The following is a document detailing the NASIMCO policy for donations.
SECTION A: Policy Statement
- NASIMCO shall accept donations and provide the donor with a receipt for donation received based on the general principles and procedures contained in this policy and endorsed by the Executive Council.
- The Executive Council shall be responsible for ensuring that the principles and procedures contained in this policy are appropriately complied by NASIMCO.
SECTION B: General Principles
- Donations received shall be used solely to further the objectives of NASIMCO and the World Federation (NASIMCO’S parent body)
- A donation shall not be accepted where a donor sets conditions over its use for a purpose that is inconsistent with the objectives of NASIMCO.
- Donations shall not be accepted for or restricted to a specific organization or person, except where NASIMCO Executive endorses such donations as valid and genuinely meeting the objectives of NASIMCO especially in the areas of relief for food, shelter and education. However, donations can be restricted by a donor for a program, service or initiative that has been endorsed by NASIMCO Executive Council.
- NASIMCO shall not act as a conduit for flow through of funds destined to other organizations.
- NASIMCO may accept ‘Gift-in-Kind’ provided the value of such donation could reasonably be established through professional appraisal, or other independent documentary evidence.
- NASIMCO may accept gifts of listed securities including stocks, bonds, bills, warrants and futures, and mutual funds traded on approved stock exchanges in Canada, USA and other countries. NASIMCO may also accept gifts of privately owned shares and partnership interests.
- All gifts covered under (e) and (f) above can be accepted only if the following conditions are satisfied:
- The gifts meet the “ethical test” in that they are not connected to any entity, business or venture that is carrying out activities that are contrary to the teaching of Islam.
- NASIMCO will not be obligated to assume any obligations or liabilities, or be subject to any penalties by receiving them.
- An appropriate due diligence is carried out by a sub-committee of the Executive Council with regard to (g)(I) and (II) above.
- The Executive Council shall, delegate the President and the Treasurer to ensure that that the laws of Canada and USA applicable to acceptance, recording and disbursement of donations are complied with at all times.
- Unexpended restricted donations may be held until the goals of a program, service or initiative have been achieved. Thereafter identifiable donors will be approached to either assign their donations to other programs, services or initiatives or remove the restrictive conditions.
- Donations shall not be refunded where a tax-deductible receipt has been issued.
- NASIMCO shall not solicit donations directly or indirectly without first defining a clear statement of purpose that is congruent with its objectives and which is agreed to and approved by the NASIMCO Executive Council. Approval by the NASIMCO Executive Council has to take place at a meeting where the discussion to solicit donations for the purpose is a clear agenda topic established via prior communication to the NASIMCO Executive Councillors. The communication to potential donors shall include details of the program, service or initiative, ways in which accountability over the use of funds shall be maintained, indicators of effectiveness, and a process to keep donors informed about the use of funds
- Disbursement of donations shall be through a transparent and accountable process that reflects best governance and internal controls practices.
SECTION C: Procedures
- NASIMCO Treasurer shall issue receipts for donations received within 30 days of the donations being received
- Donations shall be recorded as either restricted or unrestricted
- Restricted donations shall be applied to intended purpose as speedily as possible
- The Treasurer shall table at each Executive Council meeting a monthly and year-to-date analysis of unrestricted and restricted donations received and disbursed
- Disbursement of donations shall be authorized through a ‘Payment Voucher’ signed by the President and/or V.President and Treasurer and supported by a rationale, basis or authority for the disbursement