Governance of the Saudi non-profit sector and its pivotal role in Vision 2030
Emphasis on the strength of governance and transparency
The Council of Non-Profit Organizations in the Kingdom of Saudi Arabia affirmed the strength and robustness of the regulatory and governance framework governing the non-profit sector. This affirmation came in an official statement responding to certain claims circulating in the media and on social media platforms regarding the level of trust and governance in the work of non-profit organizations. The Council emphasized that the generalizations and doubts raised do not reflect the institutional and regulatory reality to which these organizations are subject, and which represent an active national partner in the comprehensive development process.
General context: The third sector as a pillar of Vision 2030
The non-profit sector in the Kingdom enjoys unprecedented support and empowerment from the wise leadership, stemming from its pivotal role as a key development pillar within the objectives of Vision 2030. The Vision aims to increase the sector's contribution to the GDP from less than 1% to 5% by 2030, which necessitated the development of a comprehensive legislative and regulatory infrastructure to ensure its growth and sustainability. The establishment of the National Center for the Development of the Non-Profit Sector as an independent regulatory and supervisory body reflects this direction, as the Center works to implement the highest standards of governance and transparency, enabling organizations to achieve a deeper impact.
Integrated legislative and regulatory framework
The Council clarified that non-profit organizations and institutions operate within a comprehensive legislative and regulatory framework that begins with their establishment and licensing, and extends to include financial disclosure, oversight, compliance, and periodic monitoring. These organizations are subject to the provisions of the Law of Non-Profit Organizations and Institutions issued by Royal Decree No. (M/8) dated 19/2/1437 AH, in addition to direct supervision from the National Center for the Development of the Non-Profit Sector and relevant government agencies, depending on each organization's activities. This framework ensures enhanced transparency, improved institutional performance, and the protection of the rights of all stakeholders.
Organizing fundraising and protecting donors' funds
Regarding fundraising, the Council affirmed that it is subject to a rigorous regulatory and legislative framework in accordance with the provisions of the Fundraising Law issued by Royal Decree No. (M/43) dated 8/2/1446 AH and its implementing regulations. These regulations aim to enhance transparency and compliance, protect donors, and ensure that their donations reach their intended beneficiaries through approved official channels, such as the national donations platform “Ihsan” and other licensed channels, thus preventing any irregular practices.
The development and societal impact of the sector
The non-profit sector has witnessed rapid growth in recent years, with its contribution to the GDP exceeding 70 billion riyals. This reflects the high level of institutional trust it enjoys and its increasing role in national development. The Council commended the ongoing support provided to civil society by the leadership, and highlighted the emphasis placed by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, on numerous occasions, regarding the developmental role of non-profit organizations and their impact on serving the community and promoting societal values.
Shared national responsibility
The Council emphasized that maintaining the trust of the community, donors, and benefactors in the non-profit sector is a shared national responsibility that requires supporting regulatory, oversight, and awareness-raising efforts. It called for the importance of obtaining information from official sources and avoiding reliance on general impressions or sweeping statements that could negatively impact the public perception of the sector or diminish the significant efforts made by NGOs and their staff to serve the community and the nation. The Council affirmed its right to take the necessary legal measures against any violations that could harm the reputation of NGOs or cast doubt on their integrity and institutional credibility.
