Ministry of Community Development Bolsters Awareness of Fundraising Regulatory Law

The Ministry of Community Development revealed that the entities permitted to collect donations within the UAE are charitable associations authorised by relevant authorities in compliance with Federal Law No. 3 of 2021 regarding fundraising regulations.

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 authorised to collect the donations.

Mohammed Naqi, Director of Non-Benefit Public Associations Department at the Ministry of Community Development, emphasized the ministry's commitment to raising awareness within the Emirati community about the Fundraising Regulatory Law. This law serves as a secure framework for humanitarian and community giving, rooted in the values and traditions of UAE society. Naqi urged community members to adhere to the law, essential for protecting their funds from exploitation or misuse unrelated to charitable and humanitarian work. The law aims to prevent donors from funding terrorism and illegal organizations, requiring verification of licensed entities collecting donations.

Naqi highlighted the law's clear conditions and procedures for fundraising, with authorized entities needing permits from competent authorities, and the process should be through charitable organizations. He noted that the Ministry and local authorities intensify field visits to oversee and monitor the non-benefit public sector, ensuring compliance with the law to avoid accountability and legal violations. Permissible practices during Ramadan include support and assistance among family members or within the neighborhood, provided it stays within permissible limits. The law allows traditional practices like preparing and distributing food, clothing, and zakat, donating to licensed charitable organizations, depositing donations in public boxes, and distributing iftar meals in mosques and neighborhoods.

The Fundraising Regulatory Law prohibits certain practices, such as the collection of donations by any person and the outsourcing of restaurants and kitchens for distributing food, which is only allowed for receiving donations to prepare meals. Restaurants must coordinate with charitable associations for distribution. Unlawful actions include responding to unlicensed or unreliable campaigns for donation collection, interacting with such campaigns on social media, collecting funds from relatives or friends to deliver to charitable organizations inside or outside the UAE, and using donation funds in financial speculations or distributing revenues to members and employees of licensed entities. Violators face 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 collecting or receiving donations from outside the UAE in violation of procedures and regulations. The penalty doubles for repeated violations, not exceeding AED 100,000, for any entity calling itself a charitable or humanitarian association or institution without obtaining a classification certificate from the competent authority.

News Source: Emirates News Agency