Financial Updates and Policies
This page is a work in progress. As we develop the charity, further information will be added.
Muhammad Tim has made a clear commitment that he will not receive any financial benefits from the Humble Foundation, as has Basak Omar. This is expected to be legally enshrined when the application for charity status is complete, in shaa' Allah. We believe this is an important policy, in order to preserve trust in the charity and to keep the intentions of its founders sincere.
Becoming a Charity
We are committed to becoming a registered charity at the earliest possible opportunity, in shaa' Allah, due to the stronger regulatory framework, which should inspire greater confidence in the charity, as well as the ability to collect Gift Aid. We have successfully raised the minimum £5,000, and we have recently completed a significant portion of the preparatory legal work. We are now in the process of registering our charity, but it remains difficult to predict how long the process will take.
We do everything that we can to keep our costs to a minimum. Allah has blessed us with considerable support from brothers and sisters, as well as companies who allow us to use their resources, including servers and technical knowledge. With the help of Allah, and then their help, we don't need an office, computer equipment, or an accountant to run our projects. Our only significant regular costs outside of our projects relate to the web sites that have been donated to us, and we have a specific policy for those, mentioned below.
We aim for the majority of our projects to be self-sustaining, after the initial investment to get the project off the ground. We would not look favourably upon a project that is completely reliant upon donations to sustain itself, except for projects relating to poverty relief (such as the legacy 1kappeal). We also discourage projects which cannot achieve anything without fundraising, and we generally see fundraising as a way to speed up and expand a project, rather than an essential component of it.
We are opposed to the use of aggressive and intrusive fundraising methods. We believe that fundraising will - in shaa' Allah come naturally through spreading information about the charity, and through those who benefit from the work that we do. We are also very conscious that we do not want to compete with charities which are doing vital work in international aid and poverty relief.
Upon founding the charity, the trustees donated a number of web domains that they had purchased. While some of these domains are scheduled be developed as part of the 2014/15 projects, some are not. This means that there is a cost of renewing those websites each year, normally around £7 per site per year for a .com domain. Because of the concern that some of these sites may not be developed for several years, we review our portfolio once a year. Any sites that are not considered as being value for money are either to be cancelled, or paid for by the trustees themselves. In general, we would not keep a domain undeveloped for more than three years, unless there was significant value in keeping the domain, such as a high resale value. We currently have around 20 domains in our portfolio, of which at least 7 (including humblefoundation.org and its variants) are scheduled to be developed by the end of 2015, in shaa' Allah.
Our Zakāh Policy
We take the responsibility of zakāh very seriously, and we do not use zakāh except for those projects where it is clearly allowed. We do not allow zakāh to be spent on anything vaguely termed fee sabeelillāh, rather we hold a strict and limited definition of the things which zakāh can be spent on. Excess zakāh will be passed on to other worthwhile charities, in shā' Allah. If you are donating zakāh, please let us know, either in the bank reference, or via the email above.
We always aim to pay zakāh out within the same month that it is received, in order that the obligation is fulfilled as quickly as possible.
How We Allocate General Donations
Many donations that we receive are not given for a specific project. Therefore, we have a policy of allocating funds as follows:
- Minimum Reserve: We always keep a minimum reserve, to make sure that we can continue to meet our monthly and yearly obligations, and so that we don't get charged for missed payments.
- The Remainder: Funds are allocated according to a number of factors, most importantly the need and urgency of a particular project, whether the project is ready to use the funds, and how close a project is to reaching its fundraising target.
We generally don't allocate these funds until the time comes to spend the money, in order to offer maximum flexibility.
We have a policy of not allocating funds to projects that were not advertised at the time that the donation was given. This is because people often donate based on the projects that they see advertised, and therefore it's not fair to use their donation for projects that they had no way of knowing about. The exception to this are new projects that are simply part of a larger, previously advertised project (such as Welcome to Islam as an offshoot of New Muslim Support) - since these are essentially the same.
Donations & Spending So Far
This section has been removed temporarily while we develop an easier way of keeping this updated.