Have you looked into how Ummah Welfare Trust operate? They are a 100% donation policy charity, one of the most trusted, their model uses gift aid, donations specificly for admin and the profits from their charity stores to cover admin charges. Would love to see an interview with them, one of the very few who may have a successful 100% donation policy model with huge impact for the ummah, easy to see as they always show the proof through their feedback videos and Annual report which they publicly publish.
Totally agree with you. And there are a number of charities in the UK who are successfully working with 100% donation policy. I think there needs to be more scrutiny from IFG on Muslim charities who have so many malpractices and well known too, and are well known for recipients to only receive as less as 20% of what was given. IFG needs to scrutinize them rather than giving 100% donation policy charities a hard time.
@@naveertowasin4451 couldn’t agree more, Life with Allah is a perfect example.. their Dua and Dhikr app which they released on the back of Life with Allah is the reason why morning and evening adhkaars are now a part of my day سبحان الله , may Allah reward them for all of their efforts, ameen.
@@UmmI943 Well said! IFG I have seen your platform to give a balanced argument on financial matters in the past. To balance this topic I think Zaynab is correct and a further deep dive is required into the other side of the coin, those VERY well-known muslim charities that are giving less than 50% of donations to those that are in need of it.
MashaAllah good initiative and points raised. As donors we need to be more strategic in how we donate and also try to understand on a basic level the costs of running an organisation...
Is Funders in Good a re-birth of the mission that Rizwan Yusoof and Iqbal Nassim were pursuing whilst at the helm of NZF? What level of transparency will FIG have, in terms of the ‘projects’ they invest in?
Like ‘100% donation’, ‘making strategic impact for the interests of Muslims’ is an idealistic vision. There has to be lessons learned from the controversy that erupted at NZF under its previous stewardship. This is not an attempt to smear anyone but each organisation’s policies need to be scrutinised. In particular the use of Zakaat funds in line with the understanding of the scholars of Fiqh. If they can make it work and have the backing of the community then it’s great. Kudos to the best talents contributing to the nonprofit sector
See the article on the MuslimMatters site titled ‘This Article Could be Zakat-Eligible’. Written by Ahmed Shaikh dated 10 June 2019. It highlights the level of abuse that is possible. Also I just watched a video on the channel of ‘The Muslim Skeptic’ about an organisation called Bayan institute that is so wrong (and its people have allegedly supported govt anti-muslim policies) yet it’s collecting Zakaat from masaajid in the US to pursue their work
It's easy to create a strawman and proceed to dismantle it. If you look at the 100% donation policy of prominent UK charities they explain exactly what they mean by the policy. The only people who have a problem are large established charities who might struggle to justify taking 20% - 30% from donations. You don't need an Oxford graduate to tell you that running charities costs money. Just read a policy and explain why it doesn't work instead of creating straw men and feeling all smug about it.
We respectfully disagree. Every charity has admin - even the 100% donation ones - they just come in downstream. Given that, we think it is deeply disingenuous to market it as 100%. Second, a 100% donation policy as a selling point is misprioritising what actually matters in charitable giving.
@@IFGuruIt's a difference of opinion on how one defines "100% donation." If a charity is upfront and says that if I donate £100, ALL of that £100 will go to the recipient, why is that claim disingenuous? I know they will claim gift aid on my donation, as per the policy, but the assertion that nothing from the £100 will be deducted is factually correct. I admit that a lot of charities don't have a clearly articulated donation policy, and their claims should be treated with suspicion, but there is nothing fundamentally wrong with a 100% donation policy if you can support it with data and adequate governance procedures.
But that's the thing. It's not. We've done a fair bit of research into this and talked to multiple charities. If you're an individual running a small charity as a hobby and can achieve that - great. But any charity that is dealing with a few million will need partners and employees to distribute it. They don't work for free. So when 100% donation charity offers a grant of £1m to another delivery partner charity after raising £1m - that's a 100% donation sure - but the charity they gave the grant to which will do the actual work will have an admin fee. That's why this 100% donation marketing is disingenuous. You're just passing fees down the chain. Now in rare cases a charity also has a business model etc and can genuinely support itself from that. That's fair enough. But it completely warps what we should be prioritising in charity to then demand every charity do that.
@@IFGuru and the admin fee will be covered by giftaid, so they claim of 100% donation policy is accurate. Whereas other charities who don't have a 100% donation policy have free flow to spend as much as they want on admin fees, as well as having giftaid money, and there's nothing wrong with that in theory, but it's those charities you need to scrutinise the accounts of and follow the money, especially those working abroad, as often only 10%-20% of the charity one gives actually is received by the recipient. Whereas 100% donation policy charities don't have the liberty to do that and are much more careful.
@@IFGuru If you've done extensive research then let's see the results to assess if your sample size and methodology supports the conclusion. The one example you quote says nothing about the principle of a 100% donation policy. The issue in the case is one of governance and process. Admittedly a lot of claims about "100% donation policy" should be dismissed as the charities don't publish anything about how they will monitor compliance to the policy, and how it will fund its overheads. However to make a blanket statement suggesting all claims are disingenuous is presumptuous and unprofessional.
I really appreciate your work and I often commend and thank you on your various videos but I'm really disappointed by your continuing biased critique when it comes to talking about charities. What's the evidence for 100% donation policy doesn't work? Please provide the evidence. As many charities who have this policy are flourishing Also, rather than focusing on charities whose 100% policy you feel doesn't work (and making your partners look better in the meantime), please focus on bringing to light the major malpractices by large international Muslim charities who are using funds extremely irresponsibly and this is very well known in the sector! Often as little as 10-20% of charity funds are actually being received by recipients.
It's marketing spiel. It means nothing because all charities have costs. If a charity takes my gift aid for admin costs on a £100 donation, that's £25. A charity that charges a flat 10% is £12.50.
@@alsayedfakhri4597 brother I believe your understanding of gift aid is incorrect. Please look into how gift aid works, if you donate £100, then the charity will receive £100 plus an additional £25 through HMRC. So £100 + £25
@@alsayedfakhri4597 there's no charity that charges admin fees less than gift aid. They charge large amounts of admin fees on top of taking the gift aid. Most charities don't even tell you what percentage they are charging on top of gift aid for admin fees, often going to over 50% of what you have given!
@@UmmI943 there absolutely are charities that charge less than gift aid on admin fees, Islamic Relief and Interpal being 2 of them. I'd rather Islamic relief took £12.50 than UWT take £25.
@@alsayedfakhri4597 so they give all your gift aid money to charity AND charge only 12.5% admin? Please provide evidence. There are also many people who don't pay tax but give charity and therefore not eligible to receive gift aid.
Have you looked into how Ummah Welfare Trust operate? They are a 100% donation policy charity, one of the most trusted, their model uses gift aid, donations specificly for admin and the profits from their charity stores to cover admin charges. Would love to see an interview with them, one of the very few who may have a successful 100% donation policy model with huge impact for the ummah, easy to see as they always show the proof through their feedback videos and Annual report which they publicly publish.
Agree with you Shaz they also produce great works that nourish with the life with Allah side project, so the proofs in the pudding
Totally agree with you. And there are a number of charities in the UK who are successfully working with 100% donation policy. I think there needs to be more scrutiny from IFG on Muslim charities who have so many malpractices and well known too, and are well known for recipients to only receive as less as 20% of what was given. IFG needs to scrutinize them rather than giving 100% donation policy charities a hard time.
@@naveertowasin4451 couldn’t agree more, Life with Allah is a perfect example.. their Dua and Dhikr app which they released on the back of Life with Allah is the reason why morning and evening adhkaars are now a part of my day سبحان الله , may Allah reward them for all of their efforts, ameen.
@@UmmI943 Well said! IFG I have seen your platform to give a balanced argument on financial matters in the past. To balance this topic I think Zaynab is correct and a further deep dive is required into the other side of the coin, those VERY well-known muslim charities that are giving less than 50% of donations to those that are in need of it.
Yes I think that's fair. We need to also dig into those. They are bad actors.
MashaAllah good initiative and points raised. As donors we need to be more strategic in how we donate and also try to understand on a basic level the costs of running an organisation...
Is Funders in Good a re-birth of the mission that Rizwan Yusoof and Iqbal Nassim were pursuing whilst at the helm of NZF?
What level of transparency will FIG have, in terms of the ‘projects’ they invest in?
Great question I'd like to know this too please. Jazakallah Khair
Like ‘100% donation’, ‘making strategic impact for the interests of Muslims’ is an idealistic vision.
There has to be lessons learned from the controversy that erupted at NZF under its previous stewardship. This is not an attempt to smear anyone but each organisation’s policies need to be scrutinised. In particular the use of Zakaat funds in line with the understanding of the scholars of Fiqh. If they can make it work and have the backing of the community then it’s great.
Kudos to the best talents contributing to the nonprofit sector
See the article on the MuslimMatters site titled
‘This Article Could be Zakat-Eligible’. Written by Ahmed Shaikh dated 10 June 2019. It highlights the level of abuse that is possible.
Also I just watched a video on the channel of ‘The Muslim Skeptic’ about an organisation called Bayan institute that is so wrong (and its people have allegedly supported govt anti-muslim policies) yet it’s collecting Zakaat from masaajid in the US to pursue their work
It's easy to create a strawman and proceed to dismantle it. If you look at the 100% donation policy of prominent UK charities they explain exactly what they mean by the policy. The only people who have a problem are large established charities who might struggle to justify taking 20% - 30% from donations.
You don't need an Oxford graduate to tell you that running charities costs money. Just read a policy and explain why it doesn't work instead of creating straw men and feeling all smug about it.
We respectfully disagree. Every charity has admin - even the 100% donation ones - they just come in downstream.
Given that, we think it is deeply disingenuous to market it as 100%.
Second, a 100% donation policy as a selling point is misprioritising what actually matters in charitable giving.
@@IFGuruIt's a difference of opinion on how one defines "100% donation." If a charity is upfront and says that if I donate £100, ALL of that £100 will go to the recipient, why is that claim disingenuous? I know they will claim gift aid on my donation, as per the policy, but the assertion that nothing from the £100 will be deducted is factually correct. I admit that a lot of charities don't have a clearly articulated donation policy, and their claims should be treated with suspicion, but there is nothing fundamentally wrong with a 100% donation policy if you can support it with data and adequate governance procedures.
But that's the thing. It's not. We've done a fair bit of research into this and talked to multiple charities.
If you're an individual running a small charity as a hobby and can achieve that - great. But any charity that is dealing with a few million will need partners and employees to distribute it. They don't work for free.
So when 100% donation charity offers a grant of £1m to another delivery partner charity after raising £1m - that's a 100% donation sure - but the charity they gave the grant to which will do the actual work will have an admin fee. That's why this 100% donation marketing is disingenuous. You're just passing fees down the chain.
Now in rare cases a charity also has a business model etc and can genuinely support itself from that. That's fair enough.
But it completely warps what we should be prioritising in charity to then demand every charity do that.
@@IFGuru and the admin fee will be covered by giftaid, so they claim of 100% donation policy is accurate. Whereas other charities who don't have a 100% donation policy have free flow to spend as much as they want on admin fees, as well as having giftaid money, and there's nothing wrong with that in theory, but it's those charities you need to scrutinise the accounts of and follow the money, especially those working abroad, as often only 10%-20% of the charity one gives actually is received by the recipient. Whereas 100% donation policy charities don't have the liberty to do that and are much more careful.
@@IFGuru If you've done extensive research then let's see the results to assess if your sample size and methodology supports the conclusion. The one example you quote says nothing about the principle of a 100% donation policy. The issue in the case is one of governance and process. Admittedly a lot of claims about "100% donation policy" should be dismissed as the charities don't publish anything about how they will monitor compliance to the policy, and how it will fund its overheads. However to make a blanket statement suggesting all claims are disingenuous is presumptuous and unprofessional.
How will major central banks like the US, EU, and China divergent monetary policies and economic circle affect the stock and currency market?
I was wondering if you could also highlight and put a spotlight on the amount wasted by many major international Muslim charities please?
I really appreciate your work and I often commend and thank you on your various videos but I'm really disappointed by your continuing biased critique when it comes to talking about charities.
What's the evidence for 100% donation policy doesn't work? Please provide the evidence. As many charities who have this policy are flourishing
Also, rather than focusing on charities whose 100% policy you feel doesn't work (and making your partners look better in the meantime), please focus on bringing to light the major malpractices by large international Muslim charities who are using funds extremely irresponsibly and this is very well known in the sector! Often as little as 10-20% of charity funds are actually being received by recipients.
It's marketing spiel. It means nothing because all charities have costs.
If a charity takes my gift aid for admin costs on a £100 donation, that's £25. A charity that charges a flat 10% is £12.50.
@@alsayedfakhri4597 brother I believe your understanding of gift aid is incorrect. Please look into how gift aid works, if you donate £100, then the charity will receive £100 plus an additional £25 through HMRC. So £100 + £25
@@alsayedfakhri4597 there's no charity that charges admin fees less than gift aid. They charge large amounts of admin fees on top of taking the gift aid. Most charities don't even tell you what percentage they are charging on top of gift aid for admin fees, often going to over 50% of what you have given!
@@UmmI943 there absolutely are charities that charge less than gift aid on admin fees, Islamic Relief and Interpal being 2 of them.
I'd rather Islamic relief took £12.50 than UWT take £25.
@@alsayedfakhri4597 so they give all your gift aid money to charity AND charge only 12.5% admin? Please provide evidence.
There are also many people who don't pay tax but give charity and therefore not eligible to receive gift aid.