Charity Laws in the UAE

Charitable giving is an important part of life in the UAE, with residents and businesses regularly supporting humanitarian causes, community initiatives, and people in need, especially during this time of conflict in the world. However, fundraising is strictly regulated to ensure that donations reach their intended beneficiaries and are not misused. Federal Law No. 3 of 2021 regulates the collection and distribution of donations across the country, including in free zones.

Individuals are free to donate to registered charities, but they are not permitted to organise or collect public donations independently. This means that residents cannot simply set up their own fundraising campaign, collect money from the public, or organise a charity collection without following the required procedures. Fundraising must be conducted through an authorised organisation, with the necessary permits obtained from the relevant authorities.

The same restrictions apply to online fundraising. Residents cannot create independent crowdfunding campaigns or use social media, messaging applications, or personal bank accounts to collect charitable donations without the required authorisation. Online campaigns must operate through approved fundraising channels. This applies even when the money is intended for a genuine charitable cause.

Businesses can organise charity events, donation drives, and fundraising promotions, provided they work with a licensed charity and obtain the necessary permits. Applications generally need to identify the purpose of the campaign, its beneficiaries, the people responsible, and the methods used to collect donations. In Abu Dhabi, fundraising permits are issued by the Department of Community Development.

Schools must also obtain the necessary permissions before collecting charitable donations. In Abu Dhabi, schools organising fundraising activities must apply to the relevant authorities and ensure that all money collected is used for its stated purpose. In Dubai, schools must provide an approval letter from the Islamic Affairs and Charitable Activities Department when applying for approval for activities involving charitable donations.

Donations are not limited to money. Clothes, food, furniture, and other goods may also be collected for charity, but organised collections must follow the relevant fundraising regulations. Donations received from abroad are subject to additional controls, and charities may need official approval before accepting them.

Violations of fundraising laws can result in significant penalties. Individuals or organisations that collect donations without authorisation, or use donated money for purposes other than those stated, may face imprisonment, fines ranging from AED 150,000 to AED 300,000, or both. More serious offences, including receiving donations from abroad without following the required procedures, can carry fines of up to AED 500,000.

Residents who wish to contribute to charitable causes are therefore encouraged to donate through licensed organisations, such as the Emirates Red Crescent or other officially approved charities, to ensure that their contributions are handled lawfully and reach their intended beneficiaries.