Assistance and Scholarship Beneficiaries:
Beneficiaries shall be the needy within the Bangladeshi-American community and others, under strict guidelines outlined below. The definition of the Bangladeshi-American community shall include all persons of Bangladeshi-origin residing in the United States of America and their descendants.
Non-zakat accounts shall be used for the benefit of all qualifying individuals irrespective of their religious beliefs. Resources from zakat and zakat al-fitr accounts shall be used solely for the benefit of Muslims.
A limited number of scholarships -- totaling no more than five percent of total annual scholarship amount -- shall be awarded to any American resident student to spend certain period of time in Bangladesh, for higher studies (duration of course) or voluntary work with an officially registered non-governmental organization (up to two years). For this purpose, residency shall be satisfied by attendance at an undergraduate or higher degree program for at least two years in the United States of America, irrespective of the recipient’s nationality, race or religion.
Account Management:
The Foundation shall maintain a separate account(s) for each purpose.
Types of Accounts:
Community Assistance Accounts:
Zakat Assistance Account shall consist of 60 percent of zakat and zakat al-fitr funds, 5 percent of all unspecified donations to the Foundation, and the full amount of any specified donations. Non-zakat Assistance Account shall consist of 10 percent of unspecified donations and the full amount of any specified donation.
Scholarship Accounts:
Zakat Scholarship Account shall consist of 40 percent of zakat and zakat al-fitr funds and any specified donations. Non-zakat Scholarship Account shall consist of 10 percent of unspecified and the full amount of any specified donation.
The Bangladesh Community Centers Account:
This account shall be credited with 70 percent of unspecified (non-zakat) donations and membership fees, and the full amount of any specified donation. No zakat or zakat al-fitr funds shall be maintained in this account.
Community Recognition Awards Account:
This account shall be credited with 5 percent of unspecified donations and membership fees, and the full amount of any specified donation.
Bangladesh Development Fund:
This Fund shall be established and maintained with a minimum balance. Contributions to the Fund will be solicited from members and non-members and special fundraising events arranged to benefit the poor and vulnerable in Bangladesh. The Board of Trustees shall announce in advance the precise manner in which funds are to be sent to benefit the poor and vulnerable in Bangladesh.
Named Awards:
Specific accounts shall be opened for named awards (see By-Laws, Article II: Objectives), either for scholarship, community assistance, or recognition awards. Income from these accounts so established shall be used to make the respective awards.
Allocation of donations and membership fees are summarized in the following table:
Distribution of Fees and Donations
(In percent)
|
Membership fees |
Zakat and zakat al-fitr (unspecified) |
Specified donations |
Unspecified (non-zakat) donations |
| Zakat Assistance |
-- |
60 |
100 |
5 |
| Non-zakat Assistance |
-- |
-- |
100 |
10 |
| Zakat Scholarship |
-- |
40 |
100 |
-- |
| Non-zakat Scholarship |
-- |
-- |
100 |
10 |
| Bangladesh Community Centers |
70 |
-- |
100 |
70 |
| Community Recognition Awards |
5 |
-- |
100 |
5 |
| Named Awards |
-- |
-- |
100 |
-- |
| Bangladesh Development Fund |
|
|
100 |
|
| General Foundation Account |
25 |
-- |
100 |
-- |
Accounts Administration:
The Board of Trustees of the Foundation shall appoint Chairpersons/Administrators for the Community Assistance, Scholarship and Recognition Accounts, but the Trustees shall retain Administration of the Bangladesh Community Centers, the Bangladesh Development Fund, and those established for the named awards. Each Chairperson/Administrator shall be appointed for a period of up to seven (7) years.
Each Chairperson/Administrator shall have at least one assistant, and may establish application review committee(s) subject to consultation and consent of the Board of Trustees. The respective Chairperson/Administrator, with support from the Vice-Chairperson/Assistant Administrator, shall approve applications for financial support based on initial guidelines set out in this document and any others the Trustees might issue in writing from time to time.
The Administrators shall operate the respective Accounts jointly with the Trustee Treasurer of the Foundation. The Administrators shall work on a voluntary basis but reimbursement shall be made, subject to approval by the Board of Trustees, of those expenses directly incurred in work related with the administration of the Accounts and disbursement processing.
Once the Bangladesh Community Center in the Greater Washington, DC, area has been established, the appointed Chairpersons of the Committees shall continue to review the applications but fund disbursements and other administrative matters shall be handled by the professional staff of the Center. A charge may be made to the Accounts by the Center, approved by the Board of Trustees, to defray associated costs with administration and applications processing.
Investment:
All funds shall be invested in financial instruments, broadly consistent with Islamic guidelines. In the Community Assistance Accounts, the Foundation shall maintain a prudential amount in cash or in near-cash account(s) to meet emergency needs of the community members. Other funds shall be invested for growth. In the case of Scholarship Accounts, the Foundation shall invest funds for growth until the Board of Trustees determines that scholarships can be awarded without depleting the capital base. Funds in the Bangladesh Community Centers Account shall be invested in accordance with the Foundation’s By-Laws, Article IX.
Appointment of Auditor(s):
The Election Commission shall appoint auditor(s) for all Accounts annually, and authorize deductions of the applicable fees for the audits from the respective accounts. However, until the first Election Commission is elected, the initial Board of Trustees shall handle this responsibility.
Application and Review Process:
The Foundation shall receive all scholarship applications on prescribed form, record and code each application, then send the applications to the Chairperson without names of applicants for review and decisions. Application for emergency financial assistance and information regarding Community Recognition Awards may be sent to the respective Chairpersons directly.
Review of the applications shall be the sole responsibility of the Chairpersons, who shall determine the eligibility and approve appropriate amounts, subject to availability of funds in the relevant accounts and any further initial guidelines agreed between each Chairperson and the Board of Trustees in writing. Matters requiring policy clarification shall be referred to the Chairperson of the Board of Trustees who in turn shall consult with other Trustees.
