Charities in Kuwait to be categorized and regulated under a new system within a month.
Charitable organisations in Kuwait are now required to adhere to a series of new regulations issued by the Ministry of Social Affairs, aimed at enhancing transparency, donation collection, and project oversight. These regulations impose several key requirements to ensure the responsible management of donations and compliance with established standards.
First and foremost, charitable societies can only collect donations for projects that are officially licensed by the Ministry. Donation campaigns must be directly linked to these licensed projects without involving intermediaries such as marketing agencies, advertising companies, or informal volunteer groups. Donation links must be published exclusively on the official websites of the registered charities. For special fundraising campaigns targeting individual causes, prior Ministry approval is mandatory [1][5].
Charities are also prohibited from contracting advertising firms, social media influencers, celebrities, or preachers without prior approval. Draft contracts must be submitted to the Ministry for review and include details like contract period, service type, relevant project, and financial value, in line with established circulars [1].
Financial oversight and reporting are of utmost importance under the new regulations. Charitable associations must hire auditors approved by the Capital Markets Authority, appoint internal auditors, and compliance officers. They are required to submit annual reports and audited financial statements according to specific regulatory circulars. There is also a push for collaboration with certified accounting firms and implementation of mandatory financial reporting [1][2].
All charities must register with the Ministry and maintain clear governance structures. The Ministry enforces suspension of fundraising activities if regulations are breached, with penalties including project cancellation or even dissolution of the association under existing laws [1][3].
The Ministry is advancing digital transformation, including a digital platform linked to the Mobile ID system to streamline charity applications and monitor aid distribution. A public annual report will rank charities based on governance compliance and transparency, serving as a mechanism for public accountability [2].
Charities are required to work through the Central Aid Program for all cases. Field inspection teams will monitor compliance, and non-compliant charities will be barred from collecting donations [3].
To ensure transparency, charities must provide detailed reports on checks, transfers, and bank deductions relating to donations. Daily reports must include donor names, amounts, and project details. Relief campaigns abroad must receive prior approval from the Ministry of Foreign Affairs, and when applicable, relief campaigns abroad should use licensed local projects instead of launching new campaigns [4].
The Ministry has established 11 regulatory bodies to oversee charitable work in Kuwait. The Ministry has set governance criteria across four areas: financial performance, administrative structure, project oversight, and external project tracking [2].
Charities will be classified into three categories: committed, partially compliant, or non-compliant based on adherence to the newly issued rules within one month. Key requirements include transparency in recording administrative deductions on all advertisements, a prohibition on contracting marketing or publicity firms to manage donation platforms, and a ban on engaging influencers or preachers without ministry consent and full contract disclosure [1].
Violations may result in suspension or dissolution under existing laws and ministerial resolutions [1][3]. With these new regulations in place, charitable organisations in Kuwait are expected to operate with stringent transparency in collecting and managing donations, adhere to strict contractual and approval processes, maintain high standards of governance and financial reporting, and embrace digital tools to ensure oversight and public accountability.
Charitable organizations in Kuwait, while managing their donations, are prohibited from contracting advertising firms, social media influencers, celebrities, or preachers without prior approval from the Ministry of Social Affairs, as per the new regulations. Furthermore, in the domain of business and finance, charities must ensure responsible management of donations by collaborating with auditors approved by the Capital Markets Authority and submitting audited financial statements annually.
