United Arab Emirates Expert: Anonymous With contributions from staff at the Indiana University Lilly Family School of Philanthropy
QUICK FACTS
Legal forms of philanthropic organizations included in the law: Public-welfare Associations (Institutions of Public Benefit), Charitable Societies, Nonprofit Organizations, and Nonprofit Incorporated Organizations
Five main social issues addressed by these organizations: Higher Education, Basic Needs, International Causes, Food, Religion, Environment
The lines are very blurred here. Only few private foundations address these issues; there are very few charities because of the difficulties of registration.
Average time established by law to register a philanthropic organization: 31-60 days
Average cost for registering a philanthropic organization: US $0
Government levels primarily regulating the incorporation of philanthropic organizations: Federal, State (Emirates)
Philanthropic organizations need to register at federal or state level according to their levels of operation. POs operating at the federal level register with the Ministry of Social Affairs, while POs operating in the Emirates of Dubai needs approval from local authorities such as the Islamic Affairs and Charitable Activities Department. Other authorities in Dubai include the International Humanitarian City (for organizations operating in the IHCs).
Philanthropic Environment Scores:
Ease of Tax Cross-Border Political Socio-Cultural OVERALL Year Operating Incentives Flows Environment Environment SCORE 2018 2.8 4.3 3.5 3.0 4.0 3.52
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I. Formation/Registration, Operations, Dissolution of a Philanthropic Organization (PO)
The three questions in this section pertain to the laws and regulations governing philanthropic organizations (POs). The scoring questions for this category cover three aspects of regulations: (A) formation and registration, (B) operations, and (C) dissolution.
Question 1: To what extent can individuals form and incorporate the organizations defined?
Score: 3.0
UAE is a federal state. Emirates (states), especially Dubai and Sharjah, have separate laws. Article 33 of the Constitution of the UAE guarantees the freedom of assembly and association; however, philanthropic organizations face many burdensome restrictions on the right of association (Freedom House, 2016). In October 2016, the UAE government passed the Federal Law Decree No 8 of 2016 stating, “that anyone found guilty of establishing an organization aimed at 'overthrowing the government' or 'fighting against constitutional principles' will face the death penalty or life imprisonment. Organizations that endanger state security are also outlawed” (CIVICUS, 2016).
Article 2 of the Federal Law No 2 of 2008 Concerning Public Welfare Associations and Organizations establishes that Public Welfare Associations and Organizations will have social, religious, cultural, scientific, educational, professional, feminist, creative or artistic purpose. They will provide humanitarian services; achieve any benevolent aim; or achieve solidarity whether by financial, material or technical assistance; and seek only public welfare in all its activities without attaining material benefits (Article 2). To establish a public association, there shall be at least 20 founders. Founders must be least 18 years old, UAE citizens, demonstrate good conduct and name, and have not been previously sentenced to custodial penalty in a felony or misdemeanor that infringes honor or integrity (Article 3). The law clearly states the required documents for registration, including a copy of the organization’s articles of association, minutes of the founder’s meeting signed by the attendees, and the decision of the ad hoc committee authorizing one of its members to submit the registration papers (Article 6).
The Ministry of Social Affairs must decide the approval or rejection of applications for registration within 60 days from date of submission (Article 7). If rejected, an ad hoc committee established by the funders of the public association may raise a complaint within 180 days from the date of receiving notice, and the final decision shall be delivered within another 180 days from the date of the submission (Article 8). The 60 day-deadline established in the law rarely applies in reality. Registration is entirely up to the government and there is no guarantee that the license to operate will be obtained, even in cases of subsidiaries of big international NGOs.
Public associations and institutions of public benefit and social solidarity funds must apply to the Ministry of Community Development to prove their legal personality so that their founders can contract and make transactions in their name. The Ministry considers the application and refers to the Cabinet, which makes the final decision on registration. Currently there are 166 associations registered (bayanat.ae, 2017).
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In Dubai, applications for registration can be submitted to one of two entities: the Islamic Affairs and Charitable Activities Department, and the International Humanitarian City (IHC). Each one of these has its own range of authority.
IHC is a nonprofit, independent, humanitarian free zone located in Dubai, where a community of members comprised of UN agencies, Nonprofit Organizations, Intergovernmental Organizations and Commercial Companies operate to bring humanitarian help to the world. However, the license to operate in the IHC is hard to obtain and according to the International Humanitarian City General Rules and Regulations, Clause 4.2, to obtain a license organizations must comply with one of the following requirements:
be registered with the Dubai Economic Department, or equivalent authority in any other Emirate;
be registered with the Authority in accordance with the Authority’s Registration Regulations; or
be registered and incorporated in a jurisdiction outside the UAE (if the Establishment is a branch of a foreign entity).
In cases of organizations like the United Nations High Commissioner for Refugees (UNHCR), they operate within the International Humanitarian City regulations and register with the IHC authority. IHC Authority issues licenses only to organizations operating within the free-zone. Any activity undertaken outside of the free-zone must be in accordance with the laws of the UAE and Dubai (International Humanitarian City General Rules and Regulations, Clause 7.2.1).
The registration of charities in the Islamic Affairs and Charitable Activities Department (IACAD) is mainly regulated by Law No. 2 of 2011 (Article 8) and the Dubai Executive Resolution No 26 of 2013 (Article 3). Charity organizations carry out religious or charitable activities in the Emirate and its activities are authorized and supervised by the IACAD. According to the Executive Resolution (Article 5), founders must be a national of the State; enjoy legal capacity; have solvency and financial capability for spending on the activities of the charity; be of good conduct and reputation; and never been dismissed or stopped for activities in any charity. The decision of approval takes 60 days, and if the decision is not issued within this period, the application must be deemed to have been dismissed. If approved, the organization can acquire legal personality and be recorded in the official register with the department (Article 6). Licenses must be renewed annually 30 days prior to expiration (Article 7).
Question 2: To what extent are POs free to operate without excessive government interference?
Score: 3.0
Public Welfare Associations and Organizations registered with the Ministry of Social Affairs can operate only within the limits of the purposes for which they were approved (Federal Law No 2, Article 16), but are permitted to establish branches within the country. To operate, these
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organizations must have a board to manage affairs, provide the necessary means to carry out activities and achieve organizational purposes (Federal Law No 2, Article 23).
Several of the articles established in the law can be considered barriers to the free operation of Public Welfare Associations and Organizations:
The organization may be represented in overseas participations such as conferences, forums, meetings or interviews only upon approval of the Ministry (Article 17);
Membership in more than one association that aim at achieving the same specific activity is not authorized (Article 25); and
The Ministry delegates a representative to the meeting of the general assembly (Article 27).
Government and state-funded philanthropic foundations in the UAE can freely use the media and focus on effective communication with their stakeholders using social media to promote their activities (Sheikh Saud Bin Saqr Al Qasimi Foundation, 2016). However, according to the report published by Freedom House (2016) “social media platforms (…) are heavily monitored by the government.” Therefore, open discussion of sensitive topics is limited. Additionally, the Federal Decree-Law No 5 of 2012 on Combating Cybercrime states that whoever establishes, administers or runs a website or publishes online to promote or praise any programs or ideas, which would prompt riot, hatred, racism, sectarianism, or damage the national unity, social peace, or public morals can be put in prison and fined.
Fundraising in the UAE is highly regulated. At a federal level, the permission to fundraise is given by the Ministry of Social Affairs. Federal Resolution No 8 of 1974 establishes as conditions for raising money that the association is registered and is not granted over two licenses during the financial year (provided that the term of each license is not in excess of three months). No new licenses are granted to any association without approval by the Ministry to terminate the former licenses granted to such association (Article 2). The Ministry may reject to grant the license without stating the reasons within 15 days from the date of application (Article 3).
Specifically in Dubai, fundraising is regulated by Decree No 9 of 2015, applicable to all donations collected in whatever way and for whatever purpose in the Emirate, including the Special Development Zones and free zones, including Dubai International Financial Centre (Article 2). Within 15 days from the submission date of the application for authorizing a fundraiser, the Department of Islamic Affairs and Charitable Activities (IACAD) must make a decision. The application shall be deemed rejected if the decision is not made during that period of time. However, there are no clear provisions on reasons for rejection or approval of an application.
In order to obtain a fundraising license, organizations must be registered. The IACAD has listed in its website only 19 charitable associations currently registered in Dubai (not including nonprofits registered in the DIFC or the IHC). According to Decree No 9, running a fundraising campaign without license can be penalized with up to AED 100,000 (US $27,226), and even result in imprisonment. Fundraising advertising via any communication means or media channels, audio, visual, print, or otherwise without approval is prohibited (Article 3). Even individuals who use their Facebook pages to ask for donations for campaigns or charities not registered in the UAE can be
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imprisoned. Cases like that of a UAE resident holding British and Australian nationalities, who was arrested in Dubai for promoting a non-UAE charity caught press attention in 2016. That implies that any individual or organization that wants to raise funds on their own but does have not authorization, must get the support of a licensed organization. Licensed organizations would still need the approval of IACAD to become a third party to collect donations. These rules do not apply to donations collected through fundraisings launched by initiatives from His Highness the President of the State, his Vice- President, members of the Federal Supreme Council of the Federation, their crown princes and their deputies; and donations collected by government agencies, subject to pre-coordination with IACAD.
Question 3: To what extent is there government discretion in shutting down POs?
Score: 2.5
Federal Law No 2, establishes that the general assembly can decide upon the voluntarily liquidation of Public Welfare Associations and Organizations, provided that the Ministry of Social Affairs is notified of the place of this meeting at least 15 days in advance (Article 48).
A committee formed by a minister’s decree can proceed to involuntary dissolution when (Article 47):
the general assembly is not convoked within a period of no more than three months from the date of registering the association;
its members are less than 20;
established that its works are not seriously achieving rightly the objectives for which it was founded, or is unable to achieve these objectives;
it disposes of its money for purposes other than those specified;
it is unable to meet its financial obligations;
it refuses to submit to inspection or provides incorrect data with the intention of misleading;
it commits a gross infringement to its Articles of Association or the provisions of the Federal Law; or
its general assembly has not convened for two successive years.
The Dubai Executive Resolution No 26 of 2013 (Article 15) establishes similar causes for the dissolution of charities in Dubai, including lack of compliance with the Department requests (incorrect data or documents, delays in replay of correspondence from the Department, and other requirements).
In practice, since 2011, “numerous organizations have been dissolved or banned and other have seen their executive boards replaced with government appointees, for example the Jurists’ Association and the Teachers’ Association” (BTI 2016, p. 8).
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II. Domestic Tax and Fiscal Issues
The two questions in this section pertain to laws and regulations governing the fiscal constraints of giving and receiving donations domestically.
Question 4: To what extent is the tax system favorable to making charitable donations?
Score: 3.5
There are no taxes levied by the Federal Government on income or wealth of companies and individuals, therefore tax deductions for charitable purposes are not applicable.
Corporate income tax laws are determined by each Emirate and is generally not levied to most companies. Sponsorship agreements, private charitable donations and corporate donations are not prohibited under the fundraising laws; however, individuals and corporations can only donate to registered charitable organizations (Government.ae, 2017). Nonetheless, government expects that the corporate sector engage in Corporate Social Responsibility by annually allocating a percentage established by the Ministry of Economy, and declaring their audited CSR accounts to the ministry upon license renewal at the Department of Economic Development. With that, the government seeks to encourage all companies to play a role in charitable and humanitarian work (Gulf News, 2017).
Question 5: To what extent is the tax system favorable to POs in receiving charitable donations?
Score: 5.0
There is not special tax treatment for charitable organizations. However, in 2003, the Federal government established the Zakat Fund associated with the Minister of Justice, Islamic Affairs and Endowments and with the head office in Abu Dhabi City with branches in every state. The Zakat Fund money is given by Muslims, charitable associations, or any other entity to be disbursed in the manners specified by Shari'a law in order to achieve social development in the UAE. In Dubai, Law No 2 establishes that the IACAD is the entity in charge of enhancing public awareness of the Zakat and its role in life, calling upon Muslims to perform such duty, accepting Zakat, in cash and in-kind, and disbursing it in the legally prescribed channels. All transactions and Fund's claims are exempted from taxes and fees of different types.
Association and charities’ financial resources can consist of donations, gifts, bequests, grants and others (Article 36 of Federal Law No 2, and Article 23 of the Dubai Executive Resolution no. 26). However, the federal and state law prohibit obtaining any gifts, benefits, aid, bequests, donations or grants from inside or outside the State or the UAE except after securing the prior written approval from the corresponding authority (Ministry of Social Affairs or IACAD.
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III. Cross-Border Philanthropic Flows
The two questions in this section concern laws and regulations governing the fiscal constraints of giving and receiving cross-border donations. The scoring for these questions pertains to the donor and receiving entities.
Question 6: To what extent is the legal regulatory environment favorable to sending cross- border donations?
Score: 4.0
There are no regulations regarding sending cross-border donations. There are no export custom duties; therefore, goods leaving country to an overseas destination do not incur customs duty.
The UAE has been for several years a top aid donor and championed humanitarian efforts providing financial and infrastructural support to other countries in the region. In January 2015, the Development Assistance Committee of the Organization for Economic Cooperation and Development, announced the United Arab Emirates the world’s top humanitarian donor of the year 2013. The UAE exceeded the United Nations’ target of 0.7 percent official development assistance in proportion to its GNI ratio by donating 1.34 percent of its GNI for official development assistance in 2013 and beating Norway, the second-largest donor with a 1.07 percent ratio (Salem, 2015). In 2016, the UAE spent AED 15.23 billion (US $4.15 billion) worth of development assistance (Gulf News, 2017). As noticed, great amounts of money are going out from the country and there has been concern that this money is being used to finance terrorism.
The Federal Law No. 9 of 2014 amending certain provisions of Federal Law No. 4 of 2002 concerning combating money laundering crimes expands the role of the UAE Central Bank in overseeing and monitoring the operations of financial institutions and regulates administrative penalties to these institutions for violating the law. Punishments are also harsher than the former law of 2002. A person can be imprisoned for up to ten years and/or pay a fine up to AED 500,000 (US $136,132), and an establishment may be fined with up to AED 1,000,000 (US $272,264). The law also punishes failure to report suspicious transactions, bribery, and violation of required airport declarations. In this environment, financial institutions have become more vigilant toward services provided to authorized charities and the type and quality of regulations and limitations to which the charity is subject. There is an extreme scrutiny to giving and receiving money through charitable donations. Cross-border donations are delayed and checked by both the bank and the government. Several charities registered abroad are designated as terror-funders in the UAE (i.e. Interpal and Islamic Relief, both Muslim charities in Britain, and Islamic Association in Italy), but the UAE have in the past donated to charities with alleged ties to terrorist organizations in the Middle East (Muslim Brotherhood, Hamas and other terrorist organizations).
All government policies and practices lead to controlling the flow of money, affecting the licensing, set-up, operation, and the collection of donations for charity purposes. Philanthropic funding is strongly linked to government, which increases government control on where aid goes and how it is used. There is a need and a want to control where the money goes in the region and how it is used. Motivations seem to not only be related to combating terrorism, but also as a means to use of philanthropic aid to gain political influence.
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Question 7: To what extent is the legal regulatory environment favorable to receiving cross- border donations?
Score: 3.0
The Federal Law No 2 concerning Public Welfare Associations and Organizations restricts members from participating in events outside of the country (Article 18) and from joining or subscribing in any association or entity outside the country (Article 17) without the prior authorization of the Ministry of Social Affairs. Associations are also restricted from accepting any donations, bequests or grants, or collecting or giving any donations from or to any persons or entities outside the state without a prior license from the Ministry (Article 43). In order to receive such authorization, charities must be registered; therefore, charities not licensed cannot receive any kind of outside donation. Government-supported/related organizations receive better treatment, while stand-alone charities can have a more difficult time in receiving such authorization. It can also depend on the origin of the donation, and who will be the beneficiaries, as the government tightly controls both.
While internal regulations and practices for philanthropic organizations hinder philanthropic activities, tax policies regulating cross-border transactions are more flexible.
According to Article 53 of Federal Law No 2, Public Welfare Associations and Organizations are exempted from the following financial obligations:
taxes and customs duties in relation to tools and imported appliances on its account necessary to practice its activity;
the taxes and fees related to the different activities it carries out; and
the consumption fees of water, electricity and natural gas produced by governmental bodies.
Import duties in UAE are very low (5 percent for most of the goods’ cost, insurance and freight value). For goods imported for use within a specific Free Zone, there are no import duties. There is currently no VAT. In January 2018, a VAT will be implemented in the UAE at a rate of 5 percent. Food items, health, education, petroleum products, social services and bicycles will be VAT exempt.
As a member of the World Trade Organization and the World Customs Organization, the UAE participates in multiple world trade agreements that grant duty free imports into the country to many nations. While these circumstances (low customs duties and very low demanding tax framework) incentivize cross-border transactions, there have also been efforts to be more effective in combating financial crimes and associated terrorism.
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IV. Political and Governance Environment
The three indicator questions in the next two sections concern the political and governance context, socio-cultural characteristics, and economic conditions that influence the environment for philanthropy.
Question 8: To what extent is the political and governance environment favorable for philanthropy?
Score: 3.0
In general, governmental structures aim to support registered charitable organizations and volunteering, and promotes philanthropy on the governmental website. However, all organizations must register with the Ministry of Social Affairs and in the last years, several legislations such as the Decree No 9 of 2015 Regulating Fundraising in the Emirate of Dubai that suppressed philanthropic activities have been enacted. The recent Law No 12 of 2017 Regulating Civil Societies in the Emirate of Dubai states that no person or organization is allowed to organize activities in the Emirate of Dubai without a license issued by the Community Development Authority (Gulf News, 2017).
However, the number of registered philanthropic organizations has increased and the “ruling families have demonstrated a strong desire to help both Emiratis and expatriates through the establishment of (…) foundations” (Sheikh Saud Bin Saqr Al Qasimi Foundation, 2016, p. 9.). UAE government has begun to favor philanthropic organizations. State (emirate) governments like Dubai and Sharjah allow POs to undertake many charity works. Existing philanthropic organizations – often with strong relations with the government or the royal families – are highly supported by the government. On one hand, there is a push from the government to control how funding is used, where it comes from and where it goes to, in order to ensure that the money goes to specific social causes. On the other, there is government pressure on the private sector, corporations and individuals to give to these approved nonprofits and government-linked organizations as opposed to independent philanthropic organizations. In a certain way, this encourages the alignment of the sector with government objectives to support social causes.
Question 9: To what extent are public policies and practices favorable for philanthropy?
Score: 3.0
Although the federal government does not promote the realization of philanthropic traditions through institutionalized philanthropic practices, the UAE, being a federal state with varied law making states and emirates, has the most liberal legal environment to philanthropic organizations in the Region. However, the control exercised by government on the registration and operation of philanthropic organizations becomes an impediment for the development of the sector. Several activities that could help to expand and engage people in philanthropic giving, such as organizing events in which persons from outside the state may participate and raising funds, require approval or license issued from the authorities (Law No 2, Article 18, Decree No 9 of 2015).
According to the UAE government’s website, people can donate money in various ways but donors need to be sure that they donate to registered philanthropic organizations. Paying zakat is also highly
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supported but again, only registered and qualified POs can accept and allocate the zakat to deliver projects and activities. Furthermore, individual fundraisers are also required to obtain an approval from the authorities and they need to work together with a registered PO (Government.ae, 2017).
V. Socio-Cultural Environment
Question 10: To what extent are socio-cultural values and practices favorable for philanthropy?
Score: 4.0
UAE is an Islamic country and giving is a pillar of the Muslim faith, and part of shared heritage. It is tradition for people not to speak openly about their giving (how and when you give), but it is a very generous region. Culturally people give (on the street, government-linked organizations, mosques), but there is a suspicion and general distrust towards international NGOs.
The culture of giving in UAE has a longstanding tradition rooted in tribal and religious practices. Islam and its charitable tools, such as zakat have been part of the Emirati culture for centuries (Sheikh Saud Bin Saqr Al Qasimi Foundation, 2016, p. 2). According to the ICNL report (2107, p. 2) the state and the ruling families of the emirates institutionalized these traditions. While the government or members of royal families founded many of the philanthropic organizations established in the UAE, the government aims to support the philanthropic culture of the country by promoting voluntarism and charitable giving. Both individual and corporate giving are relevant in the country and “UAE is known for its philanthropic activities and helping the less fortunate worldwide” (Emirates News, 2017). In fact, the annual Coutts Million Dollar Donors reports that the UAE led the region’s donations, in 2012, pledging US $232 million or 32 percent of the GCC’s total. “About half of these were given to domestic charities to support housing and education, with the remaining 50 percent given to overseas causes, including vaccination drives” (Philanthropy Age, 2013).
Year 2017 has been declared the Year of Giving. This is the year when giving is expected to be inherent to the actions of nationals, government, and corporations, bringing philanthropy to the center. It is meant to kick-start to everyone to think about philanthropy and put it on the year’s agenda (both for individuals, corporations). It is an honor for some people to engage in some way. UN statistics show that in the UAE we have one of the lowest rates of civil society and engagement among young society so part of the government’s goal is to engage youth. With this event, philanthropy has been brought into the general national conversation and the national agenda, even though there is also an intention to increase donations to government organizations.
VI. Future of Philanthropy
These questions are used to provide a general picture of the future of philanthropy in this country as well as recommendations to improve the philanthropic environment.
Current state of the philanthropic sector
The current state of the philanthropic sector may look ambivalent. While the government intends to promote the sector, several regulations (Decree No 9 of 2015 Regulating Fundraising in the Emirate
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of Dubai, Federal Law Decree No 7 of 2016 amending the Criminal Law of UAE) were enacted recently that further increase governmental control on the operation of philanthropic organizations. The number of state-funded philanthropic organizations has grown in the last 15 years and, although notably booming, the sector is still in early stages and lacks specialized human capital, and a clear strategy to create a professional career path for building capacities in the sector.
The philanthropic sector is progressing and moving very positively in the right direction across areas. There is tight control of government but strategic philanthropy is also emerging (Al Ghurair Foundation for Education helps young arbs to get into higher education). Larger family foundations are actually doing good work and growing. Many small organizations and some of the NGOs and oversea NGOs, however, seem to be in state of stagnation mainly because of the restrictions to raise funds.
There is also a growing interest of younger generations and wealthy donors in impact investment and strategic giving (instead of giving with no expectations of receiving). However, very few people expect impact of their own giving based on the poll conducted in the Arabs of the Gulf – although there is an expectation that this is going to change in the next few years.
In October 2015, Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of the United Arab Emirates, and ruler of the Emirate of Dubai formalized the various government- linked entities/charities under one umbrella (Mohammed Bin Rashid Al Maktoum Global Initiatives). Strategic philanthropy is emerging with the announcement of the formation of an endowment center under this umbrella. It is important, because generally Islamic endowments are run by old-fashioned techniques; no modern financial applications are used, so the money is not used effectively. The government plans to run the endowment very effectively, under their advice and providing management facilities if needed. It creates a two-way strategy where the government knows how and where the money is used while creating a more efficient management of philanthropic giving. The initiative focuses on efficiency and big philanthropy (philanthropy of the Ruler) and the causes that will be supported (mainly Dubai’s causes). Additionally, companies that work closely with the Mohammed Bin Rashid Al Maktoum Global Initiatives get a shield, a recognition that can work as a reference for contracts.
A definite, positive shift is that people have started to talk about and understand philanthropy, and they do it publicly. Previously there was a reluctance to speak about philanthropy and talk about the impact of philanthropy – it was inappropriate to talk about your giving (“the right hand shouldn’t know what the left hand is doing”); but because of that, people did not collaborate and nobody knew what others were doing. The Year of Giving brings philanthropy into the national conversation, making it something you should be proud of to speak off and show that you are active. This is a positive change.
Three major recent events affecting the philanthropic landscape between January 2014 and December 2016
In December 2016, United Arab Emirates President His Highness Sheikh Khalifa bin Zayed Al Nahyan declared 2017 as The Year of Giving. Year of Giving is an initiative to institutionalize humanitarianism in the public and private sectors based around three main pillars: Corporate Social Responsibility, Volunteering and Serving the nation. All of the
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initiatives and programs launched throughout the year will reflect the three pillars of giving, and engage citizens in an effort to entrench the values of philanthropy and altruism in all communities;
Decree 9 of 2015: Regulating Fundraising in Dubai Emirate was enacted, which increased fundraising restrictions for philanthropic organizations; and
From 2014, the highest number of million-dollar donations in the countries of the Gulf Cooperation Council came from the UAE (Coutts, 2016).
Future development trends in the philanthropic landscape
The idea of impact investment has gained ground among young people. Young generations are highly engaged in the family’s philanthropy and they are very active. They could come up and take on the family businesses, contributing to lowering the boundaries between businesses and philanthropy.
There is potential for real impact through the consolidation of zakat (purification of the investor’s returns from income whose source is questionable from a sharia point of view through donations to charity). It might redesign Islamic finance and the ways Islamic giving is used to focus on modernizations and giving a more strategic use to the money raised from Islamic communities.
Three key recommendations to improve the environment for philanthropy
Better reporting and more transparency (where the money goes);
Review of fundraising regulations;
Review of licensing and recognition of a broader structures (such as social enterprise); rethink licensing so POs can “be regulated but thrive”; and
Encourage a platform of philanthropic collaborations between organizations and between the public and private sectors – understanding what other organizations are doing.
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