Fatwa's Insights - Muamalah

THE 66TH MEETING OF THE PERLIS STATE FATWA COMMITTEE / 2023

28 - 29 NOVEMBER 2023 / 14 - 15 JAMADIL AWAL 1445H

GUIDELINES AND RULING ON THE MANAGEMENT OF PUBLIC DONATION COLLECTIONS

1. Donation collections by Non-Governmental Organisations (NGOs) or any institutions acting as representatives for other parties, such as collections for Palestine and the like, are under the contract of wakalah, whereby the party acting as representative is obligated to fulfil the purpose of the donation entrusted as has been agreed upon.

2. Donation collections by Non-Governmental Organisations (NGOs) or any institutions for themselves, then the collected funds may be used according to what has been notified to the donors.

3. Non-Governmental Organisations (NGOs) or any institutions acting as representatives for other parties with remuneration (Wakalah bi al-Ujrah) must manage the collection as promised and cannot cancel such arrangement without obtaining permission from the donors.

4. Non-Governmental Organisations (NGOs) or any institutions collecting donations may take management costs or others on condition that the amount is clearly notified to the donor before the donor agrees to donate.

5. If the purpose of the donation has been achieved before the funds concerned are delivered to the party involved, then the funds must be:

• Returned to the donor, or; 
• Channelled to other purposes with the donor's permission, or; 
• If it is not possible to ascertain the donor's permission after making efforts but no objection is received from the donor, then the funds must be channelled to other places that have equivalent or better purposes.

6. It is prohibited for any party to collect funds from others without fulfilling the trust as intended by the contributor or deceiving the donor such that they are mistaken regarding the funds given. If such occurs, the funds must be returned to the donating party or forgiveness must be sought from them.

The authorities are advised to enact legislation to prevent collections where the stated contract is unclear, such as not displaying the rate of management costs or others taken from donors, not having clear audits and the like.

Attendance of Members of the Perlis State Fatwa Committee:

1. Sahibus Samahah Professor Dato' Arif Perkasa Dr Mohd Asri Bin Zainul Abidin;

2. Sahibul Fadhilah Ustaz Tajul Urus bin Abdul Halim;

3. Sahibul Fadhilah Dato' Dr. Johari bin Mat;

4. Sahibul Fadhilah Professor Dr. Muhamad Rozaimi bin Ramle;

5. Sahibul Fadhilah Professor Dr. Basri bin Ibrahim;

6. Sahibul Fadhilah Dr. Hj Zaharuddin bin Hj Abdul Rahman;

7. Sahibul Fadhilah Professor Dr. Azman Bin Mohd Noor;

8. Sahibul Fadhilah Associate Professor Dr. Mohd Akram bin Dato' Dahaman @ Dahlan;

9. Sahibul Fadhilah Dr. Ahmad Sufian bin Che Abdullah;

10. Sahibul Fadhilah Dr Kamilin bin Jamilin;

11. Sahibul Fadhilah Associate Professor Dr Ahmad Wifaq Bin Mokhtar;

12. Sahibul Fadhilah Ustaz Syed Abu Bakar bin Syed Kamal Bharin;

13. Sahibul Fadhilah Dr. Muhammad Lukman bin Mat Sin;

14. Al-Fadhil Ustaz Muhammad Khidhir bin Abdul Ghani – Secretary.

RESOLVED at the Meeting of the Majlis Agama Islam dan Adat Istiadat Melayu Perlis Bil. 6/2023 on 4 December 2023.