Legislation Details
- Full Title: Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations
- Law Type: Federal Law
- Law Number: No. (96) of 2022
- Issued Date: 14 Oct 2022
- Effective Date: 01 Nov 2011
- Official Gazette: No. 738
- Sector: Family and Community
- Status: Active
- Number of Articles: 56
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution provides the executive regulation for Federal Law No. (3) of 2021 Regulating Donations in the United Arab Emirates. The law establishes a framework for the collection, receipt, and disbursement of donations in the UAE, including requirements for permits, record-keeping, and financial controls. It aims to enhance transparency and efficiency in the charitable donations sector. The law is significant for businesses, charities, and individuals involved in fundraising or receiving donations, as it imposes specific obligations and restrictions on these activities. (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Art. 1-27)
What is the scope and purpose of this law?
The Cabinet Resolution applies to the regulation of donations in the UAE, including the collection, receipt, and disbursement of monetary and in-kind donations. It establishes the requirements and procedures for obtaining permits to conduct fundraising activities, as well as the obligations of licensed and authorized entities involved in the donations process. The purpose of the law is to enhance transparency, efficiency, and accountability in the charitable donations sector in the UAE. (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Art. 1-4)
What are the key definitions under this law?
The Cabinet Resolution provides the following key definitions:
- Law: Federal Law No. (3) of 2021 Regulating Donations
- Advertising and Publicity for Donations: Any means used to collect, receive, or provide donations from the public
- Fiscal Year: Twelve Gregorian months, starting from January 1 and ending on December 31
- Efficiency Measurement and Evaluation: A system to measure and evaluate the competence of licensed and authorized entities collecting and providing donations
- Beneficiary: Any natural or legal person to whom donations and aid are provided, inside or outside the UAE
- Information Exchange Permit: A written approval from the beneficiary of donations authorizing the Competent Authority to share information about the donations received
(Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Art. 1)
What are the main obligations and requirements?
The Cabinet Resolution imposes several key obligations on licensed and authorized entities involved in the donations process: 1. Licensed non-governmental entities may deduct up to 15% of total donations collected through normal means, and up to 5% of donations collected through electronic means, to cover administrative and operational expenses. (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Art. 3) 2. Entities must submit reports to the Competent Authority on the administrative and operational expenses of the fundraising process. (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Art. 3) 3. Entities must maintain an electronic record of all data and information related to fundraising permits issued by the local entity. (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Art. 9) 4. Entities receiving donations from outside the UAE must record the data of these donations through the electronic records of the local entities and provide detailed reports on the disbursement of these donations. (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Art. 11)
What licensing, registration, or approval requirements exist?
The Cabinet Resolution outlines the following key licensing and approval requirements: 1. Issuance of a permit by the Competent Authority is required to conduct fundraising activities. The permit application must meet certain conditions, including having a specific and clear purpose, and the applicant's competence and evaluation being rated as "good" according to the approved indicators. (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Art. 4) 2. The permit application must be submitted at least 20 days before the date specified for the donation process, and the permit term shall not exceed one year, with the possibility of extension. (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Art. 5-7) 3. To grant charitable or humanitarian status to associations, bodies, or civil institutions, they must submit a classification request to the Competent Authority and meet certain criteria. (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Art. 14)
What rights and protections does this law provide?
The legislation does not specify any explicit rights or protections provided under this Cabinet Resolution. The focus is on establishing the regulatory framework and obligations for entities involved in the donations process.
Which authorities or bodies are responsible for enforcement?
The Cabinet Resolution designates the following authorities and bodies responsible for enforcement and oversight: 1. The Competent Authority is responsible for issuing permits, approving fundraising activities, and overseeing the donations process. (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Art. 4-7, 11) 2. Local entities are responsible for maintaining electronic records of fundraising permits and donations received from outside the UAE. (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Art. 9, 11) 3. The Ministry of Foreign Affairs and International Cooperation is responsible for setting the controls and procedures for the delivery, submission, or transfer of donations outside the UAE. (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Art. 12-13)
What are the penalties for non-compliance?
The legislation does not specify any penalties for non-compliance with the provisions of this Cabinet Resolution. The focus is on establishing the regulatory framework and obligations for entities involved in the donations process.
What fees, charges, or financial provisions are specified?
The Cabinet Resolution includes the following financial provisions: 1. Licensed non-governmental entities may deduct up to 15% of total donations collected through normal means, and up to 5% of donations collected through electronic means, to cover administrative and operational expenses. (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Art. 3) 2. The deduction percentage for donations collected through concerts, exhibitions, charitable markets, auctions, or charitable events shall not exceed 40% of the total revenues. (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Art. 3)
What exemptions or exceptions apply?
The legislation does not specify any exemptions or exceptions under this Cabinet Resolution.
How are disputes resolved under this law?
The legislation does not provide any information on dispute resolution mechanisms under this Cabinet Resolution.
What are the key deadlines and time limits?
The Cabinet Resolution includes the following key deadlines and time limits: 1. The permit application must be submitted at least 20 days before the date specified for the donation process. (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Art. 5) 2. The permit extension application must be submitted at least 15 days prior to the permit's expiry. (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Art. 7) 3. The Competent Authority must study and issue a decision on an application for receiving external donations within 20 days of receiving the application. (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Art. 11) 4. Licensed and authorized entities must record the data of donations received from outside the UAE and provide detailed reports on the disbursement of these donations within 15 days. (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Art. 11)
How does this law interact with other UAE legislation?
The Cabinet Resolution references the following related UAE legislation: 1. Federal Law No. (1) of 1972, Concerning the Competences of Ministries and the Powers of Ministers, as amended 2. Federal Law No. (3) of 2021, Regulating Donations 3. Federal Decree-Law No. (31) of 2021, Promulgating the Crimes and Punishments Law 4. Federal Decree-Law No. (34) of 2021, On Combating Rumours and Cybercrime 5. Federal Decree-Law No. (46) of 2021, Concerning Electronic Transactions and Trust Services 6. Federal Law No. (8) of 2022, Concerning the Organization of the Ministry of Foreign Affairs and International Cooperation (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Preamble)
When did this law come into effect?
The Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations was issued on 14 October 2022 and came into effect on 1 November 2011. (Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations, 2022, Issued Date and Effective Date)
Source Documents
This article analyses Cabinet Resolution Concerning the Executive Regulation of Federal Law Regulating Donations for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.