Tuesday 05 / November / 2024
MUSCAT: In a move aimed at regulating charitable fundraising activities, the Ministry of Social Development (MOSD) has issued Ministerial Decision 336/2024, on Sunday outlining new regulations for private organisations seeking to collect money from the public.
Under the new regulations, private entities must obtain a license from the MOSD prior to initiating any fundraising activities.
This rule does not extend to committees, institutions, and funds established by the state’s administrative apparatus or other public legal entities, which remain exempt from these licensing requirements.
Key provisions of the decision stipulate that licenses will only be granted for charitable purposes, in alignment with the objectives for which the organisation was established. Personal fundraising activities are explicitly prohibited.
Additionally, the MOSD will oversee and monitor all fundraising efforts, ensuring compliance with the established regulations.
Natural persons are also barred from collecting funds or promoting such activities in any form unless they have obtained prior approval from the competent authority. However, organisations may collaborate with individuals for promotional content related to fundraising, subject to appropriate authorisation.
The decision outlines various permissible methods for collecting funds, which include organising events such as parties, exhibitions, charity markets, and sports activities.
Additionally, organisations can utilise digital platforms, such as applications and websites, to facilitate donations.
Other approved methods encompass the sale of purchase vouchers, short message services via mobile phones, and electronic payment systems.
Furthermore, 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% 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.
To enhance transparency, 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 MOSD has established administrative penalties for violations of these regulations, including warnings, license suspensions, monetary fines ranging from OMR10 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.
