The following words and phrases – wherever they appear in these regulations – shall have the meanings specified next to each of them unless the context requires otherwise:

• 1- The Center: National Center for Non-Profit Sector.

• 2- The Council: Board of Directors of the Center.

• 3- The Law: Law of Associations and Non-Profit Institutions.

• 4- The Regulation: Implementing Regulation of the Law.

• 5- The Rules: Organizational Rules for Non-Profit Funds.

• 6- Governance Rules: Governance Rules for Associations and Non-Profit Institutions issued by the Council.

• 7- The Fund: The Non-Profit Fund established for a specified or unspecified period; to achieve a mutual, cooperative, or social purpose among the members participating in the Fund.

• 8- The Bylaws: The Bylaws of the Fund.

• 9- The Participating Member: Any member participating in the Fund, whether a founder or otherwise, and the Bylaws specify the levels of membership for participants (if any).

• 10- The Board of Trustees: Board of Trustees of the Fund.

These rules aim to regulate the Capacity funds, control their operation, and govern them in accordance with their nature and purpose, in accordance with the Law, Regulation, and governance rules.

1- These rules apply to the funds within the Kingdom that are established in accordance with the Law and Regulation.

2- The fund is considered a non-profit organization, and the provisions of the Law, Regulation, rules, and governance principles apply to it.

1- In consideration of what is stipulated by the Law, the Regulation, and the rules regarding objectives, the foundational regulation must include the specific objectives upon which the fund is based, and it may not exceed those objectives except with the approval of the Center.

2- The services provided by the fund are limited to its participating members, and the foundational regulation specifies those services. Services may also be provided to others as determined by the foundational regulation, provided that the Center's approval is obtained.

The application for the establishment of the fund shall be submitted to the center in accordance with the Law, Regulation, and rules, taking into account the following:

• 1- Subject to the establishment requirements set forth in the Law and Regulation, the applicant for establishment - whether a natural or legal person - must submit the articles of association to the center in accordance with the form prepared based on paragraph (c) of paragraph (1) of Article (10) of the rules.

• 2- Applicants for establishment with legal personality, when notifying the center of any changes that occur to them - in accordance with Article (55) of the Regulation - must attach all required documents in accordance with Articles (52) and (53) of the Regulation and what is included in these rules, including a new letter containing the approval for the establishment of the institution issued by the authorized person in accordance with paragraph (2) of Article (53) of the Regulation.

The center prepares a special register for the funds, which is updated whenever there is a change in its data, and the register includes the following information:

• 1- Name of the fund.

• 2- Number and date of the decision issued approving the establishment of the fund.

• 3- Number and date of the fund's license.

• 4- Basic regulation.

• 5- Address of the fund's headquarters.

• 6- Purpose of the fund.

• 7- Founder or names of the founding members of the fund.

• 8- Names of the members of the Board of Trustees.

• 9- Name of the Chairman of the Board of Trustees and contact information.

The basic regulation of the fund must include the following:

• 1- The name of the fund.

• 2- The name or names of the founders and their personal information.

• 3- The objectives for which the fund was established.

• 4- Provisions regarding membership in the fund, including the following:

  • A- Membership conditions, including the agreement of the participating member to the basic regulation.

  • B- Duties of the participating member, including provisions related to the payment of subscriptions and defaulting on them.

  • C- Rights of the participating member, including their right to nominate for membership in the Board of Trustees and their right to elect members of the Board of Trustees, the mechanism for this, and their right to access the general budget and the final accounts of the fund.

  • D- Cases of membership termination and cases of its expiration, and provisions for the participating member to appeal against that.

• 5- The rules and provisions governing the management of the fund.

• 6- The mechanism for dissolving the fund, and the provisions governing that.

• 7- A detailed statement of financial matters, including:

  • A- The financial resources of the fund, including the allocated funds, endowments, and subscriptions.

  • B- The mechanism for disbursement from the fund and the specific conditions for that.

  • C- The determination of the beginning and end of the financial year of the fund.

  • D- Methods of monitoring the fund's finances.

• 8- The mechanism for amending the basic regulation.

1- The financial resources of the fund consist of the following:

• A- What is allocated to it by the founder or founders or participants from funds, or donations, or endowments, or wills, or zakat.

• B- The periodic contributions provided by the participating members.

• C- The returns on the fund's investments as stipulated in the basic regulation.

• D- The donations received by the fund, provided that the necessary license is obtained for that from the center.

2- Subject to Article (76) of the regulation, in the event of temporarily suspending the fund's activities in accordance with paragraph (2) of Article (35) of the law, the existence of an emergency or urgent situation that necessitates the fund's rapid intervention is considered one of the cases of necessity referred to in Article (76) of the regulation, provided that the center verifies this before issuing its approval.

3- Subject to the provisions of the law, the regulation, and governance rules, the Board of Trustees is responsible for the fund's money and properties, and in this regard, it must perform its duties with responsibility and good faith, in accordance with the provisions of the law, the regulation, governance rules, and regulations, and it must specify the authorities it delegates, the decision-making procedures, and the duration of the delegation. The Board of Trustees must also monitor the exercise of those authorities it delegates to others through periodic reports. Additionally, the Board of Trustees must ensure that procedures are in place to inform the participating members about the fund's work, objectives, their duties, and rights, and it must ensure that comprehensive information about the fund's affairs is available to the members of the Board of Trustees.

1- The center shall take into account when determining the entity to which the funds of the fund will be transferred - in accordance with Article (75) of the Regulation - the nature of the fund's work, its purpose, and its objectives.

2- Those responsible for the liquidation process, when distributing the funds of the fund after its dissolution, must return the funds to the participating members or their heirs - according to the proportion of each member's contribution to the fund - unless the basic regulation states otherwise.