Individuals who are caught earning profits out of donations will be imprisoned and fined up to AED 500,000 fine in the UAE.
A UAE law that regulates charity funds specifies a fine of between AED 200,000 and AED 500,000 for anyone who profits from donations and the same penalty applies if donated amounts are distributed among employees of associations.
A person can also be jailed and the penalty is doubled in case of a repeat offense.
RELATED STORY: KNOW THE LAW: E-begging attracts three-month jail, AED 10,000 fine in UAE
Similar fines are applicable to anyone whose fundraising harms public order, national security, or public morals and the court shall order the confiscation of all collected donations.
Her Excellency Hessa bint Essa Buhumaid, Minister of Community Development, explained the new law and how it protects residents’ donations stating that under federal Regulatory Law No 3 of 2021 ensures that donations reach eligible beneficiaries. She urged residents to verify the licensing and other details of entities to which they donate funds.
Charitable associations, federal and local authorities, and non-profit associations may raise funds only after being authorized by the Ministry of Community Development while licensed entities are not allowed to publish, broadcast or promote any materials or advertisements for fundraising without the approval of designated authorities.
