Using a Cash Waqf to Finance Community Development

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  Ahleyah Abdul-Rahman

  Ramadan 16, 14432022-04-17 at 22:04

  2022-04-17 22:04:14

  Course of action: Build our community capability to create new businesses and staff them with skilled people.

  As we are near the end of the Discuss phase, I suggest we start thinking about the teams we need to form to work on the topics we have discussed. Once we move on to the Deliver phase we need to be ready to... (Read More)

  As we are near the end of the Discuss phase, I suggest we start thinking about the teams we need to form to work on the topics we have discussed. Once we move on to the Deliver phase we need to be ready to begin working on these teams.

  There are a few items that we haven't discussed, but require our attention. They are:

  1. We need training in how to set up and operate our cash waqf.
  2. We need to find someone knowledgeable who will work with us to make sure we conform to the Shariah requirements for operating our waqf.
  3. We need a way to assess the training needs of our community.
  4. We need a way to follow-up with trainees to help them make a positive impact on our community.
  5. We need a way to assess the microbusiness needs of our community.
  6. We need to develop a process for evaluating microbusinesses that merit qard al-hasan.
  7. We need a way to follow-up with microbusinesses to assess the impact they are having on our community.
  8. We need to build reports that provide appropriately detailed descriptions of progress made, include them in the shura, and publish them on our website.

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  Joyce Flynn

  Ramadan 16, 14432022-04-17 at 19:00

  2022-04-17 19:00:31

  Course of action: Build our community capability to create new businesses and staff them with skilled people.

  Since we know our community does not already have the required skills we are talking about, let's try to reach out to others to help us build them.

  I think we will need to set up the following expense accounts... (Read More)

  Since we know our community does not already have the required skills we are talking about, let's try to reach out to others to help us build them.

  I think we will need to set up the following expense accounts to pay for all of this:

  The Waqf Management Expense Account - to pay for all waqf operational fees, including ongoing waqf promotional campaigns, personal and commercial property management fees, and continuous waqf stakeholder education on the progress being made.

  The Training Expense Account - to pay for fees associated with training activities according to decisions made during the shura process. It could be to provide financial support to cover only trainee course fees, or additionally it could be to pay a variety of related fees such as materials, transportation, etc.

  The Microbusiness Development Expense Account - to provide qard al-hasan to those organizations who need financial support to sustain their business development. The account is also used to pay for monitoring the performance of funded organizations and advising them in ways to improve performance.

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  Ahleyah Abdul-Rahman

  Ramadan 16, 14432022-04-17 at 21:52

  For each of these accounts I propose we allocate a certain percentage of the cash waqf fund listed below to each of the expense accounts:

  • 20% to the Waqf Management Expense Account
  • 50%... (Read More)

  For each of these accounts I propose we allocate a certain percentage of the cash waqf fund listed below to each of the expense accounts:

  • 20% to the Waqf Management Expense Account
  • 50% to the Training Expense Account
  • 30% to the Microbusiness Development Expense Account

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  Khalil Abdul-Rahman

  Ramadan 16, 14432022-04-17 at 18:17

  2022-04-17 18:17:20

  Course of action: Build our community capability to create new businesses and staff them with skilled people.

  To meet the cash waqf requirement of keeping the principal amount in the fund, I suggest setting the principal amount to be 1000 currency units. Contributions that exceed this amount can be used to provide... (Read More)

  To meet the cash waqf requirement of keeping the principal amount in the fund, I suggest setting the principal amount to be 1000 currency units. Contributions that exceed this amount can be used to provide needed services to beneficiaries and to satisfy operational requirements of the waqf.

  Let's create a Reserve Account for this purpose.

  Because of the expected yearly reduced purchasing power of the currency, we likely will have to add more to this account.

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  Ahleyah Abdul-Rahman

  Ramadan 16, 14432022-04-17 at 18:37

  Our community does not have the skills that are required to create the variety of new businesses that are needed. And we certainly don't have enough skilled people to staff them.

  Our community does not have the skills that are required to create the variety of new businesses that are needed. And we certainly don't have enough skilled people to staff them.

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  Joyce Flynn

  Ramadan 16, 14432022-04-17 at 18:28

  So we probably need more than one way to fund the waqf to make this work.

  I propose we use the following ways:

  1. Subscription donations - cash deposits made on an annual basis.
  2. Transfers... (Read More)

  So we probably need more than one way to fund the waqf to make this work.

  I propose we use the following ways:

  1. Subscription donations - cash deposits made on an annual basis.
  2. Transfers of Islamic financial certificates - cash deposits made annually based on a specified percentage of yearly earnings.
  3. Transfers of personal and commercial property - cash deposits made annually based on a specified percentage of yearly profits.

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  Ahleyah Abdul-Rahman

  Ramadan 16, 14432022-04-17 at 15:01

  2022-04-17 15:01:14

  Course of action: Build our community capability to create new businesses and staff them with skilled people.

  Another way to look at this is to think in terms of an essential capability that our community needs to build.

  If we want to start working with youth, then that is okay. But building a community capability... (Read More)

  Another way to look at this is to think in terms of an essential capability that our community needs to build.

  If we want to start working with youth, then that is okay. But building a community capability would involve working with all groups.

  Also, working with youth requires involvement with other community groups. We would need to learn how to effectively engage all groups even if we start with any one of them.

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  Joyce Flynn

  Ramadan 16, 14432022-04-17 at 15:06

  Agreed.

  Agreed.

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  Joyce Flynn

  Ramadan 16, 14432022-04-17 at 14:45

  2022-04-17 14:45:42

  Course of action: Create apprenticeships and job opportunities for youth.

  It might be helpful to consider focusing on helping our youth.

  By starting with them we may be able to concentrate our resources on the part of our community that has the greater long-term impact.

  It might be helpful to consider focusing on helping our youth.

  By starting with them we may be able to concentrate our resources on the part of our community that has the greater long-term impact.

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