Giving as a potential for the non-profit sector

The non-profit sector constitutes the third component of sustainable economic and social development, along with the government sector and the private sector. It is a pillar of the national wealth in several developed countries.

Also it is an integral part of the social safety net (SSN), in the sense that it reflects an image of social solidarity among citizens.

It has a significant role in Achieving social protection for all segments of society by achieving economic, social and psychological stability for citizens, improving their quality of life and reducing the risks they may be exposed to, and providing them with support when needed across the various stages of their lives to ensure their right to a decent life and reduce poverty, vulnerability and exclusion for the Less Fortunate Members of Society.

Non-profit sector organizations also have a key role in achieving community resilience in which they operate, so that they make these communities able to withstand and recover after being exposed to shocks, crises or disasters of all kinds by making use of their available resources effectively, and flexibly dealing with all kinds of risks to which communities are exposed rather than addressing its consequences, by enabling them to recover faster.

“The non-profit sector is a key part of the social safety net, and it also has a major role in achieving social protection in society.”

In 2018, the number of organizations in the non-profit sector in the Kingdom of Saudi Arabia was estimated at about 2,600 organizations.

A quarter of such organizations are based in the Dawah and Guidance Sector, and the second quarter is in development and housing, while the portion of the health and education sector was less than 4%, and the other organizations are concentrated in the area of social services.

Although the non-profit sector’s contribution to the Saudi GDP is still weak, it is growing at an encouraging pace.

Since 2013, the non-profit sector has outpaced the growth rate of the entire Saudi economy, and the annual growth rate of the non-profit sector’s contribution to the GDP has reached 10.45%, which is in line with the sector’s growth rates in other countries.

The non-profit sector received a large share of attention in Vision 2030. it was assigned with several goals to achieve under the theme of “An Ambitious Nation and A responsible citizen” as reflected in increasing the contribution of the non-profit sector from 0.03% up to 5% of the GDP, raising the percentage of projects with social impact from 7% to 33%, improving the KSA rankings in the social capital index from 26th to 10th globally, and reaching up to one million volunteers by 2030.

The Saudi society is historically characterized by giving based on strong social capital, a religious culture that fosters showing support for others , The Prophet said, ” ““Verily, the believers are like bricks of a building, each part strengthening the other,”” and social values deep-rooted in the Saudi environment.

Through its charitable giving, the Kingdom was able to make a difference at the local, regional and global levels, and it became a leading nation in humanitarian aid worldwide. [1].

Giving in its different forms constitutes the most key element of the non-profit sector. It has an enabler role when achieving the sector’s national strategic goals, together with the objectives of the KSA’s Vision 2030, in addition to other potentials such as legislation, policies, laws, government funding and the enabling environment.

Giving also plays a role in the growth of the non-profit sector and sustainable services in its organizations, by increasing the ability of such organizations to attain their goals in response to the new, ever-changing, and most urgent and top priority needs of the society.

Giving in the non-profit sector is based on three pillars that are complementary to each other, given their relevant significance in the sense that they achieve balance together for the sector as a whole. They are closely linked: one is not possible without the other, and they can be illustrated as follows:

Individual giving: The concept of individual giving in the minds is often limited to financial donations, but the diversity of individual giving makes it deficient in the sense that it can be reduced to financial donations.

The forms of individual giving in the society vary, and there are many, for example, but not limited to, financial donations, whether to official agencies specialized in the collection of donations or directly to the needy, and in-kind assistance such as food, medical equipment, furniture, clothing, etc.

NGOs in the Kingdom depend on cash and in-kind donations at 38% as a source of its revenues, with a focus on attaining its financial sustainability in addition to its other sources of revenue such as government funding granted to associations, Islamic endowments and other agencies.

Another aspect of individual giving can be reflected in volunteering, regarded as a source of strength and vibrant energy of societies. The number of volunteering hours in the Saudi society has reached 100 hours per annum in 2018.

Individuals usually donate some time during a period of time to offer a service to the community through the non-profit sector organizations or on an individual basis.

Individuals also volunteer with the knowledge or information obtained through the human senses or through the Revelations or inspiration of God (‘ilm) they possess for a specific agency, as well as donating blood and organs. It is one of the sublime forms of giving in compliance with the words of God Almighty. Allah laid down in the Quran, “And whoever saves a life it is as he had saved the lives of all mankind”.

− Business Sector Giving: Out of social responsibility and the business sector’s commitment to the most urgent, top priority and major social issues, the business sector giving lies in its commitment to provide funding to socio-economic initiatives, in partnership with non-profit sector organizations, as well as its undertaking to achieve national strategic goals directly and indirectly .

Business Sector Giving is not limited to the granting of the financial giving; Rather, it goes beyond that in terms of investments themselves and their coverage of the most needy areas, without prejudice to environmental, social and economic issues, as well as the extent to which measures and policies are adopted to empower the employees and the most vulnerable groups in society.

– Giving by donor institutions and Islamic endowments:

Islamic endowments are vital in the non-profit sector, and the Kingdom is home to Awqaf equivalent to Islamic endowments of several countries combined.

The value of public Islamic endowments under the supervision of government agencies in the Kingdom is estimated at 45 billion Saudi riyals, while the private endowments are estimated at 300 billion Saudi riyals, which made the Kingdom’s Vision 2030 rely on the same as the largest and sustainable funder of the sector.

Awqaf and donors ,acting as owners and managers of a portion of these Islamic Endowments , play a vital role in this area through grants to NGOs or non-profit organizations, and deliver several and diverse social projects. The sectors in which donors operate in the Kingdom vary, and have the largest portion in the educational field at 71%, Followed by family, health, community development, care for people with special needs, youth training for the labor market, sports, culture and arts.

Giving in the Saudi society is all-inclusive and integrated.

No aspect of giving can stand by itself without the other. No reliance on the giving of donor institutions and Islamic endowments can be made without individuals, who are motivated by the love of benevolence to give to the needy in all forms, and giving of the business sector in several areas and aspects cannot be dispensed.

it is taken for granted that active participation between the members of society and its organs is needed to show support and back up the social issues encountered such as combating poverty, caring for the less fortunate, capacity-building for youth , etc. These three aspects are complementary enablers to act as a first-order driver of the non-profit sector in order to achieve its sought-after goals.

References

Kingdom vision 2030.

Awqaf Committee of the Chamber of Commerce and Industry in the Eastern Province (2019).

Waqf Economics Report.

King Khalid Foundation (2018). Prospects for the nonprofit sector.

King Khalid Foundation and the Gearhart Center. (2016). Donor institutions in the Kingdom of Saudi Arabia : facts and statistics.

General Authority for Statistics. (2018). Survey of non-profit sector establishments. Ministry of Economy and Planning. (2018). Towards a sustainable development for the Kingdom of Saudi Arabia, the first national voluntary review.

The Unified National Platform https://www.my.gov.sa/

https://www.rand.org

[1] The Kingdom ranked fourth in the list of the largest donor countries after the United States, Britain and Germany, and the aid amounted between 2012/2017 (38.24 billion US Dollars), which represents 1.9 of the Kingdom’s national product*

The First National Voluntary Review 2018

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