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.