Hypothetical question: If you were at a Ramadan fundraising banquet on orphan programs and the speaker disclosed he was getting a 30% commission for speaking to you, would that influence your donation?
What would you do if you found out later?
What if the organization can show the speaker can generate 1000% more in donations than a banquet crowd would otherwise give, would that matter?
Apr 9, 2023·edited Apr 9, 2023Liked by Ahmed Shaikh
The general culture surrounding the banquet-style fundraiser is already problematic, so in the unlikely event I would consider attending one, and the even more unlikely scenario of actually donating at such an event, learning this would probably prevent the donation. Learning it afterwards would just further solidify my general opposition to such events.
There are plenty of charities to choose from, I figure, so why donate to the ones whose practices I don't approve of?
The real “impact” is from Allah, not from reports showing 10x returns from charity “professionals.” These are acts of worship, and thus Muslims should focus on performing acts of worship with ihsan and thoughtfulness, not building out profitable ecosystems and sadaqa/zakat industrial complexes. Muslims should in fact seek the destruction of these bloated ecosystems and stop opportunists that often times end up delving into outright haram.
Are the hungry fed and the homeless housed because of the motivational speaker who charges money to manipulate donors, or because Allah provides?
This raises huge red flags for me. Its important to have a holistic perspective and not judge each expense/commission/fee separately.
If the organization is giving this speaker 30% of donated funds, that certainly does not mean that 70% of funds are going towards orphans. In fact, most likely much less than 70% is going towards orphans.
An organization that can spend that much money bringing in influential speakers most likely also has very expensive Launchgood campaigns, has high overhead costs and likely does not do orphan program directly, but gives grant funds to local organizations that do. These local organizations also have their own overhead that also must be paid.
I would guess that only a small percent of my donation would end up with orphans. Likely 25% or even less.
And this would be the case even if the speaker generates 1000% more in donations for the organization; most of it would not go towards orphans, but simply would circulate towards future speakers and banquets, Launchgood fees, and admin costs.
Would I donate to this organization if they were 100% transparent with regard to costs (which none are)? Likely not if they billed the event as support for orphans.
However, lets say they billed it as 'a night of entertainment/enlightenment with Comedian/Superstar Shaykh etc: and said "10% of proceeds go towards orphans" I may consider it. These events are not really my thing, but I may choose to go with family members who are into this sort of thing as a means of 'silat ar rahm" (building/maintaining family relations).
I don't believe in commissions whereby the fund raiser makes a percentage of what is raised, but do accept a flat rate fee as some fundraisers are very knowledgeable, beyond what most organizational staff can impart regarding the Deen and the Ummah. It makes for an informative session, in many instances, however, I am opposed to being shamed into giving. I have heard some really beautifully executed fund raising pitches.
I think it’s all about transparency and honesty. If the charitable organization was to have separate funding or donations specifically for their advertising/operations (in which the donors know that their money can potentially be used in this manner) and they use this to pay the speaker his commission, then no problem. The pay of the speaker can be tied to how much he collects.
However, using funds collected for orphans or other causes and then using 30% (or any amount) for what, at best, can be deemed an “operational cost/advertisement cost” would be wrong.
I would treat it like money being donated to a charity organization for advertisements.
If it helps increase the amount of donations and overall help to those in need, then I’m all for it (provided everything is done with transparency)
As for whether I would personally donate for it, I’d be open to it for sure. It would be a small part portion of the overall donations I give overall though.
Especially if the organization has/collects data showing how much more they have been able to achieve from paying such commissions, I think that would push people to actually donate to such a fund.
A pity perspective indeed. Artist belongs to the theater where he is ought to get paid for whatever tears he sheds, and depending on how artfully he does it.
Muslim nonprofits are the major benefactors of Muslim stand up comics and singers, with some art having a tenuous to nonexistent relationship with Islam or the organizations mission.
Donating anything at the banquet would be a huge ethical dilemma. If the cause is an emergency situation I would donate at least a part of what I intended to donate...However I would refrain from attending future fundraisers of this organization.
Yeah, that is a good question to bring up because there are a number of organizations who are spending a lot of money on social influencers and banner ads on the internet, for example, and one is left wondering how much they are deducting from the donation to cover these expenses. To be honest, there are only a few organizations that I'm willing to donate to. I generally try to stick to my local Masjid as they are always in need of funds to carry out their various educational programs and to keep the facilities up to date. I'm a strong believer in charity beginning at home. I did my own city I know of many cases in which people are struggling and are in need of help even though they may be getting some government assistance. I guess an answer to your question, it all depends on which organization I'm dealing with and the reputation that they have. There is one organization that I deal with that has 0% overhead and I am very impressed with what they have been able to achieve. This may not be realistic for most organizations, but I think there has to be something more reasonable 30 and 40% overhead costs even if the charitable sector allows for this.
I have not evaluated Canadian nonprofits yet, however some of them actively market in the US and plenty of Canadians do read this newsletter, so I am interested. Thanks for the heads up. They look fantastic regardless, at least from what they are saying.
On an unrelated note, why does the speaker need to get a commission off of what's donated that night?
Why can't he be paid a set agreed amount from before? Is it not common for charities to have a separate donation fund that goes towards an endowment, and then use the money from there to do whatever they want?
Endowments tend to be regulated by state law, with states having a variation of the Uniform Prudent Management of Institutional Funds Act. It’s not exactly a slush fund.
My local Masjid usually hires a ringer or a paid fundraiser : this year for the second time they’ve hired a man who makes anti-Semitic statements in public .
Why do we need to pay commissions for the Ummah to do the right thing and spend in the path of Allah
My local Masjid needs $12K a day this Ramadan
Masjids must learn to become self sufficient or face extinction in an age of diminishing resources . Recessions don’t last forever and the good times will return … can our Masjids survive without tax breaks and generous donations from cash strapped citizens like you ?
I'm always for a more lean organization and fundraising along with better transparency. The 30% commission would make me personally be very reluctant to donate. And I generally don't donate through speakers who come to mosques around me because I heard they generally charge a high commission to do that.
The general culture surrounding the banquet-style fundraiser is already problematic, so in the unlikely event I would consider attending one, and the even more unlikely scenario of actually donating at such an event, learning this would probably prevent the donation. Learning it afterwards would just further solidify my general opposition to such events.
There are plenty of charities to choose from, I figure, so why donate to the ones whose practices I don't approve of?
The real “impact” is from Allah, not from reports showing 10x returns from charity “professionals.” These are acts of worship, and thus Muslims should focus on performing acts of worship with ihsan and thoughtfulness, not building out profitable ecosystems and sadaqa/zakat industrial complexes. Muslims should in fact seek the destruction of these bloated ecosystems and stop opportunists that often times end up delving into outright haram.
Are the hungry fed and the homeless housed because of the motivational speaker who charges money to manipulate donors, or because Allah provides?
This raises huge red flags for me. Its important to have a holistic perspective and not judge each expense/commission/fee separately.
If the organization is giving this speaker 30% of donated funds, that certainly does not mean that 70% of funds are going towards orphans. In fact, most likely much less than 70% is going towards orphans.
An organization that can spend that much money bringing in influential speakers most likely also has very expensive Launchgood campaigns, has high overhead costs and likely does not do orphan program directly, but gives grant funds to local organizations that do. These local organizations also have their own overhead that also must be paid.
I would guess that only a small percent of my donation would end up with orphans. Likely 25% or even less.
And this would be the case even if the speaker generates 1000% more in donations for the organization; most of it would not go towards orphans, but simply would circulate towards future speakers and banquets, Launchgood fees, and admin costs.
Would I donate to this organization if they were 100% transparent with regard to costs (which none are)? Likely not if they billed the event as support for orphans.
However, lets say they billed it as 'a night of entertainment/enlightenment with Comedian/Superstar Shaykh etc: and said "10% of proceeds go towards orphans" I may consider it. These events are not really my thing, but I may choose to go with family members who are into this sort of thing as a means of 'silat ar rahm" (building/maintaining family relations).
I don't believe in commissions whereby the fund raiser makes a percentage of what is raised, but do accept a flat rate fee as some fundraisers are very knowledgeable, beyond what most organizational staff can impart regarding the Deen and the Ummah. It makes for an informative session, in many instances, however, I am opposed to being shamed into giving. I have heard some really beautifully executed fund raising pitches.
I think it’s all about transparency and honesty. If the charitable organization was to have separate funding or donations specifically for their advertising/operations (in which the donors know that their money can potentially be used in this manner) and they use this to pay the speaker his commission, then no problem. The pay of the speaker can be tied to how much he collects.
However, using funds collected for orphans or other causes and then using 30% (or any amount) for what, at best, can be deemed an “operational cost/advertisement cost” would be wrong.
Would you donate to a designated fund to pay for donation solicitor commissions?
I would treat it like money being donated to a charity organization for advertisements.
If it helps increase the amount of donations and overall help to those in need, then I’m all for it (provided everything is done with transparency)
As for whether I would personally donate for it, I’d be open to it for sure. It would be a small part portion of the overall donations I give overall though.
Especially if the organization has/collects data showing how much more they have been able to achieve from paying such commissions, I think that would push people to actually donate to such a fund.
A pity perspective indeed. Artist belongs to the theater where he is ought to get paid for whatever tears he sheds, and depending on how artfully he does it.
Muslim nonprofits are the major benefactors of Muslim stand up comics and singers, with some art having a tenuous to nonexistent relationship with Islam or the organizations mission.
1. Would donate the original intended amount outside of the banquet.
2. Fool me once, shame on you. Fool me twice, shame on me.
3. That’s good for them. Let him prove his worth. As long as he’s not counting his donations as “zakat-eligible!”
As a practical matter, potential prospects are tagged and tracked for a set period of time (30 days or so).
Donating anything at the banquet would be a huge ethical dilemma. If the cause is an emergency situation I would donate at least a part of what I intended to donate...However I would refrain from attending future fundraisers of this organization.
I would not donate anything at the banquet and then donate later outside of the banquet.
You would be comfortable with the organization then even so?
Yeah, that is a good question to bring up because there are a number of organizations who are spending a lot of money on social influencers and banner ads on the internet, for example, and one is left wondering how much they are deducting from the donation to cover these expenses. To be honest, there are only a few organizations that I'm willing to donate to. I generally try to stick to my local Masjid as they are always in need of funds to carry out their various educational programs and to keep the facilities up to date. I'm a strong believer in charity beginning at home. I did my own city I know of many cases in which people are struggling and are in need of help even though they may be getting some government assistance. I guess an answer to your question, it all depends on which organization I'm dealing with and the reputation that they have. There is one organization that I deal with that has 0% overhead and I am very impressed with what they have been able to achieve. This may not be realistic for most organizations, but I think there has to be something more reasonable 30 and 40% overhead costs even if the charitable sector allows for this.
Who is that?
https://obatcanada.org
Looks great. Not a zakat org or a Muslim org, but nice model.
They are Muslims.
JazakAllah khair
You have anything in writing on the religious obligation of zakat?
I can ask Shuj and can get back to you if you’d like
I have not evaluated Canadian nonprofits yet, however some of them actively market in the US and plenty of Canadians do read this newsletter, so I am interested. Thanks for the heads up. They look fantastic regardless, at least from what they are saying.
On an unrelated note, why does the speaker need to get a commission off of what's donated that night?
Why can't he be paid a set agreed amount from before? Is it not common for charities to have a separate donation fund that goes towards an endowment, and then use the money from there to do whatever they want?
Endowments tend to be regulated by state law, with states having a variation of the Uniform Prudent Management of Institutional Funds Act. It’s not exactly a slush fund.
I rarely attend fundraisers
If the speaker is paid
I’ll pay for my dinner and will not donate
My local Masjid usually hires a ringer or a paid fundraiser : this year for the second time they’ve hired a man who makes anti-Semitic statements in public .
Why do we need to pay commissions for the Ummah to do the right thing and spend in the path of Allah
My local Masjid needs $12K a day this Ramadan
Masjids must learn to become self sufficient or face extinction in an age of diminishing resources . Recessions don’t last forever and the good times will return … can our Masjids survive without tax breaks and generous donations from cash strapped citizens like you ?
I'm always for a more lean organization and fundraising along with better transparency. The 30% commission would make me personally be very reluctant to donate. And I generally don't donate through speakers who come to mosques around me because I heard they generally charge a high commission to do that.