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Charitable Associations, Non-Government Organizations, and Training Units; and their fully-owned establishments The Associations and Non-government Organizations Law, issued under Royal Decree No. (M/8) dated 19 Safar 1437 AH, defines a non-profit association as any continuously organized group, for a specified or unspecified period, composed of natural or legal persons, or both, primarily not for profit, and established to achieve a charitable or social purpose, or for a religious activity determined by the Ministry of Islamic Affairs, Awqaf, Dawah, and Guidance, or a social, cultural, health, environmental, educational, scientific, professional, creative, youth, tourism, or consumer protection activity, or any other civil activity deemed appropriate by the Ministry, whether through financial, moral, or technical expertise or otherwise, and whether the activity is directed towards public services, such as public benefits associations, or is primarily directed towards serving members of a specific profession or field, such as professional associations, scientific societies, and literary associations. The Associations and Non-government Organizations System also defines a non-government organization as any ongoing entity, established for a specified or unspecified duration, by one or more natural or legal persons, or a combination thereof. Its primary purpose is to serve the public interest or a specific cause, without aiming for profit. Such entities rely on funds, endowments, grants, or bequests provided by the founder(s). Family and charitable funds of all types are considered Non-government organizations. Regarding training units, the regulatory rules for establishing non-profit training units in the field of technical and vocational training, issued by Council of Ministers Resolution No. (17) dated 15 Muharram 1430 AH, defines a training unit as a legal entity whose primary purpose is to provide technical and vocational training services within the Kingdom without aiming for financial profit. Its establishment and growth depend on continuous self-financing, and it may accept grants but is prohibited from collecting donations. Charitable Associations, Non-Government Organizations, and Training Units; and their fully- owned establishments are excluded from Zakat if the following conditions are met: a. Their returns are disbursed to public charity purposes or to society, not a specific person. Non-Government Organizations are excluded from this Paragraph if less than (10%) of the organization’s net profit is distributed to a specific person. b. Licensed by the competent authority in the Kingdom and legally documented. c. Ownership of financial statements are audited by a chartered accountant certified in the Kingdom, or any other documents acceptable by the Authority. d. The training unit shall have a final license (Non-profit training organization).