BusinessFeaturedKuwait News

Finance Ministry issues guidelines to accept, utilize donations

Ministry of Finance to enhance financial transparency and promote civil society engagement has issued a circular outlining rules and mechanisms for government agencies to accept and utilize donations effectively.

The circular emphasizes the importance of disclosing donations in the state’s general budget and ensuring their use aligns with intended purposes. This move aims to streamline procedures and promote accountability in the management of donations, gifts, and grants by government entities, reports Al-Qabas daily.

The following are the general rules contained in the circular:

  • Government agencies may receive donations, gifts, and the like from individuals, companies, institutions, banks, and others that contribute to achieving the goals for which they were established and are consistent with their legally stipulated powers.
  • The beneficiary entity must obtain the approval of the Ministry of Finance, after the initial approval of the competent minister or his authorized representative, to receive donations, gifts, and the like, by submitting an application that includes all supporting documents in accordance with the relevant laws, regulations, decisions, circulars, and the rules contained in this circular.
  • The donation should not affect the unity and sovereignty of the state, and the goal of the donation should be specific, legitimate, and not inconsistent with the public order, values, customs, and stability of Kuwaiti society.
  • The donation should not be conditional on any condition for the benefit of the donor or others, and that there are no direct or indirect interests or benefits for the donor or granting him preference, benefits, priority or benefit from the services provided by the beneficiary.
  • The donation does not include any financial or in-kind benefits for employees of the beneficiary entity.
  • Cash donations shall be made by certified check or by automatic payment and may not be accepted by any other means.
  • The type of donation, the ways to benefit from it, and the party responsible for implementation are determined by agreement between the donor and the beneficiary.
  • The donation shall be directed for the purpose for which it was allocated, and if the purpose is achieved by another means, the beneficiary may direct the donation for another purpose according to what it deems to be in the public interest after the approval of the donor or his representative or heirs and the Ministry of Finance as the case may be in accordance with the rules contained in this circular, and in the event of a surplus From the donation, the Ministry of Finance has the right to dispose of the surplus without referring to the donor or his heirs. The donor may not manage or operate the project to be donated.
  • Government agencies are prohibited from requesting any cash or in-kind donations or contributions to finance projects or for any other purpose from contractors, private companies, individuals, or others. This excludes public calls to urge citizens to provide donations provided by agencies in accordance with the powers assigned to them by law.
  • The donor or donor is given a letter of thanks and a certificate indicating his donation; donations, gifts, and the like must be disclosed in the budget and final accounts and the donor may not manage or operate the project to be donated.

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