Study of New Conditions for Government Entities and Companies to Receive Donations, Contributions, and Investments

- The competent minister is authorized to accept in-kind contributions valued at less than 5,000 dinars without referring them to the government, provided all conditions are met.

- Any surplus remaining from a contribution shall be transferred to the general budget.

- It is prohibited to impose any future operational or financial burdens on the beneficiary entity of the contribution.

- Contributions encompass a broader concept than local and foreign donations.

- Entities shall maintain statistical records of contributions and provide the Ministry of Finance with an annual copy.

- Changing the purpose of a contribution requires the approval of the Council of Ministers, the contributor, their representative, or their heirs.

- Explicit regulation of bank accounts linked to contributions, including the basis for their establishment and oversight.

Official bodies are preparing a draft decree to reorganize the acceptance by ministries, government entities, agencies, and institutions of contributions, grants, donations, sponsorships, or similar items, both financially and accounting-wise, whether from individuals, banks, companies, or local or foreign entities.

According to the proposed approach, the Council of Ministers will have the final decision on accepting or rejecting contributions that meet the required procedures and conditions. The competent minister will be granted the authority to accept in-kind contributions valued at less than 5,000 dinars after fulfilling the conditions and procedures, without referring them to the Council of Ministers.

Furthermore, the concept of “contributions” in the potential decree will be broader than donations and gifts, encompassing grants, sponsorships, and similar items, whether local or foreign. The scope of eligible beneficiary entities will include government companies, in addition to any other entity permitted by law to accept contributions. The possibility of changing the purpose of a contribution will be more specifically regulated, requiring the approval of the Council of Ministers, as well as the consent of the contributor, their representative, or their heirs.

According to the proposed draft, the potential decree explicitly stipulates that any surplus remaining from a contribution shall be transferred to the state’s general budget. The decree will require entities to maintain statistical records of contributions, grants, and donations, and to provide the Ministry of Finance with an annual copy. Detailed executive, financial, and accounting mechanisms will be established by the Minister of Finance and submitted to the Council of Ministers for approval before implementation. Additionally, explicit regulation of bank accounts linked to contributions will be included in the executive mechanisms, covering the basis for their establishment and oversight.

1. Government entities are obligated to maintain special statistical records for cash and in-kind contributions, grants, and donations received, containing all necessary data according to the prescribed forms. A copy of these records will be provided to the Storage Affairs and Procurement Systems Sector in the Ministry of Finance at the end of each fiscal year.

3. Contributions must not be conditional in favor of the contributor or third parties, and there must be no direct or indirect interests or benefits for the contributor, nor any granting of preference, advantages, priority, or benefit from the services provided by the beneficiary entity.

9. Donations, contributions, or grants must contribute to achieving the objectives for which the beneficiary entity was established and must align with its legally defined competencies.

11. The purpose of the contribution must be specific and lawful, and must not conflict with public order, values, customs, and the stability of Kuwaiti society.

13. The confidentiality of the contributor’s data must be preserved if they wish not to disclose their personal information.

14. Government entities are prohibited from requesting any cash, in-kind, or project-financing contributions, or for any other purpose, from contractors, private companies, individuals, or others. This prohibition does not apply to public appeals encouraging citizens to make contributions to support services or activities provided by entities within their legally assigned competencies.

15. Contributions shall be directed toward the purpose for which they were designated. If that purpose is fulfilled through other means, the beneficiary entity may, with the approval of the Council of Ministers, redirect the contribution to another purpose deemed in the public interest, subject to the consent of the contributor, their representative, or their heirs, as applicable, in accordance with the established rules. Any surplus remaining thereafter shall be transferred to the state’s general budget.

According to the draft decision under review, the Minister of Finance is expected to issue a decision outlining the mechanisms for implementing Council of Ministers’ resolutions regarding the acceptance of contributions, grants, donations, or sponsorships. These mechanisms shall be submitted to the Council of Ministers for approval or for directing amendments, and they may not be implemented until such approval is issued. The draft decision includes the following:

b. A statement of the provisions and procedures for utilizing contributions, grants, or donations, in accordance with their designated purpose and type (cash, in-kind, real estate, contributions to construction projects on state land, or others).

c. Determination of the mechanism for recording contributions in accounts and disclosing them in the budget and final accounts, classifying them according to the budget codes and classification manual, and including all relevant data pertaining to them.