS.

By regulating these activities, the law seeks to protect the rights of donors and beneficiaries, as well as to maximise the social and economic impact of the process, the Centre stated.

Additionally, the law aims to enhance transparency in fundraising by regulating how funds are collected from authorised entities and the channels through which these entities solicit donations.

It also mandates the recording of donations received by these entities and requires them to prepare annual budgets supported by documentation detailing the fundraising proceeds.

The newly approved law repeals the regulation governing fundraising for charitable purposes as outlined in Cabinet Resolution No. 547 of 1396 AH, along with any conflicting provisions. It is scheduled to take effect 180 days after its publication in the official Gazette.

The Cabinet’s endorsement of this law underscores the importance of fundraising activities and the developmental impact of donations within the non-profit sector.

It highlights the need to optimise the use of these donations for social and economic development, ensuring they reach their intended beneficiaries and contribute to targeted developmental initiatives.

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