Non-profit / Third Sector

Non-profit / Third Sector — Sector Legal Services

Legal advisory for establishing and governing charities and non-profit organizations.

Image: a charity organization team
The non-profit sector is growing in the Kingdom alongside state support for volunteer and charitable work, and organizations need proper formation and clear governance. If you run a charity or non-profit, the next step is reaching out on WhatsApp.

A Non-Profit Sector Expanding Under National Center for Non-Profit Sector Development Oversight

The Kingdom's non-profit sector has seen increasing regulation since the establishment of the National Center for the Development of the Non-Profit Sector, which set clear frameworks for formation, governance, and financial transparency. This growing regulation means charities and non-profit organizations need precise legal understanding fundamentally different from forming an ordinary commercial company.

Establishing and Licensing Charities

We help charities meet registration and licensing requirements before the relevant authorities, from drafting the founding bylaws to meeting board of directors and general assembly requirements mandated by regulation.

Internal Governance Structures

We review their bylaws and internal governance structures, ensuring clarity in the board of directors and executive body's authorities, and the decision-making mechanism for major financial and strategic matters.

Financial Transparency Compliance

We track ongoing compliance with financial transparency regulations specific to non-profit organizations, including periodic financial reporting requirements and disclosure of funding sources and expenditure before regulatory bodies.

Fundraising and Regulatory Compliance

We help charities understand the regulatory frameworks for fundraising, whether through traditional campaigns or digital platforms, and avoid violations tied to fundraising without prior licensing.

Partnerships With the Private Sector and Sponsors

We help non-profit organizations draft partnership agreements with sponsoring companies, balancing funding requirements with preserving the organization's independent charitable decision-making.

Internal Governance Disputes Among Board Members

When disagreements arise between a charity's board members, we help resolve the dispute in a way that preserves the organization's continued operation and charitable mission, resorting to litigation only when an amicable resolution is impossible.

Charitable Waqf Endowments as a Sustainable Funding Tool

We help charitable organizations establish waqf endowments providing an independent, sustainable income source, and review the waqf deeds to ensure compliance with Sharia rulings and Saudi endowment regulations.

Volunteer Work and Volunteer Insurance

We help charities understand their legal obligations toward volunteers, including the need to insure them while performing the organization's activities to avoid liability if an injury occurs.

How We Start With You

Send us the details of your charity or non-profit organization or the dispute you are facing on WhatsApp. We help you build a solid legal structure serving your charitable mission with confidence. We believe in the importance of charitable work in society, and strive to provide legal support that lets you focus on your mission rather than administrative complexities, whatever your organization's size or stage of growth.

Frequently Asked Questions

We are planning to establish a new charity. What are the initial procedures?

We help you draft the founding bylaws and meet registration requirements before the National Center for Non-Profit Sector Development, including naming the founding board members.

Our board members disagree over a major financial decision. How do we resolve this dispute?

We review the founding bylaws to determine the agreed decision-making mechanism, and help you reach a resolution preserving the organization's continued operation.

Is a separate license required to launch a fundraising campaign through a digital platform?

Yes in most cases, and we help you obtain this license before launching the campaign to avoid an unlicensed fundraising violation.

A sponsoring company wants to influence our charitable decisions in exchange for funding. Is that acceptable?

We recommend drafting a clear partnership agreement defining the sponsor's contribution scope without affecting the organization's charitable decision independence.

What financial reports must we submit periodically?

We review the National Center for Non-Profit Sector Development's periodic reporting requirements with you, and help you prepare them to achieve full compliance.

Can our charity receive donations from entities outside the Kingdom?

This is subject to special controls related to anti-money-laundering and counter-terrorism financing, and we help you understand these controls before accepting any foreign donation.

Need legal advice for your sector?

Reach out on WhatsApp to discuss your business's needs.

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