Statute of the National Center for Non-Profit Sector

Article 1

Article 2

 

The center enjoys legal personality and financial and administrative independence, and is linked to the President of the Council of Ministers. Its main headquarters is located in the city of Riyadh, and it has the authority - by a decision of the Council - to establish branches within the Kingdom as needed.

Article 3

The center aims to organize the role of non-profit sector organizations, activate and expand it in developmental fields, work on integrating government efforts in providing licensing services to those organizations, and ensure financial, administrative, and technical supervision over the sector, as well as increase coordination and support.

Article 4

Without prejudice to the competencies of other authorities, the center shall undertake all necessary actions to achieve its objectives in accordance with the organization, including the following:

1- Preparing strategies, plans, programs, and performance indicators related to the non-profit sector, verifying their effectiveness, and preparing periodic reports on that.

2- Issuing what is required for the organization of the non-profit sector from regulations, rules, guides, and standards in accordance with the laws and policies of the sector.

3- Issuing licenses and permits for non-profit organizations, in accordance with the relevant regulations, in coordination with the competent authority and the supervising entities that oversee the activities of those organizations.

4- Financial and administrative supervision of non-profit organizations, classifying them, and working towards their governance according to the best global standards.

5- Coordinating and integrating with the supervisory units in government entities that oversee the activities of non-profit organizations, to activate and develop technical supervision over the sector's activities and organizations, facilitate and expedite the establishment of specialized sector organizations, and encourage non-profit work and enhance its role and expansion in developmental fields.

6- Promoting a culture of volunteering, encouraging voluntary work, organizing and empowering it, to achieve an increase in volunteer opportunities and diversity, and to increase the number of volunteers.

7- Working to improve the efficiency and effectiveness of non-profit organizations, removing obstacles they face, providing administrative and technical support to them, building the capacities of their employees, and designing and implementing necessary programs in partnership with government entities and the private and non-profit sectors.

8- Supervising the financial support provided to non-profit organizations in coordination with supporting entities, and working to direct the support in a manner that achieves priorities and developmental plans and supports the financial sustainability of these organizations.

9- Governing the collection of donations by non-profit organizations and the campaigns they conduct, in accordance with the relevant regulations.

10- Raising awareness of the importance of the non-profit sector, motivating contributions in various forms, organizing and participating in related exhibitions, conferences, and seminars.

11- Conducting and encouraging research, studies, and statistics related to the non-profit sector and publishing them, in coordination and partnership with relevant entities, and establishing a database for the sector, its organizations, programs, needs, and priorities.

12- Establishing incubators and accelerators for social enterprises and intellectual containers for non-profit organizations and organizing them, and motivating the non-profit and private sectors to establish them.

13- Activating the role of the non-profit sector in achieving sustainable development goals.

14- Activating social impact investment and encouraging contributions to it.

15- Providing consulting and training services related to its competencies, and it may charge a fee for that.

16- Representing the Kingdom in international and regional organizations and forums related to its competencies.

Article 5

Previous Amendments
  • First: The Center shall have a Board of Directors chaired by the Minister of Human Resources and Social Development, with the membership of each of the following:

    • 1- A representative of the Ministry of Human Resources and Social Development.
    • 2- A representative of the Ministry of Interior.
    • 3- A representative of the Ministry of Finance.
    • 4- A representative of the Ministry of Commerce.
    • 5- A representative of the Ministry of Economy and Planning.
    • 6- A representative of the General Authority for Awqaf.
    • 7- Two representatives of civil associations nominated by the Chairman of the Center’s Board of Directors in coordination with the Council of Civil Associations.
    • 8- A representative of cooperative associations nominated by the Chairman of the Center’s Board of Directors in coordination with the Council of Cooperative Associations.
    • 9- A representative of the private sector who is interested in and supportive of the non-profit sector, nominated by the Chairman of the Center’s Board of Directors in coordination with the Council of Saudi Chambers.
    • 10- Two persons with expertise and specialization in the Center’s field of work, nominated by the Chairman of the Center’s Board of Directors.
  • Second: The rank of the representatives of government entities on the Board may not be lower than the (fourteenth) rank or its equivalent.

  • Third: The members referred to in Paragraphs (6), (7), (8), and (9) shall be appointed by a resolution of the Council of Ministers for a term of three years, renewable once.

Article 6

The Council is the supreme authority of the center, responsible for overseeing it and managing its affairs. It has the authority to make all necessary decisions to achieve its objectives within the framework of the regulations, and it specifically has the following responsibilities:

1- Approving strategies, plans, programs, and performance indicators related to the non-profit sector, reviewing, evaluating, and working on their development and updating, and submitting them in accordance with the applicable legal procedures.

2- Proposing draft laws related to the center's competencies, as well as proposing amendments to the existing ones.

3- Approving what is required for the organization of the non-profit sector in terms of regulations, bylaws, rules, guides, and standards, in accordance with the sector's laws and policies.

4- Approving the rules and mechanisms for issuing licenses and permits that fall within the center's competencies.

5- Approving the organizational structure of the center.

6- Approving the financial regulations of the center in agreement with the Ministry of Finance.

7- Approving the administrative regulations governing the affairs of the center's employees, in agreement with the Ministry of Finance regarding the provisions with financial implications contained therein.

8- Approving the draft budget of the center, its final account, the auditor's report, and the annual report, in preparation for submitting them in accordance with the applicable legal procedures.

9- Determining the financial compensation for the works and services provided by the center within its area of expertise.

10- Approving the establishment of incubators and accelerators for social enterprises and intellectual containers for non-profit sector organizations.

11- Approving the organization of exhibitions, conferences, and seminars related to the center's missions, in accordance with the organized procedures for that.

12- Approving the controls for the center's engagement with local and foreign expertise and consulting offices for studies and research.

13- Adopting the annual work plan and the center's operational plans.

14- Appointing an external certified auditor and appointing an internal financial controller.

15- Approving the appointment of individuals in leadership positions within the center, and the director of the internal audit unit.

16- Accepting donations, gifts, legacies, grants, endowments, and subsidies.

17- Forming permanent or temporary committees from among its members or others, entrusted with tasks it deems necessary, specifying in the decision to form each committee its competencies, chairperson, and members, and allowing it to seek assistance from whom it sees fit to perform the assigned tasks, unless the Council decides otherwise.
The Council may delegate some of its powers to any of its members or to the center's staff as it sees fit.

Article 7

1- The Council shall meet at least once every three months at the invitation of its President, and whenever necessary as deemed by the President of the Council, or at the request of at least one-third of its members.

2- The President of the Council may delegate one of the Council members representing government entities to preside over the Council meetings in his absence.

3- The President of the Council must issue a written invitation to the meeting, specifying the date and location of the meeting, and the invitation must be delivered by hand or through modern communication means to the member at least seven days prior to the meeting. The invitation must include the agenda and all relevant documents pertaining to its items.

4- For the Council's meeting to be valid, the presence of at least the majority of the members, including the President or his delegate, is required, and decisions shall be made by a majority of the votes of those present at least, and in the event of a tie, the side that the President of the meeting voted for shall prevail.

5- A member may not abstain from voting nor delegate another person to vote on his behalf in his absence. The present member has the right to record his objection expressed during the session and the reasons for the objection in the Council's minutes.

6- The deliberations and decisions of the Council shall be recorded in minutes signed by the President of the meeting and the present members.

7- If necessary and in urgent cases as assessed by the President of the Council, meetings and voting on decisions may be conducted remotely using technological means or by circulating among the Council members and signing them upon circulation, indicating that all members have been informed of them. Decisions issued in this manner shall not be considered valid unless they are circulated to all Council members, voted on, and receive at least a majority of their votes.

8- The Council may invite, through the President of the Council, any representatives from government entities not represented in the Council, or experts, or specialists, to attend the Council meetings; without having the right to vote.

9- A member or any person attending the Council sessions may not disclose any information they have come across regarding the secrets of the center due to their membership in the Council or their attendance at its meetings.

Article 8

The center shall have a Chief Executive Officer, whose appointment and dismissal shall be by a decision of the Council, which shall determine his salary and other financial benefits. He is the executive responsible for managing the center, and his responsibilities are concentrated within the limits of the organization and what the Council decides. He shall exercise the following authorities:

1- Supervising the operations of the center and its employees, in accordance with the powers assigned to him and what is specified in the center's regulations.

2- Preparing for Council meetings, calling for them, supervising the preparation of the Council's minutes and decisions, and following up on their implementation after approval.

3- Proposing strategies, plans, programs, and performance indicators related to the non-profit sector, and supervising their implementation after approval.

4- Proposing what is required for organizing the non-profit sector in terms of regulations, rules, guidelines, and standards, in accordance with the sector's laws and policies, and supervising their implementation after approval.

5- Proposing the organizational structure of the center, its administrative and financial regulations, and other internal regulations, and supervising their implementation after approval.

6- Supervising the preparation of the center's budget project, its final accounts, and the annual report, and submitting them to the Council.

7- Issuing disbursement orders in accordance with the approved annual budget of the center, and taking all financial procedures in accordance with the financial regulations and rules, within the limits of the powers delegated to him by the Council.

8- Appointing the center's staff in accordance with the regulations governing that, and supervising them.

9- Preparing periodic reports on the center's work, achievements, activities, and the impediments it faces, and submitting them to the Council; in preparation for completing what is necessary regarding them.

10- Representing the center before the judiciary and government agencies, institutions, and bodies, and other entities inside or outside the Kingdom, with the authority to delegate others.

11- Submitting proposals to the Council regarding matters within his jurisdiction.

12- Signing agreements and contracts after the Council's approval, and in accordance with the applicable legal procedures.

13- Any other authority assigned to him by the Council.
The Chief Executive Officer - after the Council's approval - may delegate some of his authorities to other staff members of the center.

Article 9

 

All employees of the center are subject to the Labor Law and the Social Insurance Law.

Article 10

The center shall have an independent annual budget, issued in accordance with the arrangements for the issuance of the state’s general budget. The financial year of the center is the same as the financial year of the state.

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