FatwaPenangTransactions & Finance
MOHON PANDANGAN BERKAITAN GARIS PANDUAN PENGURUSAN DANA AWAM OLEH PERTUBUHAN BUKAN KERAJAAN (NGO) ISLAM MENURUT FIQH MUAMALAT
What are the Shariah guidelines for Islamic NGOs in managing public funds collected from the public?
Short answer
The Penang State Fatwa Committee adopted guidelines requiring NGO donation collection to be based on a wakalah or wakalah bi al-ujrah contract.
A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.
- Authority
- Penang State Mufti Department
- Date
- Status
- Fatwa committee decision
- Series
- Keputusan Fatwa Negeri Pulau Pinang (e-Fatwa)
- Topic
- Transactions & Finance
No evidence of gazettement in the source — this is not a gazetted fatwa.
Summary
The Penang State Fatwa Committee adopted guidelines requiring NGO donation collection to be based on a wakalah or wakalah bi al-ujrah contract. The fee rate must be disclosed to donors and be reasonable, around 12.5% by analogy to zakat administrators, or only the amount needed to cover actual costs if lower. Funds must be channelled according to the donors' intention, must not be kept or invested in non-Shariah-compliant institutions, and NGOs must follow good governance such as annual audits and public reporting. Donors may withdraw their funds if an NGO is negligent or misappropriates them, since the wakalah contract is non-binding.
Written in our own words from the original fatwa — check the source before acting on it.
Pihak NGO wajib menyalurkan dana yang dikumpul mengikut niat penderma, serta dilarang menggunakan dana tersebut untuk tujuan lain yang bertentangan dengan hasrat penderma.
Read the full fatwa on the Penang website (new tab)
How to cite
Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.
Penang State Mufti Department. “MOHON PANDANGAN BERKAITAN GARIS PANDUAN PENGURUSAN DANA AWAM OLEH PERTUBUHAN BUKAN KERAJAAN (NGO) ISLAM MENURUT FIQH MUAMALAT”, 26 November 2024. http://efatwa.penang.gov.my/fatwa_details.php?fatwaid=1690. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/guidelines-islamic-ngo-public-fund-management/