Saudi Arabia
JordanKey Amendments Introduced to the Executive Regulations for Charitable Associations and Foundations
A Step-by-Step Breakdown of the Unified Licensing Process and Its Benefits
The non-profit sector holds critical importance, as these organizations and associations provide indispensable social services, including the care of orphans, the elderly, and individuals with special needs. This sector significantly contributes to building a more cohesive and interconnected society. Moreover, it offers vital employment and training opportunities for young people and indirectly contributes to the Kingdom’s gross domestic product (GDP).
It is also important to highlight the sector’s role in sustainable development, environmental protection, and the promotion of public awareness. Furthermore, it encourages community participation through volunteering, thereby contributing to comprehensive and integrated community development. Most non-profit organizations and associations are distinguished by their high levels of transparency and accountability, which helps combat corruption and promote integrity.
Accordingly, the government has increasingly focused on supporting this vital sector by enacting supportive laws and regulations and by providing funding and grants necessary to ensure the continuity of these organizations and to strengthen their active and positive role within society.
In this context, we wish to highlight the most significant points introduced by the Executive Regulations, including:
- Setting the term of membership on the Board of Directors at four years, renewable only once.
- Encouraging associations and foundations to implement joint projects and to exchange expertise and resources among them.
- Standardizing the mechanism for submitting applications, reports, budgets, and accounts through a unified electronic system.
- Facilitating the procedures for ratifying the bylaws and their necessary amendments.
- Specifying the permitted sources of funding for associations and foundations and regulating their usage.
- Activating the role of the General Assembly as the highest authority within the association or foundation and defining its powers and responsibilities.
- Establishing specialized technical committees to monitor the performance of associations and foundations and to evaluate the quality of their services.
- Specifying a mechanism for resolving disputes and conflicts that may arise between associations and foundations, or between them and donor or beneficiary entities.
Therefore, the Executive Regulations for Charitable Associations and Foundations for the year 2023 represent a significant step towards the development and empowerment of the charitable sector in the Kingdom. By establishing clear foundations and standards for organizing this vital sector, the Regulations ensure its sustainability and its ability to achieve its objectives effectively and efficiently. These Regulations aim to drive social and economic development forward by strengthening the role of the non-profit sector.
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