A guide to obtaining a fundraising license
A guide to obtaining a fundraising license
introduction:
The Ministry of Social Development, by regulating fundraising, aims to legalize collection operations, protect civil society from any unauthorized violations, in addition to ensuring financial flows through sound channels, achieving the principles of administrative and financial control, and activating the guiding aspects for shareholders and donors. The Ministry is concerned with organizing the fundraising operations that it undertakes. Non-governmental organizations (associations - clubs) licensed by the Ministry of Social Development, in accordance with Ministerial Resolution No. (27) of 2006, which covers all aspects related to fundraising and its terms and conditions.
What is meant by collecting money:
It is every activity carried out by the association or club and the purpose of which is to obtain cash or in-kind funds from any person directly or through holding parties, charitable markets, sports matches, competitions, funds, or other means of collecting money for associations and clubs.
Objectives:
- Legalizing and organizing fund-raising operations.
- Protecting civil society from any unauthorized abuses.
- Ensure financial flows through sound channels.
- Achieving the principles of administrative and financial control.
- Activate the indicative aspects for shareholders and donors.
Types of licenses:
- A cash fundraiser.
- Collecting in-kind donations.
Types of activities allowed to be practiced:
- Ceremony
- Activity
- Competitions
- charity market Chests,
- money boxes, etc.
How to request a fundraising license:
- The application for a fund-raising license shall be submitted to the NGO Support Department through the Ministry's electronic system.
- Filling out the license application form and having it approved by the president of the association - the club and the secretary.
- The license application must be submitted seven days prior to the proposed date for starting the collection process.
- The following shall be attached to the license application:
- The request letter stating the method of collection, the specific period and its purpose.
- In the event that a fundraising license is requested to be renewed before it expires, it must:
- Submitting a license renewal request to the NGO Support Department through the Ministry's electronic system.
- Fill out the license application form.
- The license application must be submitted one week before the end of the period specified in the valid license.
Requirements for obtaining a license:
- The organization must be registered in accordance with the provisions of the Law on Associations, Social and Cultural Clubs, and Private Bodies working in the field of youth, sports, and private institutions
- The purpose of collecting money is related to a project or activity that takes place on a specific date and place, on a specific occasion, or to meet urgent circumstances.
- Determine the method by which the fundraising process will take place.
- Determining how to dispose of the proceeds of fundraising and the beneficiaries.
- Determine the place or places for the proposed collection and attach a copy of the approval of the competent authorities.
- Liquidation of licenses previously granted by the Ministry.
- Determine the name of the bank and the account number in which the funds to be collected will be deposited.
Action:
The Ministry of Social Development will approve on the request for a license to collect money within 30 days from the date the Ministry receives the request.
Instructions:
- The funds collected may not be used for purposes other than those for which they were collected, except with the approval of the Ministry.
- The period specified for collecting money should not exceed two months from the date of issuance of the license, with the exception of Islamic and charitable associations, where the period of collection is six months.
- Each association or club shall prepare receipts for donations in an original and copy bearing serial numbers. Each receipt shall indicate the name of the association or club, the registration number, the license number, and the date of its issuance from the NGO Support Department at the Ministry.
- After the end of the licensing period, the association or club shall make a record of the liquidation of the licensing revenues and expenses and provide the Ministry with a statement showing the proceeds of the donations and the estimates of the revenues and expenditures, provided that they are accompanied by documents proving their validity, within fifteen days from the date of the expiry of the period specified for collecting money.
- The organization shall deposit the proceeds of the license up-to-date in the designated bank account.
- An association or club is not allowed to collect money inside complexes, shops, places of worship, obsequies, or any religious institution or other entity, except after handing over a true copy of the aforementioned license to those in charge of these entities.