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Monday, June 23, 2025
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New regulations for charities

Legal framework set for foundation operations

publish time

22/06/2025

publish time

22/06/2025

New regulations for charities

KUWAIT CITY, June 22: The official gazette “Kuwait Al- Youm” published Decision No. 122/2025 issued by the Minister of Social Affairs, Family and Childhood Affairs, Dr. Amthal Al-Huwailah, concerning the issuance of regulations for charitable foundations, reports Al-Seyassah daily.

The regulations include the following provisions: Chapter One - Definitions and General Provisions

Article 1:

  • Minister: Minister of Social Affairs
  • Ministry: Ministry of Social Affairs
  • Administration: Department of Charitable Societies and Foundations
  • Law: Law No. 24/1962 regarding clubs and public benefit associations, and its amendments
  • Applicant: Any natural or legal person who submits an application to establish a charitable foundation
  • Foundation: A charitable foundation registered in accordance with the provisions of Law No. 24/1962 and its amendments concerning clubs and public benefit associations

Article 2:
The founders and members of the Board of Directors of the foundation shall adhere to the provisions of Law No. 24/1962 and its amendments concerning clubs and public benefit associations, as well as its implementing decisions. They must also comply with the Labor Law No. 6/2010 regarding work in the private sector. The Model Bylaws for Charitable Endowments, issued under Ministerial Resolution No. 48/1999, shall serve as a guiding framework.

Article 3:
Charitable foundations subject to these regulations must comply with all regulatory directives and safety and security procedures issued by the ministry, in coordination with the relevant authorities.

Article 4:
The applicant is strictly prohibited from engaging in any charitable or social activity unless the foundation is officially declared under the relevant regulations and procedures. Also, the applicant may not enter into any contracts or conduct any transactions on behalf of the foundation before its formal declaration by the ministry. The foundation may not change its location, alter its specifications, or establish a branch without obtaining prior written approval from the ministry. The foundation is obligated not to solicit or invite donations from the public in any form without first securing the ministry’s approval. Chapter Two - Provisions and Procedures for Charity Publicity

Article 5:
The following conditions must be met for the official publicity and registration of a charitable foundation:

  • The number of founders must not be fewer than ten.
  • All founders must be at least 21 years old at the time of submitting the publicity application.
  • Each founder must be a Kuwaiti citizen of good conduct, with no prior conviction of a felony or a misdemeanor involving moral turpitude or dishonesty.
  • Candidates for membership on the charity’s Board of Directors must be at least 30 years old at the time of their selection.
  • Security clearance must be obtained, with no security objections to the foundation’s publicity.
  • All necessary approvals must be secured from the relevant official authorities for licensing the charity’s operation, including from Kuwait Municipality, Kuwait Fire Force, and the Real Estate Registration Department at the Ministry of Justice.
  • The founders or their authorized representatives must submit a bank certificate confirming a deposit of KD 10,000 in the name of the charity at a local bank.

Article 6:
The procedures for publicizing a charitable foundation shall include the following steps:

1. An application for the publicity of the charitable foundation shall be submitted by the founders or their authorized representatives. The application must include a formal statement expressing the founders’ intent to establish and publicize the foundation in accordance with the provisions of the law.

2. The following documents must be attached to the application:

  • Two copies of the foundation’s bylaws, prepared in accordance with the model bylaws for charitable foundations.
  • Minutes of the founders’ meeting, including the election of the foundation’s Board of Directors and an official letter authorizing one of the founders to represent them in all publicity-related procedures.
  • Copies of valid civil ID cards for all founders.

3. Upon completion of the application, the ministry shall coordinate with the Ministry of Interior to obtain security clearance for the founders.

4. The application shall then be submitted to the ministry’s Publicity Committee for initial review and approval.

5. The ministry shall contact the relevant government entities - Kuwait Municipality, Kuwait Fire Force, and the Real Estate Registration Department at the Ministry of Justice - to secure the necessary operational licenses and to authenticate the foundation’s bylaws.

6. The concerned department in the ministry shall prepare and submit a memorandum to the minister, detailing the charity’s registration request and the procedures undertaken, accompanied by a draft ministerial decision for its registration.

7. The registration decision and a summary of the foundation’s bylaws shall be published in the official gazette “Kuwait Al-Youm”.

Article 7:
Following publication in the official gazette, the charity shall acquire legal personality and shall be authorized to carry out activities in pursuit of its stated objectives.

Article 8:
The ministry reserves the right to reject the registration of a charity within one month from the date of submission of a complete registration application, provided that the reasons for rejection are clearly stated. The ministry also retains the right to amend the foundation’s bylaws. The applicant has the right to appeal the decision of rejection or the proposed amendments to the minister within one month from the date of receiving the notification.

Article 9:
After the charity is officially publicized, it may commence its operations at its approved headquarters, provided it has obtained all necessary approvals from the relevant authorities.

Article 10:
The charity must display an identification plate at its approved headquarters, clearly showing the organization’s name and the number of the ministerial decision by which it was publicized. Chapter Three - Management of Charitable Endowments

Article 11:
The endowment shall be managed by a Board of Directors composed of five to nine members, each of whom must be at least 30 years old and hold a university degree or a diploma of no less than two years following high school.

Article 12:
The Board of Directors shall manage the endowment under the powers and responsibilities outlined in the Model Bylaws for Charitable Endowments and the endowment’s own bylaws.

Article 13: The Board of Directors is required to submit an annual financial report, certified by the external auditor appointed by the endowment, along with an administrative report detailing the endowment’s activities and achievements, to the ministry within the deadlines specified in the bylaws.

Article 14: The Board of Directors shall establish regulations governing the endowment’s operations, with particular emphasis on financial and administrative regulations.

Article 15: The endowment shall open nominations for membership in the Board of Directors for a period of at least 15 days, beginning no less than one month before the end of the current board’s term. This announcement shall be posted on the bulletin board at the endowment’s headquarters, and registered letters with acknowledgment of receipt shall be sent to members. Article 16: The members of the endowment shall elect the Board of Directors by secret ballot, conducted under the supervision of the current Board of Directors.

Article 17: The ministry shall be provided with the list of names of the newly elected Board members, under the above procedures. Chapter Four - Supervision and Oversight Article 18: The ministry shall supervise associations registered under the provisions of the law through employees of the competent administration. These employees have the right to inspect the association at any time without prior notice. They may enter the association’s premises and review all records, data, and information related to the association’s activities.

Article 19: If it is proven that the association has violated any provisions of the law or the related decisions, employees of the competent administration shall have the authority to issue a citation against the association using the designated form. Chapter Five - Penalties

Article 20: In addition to the penalties stipulated by the law or any other applicable legislation, if the association violates the provisions of the law or the related decisions, the following measures shall apply:

  • A formal notification of the violation shall be served to the association.
  • If the violation is not rectified within one week of notification, the charity’s bank accounts will be suspended and will remain frozen until the violation is corrected.

Article 21: The ministry has the right to suspend the charity’s registration in the following cases:

■ The charity commits serious violations, persists in violating after the ministry’s notification, or repeatedly breaches the law.

■ The charity fails to submit its financial statements and administrative reports for two consecutive years.

■ The charity conceals any financial information or data requested by the ministry, manipulates data, or deliberately provides false information intended to mislead the ministry and obstruct its oversight duties.

Article 22: The Council of Ministers may, upon the recommendation of the Minister of Social Affairs, dissolve the charity in any of the following cases:

  • If its membership falls below the minimum number stipulated in Article 5 of this law.
  • If the charity becomes unable to meet its financial obligations.
  • If it violates the provisions of this law or the charity’s bylaws, or engages in activities beyond its stated objectives.
  • If it fails to carry out any effective activity to achieve its objectives
  • If dissolution is deemed necessary in the interest of public security or public welfare.

Article 23: The Minister of Social Affairs may, by decision, dissolve the charity’s Board of Directors and appoint an interim board or director for a specified renewable period. The appointed director shall assume the powers of the Board of Directors in the following cases:

1. Violation of the provisions of this law or the charity’s bylaws.

2. If the number of board members is insufficient to hold a valid meeting.

3. If it is necessary to protect the interests of the members or the social objectives of the charity. Article 24: In the event of the association’s dissolution, the minister shall issue a decision to form a committee to liquidate its assets, and specify the method of liquidation, the duration of the liquidation process, and the liquidators’ fees. The term of the committee may be renewed as necessary until the liquidation is complete.

Article 25: Upon completion of liquidation, the association’s remaining assets shall revert to the ministry, which will determine the entity to which these assets shall be allocated.

Article 26: Following a dissolution decision, the association’s Board of Directors is required to hand over all movable and immovable assets, as well as all documents and records, to the liquidation committee.