Arab News
Kuwait times, Mon, Aug 04, 2025 | Safar 10, 1447
New law makes it harder to mismanage charity organizations in Kuwait
Kuwait:
Kuwait has introduced new regulations to govern the country’s charitable
organizations — nonprofit organizations that serve as a backbone of local and
international aid work. The move is part of a broader push by the Ministry of
Social Affairs to tighten oversight and ensure transparency across the country’s
nonprofit sector.
The updated regulation, issued Sunday under
Ministerial Decision No 90, replaces a 2015 framework that had governed the
creation and operation of charitable associations for nearly a decade. It
introduces streamlined procedures for registration, stricter rules on board
eligibility, and more robust mechanisms for oversight.
But with a separate law also introduced in June
this year for charitable foundations — known locally as mabarat — some are
wondering: What’s the difference, and why now?
Associations vs foundations
The regulation published in Sunday’s Kuwait Al-Youm
applies specifically to charitable organizations — these are typically
membership-based organizations governed by a general assembly. Members elect the
board, vote on budgets and reports, and participate in decision-making.
In contrast, charitable foundations, governed by
the June 2025 regulation, are non-membership-based entities often created
through endowments or donations. They are managed by a board of directors
appointed by founders.
So, What’s new in Sunday’s regulations? The new
rules introduce a more detailed and centralized regulatory structure than the
one introduced in 2015. Here are the biggest changes:
Fewer founders
In 2015, starting a charitable association
required at least 50 Kuwaiti founders. The new regulation lowers that to just
10. But the bar for eligibility has been raised: board members must now be at
least 30 years old and hold a university degree. Founders must have clean legal
records and formally commit not to request financial support from the
government.
The 2025 rules strengthen the Ministry of Social
Affairs’ role in monitoring organizations at every stage — from registration to
elections and fundraising.
Organizations are now required to: Notify the
ministry before any public fundraising activity; seek ministry approval to
relocate, expand, or even admit new members; and provide full member lists and
financial reports upon request. Perhaps most notably, the ministry must be
physically present at general assemblies for decisions to be valid. If it
withdraws from a meeting, the assembly is automatically invalidated.
Clearer penalties
The application process to start a charity
organization is more structured under the new rules. The ministry must issue a
decision on registration within one month of receiving a complete application. A
dedicated register must now log all applications — accepted or rejected — along
with reasons for refusal. Rejected applications can be appealed within a month.
The new framework lays out a clear escalation process for violations:
Associations get one written warning. If they fail to correct the issue within
one week, their bank accounts are frozen. Repeated violations or financial
misreporting can lead to suspension or even dissolution — with the cabinet’s
approval. In contrast, the 2015 regulation used a longer enforcement ladder,
with two warnings spaced out over a month or more, and didn’t clearly spell out
consequences for repeated non-compliance.
Why Now?
The updated regulation comes amid heightened
scrutiny of charitable activity in Kuwait, especially around fundraising
transparency and potential misuse of funds. In early 2025, the ministry
temporarily suspended all charitable fundraising in response to unauthorized
donation drives on unofficial platforms but has since lifted the suspension.
Kuwait is now in the final stages of approving a
comprehensive law to regulate charitable work and strengthen oversight over the
sector. A key feature of the law is the creation of a governmental ‘center’,
dedicated to humanitarian work, serving as a unified authority overseeing all
aspects of charitable activities. The new law is currently under legal review
and is expected to be finalized in the coming weeks.