FinTech-Enabled Endowment: A Proposed Financial Sustainability Model for Not-for-Profit Human Development Institutes
Abstract
:1. Introduction
2. Literature Review
3. Methodology
4. Results
5. Discussion
6. Conclusions
- There is a need for regularity framework for endowment-based NPOs’ registration and reporting. This will encourage endowment-based NGOs’ tactical evolution, for sustainable socio-economic development of out-of-school children, especially within the indigent populations of developing nations.
- The property waqf model and the composite waqf model can provide the highest level of financial sustainability for the NPHDIs, so they need to be promoted through waqf-conducive regulations.
- Digitalization of transactions can facilitate the process’s sharia compliance, such as standing orders carried out by the banks at the day’s end.
- There is a need to increase awareness level about awqaf’s possibilities, which is an important marketing factor for awqaf institutions.
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
Abbreviations
CRUSA | Costa Rica United States Foundation for Cooperation |
CSO | Civil society organization |
DCB | Digital charity box |
DDR | Donor-dependent ratio |
FBR | Federal Board of Revenue |
FLAD | Luso-American Development Foundation |
S.R.O. | Statutory regulatory order |
GMF | German Marshall Fund of the United States |
HDI | Human Development Index |
NGO | Non-government organization |
NPHDIs | Not-for-profit human development institutes |
NPO | Not-for-profit organization |
OOS | Out of school |
PCP | Pakistan Centre for Philanthropy |
SAs | Sharia advisors |
SCIs | Sharia-compliant investments |
SDGs | Sustainable Development Goals |
SECP | Securities and Exchange Commission of Pakistan |
UMIFA | Uniform Management of Institutional Funds Act |
ZDC | Zakat-deserving customer |
ZDP | Zakat-deserving person |
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Number of Charitable Associations Listed by PCP | ||
---|---|---|
Population | Charitable Associations with Availability of Accounts Audited in Last 5 Years Relevant Population | Randomly Selected Sample |
893 | 47 | 10 |
Source: [78] | Authors’ Computation |
S # | Not-for-Profit Human Development Institutes | In PKR Million | Donor Dependency Ratio (DDR) | |
---|---|---|---|---|
Aggregate Income | Funds from Donor(s) | |||
1 | Awaz Foundation | 147.547 | 147.547 | 91.73% |
2 | Care Foundation | 57.153 | 56.976 | 93.51% |
3 | Jamiyat Punjabi Saudagran-e-Delhi | 50.894 | 50.732 | 94.10% |
4 | Trust for Democratic Education and Accountability | 5532.685 | 5502.683 | 95.33% |
5 | Family Education Services Foundation (FESF) | 302.229 | 297.368 | 96.29% |
6 | Developments in Literacy | 279.322 | 268.950 | 98.39% |
7 | The Indus Hospital | 886.970 | 845.554 | 99.46% |
8 | Orange Tree Foundation | 149.076 | 140.274 | 99.68% |
9 | Helping Hand for Relief and Development (HHRD) | 1166.308 | 1090.579 | 99.69% |
10 | Afzaal Memorial Thalassemia Foundation | 54,593.583 | 50,076.004 | 100.00% |
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Faisal, M.; Meraj, M.; Mubarik, M.S.; Butt, M.W.F. FinTech-Enabled Endowment: A Proposed Financial Sustainability Model for Not-for-Profit Human Development Institutes. Sustainability 2024, 16, 7681. https://doi.org/10.3390/su16177681
Faisal M, Meraj M, Mubarik MS, Butt MWF. FinTech-Enabled Endowment: A Proposed Financial Sustainability Model for Not-for-Profit Human Development Institutes. Sustainability. 2024; 16(17):7681. https://doi.org/10.3390/su16177681
Chicago/Turabian StyleFaisal, Muhammad, Muhammad Meraj, Muhammad Shujaat Mubarik, and Muhammad Wasie Fasih Butt. 2024. "FinTech-Enabled Endowment: A Proposed Financial Sustainability Model for Not-for-Profit Human Development Institutes" Sustainability 16, no. 17: 7681. https://doi.org/10.3390/su16177681