In a significant regulatory step aimed at enhancing governance and transparency in the non-profit sector, the Saudi Ministry of Human Resources and Social Development has approved a new guide outlining 10 fundamental criteria for naming charitable associations, foundations, and family and charitable trusts. This decision is part of the Kingdom's efforts to develop the non-profit sector and ensure that the names of these entities clearly reflect their objectives and missions, preventing any potential misleading of the public or donors.
General context and objectives of Vision 2030
This new regulation falls within the framework of the major transformations taking place in the non-profit sector in Saudi Arabia, which is considered a cornerstone in achieving the goals of the Kingdom's Vision 2030. The Vision aims to increase the non-profit sector's contribution to the GDP from less than 1% to 5%, and to increase the number of volunteers to one million by 2030. To achieve these ambitious goals, it was essential to establish legislative and regulatory frameworks that ensure the sector's healthy and sustainable growth and enhance public trust in it. The establishment of the National Center for the Development of the Non-Profit Sector, the body responsible for overseeing the implementation of these regulations, is a pivotal step in building a comprehensive governance system for the sector.
Top 10 guidelines for naming civil society organizations
The guide outlines a set of principles and criteria that must be adhered to when choosing names, aiming for clarity, uniqueness, and avoiding ambiguity. The most prominent of these guidelines include the following:
- Clarity and meaning: The name should clearly express the nature of the entity's activity and its main objectives.
- Uniqueness and non-duplication: The name must be unique and not used by another registered entity.
- Respect for public order: The use of any names that contain insults to religion or violate public order and morals is prohibited.
- No use of official symbols: The use of names, logos, or symbols associated with the State or international organizations is prohibited without official authorization.
- Avoid misleading: It is forbidden to choose names that might suggest to the public that the entity is a government agency or provides government services.
- Geographical names: The use of names of regions, cities, and tribes is limited to defining the geographical scope of the entity's services only.
- Naming an institution after a person: When naming an institution after a person, the name must be three parts, and the person must be alive or have the consent of the heirs in the event of his death.
- Arabic language: The name must be in Arabic, with the possibility of adding a name in English after obtaining the necessary approvals.
- Failure to mention fundraising: The name must not suggest that fundraising is the entity's primary objective.
- Specialized entities: The names of specialized entities (e.g., health or education) should accurately reflect their field of work.
Importance and expected impact
Domestically, these regulations will contribute to increased transparency and credibility in the non-profit sector, encouraging greater community support and targeted donations. They also protect donors and beneficiaries from any deceptive practices. Internationally, this step enhances the Kingdom's reputation in NGO governance, aligning it with global best practices, particularly those related to combating money laundering and terrorist financing, thus facilitating the establishment of reliable international partnerships for Saudi associations. The guidelines stipulate that the National Center for Non-Profit Sector Development is the authorized body to oversee the implementation of these provisions and has the right to review and update them to ensure their continued effectiveness.
