The transparent financial management is the foundation upon which the reputation and sustainability of nonprofit associations are built, and it is the essence of governance emphasized by the Fundraising from Nonprofit Entities system and its executive regulations, issued by the National Center for the Development of the Nonprofit Sector.

The success of the campaign and the fundraising is not the end of the road, but rather the starting point of a legal and financial process that is as important as the campaign itself.

First: Post-Campaign Reports – Closing the Regulatory Loop

According to Article Ten of the Executive Regulations of the Fundraising System, the association is required, within 15 days of the end of the campaign, to provide two main reports to the center:

  1. Bank statement through which the donations were collected.
  2. Detailed financial report showing the total cash and in-kind donations, and their expenditure, supported by accounting documents and invoices.

This step is not a mere formality; rather, it is a confirmation of the principle of transparency and accountability that the state applies to the nonprofit sector, under the supervision of the National Center as the regulatory authority.

Second: Who Holds the Spending Authority? The 'Two-Signature Rule'

This mechanism ensures that no one has unilateral control over financial decisions, reinforces internal control principles and dual oversight, and is an accounting practice widely used globally in nonprofits to ensure financial integrity and prevent conflicts of interest.

Article Twelve of the system stipulates the necessity of identifying at least two individuals with the authority to disburse from donation accounts with a joint signature, one of whom must be the financial officer of the association.

Third: The Annual Budget – A Mirror of Financial Performance

The budget is not just numbers; rather, it is a transparency document that shows the community and supporters where their money was directed and how it was managed, and it is one of the most important tools for evaluating efficiency and compliance.

When preparing the annual budget, Article Thirteen of the system requires associations to show the fundraising proceeds within the revenues and expenditures, along with official supporting documents.

Fourth: The Donations Register – The Financial Memory of the Association

Article Thirty-Four of the Executive Regulations of Nonprofit Associations and Institutions mandates associations to establish a Special Donations Register, recording:

  • The name of the donor and their legal status.
  • The value of the donation and its type (cash or in-kind).
  • Any conditions or restrictions related to the donation.

This register is not just a database; it is a financial governance document that preserves rights and prevents ambiguity and serves as a primary reference when preparing annual financial reports or during audits by regulatory authorities or donors.

Fifth: The Legal Impact of Complying with Transparency

Complying with these requirements is not merely administrative compliance, but a legal obligation that may result in regulatory consequences for violations, including stopping the campaign, freezing the bank account, or temporarily revoking the license as stipulated in Articles (46) and (47) of the Updated Executive Regulations of the Nonprofit Associations and Institutions System (2025).

Sixth: Governance is Not a Burden But an Investment

Every financial receipt, each account statement, and every report submitted transparently conveys a silent message to the community:

Financial transparency is not an administrative burden, but rather an investment in trust, which is the most valuable currency in the world of donations.

"We are trustworthy, and your funds are managed responsibly."

Associations that adopt governance and transparency standards from day one do not only protect themselves from regulatory accountability but also build a solid foundation for sustainable funding and expand donors' trust.

In Conclusion

This is how reputation is built, how trust is maintained, and how impact is created.

Just as associations are measured by their ability to raise funds, they are also assessed by their integrity in preserving them, their efficiency in managing them, and their transparency in disclosing them.

Between fundraising and expenditure lies a legal space that must be managed with professionalism no less than the management of the campaign itself.