Working Toward Sustainability in Nonprofits
By Sundus Abrar
July/Aug 2024
Muslim nonprofits primarily depend on the generosity of donors. Ramadan is the peak season for fundraising because of the promised reward of good deeds being multiplied. This drives many to prefer fulfilling the obligation of zakat during Ramadan, even though it can be given at any time.
Zakat is broadly calculated as 2.5% of savings and investments. In the same vein, Muslims also give more voluntary charity (sadaqah) in Ramadan. This remarkable generosity in Ramadan is not consistent after it and nor is it indicative of long-term trends. This sporadic shift in monetary contributions is further amplified when Muslims redirect their contributions primarily towards supporting people struggling across the globe. The genocide in Gaza has correlated with diminished funds going towards local relief programs. “Of course Muslims should continue to give to international causes which are so important, but a portion has to be shared here,” said Saima Azfar, Regional Director of ICNA Relief Midwest.
“People give a lot during Ramadan, and then there is very little for some time after,” said Nawal Ali (fund development coordinator, ISNA). “Global crises do take attention away from local efforts. The potential of community events to benefit the ummah may feel like a secondary concern when people are grappling with the basics and lack of security.”
She believes Muslim communities often feel compelled to direct more money toward providing relief for dire shortages of food, shelter and health during man-made crises or natural disasters, which do evoke a stronger response. However, efforts to benefit local communities must be given due attention too. “You need to build a community for it to thrive,” said Ali.
Community events can build confidence in individual members, encourage more involvement and collaboration from individuals. Through this, communities can be more aligned and allow them to be more effective in serving locally and globally. Maintaining a steady focus on community support services can be achieved through consistent communication and monetary support. She encourages all organizations to focus on feedback and responding to criticism.
Remember Your Neighbors
Many organizations grapple with shifts in charitable contributions when Muslims direct their contributions primarily toward global efforts.“The need is still here. One in 5 children are hungry in our own neighborhoods. We cannot stop here. We must continue to serve our neighbors too,” Azfar said.
ICNA Relief’s efforts seek to provide Muslims with, among other help, food, housing and health services. Some programs may qualify for federal grants, but the organization primarily depends on fundraising. Despite the proximity of the many programs addressing local Muslims’ needs, donors sometimes lose perspective of them when responding to issues affecting the ummah.
Abdullah Syed (development coordinator, A Continuous Charity [ACC]), agrees. ACC entrusts Muslim students with interest-free loans, thereby emphasizing the importance of relevant outreach. “I do believe that whenever there is a disaster, whether natural or man-made, people end up giving more. However, it’s not a finite pool. We saw that in Covid, people had increased their giving to ACC,” he remarked.
At the onset of the genocide in Gaza, ACC cancelled fundraising events in October through December in response to the sheer devastation Still, reframing and recommitting to local efforts has potential to benefit Muslims world over. “The best thing to do is to continue our mission and look towards long term goals. For us, educating our community allows us to have a louder voice. If we can educate our community we are able to create future leaders who can be changemakers in all fields possible,” Syed said.
Diversified Fundraising
Muslims Understanding and Helping Special Education Needs (MUHSEN) also relies on the generosity of donors. However, they understand the critical need in Gaza and other parts of the world.
“One thing we always remind donors and those fundraising for us is that there is room for both; one can support a humanitarian cause as well as our mission,” said Kiran Ahmad, MUHSEN Development Coordinator. “Our goal as a nonprofit is to fill the gaps of service that other organizations have not been able to. Grants, crowdfunding, donation matching, and fundraising during different times in the year have kept us growing.” Nonprofits should work to be mindful in how they advertise with funds. “We try to spread our mission through primarily showcasing our work as it speaks for itself,” Ahmad added. In her experience, private donor dinners tend to have better outcomes for fundraising as special needs families are not always able to partake in the Ramadan social events.
A gap in communication and awareness certainly contributes to inconsistency in donations. In Azfar’s experience with ICNA Relief’s efforts, communities respond better to requests when they are informed of the ongoing needs close to them. “As a community, we are behind on planning, and we must strategize. We are very reactive,” said Azfar.
Planning and reflection are crucial for nonprofits to sustain and grow their programs to consistently meet the needs and demands of community members. “What I have noticed is people like to donate to people. They may respond better to a specific ask,” said Syed. An intentional approach in recognizing the motivations of donors can relay into effective communication. “Diversify. People respond to different asks at different times,” said Syed. When donors are updated, and receive gratitude for their contributions it translates to a sustained relationship between a non profit organization and its contributors.
Operational Costs are Necessary
This meticulous approach requires some funding to be allocated towards operational costs. Operational costs are crucial to sustaining and growing organizations’ efforts. For instance, necessary systems to study an organization’s status and staff to consistently drive efforts could be some of the operational costs necessary for long term success and implementation of programs. Yet, donors are often weary of operational costs. The sentiment is that the donation is not going to aid the beneficiaries of the program. “That’s one of the biggest problems in the Muslim community- not understanding that you do need that operational dollar. We have to run the organization- it’s like a car. Just by simply having a car you are not going to get anywhere. You have to have gas to go from point A to point B. The money any organization needs to operate is the gas, “said Syed.
Fundraising is a constant effort, and the results are not guaranteed. A nonprofit must diversify its means of generating revenue to ensure that it can sustain and consistently extend its services. Operational costs enable the staff to implement the appropriate tools to plan and implement long term programs.
Directing funds to endowments and investing is a promising approach to overcoming the inconsistencies in fundraising patterns. Endowments can cover ongoing long-term operational costs thus minimizing this ask which causes much hesitation. While conveying the immediate benefit of this approach is challenging to convey, it is imperative to support nonprofits as they strive towards sustainability and educate our communities of the potential return on the various halal investment opportunities such as Islamic mutual funds, real estate, start-ups and more.
“This is a vital need. You can’t serve and continue with an organization on a day-to-day basis. We have endowment funds. We are encouraging donors to give on a recurring basis, seeking grants from foundations, and seeking government funding,” Azfar emphasized. Grants do offer some reprieve, but often come with guidelines that can restrict an organization’s capacity to serve. “We want to provide our families with extra support and help them holistically. Sometimes grants don’t take this into consideration. Endowment must take precedence for the longevity of support efforts.”
The Muslim community should be aware of financial trends and take them into observed consideration when approaching sustainability in nonprofits. A historical and unprecedented transfer of wealth is anticipated. “The Great Wealth Transfer” is expected to take place over approximately the next two decades where approximately $70 to $90 trillion will be inherited from baby boomers. “This is a huge area of opportunity that may not come again. Muslims can really benefit, and this can be utilized for creating meaningful change, “ said Syed. One way for the Muslim community to maximize this opportunity is to consider listing Non-profit organizations as beneficiaries in wills. “Planned giving is often overlooked in the Muslim community, and something that should be looked into,“ said Syed.
While Muslims need to be informed and responsive to the struggles of the global ummah, we must not lose sight of our ability to create long-term change. “We need to step up, put our brains together and join hands to think how we can protect future generations,” Azfar contended. “We need to craft a thoughtful approach to see the sustainability of nonprofits and amplify the potential of the Muslim community to advance in all areas.”
Sundus Abrar is a resident of Chicago, parent of two, and an elected representative in the Local School Council. Additional reporting by Yusra Shakaib.
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