The Ministry of Community Development revealed that the entities permitted to collect donations within the UAE are charitable associations authorized by relevant authorities in compliance with Federal Law No. 3 of 2021 regarding fundraising regulations. The law aims to maintain and protect donors' funds from exploitation and ensure that they reach the right beneficiaries. Coinciding with the holy month of Ramadan, the UAE will witness significant donation amounts in all forms, therefore, the Ministry calls all philanthropists and donors to ensure that the entities which receive these donations whether ‘cash, in-kind or digital’ are authorized to collect the donations.
Social awareness
Mohammed Naqi, Director of Non-Benefit Public Associations Department at the Ministry of Community Development, said: “The Ministry is working diligently to raise the awareness of the Emirati community including the provisions and articles of the law aimed at protecting their funds and familiarizing them with the endorsed regulations and requirements. The law that serves as a secure and stimulating framework for humanitarian and community giving rooted in the values and traditions of the UAE society has always been keen to provide support and assistance to the needy people worldwide following the paths of into becoming a sustainable hub for humanitarian and charitable deeds in the UAE”.
Naqi urged all the community members to adhere to the Fundraising Regulatory Law being essential to protect their funds from any exploitation or misuse that are unrelated to any charitable and humanitarian work. The law aims to prevent donors from the risks of funding terrorism and financing illegal organizations, pointing out that donors must verify the licensed entities which collect and receive donations including charitable associations, federal and local authorities, as well as accredited NGO’s in the UAE.
Fundraising Conditions
Naqi pointed out that the fundraising regulatory law defined clear conditions and procedures for fundraising. Authorized entities are required to obtain a permit for fundraising from the competent authority, while the process of collecting donations must be carried out only through charitable organizations. A Natural person is prohibited from establishing, organizing, or engaging in any activity aimed at collecting or accepting donations from the public by any means of fundraising, in line with the announced guidelines set by the Executive Office for Anti-Money Laundering and Terrorism Financing.
He also explained that the Ministry and competent local authorities oversee, supervise and monitor the non-benefit public sector, by intensifying field visits, to ensure the commitment of the associations and their members with the provisions of the law to avoid accountability and legal violations. All licensed and accredited authorities are allowed to collect and receive donations in various emirates in accordance with the laws of the local authorities in the other emirates.
Fundraising Various Methods
Naqi stated that the provisions and articles of the Fundraising Regulatory Law have specified the methods of collecting donations, whether "cash, in-kind, or digital," through funds or paid vouchers, cash donations in exchange for receipts, SMS text messages, markets, exhibitions, auctions, charity events, in addition to monthly deductions from personal accounts, bank accounts dedicated to donation collection, various marketing and promotional offers accompanied by donation requests, ATMs of licensed banks in the UAE as well as digital platforms adopted by the competent authority for donation collection, social media channels, and direct deposits into bank accounts.
Ramadan Authentic Traditions
With regard to Ramadan traditions, permissible and prohibited practices, the law allowed the provision of support and assistance between family members or within the neighbourhood to help those in need among relatives and friends, there are no restrictions on collecting these donations as long as they are within the permissible and natural limit that does not reach the level of work of licensed charities. It is emphasized that these authentic community traditions reflect our values and principles established in extending a helping hand to those who deserve it, the law also allows the preparation and distribution of food, clothing and zakat; donating clothes and money to licensed charitable organizations, depositing donations in boxes available in public places, and distributing iftar meals in mosques, neighbourhoods and others.
Among the practices prohibited by law are the collection of donations by natural persons, and the outsourcing of restaurants and kitchens to distribute food, which are only allowed to receive donations to make meals, but are not authorized to distribute them, as these restaurants must coordinate with charitable associations in this regard. Some unlawful actions include obeying unlicensed or unreliable campaigns to collect donations or interacting with these campaigns via social media, collecting donation funds from relatives, friends for the purpose of providing them to charitable organizations inside or outside the UAE, and using the donation funds in financial speculations or distributing any revenues therefrom to members and employees of licensed and authorized entities.
Penalties for violators
Violators of Fundraising Regulatory Law shall be punished by imprisonment and a fine of not less than AED 200,000 and not more than AED 500,000, or one of these two penalties, for anyone who collects or receives donations from outside the UAE in violation of the enforced procedures and regulations, donation funds or engaging in financial speculations, committing any act that may harm public order, national security or public morals during the collection, acceptance or submission of donations; the penalty shall be doubled in case of repetition not exceeding AED 100,000 for any entity that calls itself an association or institution "charitable or humanitarian", or dealing under this name in any way without obtaining a classification certificate from the competent authority.
It is noted that the Ministry of Community Development seeks to raise the awareness of community members by organizing awareness workshops about the licensed entities that only collect, receive and provide donation. The workshops also educate individuals and institutions about the Fundraising Regulatory Law. The Fundraising Regulatory Law and the list of accredited entities and associations licensed to collect donations, have been uploaded on the website of the Ministry of Community Development www.mocd.gov.ae. All suspected practices or cases of receiving donations can be reported informally through 800623 call center, for legal actions.