Feasibility Studies Guide for Charities and Awqaf

Feasibility Studies Guide for Charities and Awqaf

Prepared by: Googan Company feasibility studies team

Non-profit associations and awqaf (endowments) need a feasibility study at specific points set out in official regulations and guides, most notably when raising donations to establish or fund a waqf, and when raising donations for an investment project that supports an association's sustainability. This guide brings together two official sources: the Regulation on Establishing or Funding Awqaf through Fundraising issued by the General Authority for Awqaf (Umm Al-Qura, 17/10/2025), and the Fundraising Licences User Guide 2023 issued by the National Center for Non-Profit Sector Development (NCNP).

When is a feasibility study required?

• Fundraising to establish a new waqf or fund an existing one: paragraph (3) of Article Three of the Regulation requires a "feasibility study for establishing the waqf or funding the existing waqf" to be attached to the licence application submitted to the General Authority for Awqaf.
• Awqaf marketing campaigns: the NCNP 2023 guide lists "a feasibility study for the project" among the requirements of this service.
• Investment marketing campaigns: the same guide requires "a feasibility study for the project approved by the board of directors".

The NCNP guide was issued before the Awqaf Regulation was published, so for awqaf the reference in case of any difference is the text of the Regulation and the competent authority's directions.

First: Awqaf under the General Authority for Awqaf Regulation

The Regulation applies to establishing new awqaf or funding existing awqaf through fundraising, for the purpose of sustaining, developing, operating or repairing them (Article Two). The applicant is a legal person; where the purpose is funding an existing waqf, the application is submitted by the waqf being funded. The application includes:

• An application form specifying the purpose, its conditions and beneficiaries, the target amount, the fundraising period, the period for establishing the waqf, the ratio of operating and administrative expenses, and the proposed wording of the new waqf deed.
• A feasibility study for establishing the waqf or funding the existing waqf.
• A report on expected construction costs from an accredited engineering consultant where engineering works are involved.
• A comprehensive profile of the applicant and its governance, and audited financial statements for the last three years, if any, certified by a chartered accountant.
• When purchasing property: the owner's written consent and two valuations from accredited valuers, issued within (6) months and using two or more methods; their average is adopted if the difference does not exceed (10%), otherwise a third valuer is required.

The Authority decides on the application within a maximum of (30) working days from its completion, with an additional period of up to (30) working days after notification, and the licence is granted for a period not exceeding one year. Beneficiary purposes must be charitable or public-benefit purposes inside the Kingdom.

Second: Investment marketing campaigns for non-profit associations

The NCNP 2023 guide sets conditions for this service, including a governance assessment score of at least (50%) except for newly established associations, no amounts from the campaign allocated to the marketer, and obtaining approvals from the relevant authorities after the licence is issued. Required attachments include:

• Board minutes approving the purchase or construction of the investment and fundraising for it, including the cost.
• General assembly approval of the investment rules and of the plan to invest the association's surplus funds.
• The land or property deed, the building plan and building permit for construction, and the completion certificate for purchase.
• A feasibility study for the project approved by the board of directors.
• Evidence of the current value of the property to be purchased from (3) accredited valuation firms, and the latest chartered accountant's report.

Who may apply? Applicant conditions

In the awqaf track, Article Four of the Regulation requires that the applicant:

• Has not been issued a fundraising licence within a minimum period of (6) months.
• Has no other fundraising application under review by the Authority.
• Has no chairperson of the board of directors or board of trustees, board member, chief executive or senior executive convicted of a crime involving breach of trust, integrity or honour, listed on United Nations lists or the unified national list, or previously removed from waqf administration by a final judgment for reasons of integrity, trustworthiness, capacity or competence.
• Where the purpose is funding an existing waqf, the application is submitted by the waqf being funded.

In the investment marketing campaigns track, the NCNP guide states that applications are made electronically through the Center's services by entering the association type and licence number, logging in from the authorised representative's account with the authorisation letter attached, and requires a governance score of at least (50%) except for newly established associations.

Conditions on waqf beneficiaries

Article Five requires the beneficiary purposes of awqaf for which donations are raised to be charitable or public-benefit purposes inside the Kingdom, consistent with Islamic Sharia and applicable regulations and with the conditions required of the beneficiary under Sharia and law, and within the purposes set out in the applicant's bylaws or the endower's conditions. The study should therefore explain how and to whom the waqf's returns will be spent, and confirm this is consistent with the entity's documents.

Post-licence obligations in the awqaf track

Responsibility does not end when the licence is issued. Article Eight obliges the licensee to do the following, and each item has a cost that should appear in the study under administrative and operating expenses:

• Contract a licensed chartered accountant, and a licensed consulting office where the purposes include real-estate construction.
• Open a single bank account with a licensed bank, dedicated to fundraising for the licensed purpose, and provide its details to the Authority.
• Submit a periodic statement after the fundraising period ends with spending details supported by documents, and notify the Authority of any material changes as they occur.
• Keep records and documents for no less than (10) years after each transaction.

If a surplus remains after spending, the licensee must submit a request to the Authority within (30) working days stating its amount and proposals (Article Nine). The Authority may cancel the licence in cases including breach of the Regulation or delay in implementation (Article Ten). When spending is complete, the Authority issues a completion certificate based on the chartered accountant's declaration, the consulting office's declaration where construction is involved, and the waqf deed and its registration certificate (Article Eleven).

What should the study cover?

Neither source specifies detailed contents for the study. From professional practice, we consider that a good study links every figure in the application to its source and covers:

• Investment costs, based on the engineering consultant's report or the approved property value.
• A market study of the asset, such as demand for rental units or the proposed service and price levels.
• Revenues, operating and maintenance costs, and the net return available for spending on beneficiaries or the association's programmes.
• The timeline for fundraising and implementation, and the administrative expense ratio of the fundraising.
• Risk and scenario analysis, and the project's consistency with the association's purposes or the endower's conditions.

How Googan can help

Googan Business Services Company works in feasibility studies for the Saudi market with experience dating back to 1996, has had an investment presence in the Kingdom since 2013, holds ISO 9001:2015 certification, commercial registration no. 7036270002, and is based in Al-Masif district, Riyadh. Non-profit associations receive a special discount of up to 25%, with the rate stated in the quotation. We prepare feasibility studies for awqaf and association investment projects covering the requirements above, without any promise regarding the licence outcome.

Read also: Waqf feasibility study: what the Regulation on Establishing or Funding Awqaf through Fundraising requires, Feasibility study for a non-profit association's investment project, and How should an association's board read a feasibility study before approving it?.

Contact us on WhatsApp to request a quotation for a feasibility study for your association's or waqf's project.

Common mistakes to avoid

• Confusing the requirements of the awqaf track with the investment track, especially the number of property valuations.
• Estimating the target amount without support from an engineering report or accredited valuation.
• Overlooking post-licence costs such as the chartered accountant, consulting office, operation and maintenance.
• Relying on an outdated version of the guides without checking the latest update with the competent authority.

Suggested practical steps before applying

Quick comparison of the two tracks

Frequently asked questions