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Individuals banned from collecting money from public, ministry issues new rules on fundraising

The Ministry of Social Development has announced the issuance of Ministerial Decision No. 336/2024, establishing new regulations governing the collection of funds from the public by private organizations

TAS News Service

info@thearabianstories.com

Sunday, November 3, 2024

Muscat – Under the new decision, private organisations must obtain a license from the Ministry before collecting money from the public. This requirement does not extend to state-established committees, institutions, or funds. The licenses will be granted solely for charitable purposes and must align with the organisation’s objectives. Personal fundraising efforts are strictly prohibited.

The Ministry will oversee fundraising activities, working in coordination with the licensed organisations.
As per the decision individuals are not allowed to collect money or advertise such efforts, unless they have received explicit approval from the organization. However, organizations may contract individuals to share approved content related to fundraising.

Fundraising is permitted for various events, including parties, exhibitions, charity markets, and cultural or sports events. Organisations can utilize multiple platforms for fundraising, such as mobile applications, websites, SMS, and electronic payment devices. They are allowed to convert in-kind donations to cash through public auctions, subject to prior approval from the competent authority.

Organizations can deduct a maximum of 2 percent from the total funds collected to cover administrative and operational costs. Each fundraising event must be clearly defined, including details on ticket pricing, capacity, and the purpose of the event. Additionally, organisations are required to deposit all collected funds into their approved bank accounts within two working days following the end of the fundraising period.

Failure to comply with these regulations may result in administrative penalties, including warnings, fines, or license suspensions.
If any provisions of these regulations are violated, the Ministry may impose the following administrative penalties: a warning, requiring the violator to correct the issue within seven days of the warning and to commit to not repeating the violation; suspension of the license until the issue is resolved; or an administrative fine ranging from RO 10 to RO 500, with the possibility of license revocation if the violation is not corrected. Additionally, the Ministry will confiscate any funds collected in violation of these regulations and will decide on their allocation and disposal.

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