Increasing the number of projects with social returns will improve the Kingdom’s international position

Charitable organizations in the Kingdom are supervised by 29 government agencies specializing in their fields of activity. The role of these organizations has evolved beyond the traditional function of collecting funds from the well-off to assist those in need. Today, they provide training and capacity-building programs for their beneficiaries, enabling them to become self-reliant. They also establish humanitarian and commercial initiatives that help uplift their communities. Their activities span religious, educational, health, environmental, recreational, and other sectors.

Each organization is obligated to maintain a minimum governance rate of 80 percent, which drops to 70 percent when collecting donations through the Ehsan platform. This governance rate is a prerequisite for allowing donors to provide financial and in-kind support. Donations must be deposited into bank accounts registered in the organization’s name and made via bank transfer rather than cash.

Financial activities are monitored by the National Center for the Development of the Non-Profit Sector. Expenditures must be approved by three key employees: the executive director, the financial director, and the projects/volunteer director. These positions are salaried, with some personnel recruited from major entities such as Saudi Aramco. The notion of a single association manager independently disposing of funds without oversight is now outdated. Additionally, all organizations are required to establish websites to publicly display their reports and programs to ensure transparency.

The history of charitable work in Saudi Arabia spans almost half a century. At the end of 2024, there were 3,570 charitable organizations in Saudi Arabia, and their contribution to the Kingdom’s economy was estimated to be SR8 billion ($2.1 billion). According to recent figures, 350,000 male and female employees work in the sector full-time or part-time, alongside 834,000 volunteers. The goal is to reach 10,000 organizations.

At the end of 2024, there were 3,570 charitable organizations in Saudi Arabia, and their contribution to the Kingdom’s economy was estimated to be SR8 billion ($2.1 billion)

Saudi Arabia also aims to raise the nonprofit sector’s contribution to 5 percent of its gross domestic product by 2030; currently, the sector represents less than 1 percent. For this reason, efforts are underway to increase the proportion of development projects with social returns from 7 percent to 33 percent, thus improving Saudi Arabia’s position in the Social Capital Index from 26th to 10th place.

In comparison, the US has more than 1.8 million nonprofit organizations, and their revenues rose from $1 trillion in 2000 to $3 trillion in 2024. These organizations account for nearly 6 percent of the US economy.

Modern nonprofit management in the Kingdom aligns with global practices — 58 percent of American health institutions are nonprofit and publicly supported, as are 47 percent of private US universities, including Harvard and Yale, in addition to most universities in the UK and 90 percent of US opera houses.

The Kingdom has not interfered in charitable work; instead, it has regulated it, encouraging nonprofits to participate in government tenders through the Etimad platform and supporting the growth of their investments in endowments, real estate, and other sustainable revenue sources.

During Ramadan 2024, on the 27th night, the Ehsan platform entered the Guinness World Records list for the largest monetary donation in the world: SR5 billion ($1.3 billion). Public participation accounted for 80 percent of the total, while major corporations contributed the remaining 20 percent.

Also in 2024, the Kiswah Farah (Joyful Clothing) campaign set a world record as the largest in-kind donation campaign in history, collecting 56 tons of clothing.

In 2023, the Jood Housing campaign achieved the largest online charitable donation campaign in a single month.

These initiatives, funded entirely by residents of the Kingdom, highlight the enduring strength of the Saudi charitable sector and the trust it continues to enjoy.

However, these successes do not mean the sector is free of violations. Regulatory bodies have acknowledged the existence of breaches, particularly in financial matters related to how donations are collected and spent, unlicensed individuals collecting funds, or commercial entities engaging in charitable fundraising inconsistent with their business nature.

All reported violations have been publicly announced and referred to the relevant authorities, including the Presidency of State Security or the Public Prosecution Office, for legal action.

• Dr. Bader bin Saud is a columnist for Al-Riyadh newspaper, a media and knowledge management researcher, an expert and university professor in crowd management and strategic planning, and the former deputy commander of the special forces for Hajj and Umrah in Saudi Arabia. X: @BaderbinSaud