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The establishment of a charitable foundation in the United Arab Emirates not only serves to uphold deeply rooted traditions of mutual aid and support for the needy but also ensures a systematic approach to addressing social, educational, and environmental challenges. The main goal of this foundation is to rally resources and synchronize endeavors to offer efficient support to the most marginalized sectors of society, and also to fund initiatives directed at improving the general welfare of the community. The tasks of such a foundation include identifying pressing societal needs, raising awareness of pertinent issues, and devising and implementing programs capable of exerting maximum positive impact on the country's social and economic development.

In this publication, we will intricately illuminate the process of establishing a charitable institution in the UAE. We will conduct an analysis of legislation and regulatory frameworks, examine socio-economic prerequisites, and devise strategies for fundraising and organizational management.

What is a charitable foundation

A charitable foundation is a specialized organization with the goal of gathering and then distributing various resources, including money, property, and services. These assets are used to support valuable initiatives for society.

Such organizations aim to offer aid to people experiencing difficult life situations and encourage advancements in education, culture, scientific research, and healthcare. They also have a significant impact on environmental conservation and other valuable social initiatives.

Legal status

In order to operate, charitable foundations must be registered in compliance with the national laws in effect. They attain the status of non-profit organizations, endowed with legal personality rights. This enables them to enter into contracts, carry out financial transactions via bank accounts and carry out other tasks within legal boundaries.

Goals and focus

Charitable foundations may encompass a broad spectrum of missions and objectives, contingent upon their primary operational focus. Some are geared towards aiding the underprivileged, whereas others are oriented towards the promotion of knowledge-based endeavors in the spheres of education, science, and culture, as well as providing assistance amidst crises and natural disasters.

Organizational structure

A charitable foundation's organizational framework comprises founding members, a governing board or management committee, a chief executive officer, and, when necessary, a supervisory and auditing body. Volunteers and personnel responsible for event execution, resource development, and donor and stakeholder engagement serve as critical contributors to the foundation's operational effectiveness.

Sources of financing

The financing of charitable foundations may be carried out through various sources: philanthropic contributions from individual and corporate donors, government subventions, targeted grant allocations, and corporate sponsorships. Additionally, the receipt of income from activities not conflicting with the goals and objectives of the foundation is permissible.

Community engagement

Charitable foundations actively collaborate with the communities they were established to benefit, organizing public initiatives, events, educational programs, and fundraising campaigns, as well as engaging with other nonprofit organizations, governmental institutions, and the private sector to achieve their objectives.

Transparency and accountability

For the maintenance of public trust, charitable foundations are obliged to guarantee a high degree of openness in their business dealings. This includes the routine release of information on financial transactions, sources of financing, and particular expenses.

Taxation

Charitable foundations in many countries enjoy tax benefits, which may include exemption from corporate income tax, VAT, and other tax payments. Donations made to these foundations are often tax-deductible as well.

Charity in the UAE: historical context and current state

Charitable activity holds a paramount position in the history of the United Arab Emirates, spanning centuries and intricately intertwining with the cultural and religious norms of the region, particularly with the principles of Islam. Islam underscores the significance of Al-Sadaqah, the practice of giving, and emphasizes support for those facing difficulties. Contributions to charity and participation in social projects have been a pivotal part of community life for many centuries, manifested through voluntary donations and aid for those in need.

Philanthropy underwent a dramatic change brought upon by the growth of the oil industry in the 20th century and the United Arab Emirates's formation as a sovereign state in 1971. Ruling families, governmental institutions, and individual citizens began allocating substantial resources towards social and educational initiatives. This phase was also characterized by the active development of legislation aimed at regulating and supporting philanthropic endeavors, thereby enhancing their clarity and effectiveness.

In the contemporary UAE, philanthropic endeavors occupy a strategic position within the social, economic, and on occasion, political landscape, involving a broad spectrum of activities. This is evidenced by the support of projects in the fields of education and healthcare at the local level, as well as participation in humanitarian missions on the international stage. In the Emirates, numerous funds and organizations operate with the objective of providing assistance both within the country and beyond its borders.

The integration of cutting-edge technologies and the active incorporation of social networks have significantly streamlined the fundraising process and facilitated the effective dissemination of information regarding charitable initiatives. These innovations have not only facilitated access to financing but also strengthened trust-based relationships and transparency between charitable institutions, donors, and the wider public.

At a global level, the UAE occupies a position as one of the leading contributors in humanitarian support, actively engaging in efforts to alleviate poverty, develop educational and healthcare programs in developing countries, and provide assistance during times of crises. Noteworthy among others are charitable foundations of the UAE, such as the Mohammed bin Rashid Al Maktoum Foundation, the Zakat Fund, and the Emirates Foundation, each making a significant contribution to the implementation of substantial social projects both domestically and internationally.

Thus, leveraging its rich heritage and recent strides in innovation, charitable endeavors in the UAE persist in their evolution, remaining a pivotal facet of societal engagement and reflecting the nation's unwavering commitment to ideals of support and mutual aid across all strata.

Key laws and regulations for charities in the UAE

In the United Arab Emirates, the regulatory landscape governing charitable organizations is anchored in a collection of key legislative instruments, providing a legislative framework to aid in their establishment, operation, and oversight. These laws encompass a wide range of aspects, spanning from organizational registration procedures, maintenance of their financial records, to monitoring their activities.

Main legislative acts

The Non-Profit Associations Law lays the groundwork for the formation, registration, and operation of non-commercial groups and philanthropic organizations in the Emirates. It outlines the standards for reporting, financial activity of entities, and governance.

Federal Law No. 3 of 2021 controls the process of fundraising, establishing rules for charitable contributions and organizations engaged in soliciting donations. It is aimed at ensuring the protection of fundraising activities from being used for illegal purposes, including the financing of terrorism.

Federal Law No. 4 of 2018 prohibits the solicitation of donations within mosques without obtaining permission from authorized entities. This measure aims to prevent unauthorized fundraising activities and ensure oversight of charitable operations within religious institutions.

Federal Decree-Law No. 34 of 2021 imposes restrictions on the collection of donations via the internet, necessitating the acquisition of a specialized license from competent authorities for such activity. This initiative is targeted at mitigating the spread of inaccurate information and deterring deceptive activities.

Federal Decree-Law No. 20 of 2018 contains provisions pertaining to combating money laundering and terrorist financing, imposing upon charitable organizations in the UAE the obligation to conduct rigorous inspection of their financial activities to avoid the use of funds for illegal purposes.

Consequently, the legal and regulatory architecture governing charitable organizations in the UAE establishes a bedrock for their efficient and transparent functioning, fostering the expansion of philanthropic endeavors within the domestic market and across international borders.

AML compliance

Adherence with AML requirements is an essential precondition for the operations of charitable organizations in the UAE. This facet is of utmost significance in ensuring the legality of their endeavors and sustaining trust from donors and the public. Amidst increased international efforts to stop the funding of terrorism, charitable organizations must rigorously adhere to both local and international AML legislation.

One of the key tasks of complying with AML requirements is to prevent the misuse of charitable funds for money laundering purposes. This entails rigorous scrutiny of the origin of finances and verification of donors eliminating the potential of funding illicit operations under the pretense of philanthropic contributions.

The UAE is actively aligning with the recommendations of the Financial Action Task Force (FATF), underscoring the nation's commitment to integration within the international financial security framework. For charitable organizations, this entails the imperative adoption of globally recognized standards and procedures.

Adherence to AML policies enhances trust in charitable organizations in the Emirates, thereby facilitating donor attraction and increasing aid volumes. Transparency in financial transactions and strict adherence to legislation serve as a guarantee of the organization's accountability to society.

Violation of AML requirements can lead to serious consequences, including administrative fines, suspension of operations, and even criminal prosecution of executives. This underscores the imperative of rigorous adherence to the law and implementation of effective internal control mechanisms.

Implementation of AML procedures

To ensure compliance with AML requirements, charities in the Emirates must:

  • Develop and implement an AML policy that includes clear protocols for tracking financial transactions and identifying benefactors.
  • Train staff in the basics of AML, including how to recognize suspicious transactions and activities.
  • Establish internal reporting and regulatory communication protocols for quickly responding to transactions that appear questionable.

Compliance with AML requirements necessitates proactive implementation of internal control mechanisms, staff training, and continuous surveillance of money transactions by charitable groups in the United Arab Emirates. This not only ensures their adherence to legislation and safeguards against abuses but also contributes to maintaining a high level of trust and reputation among donors and the public, crucial for the long-term success and effectiveness of philanthropic endeavors.

Planning to create a charity establishment in the United Arab Emirates

The launch of a charitable foundation in the Emirates requires careful preparation and forward-thinking strategic planning. This process entails formulating foundational principles, conducting thorough societal needs assessments, and crafting an organizational framework that will serve as a robust foundation for future initiatives.

Formation of the mission of a charitable foundation in the UAE

The mission of the charitable foundation in the United Arab Emirates must distinctly encapsulate its essence and purpose. It serves as a statement of intent, elucidating the raison d'être of the foundation and delineating the societal changes it aims to effectuate. An effective mission articulates the organization's unique role in addressing specific issues and reflects its values and principles. It must be inspirational, motivating both the foundation's employees and its supporters and donors to engage and support.

When creating a mission, it is important to consider the following aspects:

  • Clarity and specificity. The mission must be clear and accurately formulate the main purpose of the organization.
  • Inspiration. It should inspire the organization's employees and its supporting community to take action and help.
  • Feasibility. The mission must be realistic and achievable given the resources and capabilities of the foundation.

Defining the goals of a charity in the UAE

The strategic goals of a charitable foundation in the UAE should be in line with its primary objective and focused on attaining quantifiable outcomes. The objectives should align with SMART criteria:

  • Specific. Objectives should clearly describe what the fund plans to achieve.
  • Measurable. There must be criteria by which the achievement of the goal can be assessed.
  • Achievable. Goals must be realistic to achieve within available resources.
  • Relevant. Goals must be relevant and consistent with the mission of the foundation.
  • Time-bound. For each goal, a time horizon for its achievement must be defined.

The delineation of precise objectives enables a philanthropic entity in the Emirates to devise strategic blueprints, mobilize resources, and assess progress in the realization of its initiatives. These objectives establish the groundwork for the formulation of specific programs and projects aimed at addressing societal challenges, providing benchmarks for evaluating the efficacy and impact of the foundation's endeavors.

Researching community needs and choosing a field of activity

Before starting any initiatives or activities, it is important to conduct research on community needs and choose the area of focus for a charity foundation in the United Arab Emirates. By doing these actions, the organization is able to pinpoint the most urgent problems that need to be addressed as well as the areas where the foundation can have the biggest influence.

The first step is collecting and evaluating data on the target audience and operating conditions in the foundation's region of activity. This may be carried out through:

  • Surveys and questionnaires. Collecting primary data directly from community members provides up-to-date information about their needs and priorities.
  • Interviews with key stakeholders. Conversations with local leaders, nonprofit representatives, experts, and government officials can provide in-depth insight into the issues.
  • Analysis of statistical data. Studying reports and studies containing statistics on the socio-economic situation in the region, healthcare, education and other important aspects.
  • Study reports and studies. Reviewing work already completed by other organizations can prevent effort duplication and offer insightful information.

After the community's needs become apparent, the foundation can delineate spheres or directions of activity where its contribution will be most impactful. This choice should be based on:

  • Compliance with the mission of the foundation. The organization's strategic initiatives should directly align with its core objectives, mission statement, and long-term vision.
  • Resource assessment. It is important to realistically assess the capabilities of a charitable foundation in the Emirates in terms of funding, human resources and project implementation experience in selected areas.
  • Maximizing the capacity to instigate transformation. Directing attention towards domains wherein the fund can wield the most significant influence and deliver optimal advantages to its intended beneficiaries.
  • Engaging with additional organizations. Investigating prospects for alliances or cooperative ventures with other not-for-profit entities, governmental bodies, and private enterprises can amplify the effectiveness of existing initiatives.

The determination of operational directions should culminate in the formulation of specific programs and projects aimed at addressing identified issues. This necessitates the development of detailed plans, encompassing objectives, implementation methods, required resources, and systems for monitoring and evaluating outcomes.

Deep understanding of community needs and deliberate selection of the sphere of activity provide a strategic foundation for the effective operation of a charitable foundation in the United Arab Emirates, enabling it to exert significant influence on improving people's lives and societal development.

Development of constituent documentation for a charitable organization in the UAE

Once the mission, strategic objectives, and preferred lines of action are defined, it is imperative to proceed with the formulation of foundational documents. These documents not only establish the legal and operational framework for the functioning of the charitable organization within the territory of the UAE but also contribute to its transparency and accountability to donors, partners, and regulatory authorities.

Development of the organization's charter

The constitution stands as the paramount document delineating the foundational principles and operational regulations of a charitable organization within the UAE. To align with local legislative requirements, the constitution must encompass the following facets:

  • Name and legal address. Official name of the organization and its legal address.
  • Goals and mission. A clear statement of the organization’s objectives and how to implement them.
  • Field of activity. Determining the areas in which the fund plans to carry out its work.
  • Terms of membership. Rules for admission to membership, rights and obligations of participants.
  • Management structure. A description of the management structure (for example, management or board of directors), their powers and appointment procedures.
  • Financial provisions. Rules for financial accounting, asset management and auditing.
  • Changing the charter and liquidating the organization. Procedures for amending the charter and conditions of liquidation.
Internal rules

Internal regulations specify the norms established by the statute, providing guidance on the day-to-day operations of the charitable organization in the Emirates. These regulations may include:

  • Organization of meetings. Standards for holding meetings between management and members of the organization.
  • Financial management. Procedures for budgeting, reporting, collection and use of funds.
  • Personnel and Volunteer Policy. Principles of selection, training, performance evaluation and reward of employees and volunteers.
  • Preventing conflicts of interest. Measures aimed at eliminating conflicts of interest and ensuring ethical actions.

The creation of these documents necessitates a comprehensive approach, encompassing a profound grasp of UAE legislation, strategic planning and management skills. It is imperative to engage specialists - lawyers and consultants - with a track record of working with non-profit organizations to ensure compliance with all local regulations and best management practices.

Legal aspects of creating a charitable foundation in the UAE

The legal aspects of establishing a charitable foundation in the UAE play a pivotal role in ensuring its legality, transparency, and operational effectiveness. The consideration and selection of an appropriate legal form, registration, licensing, and compliance with legislative requirements are mandatory steps for the successful launch and operation of a charitable organization.

Choosing the legal form of a charitable organization in the UAE

Determining the appropriate legal form is a critical juncture in establishing a philanthropic entity in the United Arab Emirates. This selection profoundly impacts the organization's legal obligations and rights, as well as its governance structure, tax conditions, and fundraising capabilities. The UAE offers various legal forms for charitable organizations, each entailing unique features and requirements.

Non-Profit Organization (NPO)

Non-profit organizations are established with the aim of providing public services or conducting charitable activities, while explicitly prohibiting the distribution of generated profits among founders or members. All funds collected must be exclusively directed towards fulfilling the stated objectives of the organization. Such a structural type is ideally suited for undertaking a broad range of charitable tasks and activities. NPOs may engage in a wide spectrum of activities, including education, healthcare, culture, and social support.

Charitable Foundation

In the United Arab Emirates, charitable foundations are usually set up to oversee money designated for certain charitable objectives. One or more contributors, including individuals and businesses, may supply funding. Although these organizations have more latitude in how they manage their investments and assets, regulatory agencies closely monitor them to make sure their business practices are transparent.

Public Association

Public associations are unions initiated by a group of individuals aimed at achieving social, cultural, educational, or socially significant objectives. This form is particularly suitable for charitable organizations in the Emirates, seeking active engagement of the wider public in their activities and possessing a substantial membership base.

The choice of legal form not only determines the legal status and obligations of the organization, but also its capabilities in terms of attracting investments, obtaining grants, and conducting charitable activities in the UAE. Each form has its own advantages and limitations, so the choice should be based on a clear understanding of the organization's goals, mission, and strategic objectives. It is important to consider that the chosen legal form affects relationships with donors, tax obligations, and even the organization's reputation in society and among partners.

Procedure for registering a charitable foundation in the UAE

Depending on the location and extent of the foundation's operations, a different application must be submitted to the selected regulatory authority in order to register a charitable foundation in the United Arab Emirates. All completed constitutional documents and other necessary documentation must be submitted with the application. After reviewing the items supplied, the regulatory agency may ask for more information or clarifications. The organization receives official permission and a registration certificate, verifying its eligibility to carry out philanthropic operations in the United Arab Emirates, upon the successful completion of the inspection. This document is a crucial component that certifies the foundation's legality and official standing under the laws of the nation.

Recommendations for successful registration of a charitable organization in the Emirates:

  • Guarantee all constitutional documents, encompassing the articles of incorporation and financial disclosures, comply with the regulations mandated by the designated governing body.
  • Determine which state or regulatory entity is responsible for the registration of charitable foundations within your designated geographical operating area.
  • Complete and submit an application for registration, attaching the necessary documents. Depending on the authority, this process may be completed online or on paper.
  • Be prepared for the regulatory body to conduct a thorough review of the submitted materials. Be prepared to provide additional documents or information upon request.
  • Upon successful completion of all checks and approval of the application, your organization will receive a certificate confirming its registration and right to operate.

Next steps after registering a charity in the UAE

Obtaining a registration certificate does not signify the conclusion of the charitable foundation establishment process in the Emirates. Organizations are required to:

  • Obtain appropriate licenses. Some activities may require additional licensing.
  • Open a bank account. For financial transactions of the fund, it is necessary to open an account in one of the UAE banks.
  • Establish an accounting and reporting system. Develop and implement an accounting and financial reporting system that complies with UAE requirements.
  • Comply with UAE laws. Regularly monitor changes in legislation affecting charities to ensure compliance.

The registration of a charitable foundation in the UAE is a complex yet pivotal process, endowing the foundation with legitimacy and the right to execute its philanthropic mission. Meticulous planning, attention to detail in documentation preparation, and strict adherence to regulatory requirements are paramount to the successful completion of this process.

Licensing of charitable organizations in the Emirates

Licensing charitable activities in the United Arab Emirates represents a paramount process ensuring the legality and efficacy of charitable organizations' operations. In accordance with UAE legislation, conducting charitable activities without the requisite license is categorically prohibited. This underscores the critical importance of strict adherence to all regulatory requirements for obtaining official authorization to operate.

Stages of obtaining a license for charitable organizations in the UAE

Collection and preparation of documentation

At the initial stage, it is essential to meticulously prepare and assemble the set of documents required to obtain a license. This package includes:

  • The charity's charter, which clearly sets out its mission, goals, governance structure and internal rules.
  • Official documents confirming the registration of the organization with the relevant government agencies.
Choosing of Regulatory Authority

Depending on the geographical location and the nature of the charitable organization's activities in the Emirates, the appropriate regulatory authority should be determined. Depending on the jurisdiction of registration, it is necessary to contact the relevant authority (specific authority of the emirate, free zone, etc.).

Applying for licensing

Furthermore, it is imperative to submit an official application for the acquisition of the license to the chosen regulatory body, accompanied by the entire prepared documentation package. The application must be completed accurately and comprehensively to mitigate any delays in the review process.

Passing the test

The regulatory body conducts a thorough examination of the provided documents to ensure their compliance with legislative and regulatory requirements. During this period, the submission of additional materials or clarifications may be required. In certain instances, the regulator may request a personal interview with representatives of the organization or additional assurances.

Obtaining a license

Upon successful completion of all verification stages and approval of the application, a charitable organization in the United Arab Emirates is granted a license to conduct its operations. The license serves as the official confirmation of the organization's legitimacy.

In addition to ensuring that nonprofit organization operations in the United Arab Emirates are lawful, following all prescribed procedures and obtaining licensing successfully also builds donor, partner, and public trust. A nonprofit organization's legitimacy and dedication to openness and responsibility are demonstrated by its licensure, which is crucial for its long-term viability and efficacy.

Opening and maintaining a bank account for a charitable organization in the UAE

The establishment of a bank account for a charitable organization in the UAE represents a pivotal measure ensuring financial transparency and streamlining fund management. This procedural endeavor encompasses multiple stages and necessitates meticulous preparation and submission of requisite documentation.

Bank selection

Examine the offers of various banks in the UAE to select the one that best meets the needs of your organization. Important factors for consideration include:

  • Specialized services for charitable organizations.
  • Account conditions, including service fees and minimum account balance.
  • Availability of banking services such as online banking, mobile application, credit cards and others.
  • Bank reputation and quality of customer service.

Preparation of documents

To open an account, you will need to compile a document package, typically including:

  • Articles of association. A legal document that defines the structure and goals of an organization.
  • Registration documents. Official papers confirming the registration of the organization with the relevant government authorities of the UAE.
  • Identification card of the representative. Passport or alternative identification document of the individual establishing the account on behalf of the charity in the Emirates.
  • Letter appointing an authorized person. A document establishing the authority of the representative to manage the account.

Submitting an application to the bank

With the requisite set of documents, a representative of the organization is to approach the selected bank to submit an application for the opening of an account. The application typically includes information about the organization, its legal address, and contact details, as well as particulars regarding the authorized representative.

The bank will conduct an analysis of the provided documents and undertake due diligence procedures to ensure compliance with AML requirements. This may entail scrutiny of registration documents, articles of association, and identification of the organization's representative. Throughout the verification process, the bank reserves the right to solicit additional information or clarifications as necessary.

Signing an agreement and opening an account

After the successful verification and approval of the account opening application, a representative of the organization signs the banking agreement. Subsequently, the account is opened, and the charitable organization in the UAE is provided with banking details for conducting financial transactions.

Additional services

Depending on the requirements of the charitable organization in the United Arab Emirates, the bank may offer a range of additional services such as internet banking access, issuance of credit cards, cash management services, and others. These services can significantly streamline financial management and enhance organizational efficiency.

Organizational structure and management of a charity in the UAE

The organizational structure and management of a charitable organization in the UAE require meticulous planning and a strategic approach. The aim of such management is to establish an efficient, flexible, and accountable framework capable of executing the organization's mission and achieving its objectives. Key aspects of the organizational structure include the formation of a management team, board of directors, as well as the recruitment of volunteers and engagement with the community.

Creation of a management team and board of directors

The management team plays a pivotal role in the day-to-day operations of the charitable organization in the Emirates, engaging in strategic planning, operational management, and external communications. An effective management team possesses a wide array of skills and competencies, including project management, financial control, marketing and PR, as well as specialized knowledge in the field of philanthropy and social work.

The board of directors bears strategic responsibility for directing the organization's activities, overseeing the fulfillment of its mission, and ensuring financial stability. The composition of the board typically includes individuals with diverse experiences and expertise, facilitating a multifaceted approach to organizational challenges. The board of directors regularly convenes meetings to discuss strategic issues, approve budgets and activity plans, as well as monitor performance results.

Volunteering and the role of the community

Volunteers serve as a crucial resource for many charitable organizations in the UAE, donating their time, talent, and expertise to propel initiatives forward.  Leveraging volunteers not only amplifies the organization's ability to achieve its objectives but also fortifies its ties to the community. Effective volunteer management entails recruitment strategies, skills-based training programs, task allocation aligned with competencies and interests, alongside continuous motivation and recognition of their contributions.

Engagement with the community plays a pivotal role in the operations of a charitable organization, facilitating the expansion of its influence and efficacy. The organization must actively involve community stakeholders in its activities, informing them of its projects and accomplishments, as well as engaging them in events and campaigns. This not only aids in the realization of specific projects but also in shaping a favorable public perception of the organization's work.

Funding for charities in the UAE

Funding for charitable organizations in the UAE may be sourced from various channels, encompassing private contributions, governmental subsidies, corporate donations, grants from international entities, and individual philanthropic gifts.

Private contributions

Many charitable organizations in the United Arab Emirates solicit funding from private individuals through various channels, such as online fundraising platforms, organizing charitable events and fundraising campaigns, as well as direct solicitations to potential donors.

Government subsidies

In certain instances, the government of the UAE may extend financial assistance to charitable organizations through grants or other forms of subsidies, particularly when these entities engage in projects aligning with the government's priorities in the realm of social development.

Corporate donations

Many prominent corporations in the UAE actively engage in philanthropic and socially beneficial initiatives through the provision of donations, sponsorship of events, or establishment of partnerships with charitable organizations. In order to attract corporate donations, charitable organizations may offer various forms of mutually beneficial cooperation, such as brand advertising for the contributing company or participation in corporate volunteer programs.

Grants from international organizations

Many international organizations, such as non-governmental organizations, funds, and foreign governmental agencies, offer grants to finance projects in the fields of development, healthcare, education, and other areas, which can be implemented by charitable organizations in the UAE.

Strategies for attracting financing may vary depending on the specific organization and its goals, but typically include the following steps:

  • Developing an effective communication strategy. Charitable organizations in the United Arab Emirates must clearly explain their mission, goals and results in order to attract the attention of potential donors.
  • Regular information activities. Organizations should regularly inform their donors and the public about their achievements, projects and needs to maintain interest and trust.
  • Diversity of funding sources. It is important to diversify funding sources to reduce dependence on one source and ensure the financial sustainability of the organization.

Management of finances of charitable foundations in the Emirates encompasses planning, accounting, and reporting.

  1. Planning. Effective financial planning involves setting a budget based on the organization's goals and priorities, and developing strategies for attracting and using resources.
  2. Accounting. Organizations should maintain detailed records of all financial transactions, including receipts, expenses and investments, to ensure transparency and accountability to donors and regulators.
  3. Reporting. Regular reporting of an organization's financial health and use of funds is a key element of financial management and maintaining trust with donors and the public.

Understanding these aspects of financing and management will assist charitable organizations in the UAE in efficiently implementing their programs and achieving their goals in the realm of social development and aid provision.

When it comes to helping with the process of starting a charity in the United Arab Emirates, IQ Decision is ready to offer support and direction. Our knowledgeable legal and advising staff will provide you with all the information you need to ensure that this process goes well. In compliance with UAE regulations and standards, we provide advice, help with document preparation, and coordination of all required procedures.