The Ministry of Human Resources and Social Development in Saudi Arabia announced the adoption of a new procedural guide aimed at regulating and defining the criteria for selecting names for charitable associations, foundations, and family funds. This step comes as part of the Kingdom's efforts to enhance governance in the non-profit sector and ensure that the names of these entities align with their actual objectives and the Kingdom's Vision 2030.
Context of regulating the non-profit sector in Saudi Arabia
The non-profit sector in Saudi Arabia is undergoing a radical transformation and significant expansion as part of the goals of Vision 2030, which aims to increase the sector's contribution to the GDP and enhance its social impact. With the growing number of associations and non-profit organizations, the need has become critical for a precise regulatory framework to govern the visual and nominal identity of these entities. This guide aims to bridge the regulatory gap and prevent any overlap or similarity between the names of associations and government agencies, thereby enhancing the sector's transparency and credibility with the public and donors.
Key guidelines for the new naming system
The new guidelines set out a number of strict criteria that must be adhered to when choosing a name for any non-profit organization, the most important of which are:
- Clarity and meaning: The name must clearly express the nature of the activity that the entity carries out, and perform a semantic function that highlights its message and goals without ambiguity.
- Uniqueness and non-repetition: The name must be unique and not repeated to ensure the entity stands out from others.
- Prohibition of misleading names: The use of names that may mislead the public or suggest that the entity is affiliated with governmental or official bodies contrary to reality is strictly prohibited.
- Religious and national controls: It is prohibited to use any name that includes abuse of religion or violates public order and morals. It is also prohibited to use slogans, flags or symbols associated with the Kingdom or other countries or international organizations without obtaining official permission.
- Names of people: The ministry has set special conditions for naming institutions after people, where the name must be three parts, and the person must be alive (with his consent) or obtain the consent of the heirs in the event of his death.
- Geographical scope: The use of names of regions, cities and tribes is prohibited unless it is for the purpose of defining the geographical scope of the association's services.
Expected impact of the new regulations
This regulation is expected to bring about a qualitative shift in the Kingdom's non-profit sector. Locally, standardizing naming criteria will streamline registration and application processes, reducing rejection rates due to naming errors. It will also enhance the trust of beneficiaries and supporters, as a correct name reflects the organization's commitment to professionalism and transparency.
From an organizational standpoint, enabling the National Center for the Development of the Non-Profit Sector to supervise and review the implementation of these provisions ensures the system’s flexibility and ability to adapt to future changes, in a way that serves the interest of sustainable social development.
Systematic reference
This guide is based in its legal reference on the system of associations and civil institutions issued by Royal Decree No. (M/8) dated 2/19/1437 AH, and the organization of the National Center for the Development of the Non-Profit Sector issued by Cabinet Resolution No. (618), in addition to the executive regulations of the system of associations and civil institutions and its amendments, which gives it binding force for all concerned entities.
