عربي

Update

UAE nonprofits face tighter fundraising laws

New rules will step up scrutiny of how charities in the country raise, use, and manage donations. 

Words: Joanne Bladd
Photography: Supplied
Date:

The UAE is poised to unveil new rules governing how nonprofits and charities operating in the country fundraise, collect, and disburse donations, a senior official has said.

The new legislation, which will step up scrutiny of an already tightly regulated market, aims to combat the risk of donations being siphoned off for money laundering or terrorist funding, Nasser Ismail, assistant undersecretary at the Ministry of Community Development (MOCD), told state news agency WAM.

The rule changes were needed to bolster accountability for the receipt and tracking of donations, he added, and to ensure nonprofits used funds properly.

“Our target is to ensure that international standards are applied… preventing any unacceptable abuses, errors or practices,” he noted.

The new law is under development, Ismail said, and will apply across the UAE.

“The measures will support social development and encourage humanitarian giving based on the values and traditions of Emirati society."

Nasser Ismail, assistant undersecretary, Ministry of Community Development.

The UAE imposes strict laws around fundraising, permitting only locally licensed charities to collect funds and donated goods, or to run fundraising appeals.

All other appeals, even those led by internationally licensed charities, require a permit from the MOCD, or for those within the emirate of Dubai, the Islamic Affairs And Charitable Activities Department (IACAD).

Where permits are granted, nonprofits must still join with a local organisation for the campaign, and donate a percentage of the funds collected. Those found breaking the law risk fines and a jail term.

In 2018, Dubai announced that all community groups must secure a permit before carrying out volunteering activities. In addition, organisations must register their volunteers with the Community Development Authority, provide insurance coverage for them, and sign the CDA’s volunteering agreement.

Ismail said the MOCD planned to host a series of workshops and initiatives to drive awareness of the new law, and ensure compliance.

“The measures will support social development and encourage humanitarian giving based on the values and traditions of Emirati society,” he said. - PA

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