1	Principles and Techniques of Endowment Building Dr. M. Yaqub Mirza Sterling Management Group
2	Kinds of Contribution Zakah Bequest (thru Will) - “Wasiyyah” Gifts – “Hibah”
3	Zakah Zakah means blessing, growth, cleanliness or betterment Zakah is mentioned 30 times in the Quran Allah punishes those who do not give charity (9:34) Payment of Zakah is obligatory (2:3, 43, 100, 177, 195, 254, 277)
4	Zakah Zakah is due on - (a) earned income (2:267), i.e. current year’s gross income (before taxes) (b) less Nisab (essential needs for a lunar year) (c) as well as on the income of past savings and investments
5	Bequest (thru a Will) “Wasiyyah” “Wasa” means he conveyed (upon death) (2:180-182) Maximum of 1/3 of the assets (no more) can be made, only to non-inheritors Name a favorite charity
6	Gift – “Hibah”, “Hudiyyah” & “Sadaqah” One living person to another The Prophet has said, “Exchange gifts among yourselves and thus strengthen mutual love with each other.”
7	Gifts Gifts made cannot be returned Gifts to a poor can be considered a charitable donation Every Muslim has to give in charity and whoever does not find anything to give, should do good deeds. Give charity within limit (17:29) Allah says, “And pay the due thereof upon the harvest day” (Qur’an: 7:142) “And race to do good deeds” (Qur’an: 2:148). Also the Prophet said “The best of good deeds is the one which is done promptly”.
8	Giving in Charity Allah will multiply what you spend in charity. “The parable of those who spend their substance in the way of Allah is that of a grain of corn: it grows seven ears and each ear has a hundred grains. Allah gives manifold increase to whom He pleases; and Allah cares for all and He knows all things” (2:261). Also see (2:265, 276, 280, 30:39; 34:39; 35:29; 57:11; 64:17)
9	Waqf Waqf came into existence to organize and institutionalize the voluntary charities. Endowment: Gift that provides an income for an institution or person Trust “Waqf”: Entrusted property; tying up the property (in ownership of Allah for the good of mankind) Trustee “Mutawali”: person(s) who manage(s) the trust
10	Waqf We could establish Waqf for Education schools, colleges, dormitories, libraries, scholarship funds Community community centers, mosques, playgrounds, hospitals, clinics Social shelters for the elderly, orphans, prisoners, sick, poor and needy persons, persons under debt, counseling and other social services
11	Questions to Ask Do we have a clear “mission statement”? Does the board/community buy into the mission? Do our programs contribute to meeting our mission? Do we know what our competition is? Do we know who our clients/customers/users are? Are our budgets/finances in order? Do we tell the community how we spend the money? Can we demonstrate how effective our programs are? Do we have a diversified funding base?
12	Setting Up a Waqf Call Founders meeting (reason, need, plan, ….) Identify potential donors Elect Trustees (3-5) Establish Legal standing within an existing charitable organization or as separate entity Establish special account and appoint an accountant Solicit funds (watch for rules) Hold periodic meeting and issue reports …………...Always communicate with donors……………
13	Methods of Fund-Raising
14	Annual Giving Programs Direct Mail/New Donors/Renewals Telephone Internet (e-mail, website) Special events (Ramadan, Eid, monthly dinners) Donor Group – “500” $100/month Group Advertisements in community newspapers, Islamic Horizons Door to Door visiting (if living nearby)
15	Special-Purpose Programs Major Gifts from Individuals Large amount for a well studied and documented program Current and committed donors are the best prospect Capital Campaigns Well planned, start and end dates, general campaigns Everyone is working together toward the same goal Corporate Sponsorship: Toys R Us, Food Stores, AT&T Life insurance/Wealth Replacement Trust
16	Estate Planning Wills and Bequests Pooled Income Funds Charitable Remainder Gifts
17	Presentation of the project - Will it: · Make a difference? · Share their good fortune? · Express their beliefs in a tangible way? · Invest in a worthy cause? · Demonstrate their commitment? · Respond to an invitation from someone they respect? · Join with others they know and trust? · Accept an opportunity to change the status quo?
18	Donors Give When · They are involved in the organization or cause - “Islamic” · Emotions are stirred or heart strings are attached · They are confident that contributions are used wisely and with care · Someone they know and respect asks them to give · They are clear about the organization’s need
19	Donors Give When They understand that their gifts will really make a difference They wish to pay tribute to, say, parents through a charitable contribution Someone they trust explains the urgency of the need They feel good donating to a deserving charity that produces results
20	Donor Do Not Give When Solicitation came infrequently or poorly Information was lacking about the difference their gift made They never felt “involved” They received no direct, personalized appeal No one asked them to give again, to consider giving more, or to help Found others to give to
21	People Give to People
22	Investment of Funds Professional management Amana Mutual Funds, NAIT, etc.
23	Points for Success Provide some training to individuals willing to raise funds Make the connection between Fund-Raising and the Program Dedicate the resources necessary to raise money Communicate with donors