Article 2 of the Saudi Donation Collection Law
المادة 2 من نظام جمع التبرعات
The article limits donation collection to the licensed entity and requires those who collect and spend donations for it to be Saudis.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يُقصر جمع التبرعات على الجهة المرخَّص لها.
2- يجب أن يكون القائمون على جمع التبرعات وصرفها لدى الجهة المرخَّص لها من السعوديين.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 2 explained in plain English
This article is the basic rule of the Law, and it contains two provisions:
1- Limiting donation collection to the licensed entity: donations may be collected only for the licensed entity. Under Article 1 this means associations, civil foundations and other non-profit sector bodies whose regulations or bylaws permit them to collect donations, and which hold a license from the licensing authority. It follows that individuals and entities without a license may not collect donations. Donation collection, by definition, is receiving cash or in-kind donations through a call to donate or by holding a campaign for that purpose.
2- Saudization of those who collect and spend: those who are in charge of collecting and spending donations for the licensed entity must be Saudis. The requirement covers collecting and spending together.
The practical effect is that someone who wants to help a person in need by collecting money from people should turn to a licensed entity rather than collect it themselves. Article 3 then sets how the licensed entity collects donations: in line with its objectives, and through its approved bank accounts, electronic transfers and checks deposited in its accounts. Anyone with a question about whether a collection activity they are carrying out is lawful would do well to consult a lawyer who specializes in non-profit sector regulations.
Practical example
Ahmed wanted to collect an amount from his friends and followers for the treatment of a neighbor. Under this article, donation collection is limited to the licensed entity, so it is safer for him to contact an association licensed to collect donations for this purpose rather than collect himself.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 2 of the Saudi Donation Collection Law
May individuals collect donations in Saudi Arabia?
The article limits donation collection to the licensed entity, which under the definitions means associations, civil foundations and non-profit bodies that hold a license.
May a non-Saudi be in charge of collecting donations at an association?
No. Those who collect and spend donations for the licensed entity must be Saudis.
Does the Saudization requirement cover spending donations?
Yes. The requirement covers those who collect and those who spend donations together.
More articles on Licensing Donation Collection
- Article 1
This article defines the terms of the Donation Collection Law, such as collecting donations, calling for them, the campaign, the licensing authority, the licensed entity and the donor.
لأغراض هذا النظام، يقصد بالألفاظ والعبارات الآتية -أينما وردت فيه- المعاني المبينة أمام كل منها: النظام: نظام جمع التبرعات. اللائحة: اللائحة التنفيذية للنظام. ا
- Article 20
The article excludes from the Donation Collection Law the entities subject to the rules governing oversight of government bodies' receipt of gifts and donations, issued by Council of Ministers Resolution No. (365) dated 14/8/1436 AH.
لا تسري أحكام النظام على الجهات التي تخضع للقواعد التي تنظم وتحكم الرقابة على تلقي الجهات الحكومية هبات وتبرعات، الصادرة بقرار مجلس الوزراء رقم (365) وتاريخ 14
- Article 21
The article provides that the Implementing Regulations are issued by Council of Ministers decision after being prepared by the National Center for Non-Profit Sector Development in coordination with specified bodies, within 90 days of the Law's publication.
تصدر اللائحة بقرار من مجلس الوزراء، وذلك بعد إعدادها من المركز الوطني لتنمية القطاع غير الربحي بالتنسيق مع وزارة الداخلية، ووزارة الشؤون الإسلامية والدعوة والإر
- Article 22
Under this article the Law repeals the Charitable Donation Collection Regulation issued by Council of Ministers Resolution No. (547) dated 30/3/1396 AH, and all provisions that conflict with it.
يلغي النظام لائحة جمع التبرعات للوجوه الخيرية -الصادرة بقرار مجلس الوزراء رقم (547) وتاريخ 30 / 3 / 1396هـ- وجميع ما يتعارض معه من أحكام.
- Article 23
The article provides that the Donation Collection Law takes effect after 180 days from the date of its publication in the Official Gazette.
يعمل بالنظام بعد مضي (مائة وثمانين) يوماً من تاريخ نشره في الجريدة الرسمية.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.