🇦🇪UAE

غرامات سوء استخدام أموال التبرعات (Misuse of Donation Funds Penalties)

2 verified sources

Definition

Federal Law 3/2021 criminalizes using donation proceeds for any purpose other than those specified in the fundraising permit. Manual fund accounting without segregation or approval logs creates exposure to both unintentional misallocation and enforcement penalties.

Key Findings

  • Financial Impact: AED 150,000–300,000 fine per misuse incident (doubled on recurrence: AED 300,000–600,000); imprisonment; potential asset seizure; organizational liability insurance costs: AED 30,000–50,000 annually
  • Frequency: Per funding misallocation detected; annual audit risk; competent authority spot-check discovery
  • Root Cause: Manual fund tracking without purpose segregation; lack of approval workflows for fund usage; ambiguous permit descriptions; staff confusion on eligible expenses

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Non-profit Organizations.

Affected Stakeholders

Finance Director, CFO, Program Manager, Compliance Officer, Accounting Staff

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

عقوبات تحويل التبرعات العينية بدون ترخيص (In-Kind Donation Conversion Violations)

AED 150,000–300,000 per violation (imprisonment + fine); AED 200,000–500,000 for recurrence or misuse of donation funds (Article 2, Federal Law 3/2021). Typical NPO exposure: AED 50,000–150,000 annually from untracked conversions.

غرامات تأخير تسليم التبرعات (Delayed Donation Delivery Penalties)

AED 200,000–500,000 in fines per violation (Article 2); operational loss: AED 30,000–50,000 per delayed campaign (manual staff hours, audit corrections, potential license suspension costs)

غرامات عدم الترخيص المسبق لحملات التبرع (Unlicensed Fundraising Campaign Penalties)

AED 200,000–500,000 fine per unlicensed campaign (Article 2, Federal Law 3/2021); imprisonment up to legal maximum; operational cost: AED 40,000–60,000 per retroactive permit application and audit remediation

غرامات عدم الالتزام بتقارير المراجعة المالية (Audit Report Non-Compliance Penalties)

Estimated penalty: AED 50,000–150,000 (based on Article 2 enforcement precedent for non-compliance); operational cost: AED 20,000–40,000 per re-audit or corrective submission

احتيال في طلبات المنح

AED 10,000-100,000 per incident in grant recovery or license fees

أخطاء في قرارات التمويل

Lost grants AED 100,000+ per rejection; 90-day process delays

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