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Gulf Press > Uncategorized > New regulations mandate fundraising licenses in Oman
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New regulations mandate fundraising licenses in Oman

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Last updated: 2024/11/04 at 5:56 AM
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The Ministry of Social Development (MOSD) in Oman has introduced new regulations through Ministerial Decision 336/2024 to govern charitable fundraising activities among private organizations. The decision mandates that private entities must secure a license from the MOSD before conducting any fundraising activities. However, committees, institutions, and funds established by the state or other public legal entities are exempt from this requirement. Licenses will only be granted for charitable purposes aligned with the organization’s objectives, and personal fundraising activities are strictly prohibited.

Moreover, the MOSD will monitor and supervise all fundraising efforts to ensure compliance with the established regulations. Natural persons are prohibited from collecting funds or promoting fundraising activities without prior approval. Organizations can collaborate with individuals for promotional purposes related to fundraising, subject to appropriate authorization. The decision enumerates permissible methods for collecting donations, including organizing events, utilizing digital platforms, selling purchase vouchers, and setting up collection boxes in public areas. Stringent guidelines are in place for each fundraising method to uphold transparency and accountability in financial transactions.

Notably, organizations are required to submit a detailed report on collection proceeds and expenditures within 15 working days after the fundraising campaign. Funds raised must be used solely for the intended purposes, with any deviations subject to the ministry’s approval. Organizations may convert in-kind donations into cash through public auctions, with up to 2% of collected funds allowed to cover administrative costs. Prohibitions against financial speculation with collected funds and actions contravening Omani laws or public order are included in the decision. Organisations are responsible for all fundraising costs and may engage sponsors to offset expenses.

To ensure transparency, licensed entities must maintain electronic records of fundraising operations and financial transactions for at least ten years. Administrative penalties for violations of the regulations are in place, including warnings, license suspensions, fines ranging from OMR10 to 500, and potential revocation of licenses for repeated offenses. The ministry may seize funds collected in violation of the regulations and determine the appropriate course of action for those funds. These regulations establish a robust framework for overseeing public fundraising efforts in Oman, promoting accountability and ethical practices within the sector.

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News Room November 4, 2024
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