UAE Ministry Stresses Importance Of Complying With Fundraising Regulatory Law

The Ministry of Community Development in the UAE has taken a significant step to safeguard philanthropic activities within the nation, especially with the holy month of Ramadan on the horizon. A pivotal announcement was made, emphasizing that only charitable associations and organizations with proper authorization from relevant authorities are allowed to collect donations. This directive is in strict adherence to Federal Law No. 3 of 2021, aiming to ensure the protection of donors' funds and their proper allocation to intended beneficiaries.

Mohammed Naqi, the Director of Non-Benefit Public Associations Department at the Ministry, highlighted the critical nature of this law. It serves as a protective measure against the exploitation and misuse of funds. Moreover, it is designed to prevent the inadvertent support of terrorism or illegal entities by donors. Entities eligible to collect donations include charitable associations, federal and local authorities, and accredited NGOs, all of which must be licensed and authorized.

The law delineates specific conditions and procedures for fundraising activities. It mandates that authorized entities must secure a fundraising permit before proceeding with any collection efforts. Importantly, it prohibits individuals from independently collecting donations from the public. Oversight is provided by the Ministry and local authorities to ensure adherence to the law and prevent any infractions.

Various methods for collecting donations have been outlined under this law, encompassing cash, in-kind contributions, or digital donations through multiple channels such as banks, digital platforms, and social media. During Ramadan, the law accommodates support and assistance among family members and neighbors within permissible limits, without encroaching on the activities reserved for licensed charities.

However, certain prohibitions are in place under this law. These include unauthorized collection of donations, outsourcing food distribution to restaurants and kitchens, engaging with unlicensed donation campaigns on social media, and misappropriating donation funds for financial speculation or personal gain.

Violations of the Fundraising Regulatory Law carry severe penalties, including imprisonment and fines ranging from AED 200,000 to AED 500,000. Repeat offenders may incur additional fines up to AED 100,000. Entities falsely representing themselves as charitable without necessary certification face even stiffer penalties.

In essence, the UAE Ministry of Community Development's enactment of this law is a proactive measure to regulate fundraising activities. It ensures that only authorized entities can collect donations while protecting donors' interests. The law sets forth clear guidelines for donation collection methods and outlines permissible practices during Ramadan. Violators are subject to stringent legal repercussions, reinforcing the seriousness with which the UAE government views compliance with these regulations.

With inputs from WAM