Regulations for naming new NGOs: Misleading names are prohibited

The Ministry of Human Resources and Social Development in Saudi Arabia has approved the issuance of a new regulatory guide outlining the criteria and principles for selecting names for charitable associations, foundations, and family funds. This step comes as part of the Kingdom's efforts to enhance governance in the non-profit sector and raise its level of transparency and credibility, in line with the objectives of Vision 2030, which aims to increase the sector's contribution to the gross domestic product.

The context of regulation and its importance to the non-profit sector

This guide marks a pivotal step in the history of regulating non-profit work in Saudi Arabia. Previously, the sector suffered from overlapping names or a lack of clarity regarding the actual activities of organizations. The new guide aims to eliminate this arbitrariness in naming and ensure that names accurately reflect an organization's identity and developmental goals. These regulations are of paramount importance both locally and regionally, as they enhance the trust of donors and beneficiaries and facilitate the oversight and monitoring processes undertaken by the National Center for Non-Profit Sector Development, thus preventing any misuse of names for illicit or misleading purposes.

Key guidelines for the new naming system

The guide outlines a set of strict criteria that must be considered when submitting applications for establishment or name changes, the most important of which are:

• Clarity and meaning: The name must clearly express the nature of the entity’s activity and the services it provides, to serve as a mirror to its mission and goals.
• Uniqueness and non-repetition: The name must be unique and not repeated to ensure that different entities are not confused.
• Prohibition of misleading names: The use of names that may mislead the public, resemble the names of government entities, or suggest a non-existent official affiliation is strictly prohibited.
• Religious and political restrictions: The name must not contain any insult to religion, or anything that violates public order and morals. It is also prohibited to use the logos or flags of countries or international organizations without obtaining official permission.

Guidelines for the use of personal and geographical names

The guide set out precise conditions for the use of personal, tribal, and regional names, to guarantee rights and prevent disputes:

• Names of persons: When naming an institution after a person, the name must be three parts, and the person must be alive, or obtain the consent of the legal heirs in the event of his death.
• Geographical and tribal scope: The use of names of regions, cities and tribes as an essential part of the name is prohibited except for the purpose of geographically specifying the scope served by the entity, in order to prevent the monopolization of public names by private entities.

Legal and supervisory reference

The guide affirms that the National Center for Non-Profit Sector Development is the sole entity responsible for overseeing the implementation of these provisions and has the right to review and amend the guide to ensure its continued effectiveness. This guide is legally based on the Law of Associations and Foundations issued by Royal Decree No. (M/8) dated 19/2/1437 AH, and the regulations of the National Center issued by Cabinet Resolution No. (618), in addition to its implementing regulations and amendments, thus granting it binding force for all entities operating in the sector.