New rules to regulate charitable works in Oman take effect
Private entities must obtain licence to conduct any fundraising activities
Muscat: In a move to regulating charitable works in Oman, the Ministry of Social Development has issued new regulations to govern the collection of public donations by private organisations.
It aims to enhance of enhancing transparency in the charitable works in the country.
The Ministerial Decision No 336/2024 issued by the ministry said that private entities must obtain a licence from the ministry to conduct any fundraising activity. But, government-established committees, institutions and funds are exempt from this requirement.
Licences will only be issued for charitable causes that align with the applicant organisation’s objectives. Private fundraising for personal causes is strictly prohibited. The ministry will closely monitor all licensed fundraising activities and coordinate with approved organisations to ensure compliance.
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No individual is allowed to engage in fundraising or promotional activity independently unless specifically authorised by a licensed organisation. However, organisations can hire individuals to share pre-approved content related to fundraising efforts.
Sale of purchase vouchers
Other approved methods encompass the sale of purchase vouchers, short message services via mobile phones, and electronic payment systems.
Moreover, collection boxes may be placed in public areas, along with clothing donation containers, to encourage community contributions.
The regulations specify strict guidelines for each fundraising method, ensuring transparency and accountability in financial transactions. Organisations may convertin-kind donations to cash through public auctions, contingent on MOSD approval, and can deduct up to 2 per cent of collected funds to cover administrative costs.
A critical requirement mandates that organisations submit a detailed report on collection proceeds and expenditures within 15 working days following the fundraising campaign.
Funds must be utilised solely for the intended purposes, with any changes subject to the ministry’s approval.
The decision also includes prohibitions on financial speculation with collected funds and actions that may contravene Omani laws or disrupt public order and morals. Organisations are responsible for all costs associated with fundraising and may engage sponsors to offset expenses.
Administrative penalties
Also, each licensed entity must maintain an electronic record of all fundraising operations and financial transactions for at least ten years.
In terms of enforcement, the ministry has established administrative penalties for violations of these regulations, including warnings, license suspensions, monetary fines ranging from OMR10 (Dh95) to 500, and potential revocation of licenses for repeated offenses.
Additionally, any funds collected in violation of these regulations may be seized by the ministry, which will determine the appropriate course of action for those funds.
These new regulations represent a comprehensive framework for the oversight of public fundraising efforts in Oman, ensuring accountability and ethical practices within the sector
The decision was published on October 29 and came into effect on November 4.
-- Fahad Al Mukrashi is a journalist based in Muscat