Article 3 of the Saudi Donation Collection Law
المادة 3 من نظام جمع التبرعات
The article requires a licensed entity to collect donations in line with its objectives, and through its approved bank accounts, electronic transfers and the like, or checks deposited in its accounts.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يجوز لأي جهة مرخَّص لها أن تجمع تبرعات، إلا بما يتفق مع أهدافها التي ينص عليها نظامها أو لائحتها، ويكون جمعها للتبرعات من خلال الآتي:
1- حساباتها البنكية المعتمدة، وفقاً لتعليمات البنك المركزي السعودي.
2- الحوالات المالية عبر القنوات الإلكترونية، ونحوها مما تحدده اللائحة.
3- الشيكات، على أن تودع في حساباتها البنكية المعتمدة.
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 3 explained in plain English
This article places two restrictions on the licensed entity when collecting donations:
First restriction - purpose: it may not collect donations except in line with its objectives as stated in its regulations or bylaws. An association specialized in a particular field does not collect for a purpose that falls outside its objectives.
Second restriction - means: donations are collected through:
- Its approved bank accounts, in accordance with the instructions of the Saudi Central Bank.
- Money transfers through electronic channels, and the like as the Implementing Regulations specify.
- Checks, which must be deposited in its approved bank accounts.
The aim is that monetary donations pass through documented channels that can be traced. This restriction is addressed to the licensed entity, which under Article 1 means associations, civil foundations and non-profit sector bodies that hold a license to collect donations. Article 2 limits donation collection to them in the first place.
In-kind donations are governed by Article 4, which permits receiving them through the head office, the branches or the sites licensed for collection, with serially numbered receipts, a copy of which is given to the donor. A careful donor can confirm that the entity collects through these means.
Practical example
A charity in Riyadh whose objectives are caring for orphans launches an orphan sponsorship campaign. It receives donations through its approved bank account and electronic transfers, deposits any checks it receives in its approved account, and does not collect for any purpose outside its objectives.
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 3 of the Saudi Donation Collection Law
How do associations collect monetary donations?
Through their approved bank accounts in accordance with the instructions of the Saudi Central Bank, transfers through electronic channels and the like as the Implementing Regulations specify, and checks deposited in their approved accounts.
May an association collect donations for a purpose outside its objectives?
No. It may not collect donations except in line with its objectives as stated in its regulations or bylaws.
May a donation be made by check?
Yes. Checks are one of the means of collection, provided they are deposited in the entity's approved bank accounts.
More articles on Methods of Receiving Donations
- Article 4
The article permits the licensed entity to receive in-kind donations at its head office, its branches or the sites licensed for collection, with serially numbered receipts, a copy of which is given to the donor.
للجهة المرخَّص لها تلقي التبرعات العينية من خلال مقرها الرئيس، أو فروعها، أو المواقع المرخص لها بجمع التبرعات فيها، على أن يثبت ذلك في إيصالات ذات أرقام متسلسلة
- Article 5
The article prohibits the licensed entity from receiving monetary donations except by direct deposit into its approved bank accounts, and from receiving donations from outside the Kingdom except with the licensing authority's approval.
يحظر على الجهة المرخَّص لها ما يلي: 1- تلقي التبرعات النقدية إلا من خلال الإيداع المباشر في حساباتها البنكية المعتمدة لدى البنوك وفروعها. 2- تلقي تبرعات من خارج
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.