The following words and phrases shall have the meanings indicated next to each of them, unless the context requires otherwise:

• Authority:The General Authority for Awqaf.

• Regulation:Regulation for the establishment of endowments or their financing through fundraising.

• Applicant:The legal entity applying for the license.

• License:The permission issued by the Authority to collect donations for the establishment of an endowment or the financing of an existing endowment.

• Licensee:The applicant to whom the license is issued.

• Achievement Certificate:A document granted by the Authority to the licensee, certifying the completion of the works for which the donations were collected, in accordance with the purposes, conditions, and expenditures stipulated in the license.

The provisions of the regulation apply to the establishment of new endowments, or to finance existing endowments, through fundraising, for the purpose of their sustainability, development, operation, or repair.

The license application is submitted to the Authority, including the following:

• 1- License application form for fundraising, including the following:

  • A- Name of the applicant, their data, address, and contact information.

  • B- Specification of the purpose of fundraising, its conditions, and expenditures.

  • C- The targeted amount to be raised through fundraising.

  • D- The duration required for fundraising.

  • E- The duration required to implement the establishment of the endowment.

  • F- The percentage of operational and administrative expenses needed for the fundraising process.

  • G- The proposed draft of the endowment deed if the purpose of the fundraising is to establish a new endowment.

• 2- If the application is to finance an existing endowment, the applicant shall attach:

  • A- The endowment deed, and a statement of proposed amendments thereto - if any -.

  • B- The endowment registration certificate with the Authority.

  • C- The property ownership deed if the endowment is real estate.

• 3- A feasibility study for establishing the endowment, or financing the existing endowment.

• 4- A report on the expected construction costs from an accredited engineering consultant, in case the fundraising purposes include engineering constructions.

• 5- A comprehensive presentation about the applicant, its organization, governance, organizational structure, supervisory functions, policies, procedures, and representation.

• 6- Financial statements for the last three years of the applicant - if any -, certified by a certified public accountant.

• 7- A financial report on the applicant's previous fundraising, in case a prior permit for fundraising was issued to them.

• 8- In case the fundraising is for the purpose of purchasing real estate; the following must be attached:

  • A- A written approval from the property owner to sell in favor of the applicant.

    • B- Two valuations of the value of the property intended to be purchased, which must meet the following:

      • (B-1) They must be issued by certified appraisers.

      • (B-2) Their issuance date must not exceed six (6) months.

      • (B-3) The two valuations must be conducted using two or more of the approved valuation methods.

  • C- If the discrepancy in value between the two valuations referred to in paragraph (8/B) of this article does not exceed ten percent (10%), the approved value shall be the average of the two reports; otherwise, a report from a third appraiser must be requested.

• 9- Any other additional requirements requested by the Authority.

The applicant must meet the following conditions:

• 1- No license for fundraising has been issued to him within a minimum period of (6) months.

• 2- He must not have another fundraising request under consideration by the Authority.

• 3- The Chairman of the Board, the Board of Trustees, any of their members, the chief executive officer, senior executives, or those exercising control over the entity must not be:

  • A- Convicted of a crime involving dishonesty, integrity, or honor.

  • B- Listed on United Nations lists, including those related to counter-terrorism.

  • C- Listed on the Unified National List (1373).

  • D- Previously dismissed from guardianship by a final judgment due to matters related to integrity, honesty, incapacity, or incompetence.

• 4- If the purpose of the fundraising is to finance an existing endowment, the application must be submitted by the endowment for which the fundraising is intended.

The Authority shall issue a reasoned decision rejecting the license application within (30) working days from the date of submitting the license application, in the following cases:

• 1- The applicant's failure to complete the required procedures and data.

• 2- The applicant's failure to meet the necessary conditions.

The licensee shall commit to the following:

• 1- Agreeing with a certified public accountant licensed by the competent authority to perform the tasks referred to in Article (Eleven/A).

• 2- Agreeing with a licensed consulting office, in the case of real estate constructions for the purposes of collecting donations specified in the license, to perform the tasks referred to in Article (Eleven/B).

• 3- Opening a single bank account at one of the licensed banks, dedicated to collecting donations for the licensed purpose, in accordance with banking account regulations, and providing the Authority with the data of that account.

• 4- Submitting a periodic statement - as determined by the Authority - after the collection period ends, including data on expenditures for the purposes specified in the license, supported by documents.

• 5- Notifying the Authority of any material changes occurring in the collection of donations immediately upon their occurrence.

• 6- Retaining records and data of financial expenditures for the collection purposes, supporting and confirming documents for the disbursement process, and data and documents related to the supply of materials or provision of services, for no less than (10) years after each transaction.

• 7- Establishing appropriate mechanisms that ensure obtaining the information and data required by the Authority or competent bodies within the period specified in the claim.

If there is a surplus in the donation collection account, after spending on the purposes specified in the license application, the licensee must submit a request to the Authority within thirty (30) working days specifying the surplus amount and proposals regarding it. The Authority shall study the submitted request and has the right to approve the request, amend it, or dispose of the amount according to the following arrangement:

• A- Allocate the surplus to additional expenses for the purpose for which it was collected - if needed - according to the Authority's estimation.

• B- Transfer the surplus amount to another account similar in purposes, expenditures, and conditions.

• C- If a similar account is not available, the surplus shall be transferred to the closest expenditures related to those specified in the license application.

1- The Authority may revoke the license in the following cases:

• A- The licensee's violation of the provisions of the regulation.

• B- Discovery of any fraud, concealment thereof, or delay in execution by the licensee.

• C- Breach of any condition of the license during the fundraising period or the disbursement period for the purposes specified in the license.

• D- The licensee's request to cancel the license, provided that he submits:

  • (D-1) A written request for cancellation, explaining the reasons for it.

  • (D-2) A statement of the documents supporting the fundraising and disbursement for the purposes specified in the permit, clarifying the amount collected, the amounts spent on the project, and the status of the project at the time of the cancellation request.

2- Upon revocation of the license, the Authority must notify the bank holding the bank account designated for fundraising of the cancellation to stop receiving donations.

3- The licensee must cease fundraising upon the expiration or revocation of the license.

4- The proceeds of the donations shall be spent - upon revocation of the license or the expiration of the specified fundraising period - in the following order:

• A- On the purpose for which they were collected.

• B- On the closest purposes thereto if that is not possible.

• C- The donations deposited in the account designated for fundraising shall be transferred to another fundraising account similar in purposes, expenditures, and conditions.