Oman enforces new licensing rules for fundraising activities

The Ministry of Social Development (MOSD) in Oman has introduced Ministerial Decision 336/2024, establishing stricter controls for private organizations engaging in public fundraising. Announced on Sunday, the regulation mandates that private entities secure a license from the MOSD before beginning any fundraising activities.

Government-established committees, institutions and funds are exempt from this requirement, as the rule does not apply to entities formed under the state's administrative apparatus or other public legal bodies.

The decision specifies that licenses will only be issued for charitable causes aligned with the organization’s mission, prohibiting any personal fundraising initiatives. The MOSD will actively oversee and monitor fundraising efforts, ensuring adherence to these new standards.

Private individuals are barred from independently collecting or promoting fund drives without prior approval. However, organizations may work with individuals to promote campaigns, provided they obtain proper authorization.

Permissible methods for fundraising include events like charity markets, exhibitions, parties, and sports activities. Digital avenues such as applications, websites, and electronic payment systems are also approved. Additional methods include selling purchase vouchers, using SMS services, and placing collection boxes or clothing donation bins in public spaces. Strict guidelines are set for each approach to maintain transparency and accountability.

To cover administrative expenses, organizations are allowed to retain up to 2% of the funds collected. In-kind donations may be converted into cash through public auctions, pending MOSD approval.

Each organization must submit a detailed report on funds raised and expenses within 15 working days after the campaign’s conclusion. Funds must be allocated strictly for the intended purposes, with any changes requiring ministry approval. Financial speculation or activities conflicting with Omani laws or public morals are prohibited.

To promote accountability, each licensed organization is required to maintain an electronic record of all fundraising activities and transactions for a minimum of ten years. Violations of the regulations are subject to administrative penalties, including warnings, fines between OMR10 and OMR500, license suspension or even revocation for repeat offenders. Funds raised in violation of the law may be seized, with the ministry deciding on their disposition.

This regulatory framework underscores Oman’s commitment to transparency and ethical practices in public fundraising, ensuring all activities within the sector align with national values and legal standards.