Overview
Charitable associations and non-profit foundations differ from commercial companies in governance structure and permitted funding sources, and are subject to a specialized regulator monitoring their commitment to their declared purposes.
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These entities need careful review of their funding sources, since some funding sources carry restrictions or disclosure requirements that differ from ordinary commercial financing.
Regulatory Basis
The governing framework is the Associations and Civil Institutions Law and its implementing regulations, which set out registration procedures and governance and funding requirements.
How We Help Establish a Non-Profit Entity
The lawyers help draft the non-profit entity's bylaws reflecting its declared purposes, then complete registration procedures with the competent authority.
Who Needs This Service
A group planning to establish a new charitable association or non-profit foundation that needs correct registration from the start.
An existing association that needs its internal governance or funding sources reviewed.
Some newly established associations draft their bylaws based on a generic template without tailoring it to their actual objectives, then struggle later to demonstrate their commitment to those objectives during a periodic regulatory review, particularly if their actual activity has expanded beyond the narrow scope described in the original founding document without updating it to reflect that expansion.
Additional Considerations
Governance for these entities connects with principles similar to the corporate governance and compliance service, while accounting for the non-profit nature.
For reviewing specific funding sources with special conditions, this connects with the zakat and tax service if there's a tax dimension involved.
Common Questions
Does non-profit association governance differ from commercial companies?
Yes, it's subject to specific requirements accounting for its non-profit nature and commitment to declared purposes, and the lawyers help draft bylaws reflecting this precisely.
Are there restrictions on non-profit entity funding sources?
Yes, some funding sources carry restrictions or disclosure requirements, and the lawyers review this carefully based on the specific funding source in question.