Federal Law No. (3) of 2021 regarding the Organization of Donations (family and community law)

Article (1) 
Definitions  
In applying the Law hereof, the following words and phrases have the meanings assigned to each of them, unless the context requires otherwise:  
State  : United Arab Emirates  
Ministry  : Ministry of Community Development  
Minister  : :Minister of Community Development  
The Local 
Authority  : The local authority concerned with Regulating Fundraising.  
Competent 
Authority  : The Ministry or Local Authority, as the case may be.  
Donations  : Whatever is collected from funds of whatever kind, in cash or in 
kind, movable or fixed, including national currency, foreign 
currencies, bonds, sukuk and stocks, and whatever their form, 
including electronic or digital, in order to be disbursed on charitable 
or humanitarian services or assistance.  
Fundraising  : Fundraising by any means in accordance with the provisions of this 
law hereof.  
Licensed 
parties  : Charitable societies, federal, local and non -governmental 
organisations and institutions whose establishment laws, decrees, or 
decisions allow them to collect, receive and provide donations.  
Permit  : Written or electronic consent to collect and present donations in 
accordance with the provisions of this Law hereof.  
Authorized 
Entities  : Legal persons to whom the competent authority grants the permit in 
accordance with the provisions of this law hereof.   
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 The 
Charitable 
Association  : A not -for-profit entity declared or licensed in the state working to 
collect or receive donations with the aim of providing material or 
in-kind assistance.  
Beneficiary  : Any natural or legal person to whom donations and aid are 
provided, inside or outside the country.  
Classification 
Certificat e : A certificate issued by the competent authority according to which 
the charitable or humanitarian status is granted to 
non -governmental organisations, organisations and institutions of 
public benefit according to a set of regulations and conditions.  
 Money 
Transfers  : Banking operations for the transfer of donated funds inside or 
outside the country.

Article (2) 
Scope of Application  
The provisions of this law shall apply to any party wishing to collect or provide donations in 
the country, including free zones.

Article (3)  
Objectives of the Law  
This law aims to regulate donations and protect donors funds.

Article (4)  
Efficiency Measurement and Evaluation System  
The Ministry, in coordination with the Local Authorities, shall establish a special system for measuring the efficiency and evaluation of the licensed parties and the parties authorised to 
collect and present donations.  
  
 
  
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Article (5)  
Administrative and operational expenses  
Percentages may be deducted from donations that are collected in accordance with the 
provisions of this law and its implementing regulations as administrative and operational 
expenditures. The executive regulations of this law determine the proportions of 
administrative and operational expenditures and the regulations of implementing this 
article.

Article (6)  
Permit  
1. It is prohibited for a natural person to collect donations.  
2. With the exception of the authorised entities, it is not permissible for any organisation to 
establish, organise, or perform any act with the aim of collecting donations except after obtaining a permit to do so from the Competent Authority.

Article (7)  
Conditions to issue Permits  
With the exception of the authorised entities, the following conditions are required to grant 
a permit:  
1. That the permit applicant be a legal person.  
2. Fundraising shall be don through a charity.  
3. To state in the permit application the following:  
a. The purpose of fundraising.  
b. The names and identities of those in charge of the fundraising process.  
c. Beneficiary or Beneficiaries.  
d. The means by which the donations will be raised.  
e. The locations where the donations will be raised.  
f. Duration of fundraising.  
g. The period for submitting donations to the beneficiary or beneficiaries.   
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 h. Provide evidence of the charity's approval to fundraising.  
i. Percentage of administrative and operating expenses that will be deducted for the 
charity in charge of fundraising.  
4. Any terms or other data specified by the Executive Regulation of this Law.

Article (8)  
Permit Granting Procedures  
The permit application is submitted to the Competent Authority according to the form 
prepared with it. The Executive Regulation of this Law shall determine the procedures 
necessary for its submission and the regulations of implementing this Article.

Article (9)  
Study the permit application and its issuance  
The Competent Authority shall study the permit application and issues a decision approving 
or rejecting it within (20) twenty working days from the date of its submission, fulfilling all 
the requirements for obtaining it, and the lapse of this period without a response is 
considered a rejection of the application.

Article (10)  
Number of permits  
It is not permissible to grant any party more than four permits during one year, except by a decision of the head of the Competent Authority.

Article (11)  
Donation log  
The local entity is obligated to keep an electronic record of donations, and the Executive Regulations of this law determine the period of keeping it and the data to be included in it.  
  
  
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Article (12)  
Means of collecting and making donations  
The Executive Regulations of this law shall specify the means for collecting and making 
donations.

Article (13)  
Collecting or receiving donations from outside the country  
1. It is not permissible for the licensed and authorised entities to collect or receive donations or accept gifts, bequests, or aids from any person or entity from outside the 
country except in accordance with the regulations and procedures specified by the 
executive regulations of this law.  
2. The authorised and permitted entities shall provide the Competent Authority with a 
detailed report on the donations, gifts, bequests, or subsidies that have been collected or received from outside the state, in accordance with the regulations and procedures 
specified by the Executive Regulations of this law.  
3. Subject to article (25) and Clause No. (2) of this Article, the local authorities must provide the Ministry with reports of collecting or receiving donations from outside the 
country within a period of (15) business days from the date of their submission to them.

Article (14)  
Delivery of donations outside the country  
It is not permissible to deliver, provide or transfer donations to any person or entity outside 
the state, except in accordance with the controls and procedures specified by the executive 
regulations of this law, provided that they include the regulations, procedures and means of 
proving the delivery of donations to the beneficiaries or disbursing it for the purposes specified Hereto.  
  
 
  
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Article (15)  
Bank transfers outside the country from donation accounts  
Banks and financial institutions in the state are not permitted to conduct any financial 
transfers outside the country through bank accounts for donations except in accordance 
with the regulations and procedures specified by the concerned authorities in the state.

Article (16)  
Classification Certificate  
It is not permissible for any party to call itself a "charitable or humanitarian" association, organisation, or institution, or to use or deal under this name in any way except under the 
classification certificate, with the exception of those whose laws, decrees, or decisions of 
their establishment stipulate these Labels.

Article (17)  
Open a fundraising current account  
1. The authorised entities must open a current account or more with any of the national banks operating in the country, to collect donations, and they must notify the Competent 
Authority of the bank name and account number within (10) ten working days from the 
date of opening the account.  
2. Charities shall open independent current accounts through which the sums resulting from fundraising permits are deposited, and they shall provide the competent authority with the data and details of these accounts within (10) ten working days from the date of 
their opening.  
3. It is prohibited for the authorised entities to deposit in the accounts referred to in Clauses 
(1) and (2) of this Article any funds other than funds obtained from fundraising, and they 
shall provide the Competent Authority with a periodic financial statement on that 
account and any data, information or documents required to be provided of which.  
4. Banks and financial institutions may not open any accounts to collect or receive donations for any party except with a letter from the head of the competent authority or  
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 whomever he authorises.

Article (18)  
Dealing with bank accounts which contain violating donations  
The Executive Regulations of this law specify the rules and regulations for disposing and 
closing bank accounts in which donations collected in contravention of the provisions of 
this law or the resolutions issued in implementation thereof are deposited, and the 
mechanism for dealing with these donations.

Article (19)  
Changing the recipient or the purpose of the donation, if necessary  
1. Authorised parties shall provide the proceeds of donations to the beneficiaries or 
disburse them on the purposes specified in the permit.  
2. In the event that it is not possible to make donations to the beneficiaries or to disburse them on the purposes specified in the permit application, the head of the competent 
authority shall specify the beneficiaries or other purposes.

Article (20)  
Prohibitions  
The licensed and authorised entities are prohibited from the following:  
1. Trading in donated funds, entering into financial speculation, or distributing any 
revenues or returns to its members or employees.  
2. Committing any act while collecting, accepting or providing donations that harms public 
order, national security, or public morals, or encourages any sectarian, ethnic, racial, 
religious, or cultural disputes, or any unlawful purpose in accordance with applicable 
legislation In the state.  
  
 
  
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Article (21)  
Accounting records to organise donations 
Licensed parties and authorised entities are obligated to keep regular electronic accounting 
records related to donations, and the Executive Regulations of this law determine the period 
for keeping these records, and the data to be included therein.

Article (22)  
Licensed Parties Obligations  
1. The authorised entities shall provide the Competent Authority with the following:  
a. Periodic reports on the donations that it collects, stating the amount of funds that 
have been collected, the methods of their disbursement, and any other regulations or 
data specified by the Executive Regulations of this law.  
b. Reports and periodic statements of the names and data of those in charge of fundraising.  
c. Periodic reports on the beneficiaries.  
2. Maintaining final accounts or audited financial statements in accordance with the  
legislation in force in the country, which clarify the amount of donations collected and 
the ways and means of their disbursement.

Article (23)  
The commitment of the authorised authorities to provide the competent 
authority with the necessary reports  
1. The authorised authorities are obligated to provide the Competent Authority with the 
following:  
a. A report on the outcome of the donations collected, within a period not exceeding (15) fifteen days from the date of receiving the donations. The Competent Authority 
may request approval of the report from a company or auditing office registered in 
the records of the auditors.  
b. A report on the beneficiaries, within a period not exceeding (15) fifteen days from  
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 the date on which the donations were made.  
c. Periodic reports on projects, their completion rates and payments, in case the 
purpose of fundraising is to implement charitable or humanitarian projects.  
d. A report on the final accounts or audited financial statements that show the amount 
of donations collected and the ways and means of their disbursement, within a 
period not exceeding (30) days from the date of the expiration of the permit, and the 
competent authority may request approval of the report from a company or auditing office registered in the records of the auditors.  
2. Providing donations to the beneficiaries during the time period specified in the permit application, and the competent authority may extend this period if there is a justification, 
therefore.  
3. Any reports or other data specified by the Executive Regulation of this Law.

Article (24)  
Obligations of charitable societies  
Charitable societies shall be committed to:  
1. Permits conditions and regulations.  
2. Maintain organised electronic records to record permits donations.  
3. Provide the authorised parties with periodic reports on the fundraising process.  
4. The authorised parties shall deliver the proceeds of collecting donations within a period 
not exceeding (30) days from the date of the expiration of the permit.  
5. Any other commitments specified by the executive regulation of this Law.

Article (25)  
The unified electronic record  
1. A unified electronic record shall be established at the Ministry in which all data and 
information related to donors, the proceeds of collecting donations, disbursements, 
beneficiaries, and other data and information specified by the Executive Regulations of 
this law are recorded.  
2. Local authorities, licensees and authorised entities shall record data and information on  
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 donations in this record in accordance with the regulations and procedures specified by 
the executive regulations of this law.

Article (26)  
In-kind donations of food or pharmaceutical  
1. It is prohibited for the licensed parties and the authorised entities to accept, transfer, 
save or make in -kind donations of food or medicine to be presented inside the country in 
violation of the specifications determined in the legislation in force in the country.  
2. It is not permissible for the licensed and authorised entities to accept any in- kind food or 
medicinal donations for distribution outside the country except in accordance with the 
following conditions:  
a. Ensure its validity for use for a period of no less than (6) six months from the date of 
receipt.  
b. That these materials are collected, transported and distributed in an appropriate 
manner to ensure their suitability, safety, and usability or consumption.  
c. That it has the appropriate storage places in accordance with the regulations and requirements specified in the legislation in force in the country.

Article (27)  
Converting in- kind donations into cash  
In-kind donations may be converted into cash whenever necessary after obtaining the 
approval of the Competent Authority, and the Competent Authority shall supervise the transfer process, in accordance with the regulations and procedures specified by the 
Executive Regulations of this law.

Article (28)  
Special systems for obtaining information  
Licensed parties and authorised entities are obligated to set up systems that guarantee the access to data and information on donors and beneficiaries, in accordance with what is  
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 specified by the Executive Regulations of this law.

Article (29)  
Supervision and control  
1. The licensed and aut horised entities are subject to the supervision and control of the 
Competent Authority in terms of financial and administrative aspects of donations, 
without prejudice to the powers of other governmental supervisory bodies.  
2. The authorised and permitted entities shall provide the Competent Authority with any 
data, information or documents that it is required to provide.

Article (30)  
Permit Suspension  
The Competent Authority s hall suspend the fundraising permit in the event that the 
charitable association or the authorised entity violates the conditions and regulations of the permit, and the Executive Regulations of this law specify the regulations and procedures for 
implementing this article.

Article (31)  
Advertising and fundraising work  
It is not permissible for the authorised parties to publish or broadcast publicity or advertising 
to fundraising without obtaining the approval of the Competent Authority.

Article (32)  
Permit Expiry  
Fundraising permit expires in the following cases:  
1. Its term expires.  
2. Cessation of the cause for which it was issued.  
3. Lapse of the legal personality of the authorised entity or the charitable association involved in the fundraising process.   
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 4. Any cases specified by the executive regulation of this Law.  
The Executive Regulation of this Law shall determine the regulations of implementing this 
Article.

Article (33)  
Administrative Penalties  
The Cabinet, based on the minister proposal, shall issue a decision determining the acts that 
violate the provisions of this law and its Executive Regulations, the decisions issued for its 
implementation, and the administrative penalties imposed by the competent authority on 
them.

Article (34)  
Grievance  
A grievance may be made against any of the decisions issued by the Competent Authority in implementation of the provisions of this law within a period not exceeding (15) fifteen 
working days from the date of its implementation, before a committee formed for this 
purpose by a decision of the head of the competent authority, and the committee shall 
decide on the grievance within (15) Fifteen working days from the date on which the 
grievance was filed to it, and the decision issued regarding the grievance shall be final, and the complainant shall be notified thereof.

Article (35)  
Penalties  
The application of the penalties stipulated in this Law shall not prejudice any more severe penalty provided by any other law.

Article (36) 
1. Whoever violates the provisions of Clause (1) of article (20) of this law shall be punished with imprisonment and a fine not less than (200,000) two hundred thousand dirhams  
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 and not exceeding (500,000) five hundred thousand dirhams, or one of these two 
penalties, and the penalty is doubled in the event of recurrence.  
2. Whoever violates any of the provisions of Articles (6, 12, 14, 17, 21, 26, and 31) or uses the donation funds for purposes other than those for which they were accepted or collected, shall be punished with imprisonment and a fine not less than (150,000) one 
hundred fifty thousand dirhams and not exceeding (300,000) three hundred thousand 
Dirhams, or one of these two penalties and the penalty is doubled in the event of recurrence.  
3. Whoever violates the provisions of article (16) of this Law shall be liable to a fine not exceeding (100,000) one hundred thousand Dirhams.  
4. In all cases, the court shall order the confiscation of the donations collected in violation of the provisions of this law, and the deportation of the foreigner after carrying out the 
sentence imposed on him.

Article (37)  
Punishment of the person responsible for the actual management of the 
licensed or authorised entity  
The person responsible for the actual management of the licensed party or the authorised entity shall be punished with the same penalty prescribed for the acts committed in 
violation of the provisions of this law when it is proven that he was aware of them or if his breach of the related duties imposed on him by that administration contributed to the 
occurrence of the crime.

Article (38)  
Judicial Police  
The employees of the Competent Authority designated by a resolution of the Minister of 
Justice, in agreement with the Minister or the chairman of the Concerned Authority, shall 
have the capacity of judicial officers for proving all violations, within their jurisdiction, of the 
provisions of this Law, its Executive Regulation and the decisions issued in the  
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 implementation thereof.

Article (39)  
Adaptation  
Everyone who carries out an activity to collect, receive or provide donations must adjust his 
situation in accordance with the provisions of this law and its executive regulations, starting 
from the date on which it comes into force.

Article (40)  
Executive Regulation  
The Cabinet shall issue the Executive Regulation of this Law upon a proposal from the Minister within six months from the date of its publication.

Article (41)  
Organisational Resolutions  
The Minister shall issue the Organisational Resolutions necessary to apply the provisions of 
this Law and its executive regulations..

Article (42)  
Violator Repeal  
Any provision that contradicts or opposes the provisions of this Law shall be repealed.

Article (43)  
Law Publication and Enforcement  
This Law shall be published in the Official Gazette and shall come into force after six months from the date of its publication.  
  
   
Federal Law No. 3  of 2021 on Regarding the organization of donations  16 
 Khalifah Bin Zayed Al Nahyn  
UAE President  
 
Issued by us at the Palace of the Presidency in Abu Dhabi:  
On: Shaaban 28, 1442 H  
Corresponding to: April 11, 2021