MLSD lays out new grant mechanism for NPOs, development committees

The Ministry of Labor and Social Development (MLSD) has laid out new mechanisms to fund charitable entities in the second phase of obtaining grants.

The ministry said It will take into account the characteristics and conditions of charitable organizations, nature of their programs that are going to be implemented and also need the ministry’s support.

The ministry added that non-profit organizations and development committees will be eligible for financial support after they meet standards set by development centers that supervise them, as well as follow their pathways that fit them.

According to these standards, the ministry ensures that average number of NPO, volunteers, staff in these organizations go hand in hand with their existence in the Northern border and less developed regions, rather than number of philanthropists and newness of these entities.

As for the committees, MLSD takes into account average number of committees and programs in addition to their existence in the Northern border and less developed regions along with population rate, regardless of number of philanthropists.

Moreover, the ministry has defined five pathways of obtaining grants including institutional excellency, supporting of non-profit sector, training and development of human capital, development and social programs, research, mobilization and awareness campaigns.

The ministry clarified high-rated projects would have a priority to receive grants, adding any organization or committee that has not been previously funded during the first phase will get a priority as well.

Additionally, organizations lacking financial sustainability or located 80 kilo meters away from the downtown would have precedence to grants.

In this respect, Dr. Ali Al-Fozan, supervisor of grant division program at MLSD, said the ministry is seeking to develop and empower the non-profit sector in order to play its role in achieving Saudi Vision 2030 and National Transformation Program 2020.

Al-Fozan added changing mechanisms for supporting NPO and committees and laying out of accurate standards will diversify and increase grant schemes with ensuring their distributions to the non-profit sector institutions across the Kingdom with taking into account development priorities.

The ministry makes sure that the sector is making enough progress in reaching large segments of beneficiaries and securing their maximum share as much as possible, Al-Fozan added.  

Meanwhile, the ministry called upon the NPOs, committees and cooperatives to use their master accounts instead of their subordinate accounts and present official statements that show their bank information to their own development center, in order to receive the ministry’s support.