Federal Law No. (3) of 2021 Regulating Donations
Federal Law No. (3) of 2021
Regulates collection, receipt, handling and use of donations in the UAE, including licensing and permits, approved channels, donor-fund protection, records, supervision, advertising, foreign donations and enforcement.
Overview
What this legislation covers
Regulates collection, receipt, handling and use of donations in the UAE, including licensing and permits, approved channels, donor-fund protection, records, supervision, advertising, foreign donations and enforcement.
Who or what it applies to
- Licensed charitable and donation-collecting entities.
- Other legal persons seeking permission to collect donations.
- Donors and beneficiaries within the statutory framework.
- Competent federal and local authorities supervising donation activities.
Key points
Important points at a glance
Applies broadly to parties wishing to collect or make donations within the statutory scope, including relevant free-zone activity.
Prohibits natural persons from independently collecting donations in the circumstances covered by the law.
Entities that are not licensed donation entities generally require a permit and must use the legally approved collection framework.
Regulates permit applications, permitted collection means, electronic records and reporting.
Contains controls for receiving or collecting donations from outside the UAE.
Restricts misuse, trading or speculation with donated funds and other prohibited handling.
Regulates advertising and promotion of fundraising campaigns.
Provides supervision, suspension, administrative enforcement and criminal penalty mechanisms.
Cabinet Resolution No. (96) of 2022 is the executive regulation.
Practical explanation
Understanding the law
Purpose and scope
The Donations Law is intended to make fundraising traceable and supervised, protect donated money and ensure that campaigns use authorized channels.
Before collecting donations
An organization should first determine whether it is a licensed entity or requires a permit, identify the competent authority, obtain approvals and use the collection methods allowed by the executive regulation.
Records and reporting
Regulated entities should maintain the required electronic donation records and submit reports to the competent authority, especially for cross-border donations.
Advertising
Promoting or advertising a fundraising campaign should not be treated as separate from the compliance process; the law contains controls for fundraising publicity.
Practical example
A company that wants to run a public donation drive should not collect money directly from customers without first checking the permit route and partnering or collecting through the legally approved mechanism.
Related instrument
Cabinet Resolution No. (96) of 2022 supplies important executive detail and should be consulted with the statute.
Practical notes
- Do not launch a fundraising campaign or collect money until the required licence/permit and approved collection route have been checked.
- Cross-border donations are subject to additional reporting and approval controls.
- Advertising a donation campaign can itself require regulatory approval.
- Check Cabinet Resolution No. (96) of 2022 for detailed permit, collection, record and reporting procedures.
Legislation text
Text and provisions
Official-text notice. This package provides a structured English rendering based on the official UAE legislation source identified in the manifest. It is not represented as the legally controlling Arabic text. For interpretation and application, consult the original Arabic text and the latest consolidated official UAE legislation.
Verified legislative metadata
| Instrument | Federal Law No. (3) of 2021 |
|---|---|
| Issued date | 2021-04-11 |
| Effective date | 2022-11-01 |
| Status | Active / in force |
| Official Gazette | See official source |
| Official source | UAE Legislation |
Purpose and scope
The law regulates donations and fundraising in the UAE and is designed to protect donated funds, donors and beneficiaries while subjecting collection activities to licensing, permit and supervisory controls.
Who may collect donations
The statutory framework distinguishes licensed entities from other entities seeking to collect donations. Natural persons are prohibited from independently collecting donations in the circumstances covered by the law, while non-licensed legal persons generally require the prescribed permit and approved collection mechanism.
Permits and collection methods
The law regulates permit applications and decisions, the duration and number of permits, approved methods of collecting and making donations, and the electronic records that regulated entities must keep. Detailed procedures are contained in the executive regulation.
Donations from outside the UAE
The law imposes controls on collecting or receiving donations, gifts, bequests or assistance from outside the State and requires reports to the competent authority in accordance with the executive regulation.
Use and protection of donated funds
Donated funds and in-kind donations must be handled for their approved purposes and in accordance with the statutory restrictions. The law prohibits specified misuse and provides mechanisms for dealing with cases where the original beneficiary or purpose cannot be fulfilled.
Advertising, supervision and enforcement
The law regulates fundraising advertising and gives competent authorities supervisory and control powers, including suspension and enforcement measures where statutory requirements are breached. Administrative and criminal consequences are provided by the law and related decisions.
Executive regulation
Cabinet Resolution No. (96) of 2022 contains the executive regulation and should be read with the law for detailed collection methods, registers, permit procedures and reporting requirements.
Verification
Official source & references
Official legislation sourcehttps://uaelegislation.gov.ae/en/legislations/1500Open ↗This page is a research and educational resource. Legislation can be amended, repealed, supplemented by regulations or interpreted by courts and authorities. Obtain advice before relying on it for a live matter.