Sadaqa House ensures good governance is adopted and implemented in the end-to-end process of managing donation fund from the public.
In Bank Islam, there is a dedicated internal oversight management sub-committee named as Sadaqa House & Zakat Committee to provide oversight and direction on the strategies, processes and activities of Sadaqa House.
As an overview, Sadaqa House fund structure is depicted in the below diagram:
Based on the selection of donors, donation through Sadaqa House will go either to:
|a)||Perpetual funds||Principal of the fund 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 channeled to specific projects for distribution. Moving forward, Sadaqa House will provide micro financing to eligible under bankable micro-entrepreneur from this fund.|
|b)||Direct funds||The fund will be directly disbursed and utilized for specific charity project chosen by donors.|
|c)||General funds||The fund which donors do not specify charity project and the distribution of the fund is at the discretionary of Sadaqa House & Zakat Committee.|