The Basics

Our story begins with the idea mooted by Dato’ Dr Abdul Halim Ismail, the first Managing Director of Bank Islam, when he received the Royal Award for Islamic Finance in 2014.

In his public lecture, he envisioned the establishment of an institution governed by a regulator to provide products and services to collect various types of sadaqah, waqf, hibah and etc. mainly from the private sector and distribute these to the poor and the needy in the social welfare sector. (See appendix to read the full public lecture script)

From there, Kolej Universiti Islam Antarabangsa Selangor (KUIS) through its International Research Centre of Islamic Economics and Finance (IRCIEF) had initiated the establishment of research team and steering committee to study the viability of the idea to be implemented within a banking framework.

Sadaqa House was launched on 19th January 2018 during Karnival Kewangan Bank Negara Malaysia at Alor Setar, Kedah as one of the Bank’s strategic agenda under its Value Based-Intermediation (VBI).

Sadaqa House performs due diligence on behalf of the donors through the followings:

  1. Change-makers on boarding assessment and annual review
  2. It is very crucial to ensure change-makers on-board are capable and reputable to realize any charity projects carried out by them and give scalable and sustainable social impacts to the society.

    Sadaqa House adopts comprehensive assessment on every change-maker including anti-money laundering (AML) checking. Every change-maker must be approved by Sadaqa House & Zakat Committee.

    On annual basis, a review will be performed on the appointed change-makers to ensure their operation and direction are aligned with Sadaqa House’s requirements.

  3. Assessment on the beneficiaries
  4. All beneficiaries under Sadaqa House will be assessed to ensure their eligibility and genuine. The assessment includes anti-money laundering (AML) checking. All beneficiaries must be approved by Sadaqa House & Zakat Committee.

  5. Charity project viability and deliverables
  6. Sadaqa House ensure its team members to be on the ground to check the viability of a charity project as well as tracking its progress. Report shall be escalated to Sadaqa House & Zakat Committee on a frequent basis.

Category of fund which the principal contributed to Sadaqa House will be invested or placed in Shariah compliant financial instrument approved by Sadaqa House & Zakat Committee. Any profits or returns from the investment will be channelled to specific projects for distribution.

Moving forward, Sadaqa House will provide micro financing to eligible underbankable micro-entrepreneurs from this fund.

The Donation
  1. Transfer fund to:
  2. SADAQA HOUSE
    140 140 101 88888
    Bank Islam Malaysia Berhad

  3. Bank Islam Credit card-i:
  4. Through the redemption of Trupoints Rewards at https://trurewards.bankislam.com.my (Category Product: Welfare)

  5. SnapNPay
    1. Download the SnapNPay application via Play Store (Android) or App Store (iOS)
    2. Scan the QR code image
    3. How to donate
      1. Select recipient
      2. Insert donation amount
      3. Follow the steps displayed to complete the payment

At the moment, Bank Islam does not impose any management and administrative fees on the donation managed within Sadaqa House. In fact, Bank Islam bears most operational costs related to managing the Sadaqa House funds as well as advertisement and promotions expenses in relation to attract more donations to Sadaqa House funds.

Notwithstanding to the above, donors may incur minimal bank charges when making donation into Sadaqa House bank account using various payment channels.

Based on the selection of donors, donation through Sadaqa House will go either to :

  1. Perpetual Fund: where the principal will remain in perpetuity and invested, only the returns generated will be distributed to charitable causes
  2. Direct Fund: where donors can choose to donate directly to charitable projects under Sadaqa Houseand
  3. General Fund: where donors do not specify any specific charitable projects and it is the discretional of Bank Islam’s Zakat & Charity Committee to decide the distribution according to available and suitable charitable projects.

According to the allocation of subsection 44(6) Act of Income Tax 1967 your donation is tax deductible if you donate to:

  1. Yayasan IJN (Ref LHDN.01/35/42/51/1796.4359)
  2. Yayasan Sultanah Bahiyah (Ref LHDN. 01/35/42/51/179-6.4481)

RM50 and above amount of donation are eligible to demand the tax deduction. This agreement applicable from 1st May 2019 to 31st June 2024.

Please e-mail to sadaqahouse@bankislam.com.my, and we will guide you on how to request for tax deduction receipt.

Donations made are non-refundable.

The Project & Change-makers

We will continue to raise funds or upon approval of Bank Islam’s Sadaqa House & Zakat Committee, we will use some portion from Sadaqa House general fund to expedite the charity projects deliverables.

Follow Sadaqa House Via:

  1. Facebook
  2. Instagram
  3. Youtube
  4. Sadaqa House Reports issued from time to time.

For more info, e-mail us at:

  • socialfinance@bankislam.com.my
  • sadaqahouse@bankislam.com.my

There are four main focus sectors aimed by Sadaqa House to channel its fund for sustainable positive impacts. They are:

  1. Health
  2. Sadaqa House aims to support underserved communities to have access to quality health treatment.

  3. Environment
  4. Sadaqa House aims to protect natural capital and resources through building of environmental consciousness as well as supporting renewable energy efforts.

  5. Education
  6. Sadaqa House aims to support efforts of community to ensure every child has access to quality education with emphasis on holistic student outcomes.

  7. Community empowerment
  8. Sadaqa House aims to enable and support community-led actions that strengthen social cohesion and inclusivity through sustainable economic and social empowerment within communities.

Yes, the distribution will benefit non-Muslim too.

  • The criteria to be one of the change makers as follow:
    1. Core agenda of the change-maker are within four focus sectors of Sadaqa House; (explained in question no.12);
    2. Proposed charity project gives impact to underserved communities (which priority is given to fuqara’ and masakin);
    3. Proposed charity project has sustainable impact, not a one-off impact;
    4. The change-maker is legal and registered with relevant bodies e.g. Register of Society (ROS), Companies Commission of Malaysia (SSM);
    5. The change-maker is a non-profit oriented, and not a government related agency. Profit oriented social enterprises may be considered by the Bank and subject to approval by Sadaqa House & Zakat Committee ;
    6. The change-maker has proven track record in managing its charity projects; and
    7. The change-maker adopts good governance in its administration as a whole.
  • The selection process of potential change-makers can only be originated from the issuance of request for proposal (RFP).
  • Please send your e-mail to sadaqahouse@bankislam.com.my to obtain the related form.