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Sound Financial Base

Overview

The guidelines for a sound financial base are designed to ensure the masjid or Islamic center will be able to develop and maintain a stable financial base in order to sustain operations, fund programming and activities, and nourish the growth of the organization. The guidelines cover the areas of good practices in bookkeeping and due diligence in making sure that money is acquired and used in a Islamically proper way. They also offer guidance in keeping withing American laws and government regulations.

The Qur’an tells us “Let him who is trusted deliver his trust.” (Baqara 2:28) and numerous verses deal with the legalities of financial transactions, so the responsibility to handle money conscientiously is not one to be taken lightly.

Guidelines

  • Islamic centers should rely, as much as possible, on local financial resources, and encourage members to make regular contributions.
  • Islamic centers should set up endowment funds, and make long-term financial planning and investments.
  • Islamic centers should establish fundraising committees, and invite successful entrepreneurs and business leaders to serve on these committees.
  • Islamic centers should partner with national Muslim organizations in joint fundraising events to align local and national projects.
  • Due diligence policy should be established to ensure the propriety of the donors and recipients of donation. A due diligence policy should be established in consultation with professional experts and consultants.
  • Care and meticulous bookkeeping methods should be devised to ensure that all donations are accounted for and all expenditures are approved.   

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This information is provided from http://www.isna.net/Leadership/pages/Resources-Sound-Financial-Base.aspx