First: Introduction to the System

The new fundraising system and its executive regulations represent a qualitative shift in the governance and compliance structure within the Saudi non-profit sector, after the old system named “Regulation of Fundraising for Charitable Causes” was abolished and replaced with a more stringent and integrated legislative framework.

This system aims to achieve three main objectives:

  1. Protecting donors' funds from any irregular practices.
  2. Raising the level of transparency and accountability in fundraising and spending operations.
  3. Enabling licensed associations to conduct fundraising in a safe and regulated environment.

Second: The Regulatory Parties in the Fundraising Process

According to Article One of the system, the regulatory relationship is determined between two main parties:

  1. The Licensing Authority:

    It is the National Center for the Development of the Non-Profit Sector, exclusively authorized to grant fundraising licenses and monitor the compliance of associations with the relevant regulations.

  2. The Licensed Entity:

    It includes associations or charitable organizations that have obtained a valid regulatory license for fundraising.

    Legal Note: mere registration at the center does not grant the right to collect donations, as Article Two expressly states that a special license must be obtained for each campaign.

Third: Nationality Requirement and Legal Administration of the Campaign

Article Two of the system stipulates that all individuals involved in fundraising and spending operations must be Saudi nationals, whether they are board members or direct employees in related activities.

The regulatory purpose of this condition is:

  • To ensure direct legal accountability to Saudi regulatory authorities.
  • To enhance public trust in local organizations as national institutions responsible for managing public charitable funds.

Fourth: Scope of Fundraising and Spending Objectives

Article Three strictly defines the scope of using donations, as no entity may collect donations except for the purposes specified in its foundational system and approved at the time of licensing.

No part of the donations may be transferred to other projects or purposes without obtaining prior written approval from the center.

Thus, the system has set a clear limit to any expansive or discretionary spending practices, directly linking them to the regulatory purpose of the association.

Fifth: Compliance Philosophy in the New System

The system does not view compliance as a formal procedure, but as part of the governance of charitable work, which aligns with what is stipulated in:

  • The Executive Regulation for Associations and Charitable Organizations (2025), which emphasizes the obligation of associations to engage only in licensed activities.
  • The Governance Rules issued by the National Center, which stress transparency and full financial disclosure in all stages of fundraising and spending.

This legislative integration between the system and the regulations makes compliance a legal and ethical obligation that ensures the sustainability of trust between charitable entities, the state, and society.

Sixth: Towards Sustainable Commitment

The commitments of associations and charitable organizations can be summarized into three practical pillars that form the "roadmap to compliance":

  1. Before the Campaign:

    • Obtaining licensing from the National Center.
    • Clearly defining the purpose, duration, and targeted amount.

  2. During the Campaign:

    • Complying with legally approved fundraising methods (platforms, designated bank accounts).
    • Preventing any mediation or fundraising outside the authorized framework.

  3. After the Campaign:

    • Submitting a detailed financial report to the center within the specified period.
    • Disclosing the results to the community according to principles of transparency.

The new fundraising system is not merely an administrative update, but a legal reengineering of the trust between the donor, the organization, and the legislator.

Through strict compliance, associations transform from entities practicing charitable work to accountable and governed national institutions that contribute to establishing justice and transparency and achieving the targets of Saudi Vision 2030 in building an effective and sustainable non-profit sector.