UAE Donations Federal Regulatory Law ensures aids reach beneficiaries

Hessa Bint Essa Buhumaid, Minister of Community Development, emphasized that the Donations Federal Regulatory Law No. (3) of 2021 to regulate donations protects fundraisers money in compliance with the UAE provisions and regulations that apply on any entity wishing to collect funds in the UAE including free zones.

Hessa Buhumaid stated that the law ensures that fundraising and donations reach eligible beneficiaries and achieves the principle of unifying federal and local efforts through coordination between the ministry and competent local authorities known by law as the "competent authority".

Hessa Buhumaid said: “The Donations Regulatory Law is fully supported by the UAE government and all competent authorities and entities; and is also a safe and stimulating framework for humanitarian and social giving, stemming from UAE traditions and culture”.

She urged community members to verify the licensing and authorization of entities responsible for collecting, receiving, and granting donations via fundraising, such as charitable associations, federal and local authorities and non-profit associations who are eligible by law, decrees or decisions to collect, receive and make donations based on the updates issued by the Ministry of Community Development to the list of authorized entities and associations in this regard.

This was stated by Her Excellency during the media briefing which was organized by the Ministry of Community Development to announce the Donations Federal Regulatory Law No. (3) of 2021, and its provisions.

At the media briefing, Hessa Tahlak, Assistant Undersecretary of Social Development at the Ministry of Community Development stated that the licensed entities to collect donations and fundraise are: Khalifa Bin Zayed Al Nahyan Foundation, Zayed Bin Sultan Al Nahyan Charitable and Humanitarian Foundation, Emirates Red Crescent, Al Maktoum Foundation, Mohammad Bin Rashid Al Maktoum Humanitarian and Charitable Establishment, UAE Water Aid, Noor Dubai, Dubai Cares, Al Jalila Foundation, Dar Al Ber Society, Beit Al Khair Society, Dubai Charity Association, Sharjah Charity International, Humaid Bin Rashid Al Nouimi Foundation, International Charity Organization, Al Ihsan Charity Association, Saud Bin Rashid Al Mualla Charitable and Humanitarian Est, Um Al Quwain Charity Society, Saqr Bin Mohammed Al Qasimi Charity and Humanitarian Foundation, Sheikh Saud Bin Saqr Charitable Educational Foundation, Hamad Bin Mohammed Al Sharqi Foundation for Humanitarian Affairs, Fujairah Charity Association in addition to other government entities and authorities such as Zakat Fund, Awqaf and Minors Affairs Foundation, among others.

Hessa Tahlak stated that all authorized and licensed entities who collect and receive donations all over the Emirates must comply with the licensing procedures of local authorities in each Emirate when they intend to collect donations.

Hessa Tahlak explained that the Ministry is currently reviewing humanitarian foundations in the UAE in terms of the mechanisms of collecting fundraising and donations to ensure compliance with executive regulations and provisions of the law which will be announced soon.

The Ministry is currently coordinating with local authorities to establish a joint mechanism to classify other charities, associations and societies in the UAE and add them to the list of approved associations and entities in case they fulfill the required conditions and regulations.

She noted that according to the new law, there are two types of charity entities: licensed and authorized entities that are established by laws or decisions or decrees to collect, provide and receive donations and fundraising; and permitted entities who are authorized by the competent authority to obtain a license for collecting donations and fundraising through listed charitable organizations in the UAE only.

The Assistant Undersecretary of Social Development added that according to the new law, licensed and authorized entities are not allowed to publish, broadcast or promote any materials or advertisements for fundraising without the approval of designated authorities; any authority is also not permitted to organize or perform any act with the aim of collecting donations without the approval and permission of competent authorities.

The UAE legislation has prohibited individuals from collecting donations without prior authorization from those competent authorities, except licensed entities in accordance to the definition of the law.

As for in kind, food or pharmaceutical donations, the law permits these donations in the case that they do not violate the specified procedures as per the enforced UAE legislations and regulations.

As such, licensed and authorized entities are not permitted to accept, transport, maintain or provide in kind food or pharmaceutical donations within the UAE, that violate the specifications stated in the enforced UAE legislations.

Both authorized and licensed entities shall not accept any food or pharmaceutical donations to be distributed outside the UAE unless they comply with the stipulated conditions.

The Donations Federal Regulatory Law also specifies the regulations and mechanisms to be adhered to for making donations outside the UAE in accordance with the procedures of the Ministry of Foreign Affairs and International Cooperation.

Violators’ Penalties & Fines:
Penalty of imprisonment and a fine with minimum of Dhs200,000 and maximum of Dhs500,000 or one of these penalties for whoever trades in donated funds or is engaged in financial speculation, or the distribution of revenues or returns among the members or the employees of the associations, whereas the penalty or fine is doubled in the case of recurrence.

Penalty of imprisonment and a fine with minimum of Dhs 200,000 and maximum of Dhs500,000 or one of these penalties for whoever commits any act while collecting, accepting or making donations that may harm public order, national security, public morals, and any act that may encourage any ethnic, racial, religious, cultural disputes, or any illegal purpose according to the enforced legal legislations in the UAE, whereas the penalty or fine is doubled in the case of recurrence.

In all cases, the court shall order the confiscation of all collected donations or fundraising amounts in violation to the provision of this law.