SDA Amaanat Fund Policy (For Donors)

Darul Khair – Social & Development Alliance (SDA)

1. Introduction

The SDA Amaanat Fund is a temporary, refundable, interest-free support system through which donors provide funds to the Trust as an Amaanat (Trust Loan) for a fixed duration, generally one year. These funds are used exclusively for Qarz-e-Hasana, welfare support, emergency relief, and community development initiatives.

The Amaanat Fund is not a donation until the donor voluntarily converts it into one.

2. Legal Foundation (Trust Deed Compliance)

This policy is fully aligned with the Darul Khair Trust Deed:

Clause X(k): The Trust may accept loans, grants, donations for achieving its objectives.
Clause 10(xiii): The Trust may borrow money under terms it finds appropriate.

Therefore, accepting refundable Amaanat (Trust Loans) is legally permitted and compliant with the Trust Deed.

3. Purpose of the Amaanat Fund

The primary objectives of the SDA Amaanat Fund are: – To provide interest-free loans (Qarz-e-Hasana) to individuals in need. – To support welfare programs without financial interruption. – To empower donors to contribute in a Shariah-compliant, transparent manner. – To create a sustainable and rotating fund for long-term community development.

4. How the Amaanat Fund Works

A donor deposits an amount as Amaanat for a fixed period (typically one year).
The Trust uses these funds to provide Qarz-e-Hasana and support welfare activities.
Once the loaned amount returns to the Trust, the donor may:
1. Receive the full amount back (refund), or
1. Convert the amount into a donation, or
1. Extend the Amaanat period for another year.

5. If a Borrower Fails to Repay the Qarz

In cases where a loan recipient is unable to return the Qarz due to hardship or emergency circumstances, the Trust will notify the donor. The donor will then have the following options:

Option A — Forgive the Amount (Convert to Donation)

The donor may choose to forgive the full or partial amount, which will then be treated as a charitable donation. A donation receipt will be issued.

Option B — Extend the Duration

The donor may extend the Amaanat for an additional year, allowing the amount to continue circulating for community benefit.

Option C — Partial Forgiveness and Partial Return

The donor may forgive a portion of the amount and request the remaining balance when available.

These options ensure complete transparency and flexibility while maintaining compliance with the Trust Deed.

6. Repayment of Amaanat

The Trust returns the exact amount deposited by the donor.
No profit, interest, bonus, or financial gain of any kind will be added.
Standard repayment period: 12 months, unless extended by the donor.

7. Transparency & Record Keeping

The Trust will: – Maintain detailed records of every Amaanat transaction. – Issue an Amaanat Receipt to each donor. – Record Amaanat amounts under the Liability category in financial books. – Update the Amaanat status during annual audits.

8. Donor Rights

Donors participating in the SDA Amaanat Fund have the right to: – Request a refund at the end of the agreed period. – Convert their Amaanat into a donation. – Extend the Amaanat for additional years. – Receive transparent financial statements. – Request updates on the usage of their Amaanat.

9. Donor Responsibilities

Donors must: – Provide funds from lawful income sources. – Submit accurate personal information. – Review and adhere to this policy. – Inform the Trust of their decision (refund/extension/donation) upon completion of the term.

10. Restrictions (Business Use Policy)

The SDA Amaanat Fund is strictly charitable and must comply with Trust Deed principles.

Not Allowed:

The Trust cannot use Amaanat funds for business, trade, investment, or profit-making activities.
The Amaanat Fund is not an investment scheme and provides no profit or return to donors.
Funds cannot be used for risky ventures such as trading, crypto, stock markets, or partnership businesses.
Trustees or staff cannot use these funds for personal or business purposes.

Allowed:

Amaanat Funds may be used to provide Qarz-e-Hasana to small business owners, self-employed individuals, and micro-entrepreneurs, provided:
- The business is Halal.
- The purpose aligns with Trust objectives: poverty relief, livelihood support, and micro-credit assistance.
- The loan is strictly interest-free.

11. Conversion to Donation

An Amaanat becomes a donation only when: – The donor voluntarily chooses to donate. – The Trust issues an official Donation Receipt.

Once converted, the donation is non-refundable.

12. Documentation Requirements

Each Amaanat transaction will include: – An Amaanat Application/Acceptance Form. – Donor details (name, address, contact). – Amount deposited. – Agreed duration. – Donor’s signature. – Issuance of an Amaanat Certificate/Receipt.

13. Dispute Resolution

Any concerns or disputes will be resolved according to: – Darul Khair Trust Deed provisions. – Decisions made by the Board of Trustees.

14. Conclusion

The SDA Amaanat Fund is a Shariah-compliant, interest-free, charitable, and legally approved financial support model. Donors actively contribute to community upliftment while retaining full flexibility to: – Receive their amount back, – Forgive it as donation, or – Extend it for additional terms.

This model ensures sustainability, transparency, and maximum impact for those in need.

Darul Khair — Social & Development Alliance (SDA)