MUSCAT: In an effort to regulate the activities of charitable fundraising, the Ministry of Social Development (MOSD) has issued Ministerial Decision 336/2024, which was announced on Sunday. This decision introduces new regulations for private organizations aiming to solicit donations from the public.
Under these regulations, private entities are required to secure a license from the MOSD before commencing any fundraising activities.
However, this requirement does not apply to committees, institutions, and funds established by the state's administrative bodies or other public legal entities, which are exempted from these licensing obligations.
The decision outlines several key provisions, including the stipulation that licenses will only be issued for charitable purposes, in line with the organization's established objectives. It explicitly prohibits personal fundraising activities.
Moreover, the MOSD will supervise and monitor all fundraising endeavors to ensure adherence to the stipulated regulations.
Individuals are prohibited from collecting funds or promoting such activities without prior approval from the relevant authority. However, organizations are permitted to collaborate with individuals for promotional content related to fundraising, provided that the necessary authorization is obtained.
The decision delineates various acceptable methods for fundraising, which include organizing events such as parties, exhibitions, charity markets, and sports activities.
Additionally, organizations are authorized to utilize digital platforms, such as applications and websites, to facilitate donations.
Other approved methods encompass the sale of purchase vouchers, short message services through mobile phones, and electronic payment systems.
Furthermore, the placement of collection boxes in public areas, along with clothing donation containers, is encouraged to foster community contributions.
The regulations set forth strict guidelines for each fundraising method, ensuring transparency and accountability in financial transactions. Organizations are permitted to convert in-kind donations to cash through public auctions, subject to approval from the MOSD, and may deduct up to 2% of the collected funds for administrative costs.
A critical requirement mandates that organizations submit a detailed report on the collection of funds and their expenditures within 15 working days following the conclusion of the fundraising campaign.
All funds must be allocated exclusively for their intended purposes, with any modifications to these allocations requiring approval from the ministry.
The decision also prohibits the financial speculation of collected funds and actions that may violate Omani laws or disrupt public order and morals. Organizations are responsible for all expenses incurred during the fundraising process and may seek sponsorships to offset these costs.
To promote transparency, it is mandatory for each licensed entity to maintain an electronic record documenting all fundraising activities and financial transactions for a minimum duration of ten years.
Regarding enforcement, the Ministry of Social Development and Development (MOSD) has instituted administrative penalties for breaches of these regulations. These penalties include warnings, suspension of licenses, fines ranging from Omani Rials (OMR) 10,000 to 500,000, and, in the event of repeated violations, the potential revocation of licenses.
Furthermore, any funds obtained in contravention of these regulations may be confiscated by the Ministry, which will then decide on the appropriate disposition of these funds.
These newly implemented regulations constitute a comprehensive framework for the supervision of public fundraising activities in Oman, ensuring accountability and ethical practices within the sector.
