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The legislation bans overseas donations of more than €100 from third-party organisations for "political purposes".
Charities must co-ordinate all overseas donations with the foreign ministry, and a new oversight body has been established.
The foundation added that it would refile any tax returns which misreported some overseas donations, acknowledging accounting "mistakes".
More pressing, however, is the expected drop in overseas donations for churches in Sudan now that the larger group of worshipers, administrators and teachers has moved to South Sudan.
Toward that end, he said, Crown Prince Abdullah, the kingdom's de facto ruler, recently sought to limit overseas donations by emphasizing that Saudis should help the poor in their own country.
It's our biggest challenge these days," said Peggy Minnis, 55, who is in charge of overseas donations that go to the Peace Corp. "Very few younger people are interested.
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Bill Clinton's presidential library raised more than 10percentt of the cost of its $165 million facility from foreign sources, with the most generous overseas donation coming from Saudi Arabia, according to interviews yesterday.
Its investigation concluded that there were reasonable grounds to suspect the true source of the money was the Isle of Man-registered business, which would count as an illegal overseas donation to a British political campaign.
It is not illegal to accept a donation from a registered UK company, but could be in breach of section 61 of the 2000 political parties law to enter into or "act in furtherance of" an arrangement which disguised an overseas donation.
Just as seriously, any local NGOs that receive foreign funding may have to seek time-consuming approval for each overseas donation – a clause thought to be aimed at hindering Egyptian human rights groups, almost all of whom rely exclusively on foreign aid.
The professor now is working on plans to ask some of Kyoto's larger businesses and other companies overseas for donations to buy some of the surviving homes, which he wants to use for a small architectural research center.
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