System No. (14) of 2025 AD Amending System No. (20) of 2022 AD on Non-Profit Companies

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System No. (14) of 2025 AD
Amending System No. (20) of 2022 AD on Non-Profit Companies

The Council of Ministers,

Based on the provisions of the amended Basic Law of 2003 AD and its amendments, particularly Article (70) thereof, And on the provisions of the Decree-Law No. (42) of 2021 AD regarding Companies, particularly Article (2/29) thereof, And after reviewing the Decree-Law No. (39) of 2022 AD regarding the Prevention of Money Laundering and the Financing of Terrorism and its amendments, And on the System of Non-Profit Companies No. (20) of 2022 AD, And based on the proposal of the Minister of National Economy, And on what was approved by the Council of Ministers on 2025/09/30 AD, And on the authorities vested in us, And in pursuit of the public interest,

We have issued the following System:

Article (1)
The Original System
The System of Non-Profit Companies No. (20) of 2022 AD is referred to as the "Original System" for the purpose of this amendment.

Article (2)
Definitions
Paragraph (1) of Article (1) of the Original System is amended by adding the following definitions:

The State: The State of Palestine.
Operating Expenses: The costs incurred by non-profit companies to operate their daily activities, such as rents, water, electricity, and internet expenses, and office expenditures. Electronic Donations: Any action undertaken by a non-profit company through it or through others, whether by a natural or legal person, inside or outside the State, to collect funds using electronic means without compensation to carry out charitable works of public benefit. The License: The approval granted to a non-profit company to collect electronic donations in accordance with the provisions of this System.

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Article (3)
Technical, Financial, and Administrative Reports
Article (8) of the Original System is amended as follows:

1. Paragraph (3) is amended to read as follows:

2. Non-profit companies are obligated to submit periodic technical, financial, and administrative reports to the competent authority for the non-profit company every (6) months or whenever necessary, covering the stages of implementation of projects and activities for which the non-profit company has previously received funding.

3. A new paragraph numbered (7) is added, stipulating the following:

4. The Registrar may suspend the transactions of the non-profit company in the event of its failure to submit the required reports in accordance with the provisions of this Article.

Article (4)
Prohibitions on Shareholders
Article (9) of the Original System is amended as follows:

1. Clause (a) of Paragraph (1) is amended to read as follows:

• That he or any of his relatives up to the third degree has a direct interest with any for-profit company implementing its projects.

2. Clause (b) of Paragraph (1) is deleted.

3. Clause (b) of Paragraph (2) is amended to read as follows:

• It is prohibited for a non-profit company to convert its legal form into a for-profit company.

Article (5)
Salaries and Operating Expenses
Paragraphs (2) and (4) of Article (11) of the Original System are amended to read as follows:

2. The total sum of salaries for a non-profit company shall not exceed the percentage determined annually from its budget, which shall not exceed (25%).

3. The non-profit company is obligated to provide the Registrar annually with administrative and financial reports, accompanied by a statement of impact, clarifying the results of its activities and its impact on society within (4) months from the end of the financial year.

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Article (6)
Financial Resources
Paragraph (4) of Article (12) of the Original System is amended to read as follows:

4. A non-profit company may own movable and immovable property to achieve its goals and objectives.

Article (7)
Mechanism for Approving Funding Sources
Article (13) of the Original System is amended to read as follows:
The procedures for granting approval to a non-profit company to obtain donations, contributions, grants, financing, and assistance shall be as follows:

1. The registered non-profit company submits a request to the Registrar for prior approval for donations, contributions, grants, financing, and assistance to the Ministry of National Economy on the form approved by the Ministry.

2. The non-profit company must provide the Registrar with any documents or data requested to ensure that the expenditure of these funds aligns with the goals and objectives of the non-profit company.

3. The Registrar shall study the request by examining the use and disposal of donations, contributions, grants, financing, and assistance, in a manner consistent with the nature of the non-profit company's activities, its approved internal system, and its goals and objectives. In this regard, the Registrar may enlist the assistance of any government entity deemed suitable to verify the company's activities and data.

4. The Registrar shall refer the request to the Minister, accompanied by his reasoned opinion for acceptance or rejection, within a maximum period of (7) days from the date of submission of the request.

5. Approval is granted to the non-profit company by the Minister based on the Registrar's proposal if the total annual funding sources do not exceed ($500,000) US dollars or its equivalent in the circulating currency. However, if this amount is exceeded, the Minister shall refer the request, accompanied by his opinion, to the Council of Ministers to take a decision.

6. The General Secretariat of the Council of Ministers shall provide the Ministry of National Economy with a copy of the Council of Ministers' decision immediately upon its issuance.

7. The Registrar shall provide the Palestinian Monetary Authority with the Council of Ministers' decision issued regarding the matter.

8. The Palestinian Monetary Authority shall notify the banks operating in the State of the Council of Ministers' decision.

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Article (8)
Electronic Donations
A new article is added after Article (13) of the Original System, numbered (13) bis, stipulating the following:
A non-profit company may obtain electronic donations from natural or legal persons after obtaining a license from the Registrar.

Article (9)
Conditions for the License
A new article is added to the Original System after Article (13) bis, numbered (13) bis (1), stipulating the following:
The following conditions must be met to grant a non-profit company a license from the Registrar to collect electronic donations inside or outside the State:

1. The non-profit company must be registered in the Companies Register at the Ministry of National Economy.

2. Verification that it has not violated the provisions of the Law and the secondary legislation issued pursuant thereto, and the prevailing related legislations.

Article (10)
Procedures for Obtaining the License
A new article is added to the Original System after Article (13) bis (1), numbered (13) bis (2), stipulating the following:
The Registrar grants the license to the non-profit company to collect electronic donations according to the following procedures:

1. The request for the license is submitted to the Registrar according to the form approved by the Ministry, at least (30) days prior to the specified date for collecting electronic donations, accompanied by the following:

• A certified copy of the minutes of the non-profit company's board of directors meeting and the decision issued approving the collection of electronic donations.
• A letter issued by the non-profit company stating the bank account number dedicated to donations and the bank's details.

2. The Registrar shall study the license request and issue a reasoned decision of acceptance or rejection within (14) days from the date of its submission.

3. The Registrar shall study the non-profit company's activities and its financial status, along with the submitted administrative and financial reports, to ensure that the process of collecting electronic donations aligns with its activities and objectives.

4. The Registrar may accept or reject the request to grant the license, provided that his decision is reasoned.

5. The Registrar issues a written license to collect electronic donations upon accepting the request.

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Article (11)
The Decision Issuing the License
A new article is added to the Original System after Article (13) bis (2), numbered (13) bis (3), stipulating the following:

1. The Registrar shall notify the non-profit company of his decision issuing the license.

2. The duration of collecting electronic donations shall not exceed (6) months from the date the license is granted.

3. The non-profit company may submit a request to the Registrar to extend the license once for a period not exceeding (3) months, accompanied by the following:

• A certified copy of the minutes of the non-profit company's board of directors meeting regarding the request for extension.
• A statement clarifying the reasons and justifications for the extension.
• A bank statement showing the value of electronic donations, their source, and the beneficiaries.

4. The license is limited to the scope of the non-profit company's work and its objectives according to its internal system.

Article (12)
Advertising the Collection of Electronic Donations A new article is added to the Original System after Article (13) bis (3), numbered (13) bis (4), stipulating the following:

1. After obtaining the license, the non-profit company shall call for the collection of electronic donations by creating a "Donate" icon on its website and using media means, including the following:

• Local telecommunications companies in accordance with prevailing legislations.
• Billboards.
• Local media, leaflets, or brochures prepared for this purpose.
• Social media.

2. The advertising for the collection of electronic donations must be consistent with the goals of the non-profit company.

Article (13)
Issuance of Donation Receipt
A new article is added to the Original System after Article (13) bis (4), numbered (13) bis (5), stipulating the following:
The bank shall issue an electronic donation receipt to the donor containing the following data:

1. The name of the donating person, their account number, and address.

2. The date and value of the donation in numbers.

3. The name of the non-profit company and the specific purpose of the donation.

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Article (14)
Obligations of the Non-Profit Company Under the License A new article is added to the Original System after Article (13) bis (5), numbered (13) bis (6), stipulating the following:
The non-profit company is obligated, under the license to collect electronic donations, to do the following:

1. Include the process of collecting electronic donations and its proceeds in its official records and annual budget, along with its bank statement dedicated to collecting electronic donations and mentioned in the license, containing all data and figures, the issuance authorization, spending mechanisms, and beneficiary categories.

2. Provide all data related to the mechanism of collecting electronic donations and spending mechanisms in its required financial reports in accordance with the provisions of this System.

Article (15)
Violation of License Conditions
A new article is added to the Original System after Article (13) bis (6), numbered (13) bis (7), stipulating the following:
The Registrar shall take any of the following measures if the non-profit company violates the license conditions:

1. Warn the company to remove the violation within a period determined by the Registrar, which shall not exceed (7) days from the date of the warning.

2. Suspend the license temporarily if the non-profit company fails to remove the violation within the warning period.

3. Cancel the license if the non-profit company fails to remove the violation after the warning period.

Article (16)
Exemption of the Non-Profit Company
Article (15) of the Original System is amended to read as follows:
The non-profit company is exempted by a decision of the Minister, based on the Registrar's proposal, from obtaining prior approval once annually regarding fixed monthly periodic operating expenses. In the event of any modification to their value, the non-profit company must submit a new request to obtain approval.

Article (17)
Repeal
Everything inconsistent with the provisions of this System is repealed.

Article (18)
Entry into Force
All competent authorities are ordered to implement the provisions of this System, each within its respective competence. It shall come into force thirty days after its publication in the Official Gazette.

Issued in Ramallah on: 2025/09/30 Gregorian
Corresponding to: /08 Rabi' al-Thani 1447 Hijri

Dr. Mohammad Mustafa
Prime Minister

Council of Ministers Systems