Sadaqa House Bank Islam

Sadaqa House is a charity crowdfunding platform where potential donors and charity projects meet at a common point facilitated by Bank Islam. Bank Islam, through Sadaqa House, provides value-added services to collect, manage and distribute donations from the public by channelling such funds towards identified charity projects that realise positive outcomes for underserved communities within selected focus sectors.

Aimed to deliver positive and sustainable impact, every aspect of the process is implemented with good governance and professional fund management, instilling greater trust and assurance that contributions to Sadaqa House are channelled towards impactful projects that benefit lives directly. Embodying a true Malaysian spirit, Sadaqa House practices an inclusive approach in terms of its policies.

Both Muslims and non-Muslims are welcomed and served by Sadaqa House as donors and beneficiaries. This approach comes from Bank Islam’s belief that opportunities should be open to all in propagating a philanthropic culture and helping all Malaysians to manage their donations from end-to-end.

In 2018, Bank Islam launched a social finance initiative called as Sadaqa House, a hybrid between technology and Shariah solutions. It is a charity crowdfunding platform which acts as a meeting point between donors and change-makers as well as beneficiaries oversighted by Bank Islam. With Sadaqa House, we create a new narrative where participatory funding platform is teaming up with traditional banking to create combined offers for social impacts.

And because Sadaqa House has a bank behind it, thus, all corporate governance practice of the Bank is adopted within its internal process. This is crucial because the Bank performs due diligence on behalf of donors towards the change-makers and beneficiaries of the fund who are of diverse backgrounds, races and religions. We understand the transparency and social impacts are key concerns to any donors, hence, the system within Sadaqa House allows contributors to track the progress of the chosen project.

On 27th May 2022, the Sadaqa House Orphan Fund was launched with a strong aspiration to safeguard the welfare and education of orphans, from new-born babies to adolescents, regardless the race or religion.

The launch marks another significant milestone achieved by the Bank in optimising Islamic social finance instruments to ensure the sustainable livelihood of the community.

The new fund, themed “From Cradle to Graduation”, aims to benefit orphans, from new-borns to adolescents, throughout the country. It ensures that the orphans are not lagging in education and allows them to complete their studies until the tertiary level.

To learn more on the Sadaqa House Orphan Fund click here

Financial Highlights

Fund collection as at 30 June 2023

Sadaqa House Orphan Fund	RM598,155
BangKIT Fund	RM1,034,002
Direct Fund	RM154,151
Institute Jantung Negara Foundation	RM85,243
Yayasan Sultanah Bahiyah	RM6,128
Universiti Teknologi Malaysia	RM3,176
Buku Jalanan Chow Kit	RM23,121
Brain For Future	RM16,807
Mercy Mission Malaysia	RM7,016
MyVista	RM943
PEKDIS	RM11,717
General Fund	RM165,712

Fund distribution as at 30 June 2023

Sadaqa House Orphan Fund	RM121,773
BangKIT Fund	RM501,500
Direct Fund	RM303,832
Institute Jantung Negara Foundation	RM28,400
Yayasan Sultanah Bahiyah	RM16,760
Universiti Teknologi Malaysia	–
Buku Jalanan Chow Kit	RM17,972
Brain For Future	–
Mercy Mission Malaysia	RM187,200
MyVista	RM3,500
PEKDIS	RM50,000
General Fund	RM192,933

Impact Creation

2023

2022

Channel of Contribution:

Fund transfer	Sadaqa House 140 140 101 88888 Bank Islam Malaysia Berhad
Bank Islam Credit Card-i	Through the redemption of Trupoints Rewards at: https://trurewards.bankislam.com.my (Category Product: Welfare)
QR Code DuitNow	Step 1 Select banking application Step 2 Click DuitNow QR Code button Step 3 Scan QR Code and enter donation amount
Boost Application	Step 1 Download the Boost application via Play Store (Android) or App Store (iOS) Step 2 Click button ‘Charity’ and choose Sadaqa House OR Click ‘Scan & Pay’, Scan the QR code Sadaqa House and Step 3 Follow the steps displayed to complete the payment

Tax deductible (for Malaysians)

According to the allocation of subsection 44(6) Act of Income Tax 1967 your donation is tax deductible if you donate to:

Yayasan IJN (Ref LHDN.01/35/42/51/1796.4359)
Yayasan Sultanah Bahiyah (Ref LHDN. 01/35/42/51/179-6.4481)

RM50 and above amount of donation are eligible to demand the tax deduction. This agreement applicable from 1st May 2019 to 31st June 2024.

Please e-mail to sadaqahouse@bankislam.com.my, and we will guide you on how to request for tax deduction receipt.

The uniqueness of Sadaqa House as the crowdfunding platform

As a charity crowdfunding platform, Sadaqa House has become a meaningful channel to give back to society by playing a vital role as an intermediary and meeting point between donors, change-makers and beneficiaries.

With responsibility, accountability and transparency, Sadaqa House collects, manages and distributes donations from the public towards realising identified charitable projects for underserved communities.

Fund Categories

We welcome generous individuals and institutions to choose Sadaqa House to manage your philanthropic fund and let us professionally manage your fund for charitable causes through four selections of funds:

Perpetual Fund: where the principal will remain in perpetuity and invested, only the returns generated will be distributed to charitable causes;
General Fund: where donors do not specify any specific charitable projects and it is the discretional of Bank Islam’s Zakat & Charity Committee to decide the distribution according to available and suitable charitable projects;
Direct Fund: where donors can choose to donate directly to charitable projects under Sadaqa House; and
Wakalah Zakat Fund. Wakalah zakat is a portion of Bank Islam’s zakat refunded by the State Islamic Religious Councils for BIMB’s self-distribution.

For further information:

Website	https://www.sadaqahouse.com.my
Facebook	https://www.facebook.com/sadaqahouse/
Instagram	https://www.instagram.com/sadaqa_house/
YouTube	https://www.youtube.com/channel/UCUhCMHlwkMpM2ICXwpGi0BA
Bank Islam	Group Financial Inclusion Division Bank Islam Malaysia Berhad Level 27, Menara Bank Islam No 22, Jalan Perak 50450 Kuala Lumpur

Management of Fund

Sadaqa House is operated by the Group Financial Inclusion Division of Bank Islam and is guided by Sadaqa House Management Guideline, which was approved by the Management Risk Control Committee and Shariah Supervisory Council of the Bank.

The Sadaqa House and Zakat Committee is the dedicated management sub-committee that provides oversight and direction on the strategies, processes, and activities of Sadaqa House.

Governance of Sadaqa House

In managing the public donations of Sadaqa House, the Bank remains steadfast in promoting and sustaining a strong culture of corporate governance in order to protect the interests of all stakeholders, including the donors and beneficiaries. In this respect, the Board is fully committed to adopting high standards of business integrity, ethics and professionalism with the right executive leadership and strategy. At the same time, the Board ensures internal controls, risk management and compliance to Shariah rules and principles govern all the Bank’s initiatives, including Sadaqa House.

To learn more on the governance structure, please go through our Impact Report.

The four main sectors where funds are channelled are Community Empowerment, Healthcare, Education and Environment. These are in line with the underpinning thrust of Bank Negara Malaysia’s Guidance Documents on Value-Based Intermediation (VBI) for Islamic banks.

Sadaqa House aims to enable and support community-led actions that strengthen social cohesion and inclusivity through sustainable economic and social empowerment within communities.

Sadaqa House aims to support underserved communities to have access to quality health treatment.

Sadaqa House aims to support efforts of community to ensure every child has access to quality education with emphasis on holistic learning outcomes.

Sadaqa House aims to protect natural capital and resources through building of environmental consciousness as well as supporting renewable energy efforts.

Changemakers:

Community Empowerment	Yayasan Sultanah Bahiyah Established in 1996 Appointed as changemakers starting 9th January 2018 Project: To provide financial assistance to purchase business equipment for women micro-entrepreneurs from B40 family in Kedah MyVista Established in 2013 Appointed as changemakers starting 20th September 2019 MyVista was established as a “social entrepreneur”. MyVista main mission is producing a 3-D printed prosthetic hands and arms with lower cost as to help the physically disabled, especially those who are from underprivileged families. With such contributed 3-D prosthetic arm, emotion and self-esteem of the disabled children would uplift and they will enjoy education without hesitation Project: To provide financial assistance to produce 3-D prosthetic arm for disabled children from family of asnaf fakir and miskin. Mercy Mission Malaysia Established in 2012 Appointed as changemakers starting 20th September 2019 Mercy Mission Malaysia is implementing its project for the food assistance with conditional upon consistent attendance to school and monthly food assistance ensures the children receive enough nutrients for their growth and development. This will lead to better learning and allows stronger bonds and relationships between the parents and teachers. By reducing the rate of absence to schools, children will get quality education and would be able to change the lifecycle of their families. Project: To provide financial assistance to address malnutrition issue among primary school children from family of asnaf fakir and miskin.
Healthcare	Institut Jantung Negara Foundation (IJNF) Established in 2012 Appointed as changemakers starting 9th January 2018 IJNF was set-up with a mission to raise philanthropic support for the care of heart patient at the IJN. IJNF is one of the earliest change-maker collaborate with Sadaqa House during the establishment of Sadaqa House. Our collaboration with IJNF is focusing on kid patients from underprivileged families. It is our ardent hope, with financial assistance from Sadaqa House, those kids can undergo heart surgery smoothly so they can grow healthy and enjoy education like their other peers. Project: To provide financial assistance to paediatric congenital heart disease patients from asnaf fakir and miskin to undergo heart surgery at Institut Jantung Negara (IJN).
Education	Buku Jalanan Chow Kit (BJCK) Established in 2016 Appointed as changemakers starting 2nd May 2019 Buku Jalanan Chow Kit (BJCK) is a non-governmental organisation aimed to provide equal education opportunity to children in the Chow Kit catchment area especially in Lorong Haji Taib. The underserved children in that area are exposed to prevalent social problems and risk of danger such as human tracking. We believe with quality education those children will be able to change the lifecycle of their families. Project: To provide financial assistance for operating a centre to provide an access to quality education for underserved children in Chow Kit area. Brain For Future (BFF) Established in 201 Appointed as changemakers starting 2nd May 2019 Brain For Future (BFF) is non-governmental organisation aimed to alleviate poverty by offering financial aid to underprivileged university student especially those on third and fourth year of studies. The objective of the assistance is to ensure that these students will be able to complete their studies without any financial setbacks. It is our ardent hope those successful students will build up good career after graduation and contribute back to other underprivileged junior students in campuses. Project: To provide financial assistance for higher education institutions students in Malaysia from family of asnaf fakir and miskin. Pertubuhan Kegiatan Dakwah Islamiah Sekolah-Sekolah Malaysia (PEKDIS) Established in 13.09.2004 Appointed as changemakers starting 10th March 2020 PEKDISis an NGO registered under registrar of Society with national level status. PEKDIS was founded on 13 September 2004 by Bahagian Pendidikan Islam, Kementerian Pendidikan Islam as an NGO platform to solidify dakwah activities among Islamic studies teachers nationwide and run the execution of dakwah activities in the schools at all levels. Project: Focus to give equal opportunity to school children of having a good surau and musolla in the schools so that teaching and learning processes can be diversified and give big impact especially shaping and nurturing the discipline and attitude of Malaysia school children for the betterment of the country in the future
Environment	Universiti Teknologi Malaysia (UTM) Universiti Teknologi Malaysia was renamed in March 1972. Formerly known as Institut Teknologi Kebangsaan (1971-1975) Appointed as changemakers starting 9th January 2018 Project was undertaken by Universiti Teknologi Malaysia (UTM) as to provide cheaper and more sustainable solar power to Orang Asli and underserved communities in Malaysia. The higher cost of using generator set to produce electricity is unbearable for the community. With the solar power installation, the cost reduction is almost minimal. The first project with UTM at Kampung Orang Asli Woh Intake, Tapah, Perak has completed in February 2020. With unlimited electricity supply, children in this area would be able to do schoolwork and revision during night. Project: To provide solar system – renewable energy for Orang Asli and underserved communities in rural area.