Individuals barred from collecting money from the public
Published: 11:11 AM,Nov 03,2024 | EDITED : 07:11 PM,Nov 03,2024
For illustration purposes. Source: internet
Muscat: individuals have been prohibited from collecting money from the public or advertising the collection of money for any purpose, including for charitable purposes, according to a new decision from the Ministry of Social Development (MOSD) on Sunday.
The decision 336/2024 seeks to regulate the licenses to collect money from the public by private organizations, which however do not apply to committees, institutions, and funds established or formed by units of the state’s administrative apparatus and other public legal persons.
The decision states that it is prohibited to collect money from the public except after obtaining a license to do so from the ministry.
The license shall be granted within the limits of the objectives for which the organization was established, including charitable purposes, and it may not be granted for personal purposes.
The organization can have an agreement with any person to publish content related to collecting money from the public after obtaining its approval.
It is permissible to collect money from the public for parties, exhibitions, charity markets, sports, and cultural and entertainment events through applications and websites, purchase vouchers, and SMS messages via mobile phones, electronic payment devices, boxes, and clothing containers.
The collecting authority may convert in-kind funds into cash through a sale at a public auction, provided that the competent authority approves this, and that the competent authority supervises the sale process in this case.
The organization may deduct a percentage not exceeding 2% of the funds collected under the provisions of these regulations as administrative and operational expenses.
Penalties include suspension of the license until the violation is rectified, a fine between RO10 and RO500, and seizure of all funds collected in violation of the provisions of these regulations.
Charity events
While applying for a license to conduct parties, exhibitions, charity markets, sports, and cultural and entertainment events, organizations must their dates, their location, and the expected footfall.
Entrance ticket details of events must clearly state the serial number, the name of the organizing body, the location of the party, exhibition, charity market, sports, cultural, and entertainment event, its date, the ticket price, and the license number.
The organization should not contract with any person or entity to hold the party, exhibition, charity market, or sports, cultural, and entertainment event on its behalf. It may contract with ticket distributors, provided that the distribution commission does not exceed two percent of the value of tickets.
It should deposit the amounts obtained from the collection process in the approved bank account of the organization within two working days at most from the end date of the specified collection period, provided that the financial officer in the organization keeps the deposit receipts.
Collecting money through applications and websites:
They should provide the competent authority with a copy of the agreement concluded between the entity and the management of the application or website, if any.
They should provide the authority with the content to be published through the applications and websites, which should include the logo of the organization, the time specified for collecting the money, and the bank account approved by the organization to deposit the money.
They should not withdraw any cash amounts from the bank account during the collection period specified in the license except after obtaining the approval of the competent authority.
They should stop collecting money when the amount to be collected is completed and inform the public of that.
Collecting money through coupons (raffles):
It should determine the number of purchase coupons, the collection period, and the in-kind prizes that will be drawn.
It should mention the value of the purchase coupons and stamp them with the seal of both the Ministry and the organization.
They should deposit the amounts in the approved bank account to the organization within two working days at most, provided that the financial officer in the organization is responsible for keeping the deposit receipts.
They should have a record of purchase coupons that have not been sold and keep them until the presence of a representative of the ministry to review and destroy them within 7 days from the date of expiry of the license period.
Collecting money via SMS:
It should specify the period of the collection.
It should Specify the number of SMS messages to be sent, and present their content to the competent authority for approval before sending.
It should provide the competent authority with the data of the telecommunications service providers and what indicates their acceptance of the collection process, the agreed value, the mechanism for collecting the amounts from the service provider, and the period specified for transferring the amounts from the service provider’s bank account to the organization’s approved bank account.
Online Payments (kiosks):
The entity licensed to collect money through electronic payment devices shall be committed to the following:
The electronic payment shall be made to the organization's bank account,
The organization shall not receive cash amounts from the public.
The electronic payment devices shall be designed under the specifications determined by the competent authority,
Provided that the license number, its duration, and the name of the university entity are clearly stated on each device.
The organization in which the electronic payment devices are installed shall bear the responsibility for preserving them from damage, tampering, theft, or other secrets through the collection period.
The Ministry determines the number of electronic payment devices according to the activity of the organization and the purpose for which the money is collected.
The collecting body licensed to collect funds is prohibited from the following:
Entering into financial speculation with the funds collected.
Carrying out any act during the collection of funds that violates the laws and regulations in force in the Sultanate of Oman or that would disrupt public order or public morals or encourage Any factional or tribal blocs.
The collecting body shall bear all expenses incurred in the process of collecting money from the public, and for this purpose, it may contract with sponsors to cover the collection expenses.
The organization shall bear full responsibility before the Ministry and before others for all damages that may occur to others as a result of the fundraising process.
The organization shall create an electronic record in which all fundraising operations, the funds obtained from the collection process, and the mechanism for disposing of them are recorded.
The record shall be kept for ten years at least.
The decision 336/2024 seeks to regulate the licenses to collect money from the public by private organizations, which however do not apply to committees, institutions, and funds established or formed by units of the state’s administrative apparatus and other public legal persons.
The decision states that it is prohibited to collect money from the public except after obtaining a license to do so from the ministry.
The license shall be granted within the limits of the objectives for which the organization was established, including charitable purposes, and it may not be granted for personal purposes.
The organization can have an agreement with any person to publish content related to collecting money from the public after obtaining its approval.
It is permissible to collect money from the public for parties, exhibitions, charity markets, sports, and cultural and entertainment events through applications and websites, purchase vouchers, and SMS messages via mobile phones, electronic payment devices, boxes, and clothing containers.
The collecting authority may convert in-kind funds into cash through a sale at a public auction, provided that the competent authority approves this, and that the competent authority supervises the sale process in this case.
The organization may deduct a percentage not exceeding 2% of the funds collected under the provisions of these regulations as administrative and operational expenses.
Penalties include suspension of the license until the violation is rectified, a fine between RO10 and RO500, and seizure of all funds collected in violation of the provisions of these regulations.
Charity events
While applying for a license to conduct parties, exhibitions, charity markets, sports, and cultural and entertainment events, organizations must their dates, their location, and the expected footfall.
Entrance ticket details of events must clearly state the serial number, the name of the organizing body, the location of the party, exhibition, charity market, sports, cultural, and entertainment event, its date, the ticket price, and the license number.
The organization should not contract with any person or entity to hold the party, exhibition, charity market, or sports, cultural, and entertainment event on its behalf. It may contract with ticket distributors, provided that the distribution commission does not exceed two percent of the value of tickets.
It should deposit the amounts obtained from the collection process in the approved bank account of the organization within two working days at most from the end date of the specified collection period, provided that the financial officer in the organization keeps the deposit receipts.
Collecting money through applications and websites:
They should provide the competent authority with a copy of the agreement concluded between the entity and the management of the application or website, if any.
They should provide the authority with the content to be published through the applications and websites, which should include the logo of the organization, the time specified for collecting the money, and the bank account approved by the organization to deposit the money.
They should not withdraw any cash amounts from the bank account during the collection period specified in the license except after obtaining the approval of the competent authority.
They should stop collecting money when the amount to be collected is completed and inform the public of that.
Collecting money through coupons (raffles):
It should determine the number of purchase coupons, the collection period, and the in-kind prizes that will be drawn.
It should mention the value of the purchase coupons and stamp them with the seal of both the Ministry and the organization.
They should deposit the amounts in the approved bank account to the organization within two working days at most, provided that the financial officer in the organization is responsible for keeping the deposit receipts.
They should have a record of purchase coupons that have not been sold and keep them until the presence of a representative of the ministry to review and destroy them within 7 days from the date of expiry of the license period.
Collecting money via SMS:
It should specify the period of the collection.
It should Specify the number of SMS messages to be sent, and present their content to the competent authority for approval before sending.
It should provide the competent authority with the data of the telecommunications service providers and what indicates their acceptance of the collection process, the agreed value, the mechanism for collecting the amounts from the service provider, and the period specified for transferring the amounts from the service provider’s bank account to the organization’s approved bank account.
Online Payments (kiosks):
The entity licensed to collect money through electronic payment devices shall be committed to the following:
The electronic payment shall be made to the organization's bank account,
The organization shall not receive cash amounts from the public.
The electronic payment devices shall be designed under the specifications determined by the competent authority,
Provided that the license number, its duration, and the name of the university entity are clearly stated on each device.
The organization in which the electronic payment devices are installed shall bear the responsibility for preserving them from damage, tampering, theft, or other secrets through the collection period.
The Ministry determines the number of electronic payment devices according to the activity of the organization and the purpose for which the money is collected.
The collecting body licensed to collect funds is prohibited from the following:
Entering into financial speculation with the funds collected.
Carrying out any act during the collection of funds that violates the laws and regulations in force in the Sultanate of Oman or that would disrupt public order or public morals or encourage Any factional or tribal blocs.
The collecting body shall bear all expenses incurred in the process of collecting money from the public, and for this purpose, it may contract with sponsors to cover the collection expenses.
The organization shall bear full responsibility before the Ministry and before others for all damages that may occur to others as a result of the fundraising process.
The organization shall create an electronic record in which all fundraising operations, the funds obtained from the collection process, and the mechanism for disposing of them are recorded.
The record shall be kept for ten years at least.