Saudi Arabia unveils regulatory measures for non-profit sector compliance

The National Center for the Non-Profit Sector has recently undertaken several regulatory actions targeting entities and individuals within the non-profit sector, signaling a proactive approach towards ensuring compliance and accountability.

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Among these measures, the Center has issued warnings to four non-profit organizations and made decisions to dismiss the boards of directors of four other organizations. Additionally, any individual has been temporarily barred from engaging in activities within the non-profit sector, reflecting the seriousness with which regulatory breaches are being addressed.

Three people and two non-profit organizations have been sanctioned as a result of the Center's identification of fundraising activity infractions. In addition, the Public Prosecution has been notified of four commercial firms, and the Presidency of State Security has been notified of ten more for violations pertaining to their non-profit operations. By March 2024, there were eight family organizations, seven non-profit companies, and 57 new non-profit organizations registered in various developmental disciplines, indicating a notable expansion of the non-profit sector in Saudi Arabia. This growth highlights the vibrancy and activity of the non-profit sector by bringing the total number of active non-profit organizations in the nation to 4,721.

The Center has outlined noteworthy advancements in the field, such as a growth in the number of governmental bodies with units under technical supervision and a rise in volunteer engagement. Notable is the fact that non-profit organizations have improved their governance methods; during 2023, notable progress in governance levels was noted. The sector's dedication to conducting business in an ethical and transparent manner is highlighted by its emphasis on governance, which builds credibility and trust. Respect for legal and regulatory structures is essential since it guarantees the longevity and efficacy of the sector's developmental efforts.

The Center has underlined how crucial it is that people and organizations in the nonprofit sector abide by the rules when it comes to laws, rules, regulations, and processes. Adherence to these guidelines is crucial for cultivating a climate of responsibility and honesty, which bolsters the industry's potential to promote constructive societal transformation and advancement. The National Center for the Non-Profit Sector's regulatory measures show a dedication to maintaining standards and encouraging ethical behavior in the industry, which will ultimately support the sector's growth and efficacy in providing services to Saudi Arabian communities.

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