Regulation 1 on a System for the Collection of Charitable Donations

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Regulation  for donations  collection system for charitable  purposes as amended,  No. 1 
of 1957  published  in page  2 of the  official gazette issue  no. 1311 dated 01.01.1957  
Issued  by virtue  of article 4 of the Ministry  of  Social  Affairs and  Labor Law, as  
amended,  No. 14 of 1956.  
ARTICLE  (1):   
This  regulation  is  cited  “Regulation  for  Collection  of  Donations  for  Charitable  Purposes  1957”  and  is  
applicable  as  of the  date  of  publication  in  the  official  gazette.   
ARTICLE  (2):   
No  charitable  association  or social  foundation  is  allowed  to  collect  donations  for  charitable  purposes  
except  under  the  following  conditions:   
1. To  be  registered  with  the  Ministry.   
2. To  submit  a request  to  the  Ministry  of  Social  Affairs  no  less  than  one  month  before the  intended  
collection  date  and  the  Ministry  has  to  decide  on  the  request  by  acceptance  or rejection  in  no  
more  than  three  weeks  of request  reception  date.   
3. The  request  shall  state  the  collection  method,  period,  place  and purpose.   
ARTICLE  (3):   
The  Ministry  shall  notify  the  association  or foundation  by  it  decision  approving  or  rejecting  the  request  
and  shall  also notify  competent  administrative  bodies.   
ARTICLE  (4):   
Before  deciding  in  the  license,  the  opinion  of  authorities  and  ministries  related  to the  activity  of  the  
association  or foundation  should  be  sought  along  with  studying  the proposed  activities  and  the  financial  
ARTICLE  (5):   
For  licensing  collection  of  donations  to  be  spent  for  charities  outside  the  Kingdom,  the  following  is  

Donations  shall  be collected  by  an  authority  registered  in  the  Ministry  or  a  temporary  
committee  which  articles  of  association  are approved  by  the  Ministry.   
2. To  submit  an evidence  that  the  donations  to  be  collected  will be  spent  for  charity  abroad.   
3. To  obtain  a  license  from  the  Ministry  of  Finance  allowing  sending  abroad  collected  donations  
(cash  or in  kind).   
ARTICLE  (6):   
Rules  mentioned  in above  article  shall  be applicable  even  if  the  entity  collecting  donations for  charity  is  
having  a  political  dimension.  In  this  case,  the  opinion  of  relevant  ministries  shall  be sought.   
ARTICLE  (7):   
Students  of  institutes  are  not  allowed  to collect  donations  unless  the  relevant  institute  bears 
responsibility  for  this  behavior  and  activities  in  charitable  and  financial  aspects.  The  purpose  of  
collection  and  those  responsible  for it  shall  be  stated  in  writing.   
ARTICLE  (8);   
No  entity  shall  be licensed  to  collect  donations  more  than  two  times  a  year.  Collected  funds  should  be  
deposited  with a  bank  directly  after  completion  of  the  collection  process  and  the  Ministry  shall  be 
notified  by  the  collection  result  and  date  of  deposition.   
ARTICLE  (9):   
Entities  working  in  more  than  one  area  of  the  Kingdom  are exempted  from  previous  article  provisions  
and  they  may  be  licensed  to  collect  donations  more  than  twice  a  year.   
ARTICLE  (10):   
No  license  shall  be  granted  to  collect  donations  by  registered  entities  except  under  purposes  mentioned  
in  the  articles  of  associations.  No  license  shall  be granted  to  registered  or  unregistered  entities  or  
individuals  except  if  the  purpose  of  collection  is  the  public  benefit  or charity.  No  licenses  shall  be 
granted  for  purposes  aiming  at  serving  certain  individuals  or  group.   

  ARTICLE  (11):   
Collected  funds  shall  not be  used  for  any  purpose  other  than  the  purpose  stated  for  collection.  The  
following  is  conditional:   
a. Funds  collection  purpose  may  not be  changed  without  ministry’s  approval.  
b. License  conditions  may  be modified  by  approval  of  the  Ministry  in  terms  of  timing,  location,  
collection  ways…etc.  In  both  cases,  the  modification  shall be approved  by the  board  of  the  entity  
that  collected  funds  then  the  Ministry’s  approval  shall  be sought.   
c. With  the  exception  of  funds  collected  to  build,  repair  or  furnish  mosques  and  churches,  the  
following  portions  of  net  collected  funds  shall  be allocated  for  the  benefit  of  charitable  
associations  in  the  province:   
1. 5%  of  collected  funds  by  charitable  associations  under  the  province  federations.   
2. 10%  of  collected  funds by  other  associations  and  entities.   
This  article  became  like  this  after  abolishing  its  previous  text  and  replacing  it  with  the  current  text  
pursuant  to  the  amended  regulation  no. 103  of  1963.  The  previous  text  was  as  follows:  “collected  funds  
may  be used  only  for  the  purposes  they  were  collected  for.  The  Ministry  shall  approve  any  change  in  
these  purposes.  Every  modification  in the  license  in  terms  of  collection  timing,  location  or  means  should  
be  approved  first  by  the  board  of  directors  and  then  the ministry’s  approval  should  be  sought.   
ARTICLE  (12):   
Licensed  entities, organizations  or  groups  shall  inform  the  ministry  about  the  collection  sum,  
components,  revenues  and  expenditures  and  all  this  should  be  supported  by  documents  within  two  
weeks  as  of the  end  of  collection  period.   
ARTICLE  (13):   
The  licensed  entity  to  collect  donations  shall  follow  the  following  procedures  and  collection  methods:   
First:  locked  boxes:   
1. Determine  collection  period,  place  and  starting  date.   
2. The  Ministry  shall  define  the  number  of  boxes  according  to the  activity  of  the  association  and 
purposes  of  collection.   

Funds  should  be  collected  in boxes  prepared  following  the  specifications  and  types  approved  by 
the  ministry.   
4. The  outer  side  of  the  box  should  contain  data decided  by  the  Ministry  including  association 
name,  license  number,  box  number,  dates  of  starting  and  closing  collection  and  should  be  
stamped  by  the  association.   
5. A committee  from  members  of  the  association  board shall  be formed  to  supervise  the  collection 
process.  The  Ministry  shall  be  informed  by  this  formation.   
6. Boxes  shall  be delivered  to  the  association  in sealed  condition  stamped  by  the  ministry  stamp  
with   handover  minutes  to  be  signed  by  representatives  of  the  association  and the  ministry.   
7. The  association  shall  be responsible  for the  maintenance  of  boxes  until  they  are  opened.   
8. Boxes  should  be  opened  in the  presence  of  a  committee  representing  the  ministry  and  the  
association  and minutes  of  opening  should be  prepared  and  signed  by supervising  committee 
and  the  ministry  representative.   
Second:  Permanent  boxes  in  public  places:   
1. Boxes  should  be  according  to  the  model  approved  by the  ministry,  their  number  and  locations  
shall  be defined  along with  opening  timings.  
2. Each  box  should  display  the  name  of association,  license  number,  term  and  box  number.  Boxes 
should  be  stamped  by  the  Ministry  and  shall  be opened  immediately  after  expiry  of the  period  in  
the  presence  of  a  committee  in which  the  ministry  is  represented.   
3. Collection  duration  shall  be either  annual  or semiannual.  
Third:  Stamps:   
1. Define  number  of  stamps,  categories  and  collection  period.   
2. Each  stamp  should  show  its  value  and  to  be  stamped  by  the  association.   
3. Stamps  should  be  gathered  in  books  and  to  be  stamped  by  the  association.  The  cover  shall 
display  the  name  of  organization,  license  number,  term  and  serial  book  number.  
4. Books  should  be  stamped  by  the  ministry  stamp.   
5. All  unsold  stamps  should  be  returned  to  their  books  until  the  ministry  representative  arrives  for 
inspection  and  destruction  via  minutes  to  be  signed  by the  ministry  and association  

Fourth:  receipts:   
1. Receipts  should  be  of one  original  and  one  copy  with  serial  number.  Double‐face  carbonic  paper  
should  be  used.   
2. Each  receipt  should  display  the  name  of association,  registration  number,  license  number  and  
3. The  receipt  should  be  stamped  by  the  association  and minister.  
4. Copies  are  to  be  kept  in  books  for  future  review.   
Fifth:  Charitable  Markets:   
1. Entry  to  the  market  should  be  free.   
2. A list  of  exhibited  items  should  be  prepared  along  with  sale  prices.   
3. Receipts  of  sales  should  be  produced  of  one  original  and  one  copy  using  double ‐carbon  paper.  
4. Immediately  after  conclusion  of  the  market,  a  list  of  unsold  items  should  be  presented  to  the  
ministry  and  these  items  become  then  in  the  custody  of  the  association.   
5. Donations  shall  never  be collected  during  the  market  days  unless  a  prior  permission  is  obtained.   
Sixth:  Parties:   
1. Number  of  tickets  and  categories  should  be  according  to  the  statement  submitted  by the  
association  provided the  number  does  not  exceed  the  space  of  the  intended  venue of  the  party.   
2. Tickets  should  be  stamped  by  the  ministry  and the  association.   
3. Each  ticket  should  display  its  number,  name  of association,  license  number,  venue  of  the  party,  
date  and  should  be  stamped  by  the  ministry.  Remaining  unsold  tickets  should  be  stored  for  
further  review.   
4. Donations  shall  not be  collected  during the  party  unless  a  prior  permission  is  obtained.   
5. If the  party  is  sponsored,  a  confirmation  of  sponsorship  from  the  sponsor  should be  submitted.   
6. The  association  shall not agree  with  any  person  or  organization  on  a  commission  10%  for  
distributing  tickets  exceeding.  No agreement  shall  be made  on paying  a certain  percentage  of  
the  party  revenues.   

In  case  of  holding  cinema,  theatre  or  artistic  parties,  expenditures  shall  not exceed  one  third  of  
the  party  revenues.  The  minister  may  agree  to  increase  this  percentage  in  exceptional  cases  and 
via  a  special  permission  before  holding  the  party.   
8. Free  tickets  shall  not  exceed  5%  of  total  tickets  of  different  categories.  
9. The  Ministry  should  be  informed  not later  than  two  weeks  after  the completion  of  the  party  by  
the  revenues  and  expenditures  of  the  party  in  details.  
Seventh:  Lottery   
It  should  follow  the  approved  lottery  system.   
ARTICLE  (14):   
Donations  shall  not be  collected  via means  other  those  stated  above.   
ARTICLE  (15):  
Amateur  teams shall  not be  allowed  to  hold  charitable  parties except  where  half  the  income  is  directed  
towards  charitable  purposes. It  is  provided  that  the party  is supervised  by a  social  entity  or  a  committee  
approved  by the  Ministry.   
ARTICLE  (16):   
Granting  licenses for  collection  of  donations  to  charitable  associations  and  social  foundations  shall  be 
restricted  to  areas  where  these  associations  are  active.   
ARTICLE  (17):   
Ottomans  assistance  collection  principles  dated  21  Shaban  1327  Hijria  are  hereby  revoked.