How should an NGO manage public donations, including promotion costs and surplus funds?

Summary

Public donations to an NGO fall under a wakalah contract, so the NGO as agent may only use the funds as the donors permit, whether by express statement or custom (uruf). Malaysian custom allows a small portion for administrative costs but does not cover promotion. Using funds for promotion is permissible if donors consent, for example through a clear statement in the advertisement, and the amount must be limited to what is needed. Surplus from a specific appeal that cannot be channelled should not be used freely, but kept for the same purpose in future or a closely related beneficial purpose, unless donors permit another use.

Written in our own words from the original fatwa — check the source before acting on it.