Oman: MoSD issues new rules for collecting public donations

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Muscat – Ministry of Social Development (MoSD) has issued new regulations governing the collection of public donations by private organisations with the aim of enhancing transparency and oversight.

The rules, outlined in Ministerial Decision No 336/2024 issued by H E Dr Laila bint Ahmed al Najjar, Minister of Social Development, mandates private entities must obtain a licence from MoSD to conduct any fundraising activity. However, government-established committees, institutions and funds are exempt from this requirement.

Licences will only be issued for charitable causes that align with the applicant organisation’s objectives. Private fundraising for personal causes is strictly prohibited. MoSD will closely monitor all licensed fundraising activities and coordinate with approved organisations to ensure compliance. No individual is allowed to engage in fundraising or promotional activity independently unless specifically authorised by a licensed organisation. However, organisations can hire individuals to share pre-approved content related to fundraising efforts.

Under the new regulations, organisations may collect funds in various ways, including mobile apps, websites, SMS and electronic payment systems. In-kind donations can also be converted to cash via public auctions with prior ministry approval. Events eligible for fundraising include charity markets, exhibitions, cultural and sports events, and social gatherings. Organisations can deduct up to 2% of the total collected funds to cover administrative and operational costs, provided all event details, including ticket price and venue capacity, are disclosed in advance.

Collected funds must be deposited into an approved bank account within two working days of the fundraising period. Non-compliance with these procedures could lead to administrative penalties ranging from warnings and fines to the suspension or revocation of licences. Initial penalties may include warnings with a seven-day period to resolve non-compliance. Repeated violations could result in fines between RO10 and RO500 or licence suspension. Persistent breaches may lead to licence cancellation.

Additionally, funds collected in violation of the rules will be confiscated, with the ministry deciding on the allocation of the collection.

The decision was published on October 29 and comes into effect on November 4.