Here's a list of essential policies and procedures a masjid needs, organized by typical functional areas:
Bylaws/Constitution: The foundational governing document.
Board of Directors Policy: Roles, responsibilities, term limits, code of conduct, conflict of interest.
Executive Committee Policy: Scope, authority, limitations.
Board Meeting Procedures: Agendas, minutes, quorum, voting, executive sessions.
General Assembly Policy & Procedures: Meeting notice, quorum, voting rights, agenda.
Membership Policy: Eligibility, types, dues, rights, termination.
Election Policy: Procedures for nominating and electing board members.
Policy Development & Review Policy: Process for creating, approving, and updating policies.
Record Keeping & Document Retention Policy: What records to keep, how long, and how to store/dispose of them.
Conflict Resolution Policy: Procedure for addressing disputes between members, board, or staff.
Financial Policies & Procedures Manual: Overall guide covering all financial aspects.
Budgeting Policy: Process for developing, approving, and monitoring the annual budget.
Donation Handling Policy: Procedures for collecting, counting (two-person rule), logging, depositing cash and checks.
Fund Accounting Policy: Procedures for segregating unrestricted funds, Zakat, building funds, and other restricted donations.
Zakat Collection & Distribution Policy: Eligibility criteria, application process, committee responsibilities, confidentiality.
Accounts Payable Policy: Invoice approval, check signing (two-signature rule), payment processing.
Expense Reimbursement Policy: Requirements for submitting receipts and getting approvals.
Credit Card Usage Policy: Rules for authorized users, spending limits, receipt submission.
Petty Cash Policy: Procedures for managing a small cash fund.
Fundraising Policy: Guidelines for soliciting donations, event fundraising, online giving, and donor acknowledgment.
Gift Acceptance Policy: Guidelines on accepting different types of non-cash donations (stock, property).
Internal Audit Policy: Scope and procedures for the internal audit committee.
External Audit Policy: Requirements for engaging an independent CPA firm.
Employee & Volunteer Handbook: Comprehensive guide covering key policies.
Code of Conduct Policy: Expected behavior for staff, volunteers, and members.
Equal Employment Opportunity (EEO) Policy: Commitment to non-discrimination.
Recruitment & Hiring Policy: Process for posting jobs, interviewing, background checks, and making offers (including Imam hiring).
Job Descriptions: Formal descriptions for all paid staff and key volunteer roles.
Compensation & Benefits Policy: Guidelines for salaries, benefits administration.
Performance Evaluation Policy: Process for annual reviews for staff (including the Imam).
Disciplinary Action Policy: Progressive steps for addressing performance or conduct issues.
Volunteer Management Policy: Application, screening (background checks for relevant roles), training, supervision, recognition.
Child Protection Policy: Procedures to ensure the safety of minors in all programs (screening, training, reporting).
Anti-Harassment & Discrimination Policy: Zero-tolerance policy and reporting procedures.
Complaint/Grievance Procedure: Process for staff and volunteers to raise concerns.
Confidentiality Policy: Rules regarding sensitive organizational and personal information.
Imam Roles & Responsibilities Policy: Defining the Imam's duties, authority, and relationship with the board.
Religious Programming Policy: Guidelines for approving speakers, topics, and educational content to ensure alignment with Islamic principles (Ahlus Sunnah).
Educational Curriculum Policy: Process for selecting/developing curricula for children's school, adult classes.
Fatwa/Religious Guidance Policy: Process for handling requests for religious rulings (usually directed to the Imam).
Marriage (Nikah) Services Policy: Procedures, requirements, documentation.
Funeral (Janazah) Services Policy: Procedures for washing, prayer, burial coordination, and potential financial assistance.
Library Policy: Rules for borrowing books and managing library resources.
Program Planning & Approval Policy: Process for proposing and approving new programs or events.
Event Management Procedures: Checklists for planning logistics, booking space, managing volunteers, and handling finances for events.
Youth Program Policy: Guidelines specific to youth activities, supervision ratios, permission slips.
Seniors Program Policy: Guidelines for programs targeting elder community members.
Social Services Policy: Procedures for providing aid (food pantry, financial assistance), ensuring confidentiality and fairness.
Interfaith Relations Policy: Guidelines for engaging with other faith communities.
Facility Usage & Rental Policy: Rules and fees for members or external groups using masjid space.
Maintenance Policy: Procedures for reporting issues, preventive maintenance schedules.
Safety & Security Policy: Emergency action plans (fire, medical, active threat), building access control, security camera usage, coordination with law enforcement.
Key Control Policy: Procedures for issuing and tracking keys.
Parking Policy: Rules for parking during regular prayers, Jumu'ah, and special events.
Cleaning & Sanitation Procedures: Standards for janitorial services.
IT Usage Policy: Rules for using masjid computers, networks, and software.
Communications Policy: Guidelines for official statements, newsletter content, website updates, and social media usage.
Media Relations Policy: Designating official spokespersons and procedures for responding to media inquiries.
Announcement Policy: Process for approving and making announcements during prayers or events.
Bulletin Board/Flyer Policy: Rules for posting materials within the masjid.
Visitor Policy: Protocol for welcoming and guiding guests and tour groups.
Dawah (Outreach) Policy: Guidelines for outreach activities and materials.
This list provides a solid foundation. The specific needs of each masjid will determine which policies are most critical and the level of detail required.
Here is a detailed Board Meeting Procedures policy for a masjid.
Policy Number: GOV-003
Effective Date: October 18, 2025
Approved By: [Name of Masjid] Board of Directors
Next Review Date: October 2028
The purpose of this policy is to ensure that meetings of the [Name of Masjid] Board of Directors (BOD) are conducted in an orderly, efficient, and transparent manner, consistent with the principles of Shura (mutual consultation) and Amanah (sacred trust). These procedures facilitate effective governance, sound decision-making, and proper documentation of the Board's actions on behalf of the community.
2.1 Definition: A quorum is the minimum number of directors who must be present at a meeting for business to be legally transacted.
2.2 Requirement: A quorum shall consist of a simple majority (50% + 1) of the total number of serving directors, as stipulated in the masjid's bylaws. For example, if there are nine (9) directors, a minimum of five (5) must be present to establish a quorum.
2.3 Action without a Quorum: If a quorum is not present, the meeting may not proceed with any binding votes or official business. The directors present may only:
Formally note the lack of a quorum.
Discuss non-binding matters.
Adjourn the meeting to a later date.
3.1 Responsibility: The Board President (or Chair), in consultation with the Board Secretary, is responsible for preparing the agenda for each meeting.
3.2 Submission of Items: Any director may request that an item be added to the agenda by submitting it to the President or Secretary at least seven (7) days prior to the meeting.
3.3 Distribution: The final agenda, along with the minutes from the previous meeting and any relevant reports or supporting documents (e.g., financial statements, committee reports), shall be distributed to all directors by the Secretary at least three (3) days prior to the meeting. This ensures directors have adequate time to prepare.
3.4 Standard Agenda Format: The agenda shall follow a consistent format:
Call to Order & Opening: (Qur'anic recitation, opening dua).
Attendance & Quorum Confirmation: (Roll call by the Secretary).
Review and Approval of Previous Meeting's Minutes.
President's Report: (Brief overview of key activities and updates).
Treasurer's Report: (Presentation of financial statements, budget vs. actual).
Committee Reports: (Updates from standing committees like Finance, Programs, etc.).
Old Business: (Matters carried over from previous meetings).
New Business: (New proposals, motions for discussion and voting).
Executive Session: (If required).
Action Item Review: (Summary of tasks assigned during the meeting).
Adjournment & Closing Dua.
4.1 Responsibility: The Board Secretary is responsible for taking accurate and impartial minutes of all board meetings. In the Secretary's absence, the President shall appoint a director to act as secretary for that meeting.
4.2 Content: The minutes are a legal record of the Board's actions, not a transcript of discussions. They must include:
Date, time, and location of the meeting.
Names of directors present and absent.
Confirmation that a quorum was met.
The exact wording of all motions made, the name of the director who made the motion, and the name of the director who seconded it.
The outcome of all votes (passed, failed, and the vote count if not unanimous).
A summary of key reports presented.
A list of action items, including the assigned person and deadline.
The time of adjournment.
4.3 Approval and Storage:
Draft minutes shall be included in the meeting packet for the subsequent meeting.
The Board must formally vote to approve the minutes. Any corrections should be noted before the vote.
Once approved, the minutes become part of the masjid's official records and must be stored securely (digitally in a designated cloud folder and/or physically in a locked file cabinet).
5.1 Eligibility: Every director present at the meeting is entitled to one vote. Voting by proxy (on behalf of an absent director) is not permitted.
5.2 Making a Motion: For the Board to take a formal action, a director must make a motion (e.g., "I move that we approve the proposed budget for the youth program."). Another director must "second" the motion before it can be discussed and voted upon.
5.3 Passing a Motion:
Simple Majority: Unless otherwise specified in the bylaws, a motion is passed by a simple majority of the votes cast by directors present at a meeting where a quorum is met.
Supermajority: Certain major decisions, as defined in the bylaws (e.g., amending bylaws, removing a director, selling property), require a supermajority vote (typically two-thirds or three-quarters of the entire Board).
5.4 Method of Voting: Voting will typically be done by a voice vote or show of hands. The President may call for a roll-call vote on significant matters, which will be recorded in the minutes.
5.5 Conflict of Interest: Any director with a conflict of interest on a matter being discussed must declare the conflict, recuse themselves from the discussion, and abstain from the vote. This must be noted in the minutes.
6.1 Definition: An executive session is a confidential portion of a board meeting, closed to all non-directors and guests, to discuss sensitive matters.
6.2 Permissible Topics: Executive sessions are to be used sparingly and only for specific, sensitive topics as permitted by law and best practice, including:
Personnel Matters: Discussing the performance, compensation, discipline, or hiring/firing of specific employees (including the Imam).
Legal Issues: Discussing pending or potential litigation with legal counsel.
Real Estate Transactions: Discussing sensitive negotiations for the purchase or sale of property.
Disciplinary Action: Discussing confidential disciplinary matters concerning a member or staff.
6.3 Procedure:
Motion to Enter: The Board must vote in the public portion of the meeting to enter into an executive session. The general reason for the session should be stated (e.g., "to discuss a personnel matter").
Exclusion: All guests and non-essential staff must leave the room.
Confidentiality: All discussions held within the executive session are strictly confidential.
Minutes: Separate, confidential minutes of the executive session must be kept, recording actions but omitting sensitive details where appropriate.
Actions: Any formal, binding votes should ideally be taken after returning to the open session.
Adjournment: The Board must formally adjourn the executive session and reconvene the open meeting.
The General Assembly is the highest governing body of [Masjid Name], composed of all eligible voting members. Its purpose is to ensure accountability, facilitate member participation in major decisions, elect leadership, and uphold the mission and values of the masjid according to the Qur'an and Sunnah. This policy outlines the procedures governing General Assembly meetings as mandated by the bylaws.
Annual General Meeting (AGM): The AGM shall be held once every calendar year, typically within [e.g., three months] of the fiscal year-end, on a date set by the Board of Directors. The primary purposes include electing board members, reviewing annual reports (financial and activities), and approving the budget.
Special General Meetings: A special meeting may be called by:
A majority vote of the Board of Directors.
A written petition signed by a specified percentage [e.g., 25%] of the voting members in good standing, submitted to the Board Secretary. The Board must then call the meeting within a specified timeframe [e.g., 45 days] of receiving a valid petition. Special meetings address only the specific urgent matter(s) for which they were called.
Proper notification ensures members have adequate time to prepare and participate.
Timeline: Written notice for all General Assembly meetings (Annual or Special) shall be sent to all eligible voting members no less than twenty-one (21) days and no more than sixty (60) days prior to the meeting date.
Method of Delivery: Notice shall be delivered through official masjid communication channels, which may include:
Email to the member's registered address.
Postal mail to the member's registered address.
Prominent posting on the masjid website and official social media channels.
Announcements during Friday prayers leading up to the meeting.
Content of Notice: The notice must clearly state:
The type of meeting (Annual or Special).
The exact date, time, and location (physical and/or virtual link) of the meeting.
The full agenda of items to be discussed and voted upon.
For AGMs: Information regarding board nominations, election procedures, and copies of (or links to) the annual report and financial statements.
For Special Meetings: The specific purpose(s) for which the meeting is called. No other business may be transacted.
A quorum is the minimum number of eligible voting members required to be present (in person or virtually, if permitted by bylaws) to legally conduct business and make binding decisions.
Definition: Quorum for a General Assembly meeting at [Masjid Name] shall be [Specify Percentage, e.g., thirty percent (30%)] of the total number of voting members in good standing as of the meeting date OR [Specify Fixed Number, e.g., one hundred (100)] voting members, whichever is less. (Note: This number should be defined in the bylaws and realistic for the community size.)
Verification: The Board Secretary (or designee) shall verify quorum by checking member registration at the beginning of the meeting. The count shall be announced before official business begins.
Loss of Quorum: If quorum is present at the start but drops below the required number during the meeting, the meeting may continue for discussion purposes, but no further binding votes may be taken.
Failure to Reach Quorum: If quorum is not met at the scheduled start time (or within a grace period, e.g., 30 minutes), the meeting cannot proceed with official business. The meeting must be adjourned, and the Board must reschedule it, providing proper notice once again. Some bylaws may allow for a reduced quorum requirement at the second attempt to hold the meeting.
Eligibility: Only members in good standing shall have the right to vote. "Good standing" typically means:
Meeting the membership criteria defined in the bylaws.
Being registered as a voting member for a minimum period (e.g., 6 months prior to the meeting).
Being current on any required membership dues.
One Vote Per Member: Each eligible voting member is entitled to one vote.
No Proxy Voting: Voting by proxy (allowing someone else to vote on your behalf) is not permitted. Members must be present (physically or virtually as defined) to vote.
Voting Method: Voting shall typically be conducted by:
Show of hands or voice vote for procedural matters (e.g., approving minutes, adjourning).
Written ballot (secret ballot preferred) for elections and sensitive matters.
Secure electronic voting if virtual meetings are held, following pre-approved procedures.
Passing a Motion: Unless otherwise specified in the bylaws (e.g., for amendments, dissolution), decisions shall be passed by a simple majority (more than 50%) of the votes cast by eligible members present and voting.
Election Procedures: Elections for the Board of Directors shall follow the specific procedures outlined in the Election Policy, typically managed by an independent Election Committee.
The Board President or designated Chair shall preside over the meeting. A typical AGM agenda includes:
Call to Order & Opening: Qur'anic recitation, welcome remarks.
Verification of Quorum: Announcement by the Secretary.
Approval of Agenda: Motion to adopt the meeting's agenda.
Approval of Previous AGM Minutes: Review and motion to approve the minutes from the last AGM.
Reports:
President's Annual Report (Activities, achievements, challenges).
Treasurer's Annual Financial Report (Presentation of financial statements, audit results).
Committee Reports (Brief summaries from key standing committees).
Approval of Annual Budget (If Applicable): Presentation and vote on the upcoming fiscal year's budget.
Board Elections: Conducted by the Election Committee according to the Election Policy.
Old Business: Matters carried over from previous meetings.
New Business: Consideration of motions or resolutions submitted by members (often requires advance submission per bylaws).
Member Q&A / Open Forum: Opportunity for members to ask questions of the Board (subject to time limits).
Adjournment: Formal closing of the meeting.
Rules of Order: Meetings shall be conducted according to established rules of order (e.g., Robert's Rules of Order, adapted for Shura principles) to ensure orderly discussion.
Minutes: The Board Secretary (or designee) shall record accurate minutes of all proceedings, including motions made, votes taken, and decisions reached. Approved minutes shall be kept as part of the masjid's official records and made accessible to members as defined in the bylaws or Record Keeping Policy.
Here is a detailed Membership Policy for a masjid.
Effective Date: October 18, 2025
Approved By: The Board of Directors
1.0 Purpose & Philosophy
The purpose of this policy is to define membership at [Masjid Name], outlining the eligibility requirements, types of membership, associated dues, and the rights and responsibilities that come with being a formal member of our community. Membership is a mutual commitment: the Masjid commits to serving the spiritual and communal needs of its members, and members commit to supporting the Masjid's mission, upholding its values, and contributing to its well-being according to the principles of the Qur'an and Sunnah.
2.0 Eligibility for Membership
An individual is eligible to apply for membership at [Masjid Name] if they meet the following criteria:
Muslim Faith: The applicant must be a Muslim.
Age: The applicant must be at least eighteen (18) years of age.
Residency: The applicant must be a resident of Central Indiana.
Agreement: The applicant must agree to abide by the Constitution, Bylaws, and all approved policies of [Masjid Name].
3.0 Types of Membership
[Masjid Name] offers the following categories of membership:
3.1 Individual Membership:
Applies to a single individual who meets all eligibility requirements.
This is the standard voting membership.
3.2 Family Membership:
Applies to a household, typically consisting of a married couple and their children under the age of eighteen (18).
Each spouse who is at least eighteen (18) years old is considered a full voting member. Children are considered non-voting members of the Masjid until they turn eighteen, at which point they can apply for individual membership.
4.0 Membership Dues
To support the operational costs and services of the Masjid, annual membership dues are required.
4.1 Dues Structure:
Individual Membership: $[Amount, e.g., 120] per year.
Family Membership: $[Amount, e.g., 240] per year.
4.2 Payment: Dues are payable annually. The membership year runs from [e.g., January 1st to December 31st]. New members' dues may be pro-rated for their first year.
4.3 Financial Hardship: No Muslim will be denied membership due to a genuine inability to pay. Members facing financial hardship may confidentially request a waiver or reduction of dues by contacting the Membership Committee or the Treasurer. All such requests will be handled with the utmost discretion and respect.
5.0 Rights of Members in Good Standing
A "member in good standing" is defined as any member who has paid their dues for the current year (or received a waiver) and is not under any disciplinary suspension. Members in good standing have the right to:
5.1 Vote: Participate in elections for the Board of Directors and vote on all matters presented to the General Assembly, such as bylaw amendments. Each individual or family member (spouse) over eighteen holds one vote.
5.2 Hold Office: Nominate themselves or other eligible members for positions on the Board of Directors, subject to the eligibility requirements outlined in the Masjid's Bylaws.
5.3 Attend Meetings: Attend and be heard at all General Assembly meetings.
5.4 Access Records: Review certain Masjid records as permitted by the Bylaws and state law, such as approved General Assembly minutes and annual financial summaries.
5.5 Receive Communications: Receive official Masjid communications, including newsletters, announcements, and annual reports.
5.6 Facility Usage: Receive priority or discounted rates for renting Masjid facilities for private events (e.g., Nikah, Aqiqah), as determined by the Facility Usage Policy.
6.0 Application & Renewal Process
6.1 Application: Prospective members must complete a Membership Application Form (available online or at the Masjid office). The Membership Committee will review the application to ensure eligibility.
6.2 Approval: Upon approval and payment of dues, the applicant will be officially registered as a member.
6.3 Renewal: Membership must be renewed annually through the payment of dues. A renewal reminder will be sent to all members prior to the start of the new membership year.
7.0 Termination of Membership
Membership may be terminated under the following circumstances:
7.1 Voluntary Resignation: A member may resign at any time by providing written notice to the Membership Committee or the Board of Directors.
7.2 Non-Payment of Dues: Membership will be considered lapsed if dues are not paid within a grace period of [e.g., sixty (60)] days after the renewal date, and no waiver has been requested. Lapsed members lose all rights of membership, including the right to vote.
7.3 Dismissal for Cause: The Board of Directors may suspend or terminate a membership for conduct that seriously harms the Masjid's mission, reputation, or the safety of its community. Such actions are outlined in the "Policy on Member Conduct and Disciplinary Action" and require a formal process, including written notice and an opportunity for the member to be heard, ensuring fairness and due process.
7.4 Reinstatement: A member whose membership has lapsed due to non-payment may be reinstated by paying the current year's dues. A member who was dismissed for cause must re-apply and may be subject to review by the Board of Directors.
Of course. Here are two detailed, interconnected policies for a masjid, written as formal documents.
Effective Date: October 18, 2025
Approved By: [Masjid Name] Board of Directors
The purpose of this policy is to define membership at [Masjid Name]. Membership is a formal expression of an individual's commitment to the mission, vision, and values of our masjid. It grants members specific rights, most notably the ability to participate in the governance of the organization by electing its leadership. Our membership process is guided by the Islamic principles of community (jama'a), consultation (shura), and mutual support.
An individual is eligible for membership if they meet all the following criteria:
Declare the Shahada and identify as a Muslim.
Are at least eighteen (18) years of age.
Reside in Carmel, Indiana, or its surrounding vicinity.
Agree to abide by the Constitution and Bylaws of [Masjid Name].
Submit a completed membership application.
[Masjid Name] offers the following membership categories:
Individual Membership: Grants one (1) vote in Board of Directors elections and General Assembly meetings.
Family Membership: Includes a husband and wife, granting each spouse one (1) vote (for a total of two votes per family membership). Children under 18 are included but do not have voting rights.
Application: Prospective members must complete the official Membership Application Form (available online or at the masjid office).
Approval: The Membership Committee will review applications to confirm eligibility.
Membership Term: Membership is valid for one Hijri year, beginning on the 1st of Muharram and concluding on the last day of Dhul-Hijjah.
Renewal: Members must renew their membership and pay their annual dues to remain in good standing for the following year. A renewal period will be announced annually.
Membership dues are a form of financial support that enables the masjid to operate and provide services.
The annual dues shall be set by the Board of Directors and announced prior to the renewal period.
Dues may be waived in cases of financial hardship upon confidential request to the Membership Committee or Treasurer.
A member is considered in "good standing" and is eligible to vote if they:
Meet all eligibility requirements.
Have their annual membership dues paid in full by the deadline specified by the Board (typically at least 30 days before an election).
Are not under any disciplinary suspension as per the masjid's Code of Conduct policy.
Membership may be terminated under the following circumstances:
Voluntary Resignation: A member may resign at any time by submitting a written request.
Non-Payment of Dues: Membership will automatically lapse if dues are not paid by the end of the renewal period.
Disciplinary Dismissal: Membership may be revoked by a two-thirds vote of the Board of Directors for serious violations of the masjid's Code of Conduct, as outlined in the relevant policy.
A confidential database of all members shall be maintained by the masjid administration for the purposes of communication, service provision, and verification of eligibility for elections and general meetings.
Effective Date: October 18, 2025
Approved By: [Masjid Name] Board of Directors
This policy establishes the official procedures for nominating and electing members to the Board of Directors of [Masjid Name]. The purpose is to ensure a fair, transparent, orderly, and professional election process that reflects the trust (Amanah) placed in the organization by its members.
Formation: No later than ninety (90) days before a scheduled election, the Board of Directors shall appoint an independent Election Committee of three (3) or five (5) members.
Composition: Committee members must be respected, impartial members in good standing who are not running for office themselves, nor are they immediate family members of any candidate.
Responsibilities: The Election Committee is the sole authority for the execution of the election. Its duties include:
Announcing the election and timeline.
Verifying the final list of eligible voters.
Accepting and vetting all nominations for candidacy.
Enforcing campaign rules.
Preparing, distributing, and securing ballots.
Administering the voting process on election day.
Counting the votes transparently.
Certifying and announcing the official results.
To vote in a Board of Directors election, an individual must be a member in good standing as defined in the Membership Policy. The Election Committee will work with the administration to prepare and certify a final Voter List no later than fourteen (14) days prior to the election date. This list will be the definitive record for the election.
Qualifications: To be eligible to run for the Board of Directors, a nominee must:
Be a member in good standing for at least two (2) consecutive years prior to the election.
Be at least twenty-one (21) years of age.
Possess a strong record of volunteerism and active participation in the masjid community.
Demonstrate good character and adherence to Islamic principles.
Nomination Process:
The Election Committee will announce an official "Nomination Period," which shall be open for at least fourteen (14) days.
Any eligible member may nominate another eligible member (with their consent) or nominate themselves by submitting a completed Nomination Form to the Election Committee by the stated deadline.
Vetting: The Election Committee will review all nominations to confirm each candidate's eligibility based on the qualifications above. A final, certified list of candidates will be published.
Timeline: The Election Committee will publish a full timeline, including nomination deadlines, the date of the "Meet the Candidates" forum, and the election date.
Candidate Forum: The Election Committee will host a moderated forum where all certified candidates can introduce themselves and answer questions from the community.
Campaigning Rules:
Candidates may campaign respectfully through personal conversations, emails to their contacts, or social media.
Prohibited Activities: Campaigning is strictly prohibited inside the prayer halls. No campaign literature may be distributed on masjid property without the explicit, equal permission of the Election Committee. Negative campaigning or personal attacks are forbidden.
Method: The election shall be conducted by secret ballot, either using paper ballots or a secure electronic voting system as determined by the Election Committee.
Process on Election Day:
Voters must present a valid photo ID to the Election Committee.
The committee will verify the voter's name against the certified Voter List.
Once verified, the voter will be issued a ballot to cast their vote privately.
Ballots are placed in a sealed ballot box in full view of the Election Committee.
Counting: Immediately after the polls close, the Election Committee will count the ballots in a transparent process, open to observation by candidates or their designated representatives.
Results: The candidates who receive the highest number of votes for the available open seats shall be declared the winners. In the event of a tie for the final open seat, a run-off election between the tied candidates will be held within fourteen (14) days.
Announcement: The Election Committee will certify the final results and officially announce them to the community within 24 hours.
Any formal challenges to the election process or results must be submitted in writing to the Election Committee within 48 hours of the announcement. The Committee will investigate and issue a final, binding decision.
Here is a detailed Policy on the Development and Review of Policies for a masjid.
Policy Number: GOV-001
Effective Date: October 18, 2025
Approved By: Board of Directors
Next Review Date: October 2028
1.0 Purpose & Mission
This policy establishes a standardized and transparent process for the creation, approval, implementation, and regular review of all operational policies for [Masjid Name]. Its purpose is to ensure that our masjid is governed by policies that are consistent, fair, mission-aligned, compliant with our bylaws, and legally sound. This process is rooted in the Islamic principles of Shura (consultation), Amanah (trust), and Ihsan (excellence) in our administrative affairs.
2.0 Scope
This policy applies to all official, written operational policies of the masjid that guide the actions of the Board of Directors, committees, staff, volunteers, and members. It does not apply to the Articles of Incorporation or the Bylaws, which have their own distinct amendment processes as defined in those documents.
3.0 Roles and Responsibilities
Board of Directors (BOD): Holds the ultimate authority to formally approve, amend, or repeal all operational policies.
Governance Committee: Is responsible for overseeing the policy development and review process. They ensure this policy is followed, maintain the official Policies Manual, and manage the review schedule.
Originating Committee/Department: Any standing committee (e.g., Finance, HR, Programs), staff department, or ad hoc committee can initiate and draft a new policy or a revision to an existing policy that falls within its area of responsibility.
Masjid Members: Members may suggest the need for a new policy or changes to an existing one by submitting a formal proposal to the relevant committee or the Governance Committee.
4.0 The Policy Development Process (for New Policies)
Step 1: Needs Identification & Proposal
The need for a new policy is identified by a committee, staff, or member. A brief proposal is submitted to the relevant committee chair, outlining the issue the policy will address and its intended purpose.
Step 2: Drafting the Policy
The designated "Originating Committee" is responsible for drafting the new policy. The drafting process must include:
Consultation: The committee should consult with stakeholders who will be most affected by the policy (e.g., for a Youth Program Policy, the Youth Director and youth members should be consulted).
Expert Review: If the policy involves legal, financial, or other specialized matters, the committee must seek input from relevant experts (e.g., a lawyer for a Conflict of Interest Policy, an accountant for a Financial Policy). The Board must approve any costs associated with this.
Standard Format: The draft must follow the masjid's standard policy format (see Section 7.0).
Step 3: Committee Review and Approval
The drafted policy is presented to the full Originating Committee for discussion, revision, and a formal vote of approval.
Step 4: Governance Committee Review
Once approved by the Originating Committee, the draft policy is submitted to the Governance Committee. The Governance Committee will review the draft for:
Clarity, consistency, and completeness.
Alignment with the masjid's mission and bylaws.
Potential conflicts with other existing policies.
Adherence to the standard policy format.
The Governance Committee may provide feedback and request revisions from the Originating Committee before proceeding.
Step 5: Board of Directors Approval
The Governance Committee formally presents the final draft policy to the Board of Directors for its first reading. The policy is then placed on the agenda for the next board meeting for a formal vote.
A simple majority vote of the Board of Directors is required to approve a new policy.
Once approved, the policy is assigned a policy number, and the effective date is recorded.
Step 6: Implementation & Communication
The Governance Committee, in partnership with the originating committee, is responsible for:
Adding the new policy to the official Policies Manual.
Communicating the new policy to all relevant individuals (staff, volunteers, members) through the appropriate channels (e.g., email, website, training sessions).
5.0 The Policy Review Process (for Existing Policies)
Step 1: Scheduled Review
The Governance Committee will maintain a Policy Review Schedule. Each policy must be reviewed at a minimum of every three (3) years. Policies in high-risk areas (e.g., Finance, Child Protection) should be reviewed annually.
Step 2: Review & Recommendation
The Governance Committee will assign the review of a policy to the relevant Originating Committee. The committee will assess the policy for continued relevance, effectiveness, and compliance. The committee will then make one of three recommendations to the Governance Committee:
No Changes Needed: The policy is still effective and relevant.
Minor Revisions Needed: Propose minor edits for clarity or to update information (e.g., changing a position title).
Major Revisions Needed: Propose significant changes to the policy's substance.
Step 3: Approval of Revisions
Minor Revisions: May be approved by the Governance Committee in consultation with the Board President and documented in the policy's revision history.
Major Revisions: Must follow the same approval process as a new policy (Steps 3-5 in Section 4.0), including formal approval by the Board of Directors.
6.0 Urgent Policy Changes
In rare, urgent circumstances where a policy must be created or amended immediately to address a legal or safety risk, the Board of Directors may vote to approve an interim policy. This interim policy will be effective immediately but must be reviewed and formally ratified through the standard development process within ninety (90) days.
7.0 Standard Policy Format
All policies must include the following sections:
Policy Title: Clear and descriptive.
Policy Number: Assigned by the Governance Committee (e.g., FIN-002).
Effective Date: The date the policy was approved by the Board.
Approved By: The body that gave final approval (Board of Directors).
Next Review Date: The date by which the policy must be reviewed again.
Purpose & Mission: Why the policy exists and how it supports the masjid's mission.
Scope: Who and what the policy applies to.
Roles and Responsibilities: Key individuals or groups involved.
Policy Statements/Procedures: The main body of the policy, outlining the rules and steps.
Revision History: A log of all changes, dates, and approving bodies.
8.0 Access to Policies
The official, up-to-date Policies Manual will be maintained electronically by the Governance Committee. All approved, non-confidential policies shall be made accessible to masjid members, preferably through a dedicated, password-protected section on the masjid's official website, [website address].
1.0 Purpose 🎯
This policy establishes guidelines for the creation, maintenance, retention, and secure disposal of official records of [Masjid Name]. Its purpose is to ensure that the masjid:
Complies with federal, state (Indiana), and local legal and regulatory requirements.
Maintains accurate records necessary for effective operations, financial management, and program delivery.
Preserves historically significant documents.
Ensures the secure and confidential handling and disposal of sensitive information.
Operates with transparency and accountability (Amanah) towards its members and stakeholders.
2.0 Scope
This policy applies to all official records of [Masjid Name], regardless of format (physical paper documents, electronic files, emails, databases, etc.), created or received in the course of organizational business by board members, staff, and volunteers. Official records include, but are not limited to, financial, governance, legal, administrative, membership, donor, staff, volunteer, and program-related documents.
3.0 Responsibilities
Board of Directors: Holds ultimate responsibility for ensuring the masjid complies with record-keeping requirements and approves this policy.
Masjid Administrator / Office Manager (or designated lead): Serves as the Records Custodian, responsible for overseeing the day-to-day implementation of this policy, managing storage systems (physical and electronic), coordinating disposal, and training staff/volunteers.
Committee Chairs & Staff: Responsible for managing records relevant to their specific functions according to this policy and forwarding official records to the Records Custodian.
IT Support (Staff/Volunteer): Responsible for maintaining the security, backup, and accessibility of electronic records systems.
4.0 What Records to Keep & Retention Schedule ⏳
Records should be kept for the minimum time required by law, operational needs, or historical significance. The following schedule outlines retention periods (starting from the end of the fiscal year the record pertains to, unless otherwise noted):
Record Category
Examples
Retention Period
Rationale
Corporate & Governance
Articles of Incorporation, Bylaws, IRS 501(c)(3) Determination Letter, Board Minutes, Key Policies
Permanent
Foundational legal & historical documents
Financial - Core
Audited Financial Statements, Annual Budgets, IRS Form 990/990-T, General Ledgers
Permanent
Key financial history & compliance
Financial - Supporting
Bank Statements, Invoices, Expense Reports, Check Registers, Donation Logs (Summary)
7 Years
IRS audit period, statute of limitations
Donor Records
Individual Donation Records (for tax receipts), Grant Agreements
7 Years
IRS requirements, donor relations
Payroll Records
Timesheets, Payroll Registers, Tax Withholding Forms (W-4, I-9), Payroll Tax Filings (Form 941/940)
7 Years
FLSA, IRS, State requirements
Employee Personnel Files
Applications, Job Descriptions, Performance Reviews, Disciplinary Actions, Contracts
7 Years after termination
Employment law statute of limitations
Volunteer Records
Applications, Signed Agreements, Background Check Results (Summary/Confirmation Only)
3-5 Years after service ends
Liability, program management
Contracts & Leases
Vendor Contracts, Leases, Loan Agreements
7 Years after contract/lease expires
Legal requirements, potential disputes
Property Records
Deeds, Titles, Mortgages, Major Renovation Records
Permanent
Proof of ownership, asset history
Insurance Policies
Liability, Property, D&O Policies
Permanent (or 7 years after policy expires for claims-made)
Potential future claims
Membership Records
Membership Database (current list), Historical Lists (Summaries)
Current + 3-5 Years
Operational needs, historical trends
Program/Event Records
Planning docs, Attendance (Summaries), Key Outcome Reports
3-5 Years
Planning, reporting, grant requirements
General Correspondence
Routine emails, non-critical letters
1-3 Years (or as needed)
Operational reference
Note: In case of any pending litigation, audit, or investigation, relevant records must not be destroyed, even if their retention period has expired, until the matter is fully resolved.
5.0 Storage Methods (Physical & Electronic) 🗄️💻
Physical Records:
Store in designated, secure, organized filing cabinets or storage rooms.
Protect from damage (fire, water, pests).
Label folders and boxes clearly with contents and disposal dates.
Limit access to confidential files (e.g., HR, donor info) to authorized personnel.
Electronic Records:
Use secure, cloud-based storage (e.g., Google Workspace, Microsoft 365) with strong passwords and Multi-Factor Authentication (MFA).
Implement role-based access controls to restrict access to sensitive data.
Ensure regular, automated backups (cloud provider + potential separate backup).
Organize files using a clear folder structure and consistent naming conventions.
Protect against malware with updated antivirus software and security practices.
Emails designated as official records should be saved to the appropriate electronic folder, not just left in individual inboxes.
6.0 Disposal Methods 🗑️🔥
Secure disposal is critical for protecting confidentiality.
Physical Records (Confidential): Cross-cut shredding is required for documents containing personal information (donor names/addresses, employee/volunteer data, financial details). Alternatively, use a bonded professional shredding service.
Physical Records (Non-Confidential): Can be recycled.
Electronic Records: Delete files from active systems and ensure they are removed from backups according to the retention schedule. For highly sensitive data on old hard drives or computers, physical destruction or professional data wiping is recommended before disposal/recycling.
Disposal Log: Maintain a log documenting what records were destroyed, the date of destruction, and the method used, especially for sensitive or financial documents.
7.0 Policy Review
This Record Keeping & Document Retention Policy will be reviewed at least every three (3) years by the Board of Directors (or its Governance Committee) and updated as necessary to reflect changes in legal requirements or organizational needs.
Date Approved: [Date]
Approved By: [Masjid Name] Board of Directors
Next Review Date: [Date, 3 years from approval]
Okay, here's a detailed Conflict Resolution Policy for a masjid.
1.0 Purpose & Guiding Principles 🙏
The purpose of this policy is to provide a clear, fair, and Islamically grounded process for addressing disputes and grievances that may arise within the [Masjid Name] community involving members, staff, or Board members. Our goal is to seek resolution through principles of justice (Adl), reconciliation (Sulh), compassion (Rahmah), mutual consultation (Shura), confidentiality, and the preservation of brotherhood/sisterhood, as guided by the Qur'an and Sunnah. We aim to resolve conflicts constructively and maintain the unity and well-being of the community.
2.0 Scope
This policy applies to disputes involving:
Members vs. Members (related to masjid activities or occurring on masjid property)
Members vs. Staff or Board Members
Staff vs. Staff
Staff vs. Board Members
Board Member vs. Board Member
This policy does not override legal rights or requirements, especially concerning harassment, discrimination, or criminal activity, which must also be handled according to specific policies and applicable laws.
3.0 Step 1: Informal Resolution (Encouraged First Step) 🤝
Whenever safe and appropriate, individuals involved in a dispute are strongly encouraged to first attempt to resolve the issue directly and privately between themselves, guided by Islamic etiquette (Adab). Seeking mutual understanding, forgiveness, and reconciliation is the preferred initial approach. Parties may seek informal advice from the Imam or a trusted community elder during this stage.
4.0 Step 2: Formal Complaint Procedure 📝
If informal resolution is unsuccessful, inappropriate, or unsafe, a party may initiate the formal process:
Submission: The individual raising the concern (the Complainant) must submit a written complaint using the official "Conflict Resolution Form" (available from the masjid office or website).
Content: The form should clearly state:
Names of the parties involved.
A detailed description of the dispute or grievance, including dates, locations, and specific incidents.
Any steps already taken to resolve the issue.
The desired resolution or outcome.
Recipient: The completed form should be submitted confidentially to:
For Member vs. Member disputes: The Chair of the designated Conflict Resolution Committee (CRC) or the Board President if no CRC exists.
For Member vs. Staff disputes: The staff member's direct supervisor or the Chair of the HR Committee.
For Member vs. Board Member disputes: The Board President (or Vice President if the President is involved).
For Staff vs. Staff disputes: Their common supervisor or the Chair of the HR Committee.
For Staff vs. Board Member disputes: The Board President and the Chair of the HR Committee.
For Board Member vs. Board Member disputes: The Board President (or a designated neutral Board member/Trustee if the President is involved).
5.0 Step 3: Intake, Assessment, and Mediation 🧑⚖️
Acknowledgement: The recipient of the complaint will acknowledge receipt in writing within [e.g., 5 business days].
Assessment: The recipient(s) will review the complaint to understand its nature and determine the appropriate next steps. They may contact the Complainant for clarification.
Mediation Attempt (Primary Goal): The primary approach is mediation facilitated by a neutral third party.
Mediator: Depending on the nature of the dispute, the mediator could be the Imam, the CRC Chair, the HR Committee Chair, the Board President, or another respected and neutral individual mutually agreed upon by the parties.
Process: The mediator will meet separately and/or jointly with the parties involved to listen to all perspectives, facilitate communication, identify common ground, and help them reach a mutually acceptable resolution based on Islamic principles.
Agreement: If a resolution is reached, it should be documented in a brief, confidential agreement signed by the parties and the mediator.
6.0 Step 4: Investigation (If Mediation Fails or is Inappropriate) 🔍
If mediation is unsuccessful, refused by a party, or deemed inappropriate (e.g., due to allegations of serious misconduct), a formal investigation may be initiated.
Investigator(s): The investigation will be conducted by the appropriate body (e.g., HR Committee for staff issues, CRC or an ad hoc committee appointed by the Board for other issues). Investigators must be impartial.
Process: Investigators will interview the parties involved and any relevant witnesses, review pertinent documents or evidence, and maintain detailed, confidential records.
Fair Hearing: All parties will be given a fair opportunity to present their side of the story and respond to allegations.
7.0 Step 5: Resolution and Communication ✅
Decision: Based on the mediation agreement or the findings of the investigation, the relevant authority (e.g., Supervisor, HR Committee, Board of Directors) will determine the appropriate resolution. Resolutions may include:
A documented mutual agreement.
Specific actions to correct a policy violation.
Disciplinary action (for staff or board members, according to relevant policies).
Changes to masjid procedures to prevent future conflicts.
Dismissal of the complaint if unfounded.
Communication: The final decision or resolution will be communicated in writing to the parties directly involved by the relevant authority within a reasonable timeframe (e.g., 15-30 days after mediation/investigation concludes).
8.0 Step 6: Appeals (Optional Clause)
(Optional: Masjids may choose to include an appeals process, often limited in scope.) If a party believes the process was fundamentally unfair or new, significant evidence has emerged, they may submit a written appeal within [e.g., 10 days] of receiving the decision to [e.g., the Board of Trustees or a designated Appeals Committee]. The appeal body will review the process and evidence and issue a final, binding decision.
9.0 Confidentiality & Non-Retaliation 🔒
Confidentiality: All parties involved in the conflict resolution process (complainants, respondents, mediators, investigators, committee members) are expected to maintain strict confidentiality regarding the details of the dispute and the process. Records will be kept secure.
Non-Retaliation: [Masjid Name] strictly prohibits any form of retaliation against individuals who raise concerns or participate in the conflict resolution process in good faith. Any reported retaliation will be investigated separately and may result in disciplinary action.
10.0 Record Keeping 🗂️
Formal complaints, mediation agreements, investigation reports, and final decisions will be documented and stored securely and confidentially by the relevant authority (e.g., HR Committee for personnel files, Board Secretary for board-level issues) in accordance with the masjid's Record Keeping Policy.
Of course. Here is a detailed Financial Policies and Procedures Manual designed to serve as a comprehensive guide for a masjid.
Version: 1.0
Date Approved by the Board: October 18, 2025
1.0 Introduction & Guiding Principles
1.1 Purpose: This manual establishes the policies and procedures for managing all financial activities of [Masjid Name]. Its purpose is to ensure that all funds entrusted to the masjid are managed with the highest degree of integrity, transparency, and accountability.
1.2 Guiding Principles: All financial matters of the masjid will be governed by the following core principles:
Amanah (Sacred Trust): We recognize that all funds are a sacred trust from Allah (SWT) and our community. We are stewards of these funds and are committed to managing them responsibly.
Transparency: We are committed to being transparent with our community about our financial status and activities.
Accountability: The Board of Directors and all personnel are accountable for adhering to these policies and demonstrating fiscal responsibility.
Internal Control: This manual establishes a system of internal controls to safeguard assets, prevent fraud or error, and ensure the accuracy of financial records.
Compliance: All financial activities will comply with the masjid's bylaws, U.S. Generally Accepted Accounting Principles (GAAP) for nonprofits, and all applicable federal and state laws for 501(c)(3) organizations.
2.0 Roles & Responsibilities
2.1 Board of Directors (BOD): Holds ultimate fiduciary responsibility for the masjid. The Board is responsible for approving the annual budget, reviewing financial reports, approving major expenditures, and ensuring the implementation of these policies.
2.2 Treasurer: The chief financial officer of the masjid, appointed by the Board. The Treasurer oversees all financial operations, presents financial reports to the Board, chairs the Finance Committee, and is a required signatory on all bank accounts.
2.3 Finance Committee: A standing committee chaired by the Treasurer. It assists in preparing the annual budget, monitors financial performance, reviews internal controls, and makes financial recommendations to the Board.
2.4 Bookkeeper/Accountant: A volunteer or paid individual responsible for the day-to-day recording of financial transactions, processing payments, and generating financial reports under the supervision of the Treasurer.
2.5 Staff & Committee Chairs: Responsible for managing their individual budgets, initiating purchase requests, and approving invoices for their respective departments.
3.0 Budgeting Process
3.1 Annual Budget Development:
Timeline: The budget process shall begin at least three (3) months before the start of the fiscal year.
Submission: All committee chairs and department heads will submit their budget requests for the upcoming year to the Finance Committee.
Review: The Finance Committee, led by the Treasurer, will review all requests, consolidate them, project annual revenues, and prepare a comprehensive draft budget.
Approval: The draft budget will be presented to the Board of Directors for review, discussion, and final approval by a majority vote.
3.2 Budget Monitoring:
The Treasurer will present a "Budget vs. Actual" report to the Board on a monthly or quarterly basis.
Committee chairs are responsible for monitoring their individual budgets and must report any anticipated significant variances to the Treasurer.
3.3 Budget Amendments:
Any expenditure expected to exceed its budgeted line item by more than 10% or a pre-defined amount (e.g., $1,000) requires pre-approval from the Treasurer.
Significant, unbudgeted expenditures require a formal motion and majority vote of the Board of Directors.
4.0 Revenue & Cash Receipts
4.1 Fund Accounting: The masjid will use a fund accounting system to segregate funds based on their intended purpose. All revenue must be classified into one of the following categories:
Unrestricted Funds (General/Operating): Donations (e.g., Jumu'ah collections, general Sadaqa) and other revenue that can be used for any legitimate operational expense.
Restricted Funds: Donations designated by the donor for a specific purpose. These funds cannot be used for general operations. Major restricted funds include:
Zakat Fund: Must be accounted for separately and distributed strictly according to the eight categories prescribed in the Qur'an.
Building/Project Fund: For construction, expansion, or major capital projects.
Other Restricted Funds: (e.g., Sadaqa Jariyah for a specific purpose, educational scholarships).
4.2 Donation Handling (Cash & Checks): This is a critical control area.
Collection: All donation boxes shall be kept in secure, visible locations.
Counting (The Two-Person Rule): All cash and checks must be counted by a team of at least two unrelated, authorized individuals. A single person is never permitted to count donations alone.
Documentation: The counting team will complete and sign a Donation Log Sheet, detailing the total cash and listing each check.
Deposit: The funds, along with the log sheet, are given to the Treasurer (or another designated board member) for prompt deposit.
Reconciliation: The bookkeeper will use the bank deposit slip and the signed Donation Log Sheet to record the revenue. These two documents must match.
4.3 Other Revenue:
Online Donations: A designated platform (e.g., Mohid, PayPal) will be used, with clear options for donors to select unrestricted or restricted funds.
Event/Program Fees: All fees for classes or events will be processed through the bookkeeper and documented.
Facility Rentals: All rental income must be documented with a formal rental agreement and processed through the bookkeeper.
5.0 Expenditures & Accounts Payable
5.1 Authorization: No individual may authorize a payment to themselves or a family member. All expenditures must be for legitimate masjid purposes and fall within an approved budget line item.
5.2 Invoice Processing:
Step 1 (Receive): All invoices are submitted to the bookkeeper or main office.
Step 2 (Approve): The invoice is forwarded to the relevant committee chair/department head for approval. The approver signs and dates the invoice, confirming the goods/services were received and the cost is correct, and assigns a budget code.
Step 3 (Record): The approved invoice is returned to the bookkeeper, who enters it into the accounting system as an "Account Payable."
5.3 Payment Methods & Controls:
Method
Primary Use
Key Controls
Checks
Vendor payments, honorariums, reimbursements, contractor payments.
• Requires two signatures from authorized Board members for all amounts over a set limit (e.g., $500). • Check signers must review the supporting approved invoice before signing. • Blank checks must be stored securely.
ACH / Bill Pay
Recurring bills (utilities, insurance, mortgage).
• Requires a two-person digital approval process if available. • The person initiating the payment must be different from the person who can authorize it. • Bank statements must be reviewed monthly.
Credit Card
Small, pre-approved online purchases or supplies. (Limited Use).
• Card must have a low credit limit. • The card is for masjid business ONLY. • An itemized receipt is required for every single transaction. A monthly expense report must be submitted and approved by the Treasurer.
5.4 Expense Reimbursements:
A standard Expense Reimbursement Form must be completed.
Original, itemized receipts must be attached.
The form must be approved by the individual's supervisor or the Treasurer.
Reimbursements are paid by check, not petty cash.
6.0 Payroll
6.1 Compliance: The masjid will comply with all federal and Indiana state employment laws, including verifying work eligibility (Form I-9) and proper tax withholdings.
6.2 Imam/Ministerial Staff: The Imam has a "dual status." The housing allowance will be formally designated by the Board in advance and handled according to IRS guidelines. The Imam is responsible for their self-employment taxes (SECA).
6.3 Timesheets: All non-exempt (hourly) employees must submit accurate, approved timesheets for each pay period.
6.4 Confidentiality: All payroll information is strictly confidential and accessible only to authorized personnel (e.g., Treasurer, Bookkeeper, HR Committee Chair).
7.0 Financial Reporting & Audits
7.1 Internal Reporting: The Treasurer will provide the following reports to the Board of Directors at least quarterly:
Statement of Financial Position (Balance Sheet): Shows assets, liabilities, and net assets (broken down by restriction).
Statement of Activities (Income Statement): Shows revenues and expenses for the period.
Budget vs. Actual Report: Compares planned spending to actual spending.
7.2 External Reporting: A summary of the annual financial position will be presented to the community at the Annual General Assembly.
7.3 Audits:
Internal Audit: An independent Internal Audit Committee, appointed by the Board, will periodically review financial procedures and controls to ensure compliance with this manual.
External Audit: An external audit by an independent CPA firm will be conducted at least every [e.g., 2-3 years], or annually if required by the bylaws or for financing/grant purposes.
8.0 Asset Management & Insurance
8.1 Fixed Assets: The masjid will maintain a list of all significant assets (e.g., property, vehicles, major equipment).
8.2 Insurance: The Board will ensure the masjid maintains adequate insurance coverage, including General Liability, Property, and Directors & Officers (D&O) liability insurance. Policies will be reviewed annually.
9.0 Policy Review
This Financial Policies & Procedures Manual will be reviewed annually by the Finance Committee and the Board of Directors. Any amendments must be approved by a majority vote of the Board.
Here is a detailed budgeting policy for a masjid, outlining the process for developing, approving, and monitoring the annual budget.
Policy Number: FIN-002
Effective Date: October 18, 2025
Approved By: Board of Directors
1.0 Purpose & Principle of Amanah
The purpose of this policy is to establish a clear, transparent, and accountable process for the planning, approval, and management of the masjid's annual budget. This process is grounded in the Islamic principle of Amanah (sacred trust), recognizing that all financial resources are a trust from Allah (SWT) and the community, to be managed with the utmost integrity and responsibility. The annual budget is the primary financial plan that aligns the masjid's resources with its religious, educational, and community service mission.
2.0 Roles and Responsibilities
Board of Directors (BOD): Holds the ultimate fiduciary responsibility for the organization. The BOD is responsible for the final review and approval of the annual budget.
Treasurer: As the chief financial officer of the board, the Treasurer leads the budget development process, provides financial guidance to committees, and presents the final proposed budget to the Board.
Finance Committee: A standing committee chaired by the Treasurer. This committee manages the technical aspects of budget creation, consolidates requests, reviews financial assumptions, and prepares the draft budget document.
Committee Chairs & Department Heads: (e.g., Education, Youth, Maintenance, Social Services Chairs) Responsible for developing budget proposals for their respective areas of operation based on planned activities for the upcoming year.
Imam/Religious Director: Provides input on budget needs for religious programming, educational curriculum, interfaith activities, and guest speakers.
3.0 The Annual Budget Development Process & Timeline
The budget process shall follow a systematic timeline to ensure timely approval before the start of the new fiscal year (e.g., January 1st).
Phase 1: Planning & Proposal Submission (September 1st - October 15th)
Kick-off (by September 1st): The Treasurer and Finance Committee will initiate the budget process by sending a "Call for Budget Proposals" to all committee chairs and department heads.
Budget Packets: The packet will include:
The budget development timeline.
A standardized Budget Request Form.
A financial report showing the current year's "budget vs. actual" spending for their department, to inform their requests.
Departmental Planning: Each committee chair will meet with their committee members to plan activities for the upcoming year and estimate the associated costs (e.g., supplies for the weekend school, honorariums for guest speakers, costs for the annual community picnic).
Proposal Submission (by October 15th): Each committee chair submits their completed Budget Request Form to the Finance Committee. The request must include line-item details and a justification for any significant new expenses or increases.
Phase 2: Consolidation & Review (October 16th - November 15th)
Revenue Projections: The Finance Committee, led by the Treasurer, will develop revenue projections for the upcoming year. This is based on historical giving trends (Friday collections, online donations, membership dues), planned fundraising events, and any other income sources.
Consolidation: The Finance Committee consolidates all departmental expense requests into a single draft budget document.
Review Meetings: The Finance Committee meets to review the consolidated draft. They will:
Compare total requested expenses against projected revenue.
Review each line item for reasonableness and alignment with the masjid's strategic goals.
Meet with individual committee chairs to clarify requests, discuss potential cuts if expenses exceed revenue, or adjust proposals as needed.
Phase 3: Board Approval (November 16th - December 15th)
Presentation of Draft Budget (by November 20th): The Treasurer presents the comprehensive draft budget, including projected revenue, detailed expenses, and any explanatory notes, to the full Board of Directors for its initial review.
Board Deliberation: The BOD will discuss the budget at its next scheduled meeting (e.g., the December meeting). Board members have the opportunity to ask questions, challenge assumptions, and propose amendments.
Final Approval (by December 15th): The Board of Directors will vote to formally approve the final budget for the upcoming fiscal year. A majority vote is required for approval. The approved budget is documented in the board meeting minutes.
4.0 Budget Monitoring & Control
The approved budget is a management tool to be used throughout the year.
Monthly Reporting: The Treasurer/Finance Committee will provide a "Budget vs. Actual" report to the Board of Directors at every monthly meeting. This report will show, for each department and line item:
The approved budget amount.
The actual amount spent to date.
The remaining budget.
Any significant variances (over or under budget) with explanations.
Spending Authority:
Committee chairs are authorized to spend funds within their approved budget lines.
Any expense that will cause a committee to exceed its total approved budget requires prior approval from the Board of Directors.
Budget Amendments:
The budget is a plan, but unforeseen circumstances may arise.
If a significant, unbudgeted expense is necessary (e.g., a major emergency repair), or if a major shift in strategy requires reallocating funds between departments, the Treasurer must present a formal Budget Amendment Proposal to the Board of Directors for a vote.
Annual Presentation: A summary of the final, year-end financial performance against the budget will be presented to the members at the Annual General Assembly.
5.0 Policy Review
This Budgeting Policy shall be reviewed by the Finance Committee and the Board of Directors every three years to ensure it remains effective and relevant to the needs of the masjid.
Of course. Here is a detailed Donation Handling Policy for a masjid, incorporating best practices for financial control and transparency.
Policy Number: FIN-001
Effective Date: October 18, 2025
Approved By: [Masjid Name] Board of Directors
1.0 Purpose
The purpose of this policy is to establish a secure, transparent, and consistent process for the collection, counting, logging, and depositing of all physical donations (cash and checks). Adherence to this policy is essential to uphold our sacred trust (Amanah), ensure accountability to our donors and community, prevent loss or fraud, and maintain accurate financial records for auditing and reporting.
2.0 Scope
This policy applies to all staff, Board members, and volunteers involved in handling any cash or check donations received through donation boxes, Friday (Jumu'ah) collections, fundraising events, mail, or in-person contributions at the masjid office.
3.0 Roles and Responsibilities
Donation Counters: A team of at least two unrelated, approved volunteers or staff members responsible for the counting and logging of all cash and check donations.
Treasurer (or Designated Board Member): Responsible for overseeing the donation handling process, ensuring policy adherence, and managing the deposit of funds.
Bookkeeper/Accountant: Responsible for recording the logged donations into the masjid's accounting software and reconciling deposits with bank statements. This role must be separate from the donation counters and the depositor.
4.0 Procedures
The following procedures create a system of internal controls to protect the masjid’s assets. The "Two-Person Rule" is mandatory at all critical stages.
4.1 Collection Procedure
Donation Boxes: All donation boxes must be securely locked. Boxes should be emptied only by a team of at least two authorized individuals.
Jumu'ah & Event Collections: Donations collected during prayers or events should be placed immediately into sealed, tamper-evident bags or a portable locked box by at least two people.
Secure Transport: The collected funds (in locked boxes or sealed bags) must be transported directly to a secure, private location for counting (e.g., the main office). The funds should not be taken off-site or left unattended.
4.2 Counting and Logging Procedure (The Two-Person Rule)
This is the most critical control point and must be followed without exception.
Secure Environment: Counting must take place in a secure, non-public area (e.g., a locked office).
Two-Person Presence: A minimum of two unrelated, approved Donation Counters must be present during the entire counting and logging process. One person must never be left alone with uncounted funds.
The Count:
The sealed bag is opened or the box is unlocked in the presence of both counters.
Checks are immediately separated from cash.
All checks must be immediately stamped on the back with "For Deposit Only, [Masjid Name]."
Cash is sorted by denomination and counted. Both individuals should count the cash independently to confirm the total.
The Log:
Using the official Donation Count & Log Sheet (see Appendix A), the counters will record the following:
Date of the count.
Source of the funds (e.g., "Jumu'ah Collection," "Box #3," "Ramadan Fundraiser").
Names and signatures of both counters.
A breakdown of the total amount in cash.
A list of each check, including the check number and amount.
The Grand Total (cash + checks).
Restricted Funds: If a donation is clearly marked for a specific purpose (e.g., "Zakat," "Building Fund," "Sadaqa for Food Pantry"), it must be noted on the Log Sheet next to the amount. Unmarked donations are considered unrestricted for General Operations.
Final Verification: Both counters review the Log Sheet for accuracy, confirm the grand total, and sign it.
4.3 Deposit Procedure
Prepare Deposit Slip: The counters, or the Treasurer, will prepare a bank deposit slip. The total amount on the deposit slip must exactly match the Grand Total on the signed Donation Count & Log Sheet.
Secure for Deposit: The cash, checks, and the bank deposit slip are placed in a sealed bank bag.
Timely Deposit: The Treasurer or another designated individual (who should not be the Bookkeeper) is responsible for taking the deposit to the bank within two (2) business days.
4.4 Reconciliation Procedure
This step closes the loop and ensures all funds are accounted for.
Documentation to Bookkeeper: The signed Donation Count & Log Sheet and a copy of the bank-stamped deposit slip are given directly to the Bookkeeper/Accountant.
Verification: The Bookkeeper verifies that the total on the Log Sheet matches the total on the deposit slip. Any discrepancies must be reported immediately to the Treasurer and the Board President.
Recording: The Bookkeeper enters the deposit into the accounting software (e.g., QuickBooks), carefully allocating the amounts to the correct funds (e.g., Unrestricted, Zakat-Restricted, Building Fund-Restricted) as detailed on the Log Sheet.
5.0 Donations Received by Mail
Checks received by mail must be opened by two people (e.g., the administrator and another staff member/volunteer). They will be logged on a separate Mail Log Sheet, stamped "For Deposit Only," and added to the next scheduled bank deposit, following the same procedures above.
6.0 Record Keeping
All Donation Count & Log Sheets, copies of deposit slips, and monthly bank statements must be filed securely and retained for a minimum of seven (7) years for audit and reference purposes.
7.0 Policy Review
This policy will be reviewed annually by the Finance Committee and the Board of Directors to ensure its effectiveness and to make any necessary updates.
Appendix A: Sample Donation Count & Log Sheet
[Masjid Name] - Donation Count & Log Sheet
Date of Count: ___/___/____
Source/Event: _____________________
Cash Breakdown:
$100s: __ x 100 = $_______
$50s: __ x 50 = $_______
$20s: __ x 20 = $_______
$10s: __ x 10 = $_______
$5s: __ x 5 = $_______
$1s: __ x 1 = $_______
Coins = $_______
Total Cash: $______________
Check Log:
| Check # | Amount | Restricted To (Zakat, Building, etc.) |
| :--- | :--- | :--- |
| | | |
| | | |
| Total Checks: | $___________ | |
GRAND TOTAL (Cash + Checks): $______________
We, the undersigned, have jointly counted the funds detailed above and certify that the totals are accurate.
Counter 1 (Print Name): _____________________
Signature: _____________________
Counter 2 (Print Name): _____________________
Signature: _____________________
Of course. Here is a detailed Fund Accounting Policy for a masjid, designed to be clear, comprehensive, and ready for adoption.
Policy Number: FIN-001
Effective Date: [Date of Adoption]
Approved By: The [Masjid Name] Board of Directors
1.0 Purpose and Mission
The purpose of this policy is to ensure that all funds received by [Masjid Name] are managed with the highest level of Amanah (sacred trust), integrity, and transparency. This policy establishes the procedures for properly classifying, segregating, and utilizing funds based on donor intent and the religious and legal obligations of the organization.
Adherence to this policy is critical for:
Honoring the specific intentions of our donors.
Fulfilling our Sharia obligations, especially regarding Zakat.
Maintaining our 501(c)(3) tax-exempt status and complying with Generally Accepted Accounting Principles (GAAP) for nonprofit organizations.
Preventing the misuse of restricted funds for operational expenses.
Providing clear and transparent financial reporting to the community and the Board of Directors.
2.0 Scope
This policy applies to all members of the Board of Directors, the Finance Committee, the Treasurer, all employees, and any volunteers involved in the collection, counting, recording, or disbursement of funds on behalf of [Masjid Name].
3.0 Definitions of Fund Categories
All masjid funds shall be classified into one of two primary categories in the accounting system:
A. Net Assets Without Donor Restrictions (Unrestricted Funds):
This is the masjid's General Operating Fund. These funds have not been designated for a specific purpose by the donor and can be used by the Board of Directors for any legitimate expense that supports the mission of the masjid.
Examples of Unrestricted Revenue: General Jumu'ah collections, unspecified online donations, membership dues, facility rental income.
Examples of Use: Imam/staff salaries, utility bills, maintenance, insurance, office supplies, and general program costs.
B. Net Assets With Donor Restrictions (Restricted Funds):
These are funds that a donor has specifically instructed must be used for a particular purpose. It is a legal and ethical obligation to use these funds only for that designated purpose. These funds cannot be used for general operating expenses.
4.0 Segregated Fund Accounts and Procedures
To ensure compliance, the following segregated funds (or "classes" in accounting software like QuickBooks) must be established and maintained.
4.1 General Operating Fund (Unrestricted)
Purpose: To fund the day-to-day operations of the masjid.
Sources: All donations not explicitly restricted by the donor. This is the default fund for any unmarked contribution.
Allowable Uses: All expenses approved in the annual operating budget, including salaries, utilities, maintenance, supplies, and general programs.
Prohibited Uses: Cannot be funded by "borrowing" from Zakat or other restricted funds.
4.2 Zakat Fund (Highly Restricted)
Purpose: To collect and distribute obligatory Zakat payments according to Sharia.
Sources: Only funds where the donor has explicitly designated the payment as "Zakat."
Allowable Uses: Distribution to the eight categories of recipients specified in the Qur'an (Surah At-Tawbah, 9:60), as determined by the Zakat Committee. Priority shall be given to eligible recipients in the local Carmel/Indianapolis community.
Prohibited Uses: Zakat funds shall not, under any circumstances, be used for masjid operations, salaries, building projects, loan payments, or any expense not sanctioned by Fiqh for Zakat distribution.
Accounting Note: Zakat funds held by the masjid are considered a liability (money owed to the poor) and must be recorded as such on the financial statements (e.g., "Zakat Payable").
4.3 Building & Capital Projects Fund (Restricted)
Purpose: To fund specific, large-scale projects approved by the Board and community.
Sources: All donations explicitly marked for "Building Fund," "Masjid Expansion," "Parking Lot Project," "School Construction," etc.
Allowable Uses: Expenses directly related to the specified project, such as architectural fees, construction costs, permits, and major renovations.
Prohibited Uses: These funds cannot be used as a reserve for or "borrowed" to cover shortfalls in the General Operating Fund.
4.4 Other Restricted Funds (As Needed)
The Finance Committee shall create new segregated funds as needed when donations are solicited or received for other specific purposes. Examples include:
Education/Madrassa Fund: For school-specific expenses like teacher salaries, books, and supplies.
Janazah (Funeral) Fund: To assist community members in need with burial costs.
Dawah Fund: For outreach materials and programs.
Sadaqa Jariyah / Waqf Fund: For endowment investments where only the income is used for operations.
5.0 Procedures for Implementation
A. Donation Processing and Segregation:
Clear Designation: All donation methods (envelopes, online forms, collection boxes) must provide clear options for donors to designate their contribution to a specific fund (e.g., checkboxes for "General Sadaqa," "Zakat," "Building Fund").
Default to General Fund: Any donation received without a specific designation will be automatically recorded in the General Operating Fund.
Recording: During the donation counting and recording process, volunteers and staff must accurately log the amounts for each fund based on the donor's intent.
B. Expense Allocation and Payment:
Approval: All requests for payment or reimbursement must be coded with the correct fund from which the expense should be drawn. This coding must be approved by the relevant budget holder (e.g., Committee Chair).
Verification: The Treasurer or bookkeeper must verify that the expense is an allowable use for the designated fund before issuing payment.
Cross-Fund Prohibition: Operating expenses (e.g., an electricity bill) must only be paid from the General Operating Fund. If the operating fund has a shortfall, the Board must address it through fundraising or cost-cutting, not by using restricted funds.
C. Financial Reporting:
Segregated Reports: All key financial reports presented to the Finance Committee and the Board, including the Statement of Activities (Income Statement) and Statement of Financial Position (Balance Sheet), must be structured to clearly show the financial activity and balances for each segregated fund.
Transparency: The Treasurer shall present a summary report at the Annual General Meeting that clearly shows the total amounts collected for and disbursed from major restricted funds like Zakat and the Building Fund.
6.0 Roles and Responsibilities
The Board of Directors: Holds the ultimate fiduciary responsibility to ensure this policy is enforced and that all funds are used appropriately.
The Treasurer & Finance Committee: Are responsible for overseeing the implementation of this policy, ensuring the accounting system is set up correctly, and reviewing monthly financial reports for compliance.
The Bookkeeper/Accountant: Is responsible for the day-to-day recording of transactions into the correct funds within the accounting software.
Zakat & Social Services Committee: Is responsible for the vetting and disbursement process for the Zakat fund in accordance with its separate charter.
7.0 Policy Review
This policy shall be reviewed annually by the Finance Committee and the Board of Directors to ensure it remains effective, compliant, and aligned with the masjid's mission.
Of course. Here is a detailed Zakat Collection & Distribution Policy for a masjid, incorporating all the elements you requested.
This policy establishes a standardized, confidential, and Sharia-compliant framework for the collection and distribution of Zakat funds at [Masjid Name]. The administration of Zakat is a sacred trust (Amanah), and this policy ensures that this obligation is fulfilled with justice (Adl), compassion (Rahmah), and excellence (Ihsan). Our primary goal is to provide financial assistance to eligible individuals and families in a manner that preserves their dignity and adheres strictly to the principles of the Qur'an and Sunnah.
All Zakat funds shall be managed and distributed by a dedicated Zakat Committee, which is appointed by and accountable to the Board of Directors.
2.1 Committee Responsibilities
To develop and maintain a confidential and standardized Zakat application process.
To review all applications for Zakat assistance in a timely and objective manner.
To conduct respectful and confidential interviews with applicants to verify their needs.
To make distribution decisions based on the established eligibility criteria and available funds.
To ensure the absolute confidentiality of all applicant information.
To maintain accurate and secure records of funds collected and disbursed.
To provide regular, anonymous summary reports on Zakat activities to the Board of Directors.
2.2 Committee Composition
The committee shall consist of at least three (3) trusted, discreet, and active community members known for their integrity.
The Imam shall serve as a religious advisor to the committee to ensure all decisions are Sharia-compliant.
Members are appointed by the Board of Directors for a defined term (e.g., two years).
All members must sign a strict confidentiality agreement before serving. Any breach of confidentiality is grounds for immediate removal from the committee.
Distribution of Zakat funds is restricted to the eight categories of recipients mentioned in the Qur'an (Surah At-Tawbah, 9:60). The Zakat Committee will prioritize applicants from the local Carmel/Indianapolis community.
The primary categories for assistance will be:
The Poor (Fuqara) and The Needy (Masakin):
Individuals or families whose income is below a locally determined poverty threshold or who are unable to meet their basic essential needs. This includes those facing hardship due to:
Unemployment or underemployment.
Imminent risk of eviction or foreclosure (Housing).
Inability to pay essential utility bills (electricity, water, gas).
Lack of sufficient food or basic necessities.
Urgent and necessary health-related expenses not covered by insurance.
Those in Debt (Gharimin):
Individuals burdened by overwhelming debt incurred for basic, lawful necessities (e.g., medical bills, essential living expenses), who do not have the means to repay it. This does not cover debt incurred for extravagant spending or prohibited activities.
The Wayfarer (Ibn al-Sabil):
Travelers who are stranded and have lost access to their funds, requiring assistance for basic needs like temporary shelter, food, or travel back home.
Note: While Zakat can be used for other categories, the committee's primary focus will be on the above. Sadaqa (voluntary charity) funds may be used with more flexibility for needs like tuition or other community support initiatives.
The process is designed to be accessible, dignified, and accountable.
Step 1: Application Submission
An individual seeking assistance must complete a confidential Zakat Application Form.
This form can be obtained from the masjid office, the Imam, or downloaded from the masjid website.
The form will request information on household composition, income, expenses, and a detailed description of the specific need.
Step 2: Documentation
Applicants must provide supporting documents to verify their need. This is essential for accountability. Examples include:
Housing: Copy of lease/mortgage and an eviction/foreclosure notice.
Bills: Copy of the past-due utility bill with shut-off notice.
Health: Copy of the medical bill or pharmacy estimate.
Debt: Documentation of the debt and repayment efforts.
Funeral: Invoice from the funeral home.
Step 3: Committee Review & Interview
The Zakat Committee will convene regularly (e.g., weekly or bi-weekly) to review all completed applications.
At least two members of the committee will conduct a brief, respectful, and confidential interview (in-person or by phone) with the applicant to better understand their situation.
Step 4: Decision and Disbursement
The committee will make a decision based on eligibility, urgency, and available funds.
To ensure accountability, payments will be made directly to the vendor (e.g., the landlord, the utility company, the hospital) whenever possible. Cash will only be disbursed in rare, documented circumstances.
The applicant will be notified of the committee's decision.
Confidentiality is of paramount importance and is a non-negotiable principle of this process.
All application forms, supporting documents, and committee discussions are strictly confidential.
Physical records will be kept in a locked filing cabinet accessible only to committee members. Digital records will be stored in a secure, password-protected folder with restricted access.
Committee members are forbidden from discussing any case details with anyone outside the committee, including their own family members or other board members not on the committee.
All reports to the Board or the community will be made using anonymous, aggregate data (e.g., "In the last quarter, we assisted 15 families with a total of $10,000 for rent and utility payments.") to protect the privacy of recipients.
Segregated Account: All Zakat donations must be deposited into a dedicated bank account, completely separate from the masjid's general operating funds.
Audit Trail: The committee will maintain a confidential log of all applications, decisions, and disbursements, including copies of checks or payment confirmations to vendors.
Financial Reporting: The Zakat Committee treasurer will reconcile the Zakat bank account monthly and provide a financial summary to the Masjid Treasurer and the Board of Directors on a quarterly basis.
This Zakat Collection & Distribution Policy shall be reviewed by the Board of Directors every two (2) years to ensure it remains effective, compliant, and serves the best interests of the community.
Date Approved: [Date]
Approved By: [Masjid Name] Board of Directors
Next Review Date: [Date]
Here's a detailed Accounts Payable policy for a masjid:
1.0 Purpose 🎯
The purpose of this Accounts Payable (A/P) Policy is to establish clear procedures for processing and paying obligations incurred by [Masjid Name]. This policy ensures that all payments are valid, properly authorized, accurately recorded, paid in a timely manner, and made in accordance with the approved budget and donor restrictions. Adherence to this policy is essential for fulfilling our Amanah (sacred trust) in managing the community's funds responsibly and transparently.
2.0 Scope
This policy applies to all expenditures made by [Masjid Name], including payments to vendors for goods and services, contractor payments, guest speaker honorariums, reimbursements to staff and volunteers, and any other disbursement of funds, excluding payroll (which is covered under the Payroll Policy) and Zakat/Sadaqa distributions (covered under the Zakat & Welfare Policy).
3.0 Roles and Responsibilities
Initiator: Any authorized staff member, committee chair, or volunteer who incurs or identifies the need for an expense.
Approver: The designated individual (usually a committee chair, department head, or Board officer) responsible for the budget line item related to the expense. They verify the validity and appropriateness of the expense.
Bookkeeper/Accountant: Responsible for receiving approved invoices, accurately entering them into the accounting system as Accounts Payable, preparing payment documents (checks, ACH files), and maintaining A/P records.
Authorized Check Signers: Designated Board officers (e.g., Treasurer, President, Vice President) authorized by the Board of Directors to sign checks on behalf of the masjid.
Board of Directors (BOD): Ultimately responsible for financial oversight, approving the budget, appointing authorized check signers, and approving major or unbudgeted expenditures.
4.0 Invoice Approval Process ✅
Receipt of Invoice: All invoices should be sent directly to the masjid office or designated email address (e.g., accounts@masjidname.org).
Initial Review: The office administrator or bookkeeper logs the invoice receipt date and forwards it promptly to the appropriate Approver (the person responsible for the relevant budget area).
Approver Verification: The Approver must review the invoice to confirm:
Accuracy: Goods or services were actually received and match the invoice details (description, quantity, price).
Validity: The expense is legitimate and necessary for masjid operations or approved programs.
Budget Availability: Sufficient funds exist within their approved budget line item.
Fund Allocation: The correct fund (e.g., General Operating, Building Fund) and expense account code are identified.
Documentation of Approval: The Approver must clearly indicate their approval on the invoice (or via a linked digital approval system). This includes:
Signature (or verifiable digital equivalent).
Date of approval.
Budget account code(s).
Submission for Payment: The approved invoice is returned to the Bookkeeper/Accountant for processing. No payment can be processed without proper approval documentation.
5.0 Payment Processing 💻
A/P Entry: Upon receiving a properly approved invoice, the Bookkeeper/Accountant enters the bill into the masjid's accounting software (e.g., QuickBooks). This creates the official Accounts Payable record.
Payment Schedule: Payments are typically processed on a regular schedule (e.g., weekly) to ensure timeliness and manage cash flow. Urgent payments require specific authorization from the Treasurer or President.
Payment Preparation: The Bookkeeper/Accountant prepares the checks or initiates ACH/online bill payments based on the due dates of the approved invoices.
Supporting Documentation: For every payment prepared, the original approved invoice and any related purchase orders or packing slips must be attached or clearly linked.
6.0 Check Signing & Authorization (Two-Signature Rule) ✍️✍️
Review by Signers: Unsigned checks, along with all supporting documentation (approved invoice, etc.), are presented to the Authorized Check Signers.
Verification: Check Signers are responsible for reviewing the supporting documents to re-confirm that the payee, amount, and purpose are correct and properly approved before signing.
Two-Signature Requirement:
All checks issued by [Masjid Name] in an amount equal to or greater than $[Specify Amount, e.g., $500] require the signatures of two (2) authorized check signers.
Checks below this threshold may be signed by one authorized signer [Adjust threshold as appropriate for your masjid's size and risk tolerance].
Authorized Signers: Authorized check signers are appointed annually by the Board of Directors and typically include specific officers (e.g., Treasurer, President, Vice President). Signers should preferably be unrelated individuals. A current list of authorized signers must be maintained and filed with the bank.
Prohibitions:
Blank checks must never be pre-signed.
An individual cannot sign a check payable to themselves.
An individual who approved an invoice cannot be one of the required signers for that same payment (Segregation of Duties).
7.0 Payment Disbursement & Record Keeping 📂
Disbursement: Once checks are signed, they are mailed by the office administrator or Bookkeeper. ACH/Online payments are released according to the bank's procedures (ideally requiring a final release step by someone other than the initiator).
Recording Payment: The Bookkeeper/Accountant promptly records the check number/transaction ID and payment date in the accounting system, marking the invoice as paid.
Filing: The original, approved invoice and supporting documentation are marked "PAID" with the date and check/transaction number and filed systematically (e.g., alphabetically by vendor, numerically). Records should be retained according to the masjid's Document Retention Policy.
8.0 Policy Review
This Accounts Payable Policy will be reviewed at least annually by the Finance Committee and the Board of Directors and updated as necessary.
Okay, here's a detailed Expense Reimbursement Policy for a masjid.
This policy outlines the requirements and procedures for requesting and receiving reimbursement for legitimate, pre-approved expenses incurred by authorized individuals while conducting official business for [Masjid Name]. The purpose is to ensure responsible stewardship (Amanah) of community funds, maintain accurate financial records, and provide a fair and consistent process for reimbursement.
This policy applies to:
Paid Staff: Employees of [Masjid Name].
Authorized Volunteers: Individuals (e.g., Committee Chairs, designated project leads) who have received prior written authorization from their supervising Board Member or Committee Chair to incur expenses on behalf of the masjid.
Expenses eligible for reimbursement must be:
Reasonable and Necessary: Directly related to approved masjid activities, programs, or operations.
Pre-Approved (Generally): Significant expenses or those outside routine operations should ideally have prior approval from the relevant supervisor, Committee Chair, or the Board, often tied to an approved budget line item.
Within Budget: The expense must fall within the approved budget for the relevant department or committee.
Islamically Permissible: Expenses must align with Islamic values (e.g., no reimbursement for alcohol).
Examples include approved supplies for educational programs, pre-approved travel for Imam's conference, materials for facility maintenance, or refreshments for an official masjid event.
To receive reimbursement, individuals must submit the following within the specified timeline:
Expense Reimbursement Form: A completed, official [Masjid Name] Expense Reimbursement Form (available from the office or website). This form requires:
Payee's Full Name and Contact Information.
Date(s) expense(s) incurred.
Detailed Business Purpose for each expense (e.g., "Supplies for Weekend School Level 2," "Lunch meeting with Interfaith Partners re: Food Drive"). Vague descriptions like "supplies" or "meeting" are insufficient.
Amount of each expense, listed clearly.
Total reimbursement amount requested.
Budget Code/Committee Name (if known).
Payee's Signature and Date.
Required Approval Signature(s) (see Section 6.0).
Original, Itemized Receipts:
Original, dated receipts are required for all expenses. Photocopies or credit card statements alone are generally not sufficient.
Receipts must be itemized, showing exactly what was purchased. A credit card slip showing only the total amount is not enough.
For online purchases, the email confirmation or packing slip showing items, cost, and proof of payment is required.
If an original receipt is lost or impossible to obtain, a detailed written explanation must be provided and approved by the Treasurer on a case-by-case basis; this should be rare.
Receipts should be taped (not stapled) neatly to a standard sheet of paper accompanying the form.
Completed Expense Reimbursement Forms with all required receipts should be submitted to the designated approver (see Section 6.0) within 30 days of the expense being incurred.
Submissions beyond 60 days may be denied unless exceptional circumstances are approved by the Treasurer.
Segregation of duties is crucial. No individual can approve their own reimbursement.
Initial Approval: The individual submits the completed form and receipts to their direct supervisor (for staff) or the authorizing Committee Chair/Board Liaison (for volunteers). This person reviews the request for legitimacy, budget alignment, and completeness. If approved, they sign the form.
Final Financial Approval: The signed form and receipts are then forwarded to the Masjid Treasurer (or designated Finance Committee member). The Treasurer reviews for policy compliance, verifies budget availability, and provides the final signature authorizing payment.
Board Approval (for large/unbudgeted amounts): Reimbursements exceeding a certain threshold (e.g., $500) or significant unbudgeted expenses may require additional approval from the Board of Directors, as specified in the Financial Policies.
Once fully approved, the Treasurer (or designated finance staff/volunteer) will process the reimbursement.
Payments will typically be made via masjid check or ACH direct deposit. Cash reimbursements are strongly discouraged.
The goal is to process reimbursements within 15 business days of receiving final approval. Delays may occur during busy periods or if documentation is incomplete.
Examples of expenses generally not eligible for reimbursement include:
Personal items or services.
Expenses incurred without required pre-approval.
Fines (parking tickets, traffic violations).
Alcoholic beverages.
Expenses related to political activities.
Lost or stolen personal property.
Sales tax, if the masjid's tax-exempt certificate could have been used.
Failure to comply with this policy, including submitting incomplete forms, lacking original receipts, or submitting requests for non-allowable expenses, may result in delayed or denied reimbursement. Intentional submission of fraudulent requests will lead to disciplinary action, up to and including termination of employment or volunteer status, and potential legal action.
Here is a detailed Credit Card Usage Policy for a masjid.
Policy Number: FIN-007
Effective Date: October 18, 2025
Approved By: [Masjid Name] Board of Directors
This policy establishes the rules and procedures for the issuance and use of credit cards owned by [Masjid Name]. The primary purpose of providing a masjid credit card is to facilitate necessary and pre-approved operational purchases where payment by check or other means is impractical.
The use of a masjid credit card is a privilege granted to authorized individuals. All transactions are governed by the principle of Amanah (sacred trust), requiring the responsible stewardship of community funds. Cardholders are personally responsible for complying with this policy and ensuring all expenses are legitimate, reasonable, and directly benefit the mission of the masjid.
Authorization: Credit cards will only be issued to specific staff or board members ("Cardholders") as authorized by a formal resolution of the Board of Directors.
Typical Cardholders: Authorization is typically limited to positions requiring frequent, small-scale purchases, such as:
The Imam
The Office Administrator / Masjid Manager
The Board President or Treasurer
Cardholder Agreement: Before receiving a card, each authorized user must sign a Cardholder Agreement Form (see Appendix A), acknowledging they have read, understood, and agree to be bound by this policy.
Credit Limit: Each credit card will have a low overall credit limit, typically not to exceed $2,000 - $5,000, as determined by the Board of Directors.
Single Transaction Limit: No single purchase may exceed $500 without prior written (email is acceptable) approval from the Treasurer or Board President.
Monthly Spending Limit: The monthly spending for any single card should not exceed its pre-approved budget line item without authorization from the Treasurer.
Budget Compliance: All purchases must correspond to an approved line item in the masjid's annual budget. The card is not a tool for unbudgeted spending.
A. Appropriate Uses:
Masjid credit cards may be used for pre-approved, mission-related expenses where other payment forms are inefficient, including:
Office supplies or small equipment purchased from online or local retailers.
Software subscriptions or online services (e.g., website hosting, accounting software).
Pre-approved travel expenses (e.g., booking a flight or hotel for a guest speaker).
Fuel for a masjid-owned vehicle.
Urgent, minor maintenance supplies.
Refreshments for pre-approved meetings or small events.
B. Strictly Prohibited Uses:
The masjid credit card shall not be used under any circumstances for:
Personal Purchases: Any item or service for personal use is strictly forbidden. The commingling of personal and masjid expenses on a single transaction is also prohibited.
Cash Advances: Taking cash advances from the card.
Loans: Loaning the card to anyone, including other staff, board members, or family. The authorized Cardholder is the only person permitted to use the card.
Splitting Transactions: Dividing a purchase into multiple smaller transactions to circumvent the single transaction limit.
Donations: Making donations to other organizations.
Unbudgeted Items: Any purchase not aligned with an approved budget line item.
Alcohol, Tobacco, or any other Haram items.
Accidental personal use must be reported to the Treasurer immediately. The Cardholder must reimburse the masjid for the full amount of the personal charge within five (5) business days.
This procedure is mandatory and essential for financial transparency and control.
Keep All Receipts: The Cardholder is responsible for obtaining an original, itemized receipt for every single transaction. The receipt must clearly show the vendor, date, items purchased, and total amount.
Expense Report Submission: Within five (5) business days of the credit card statement closing date each month, the Cardholder must complete and sign a Credit Card Reconciliation & Expense Report (see Appendix B).
Report Contents: The report must include:
The original, itemized receipt for each transaction, taped to a standard sheet of paper.
For each transaction, a brief description of the purchase's purpose and the corresponding budget code (e.g., "Office Supplies - 6510").
The Cardholder's signature.
Approval: The completed expense report must be submitted to the Cardholder's direct supervisor (or the Board President if the Cardholder is the Treasurer) for review and signature approval. No one may approve their own expense report.
Bookkeeping: The approved report with all receipts is then given to the masjid's bookkeeper or accountant to be reconciled with the credit card statement and recorded in the accounting system.
Failure to submit a complete and timely report with all itemized receipts may result in the suspension of card privileges and may require the Cardholder to personally reimburse the masjid for the undocumented expenses.
First Offense: For minor violations (e.g., late report, missing a small receipt), the Cardholder will receive a written warning from the Treasurer.
Repeated Offenses: Repeated minor violations or a single major violation (e.g., prohibited use, failure to report personal use) will result in the immediate suspension or permanent revocation of card privileges.
Fraudulent Use: Any fraudulent or intentionally inappropriate use of the masjid credit card will be grounds for disciplinary action, up to and including termination of employment (for staff) or removal from the board (for board members), and may be reported to law enforcement.
Security: Cardholders are responsible for the physical security of the card at all times.
Reporting: If a card is lost or stolen, the Cardholder must immediately notify both the credit card company and the masjid Treasurer.
(A separate form to be signed by each user, acknowledging they have read and will comply with the policy.)
(A template form for monthly reporting, with columns for Date, Vendor, Purpose, Budget Code, and Amount.)
Of course. Here is a detailed Petty Cash Policy for a masjid.
Policy Number: FIN-007
Effective Date: October 18, 2025
Approved By: [Masjid Name] Board of Directors
Next Review Date: October 2026
The purpose of this policy is to establish a secure and accountable system for managing small, necessary cash expenditures where payment by check or credit card is impractical. This policy ensures that these transactions are properly authorized, documented, and recorded, in line with the principles of Amanah (sacred trust) and financial stewardship.
This policy applies to all staff, volunteers, and committee members of [Masjid Name].
Fund Limit: The petty cash fund shall be maintained at a fixed amount of $200.00.
Transaction Limit: A single purchase or disbursement from the petty cash fund may not exceed $50.00. Any expense exceeding this amount must be submitted for payment through the standard Accounts Payable process.
Custodian: The Office Administrator is designated as the sole Custodian of the petty cash fund. The Custodian is responsible for the physical security of the cash box, disbursing funds according to this policy, maintaining the Petty Cash Log, and initiating the replenishment process.
Treasurer: The Treasurer is responsible for the overall oversight of the petty cash fund, reviewing and approving all replenishment requests, and conducting periodic reconciliations.
Authorized Persons: Staff and designated committee chairs are authorized to request petty cash for approved, mission-related expenses.
Petty cash may not be used for the following:
Salaries, Wages, or stipends: All payments for services rendered must be processed through the official payroll system.
Personal Loans or Advances (IOUs): The fund cannot be used to provide cash advances or personal loans to anyone.
Expense Reimbursements: Personal funds used for a purchase must be reimbursed using the formal Expense Reimbursement Form, not petty cash.
Purchases Over the Transaction Limit: Any expense over $50.00 must be paid by check.
Donations or Gifts: Charitable or personal gifts are not permitted.
Cashing Personal Checks.
Splitting Invoices: A single purchase over $50.00 may not be split into multiple smaller transactions to circumvent the limit.
All disbursements must be documented in a Petty Cash Log.
Obtain Approval: Before making a purchase, the individual must receive verbal approval from their direct supervisor or the relevant committee chair.
Request Cash from Custodian: The individual presents their request to the Petty Cash Custodian.
Complete the Log Entry: The Custodian records the following in the Petty Cash Log:
Date of disbursement.
Name of the person receiving the cash.
Amount of cash disbursed.
Brief description of the intended purchase.
Sign for Cash: The person receiving the cash must sign the log entry to acknowledge receipt.
Make the Purchase and Obtain Receipt: The individual makes the approved purchase and obtains an original, itemized receipt.
Return with Receipt and Change: The individual must promptly return to the Custodian with the receipt and all remaining change.
Finalize the Log Entry: The Custodian verifies the receipt and change, places the change back in the cash box, and staples the original receipt directly to the corresponding page in the Petty Cash Log.
The fund should be replenished when the cash balance falls to approximately $50.00.
Initiate Replenishment: The Custodian will close out the current log period.
Reconcile the Fund: The Custodian must perform a reconciliation. The formula is:
Starting Cash Balance - Ending Cash Balance = Total of All Receipts
(For example: $200.00 - $45.50 = $154.50 in receipts).
Submit Replenishment Request: The Custodian completes a check request form for the amount needed to bring the fund back to $200.00 (in the example above, $154.50). This request, along with the Petty Cash Log and all original receipts, is submitted to the Treasurer for approval.
Treasurer's Review: The Treasurer reviews the log and receipts to ensure all expenditures are appropriate and properly documented. Upon approval, the Treasurer (or other authorized check signer) issues a check payable to "[Masjid Name] - Petty Cash Custodian" for the replenishment amount.
Replenish Cash: The Custodian cashes the check and places the full amount in the cash box, bringing the fund back to its original $200.00 balance. The process then repeats.
Security: The petty cash box must be kept in a locked drawer or secure cabinet at all times when not in use. Access to the key shall be limited to the Custodian and the Treasurer.
Oversight: The Treasurer or a member of the Internal Audit Committee will conduct unannounced spot audits of the petty cash fund at least quarterly to verify the balance and review transactions. All petty cash records are subject to the annual internal and external audits.
Of course. Here is a detailed fundraising policy for a masjid, incorporating guidelines for soliciting donations, event fundraising, online giving, and donor acknowledgment.
Purpose: The purpose of this policy is to ensure that all fundraising activities conducted by or on behalf of [Masjid Name] are executed ethically, transparently, and in a manner that upholds the sacred trust (Amanah) placed in us by our donors and community.
Guiding Principles:
Amanah (Trust): We recognize that all funds are a trust from Allah (SWT) and our community. We are committed to the highest level of stewardship.
Transparency: We will be clear and honest in all our fundraising communications about how funds will be used.
Donor Intent: We will honor the intent of our donors. Funds designated for a specific purpose (restricted funds) will be used exclusively for that purpose.
Respect: We will treat all donors with respect, gratitude, and confidentiality.
Compliance: We will adhere to all applicable local, state, and federal laws governing charitable fundraising.
This policy applies to all fundraising activities and solicitations of donations by [Masjid Name]'s Board of Directors, staff, committees, and any volunteers or external parties raising funds in the masjid's name.
Board of Directors (BOD): Holds ultimate fiduciary responsibility. The BOD must approve the annual fundraising plan, the budget for fundraising activities, and any major capital campaigns.
Finance/Fundraising Committee: A standing committee responsible for developing the annual fundraising plan, overseeing the execution of campaigns and events, and ensuring compliance with this policy.
Treasurer & Finance Staff: Responsible for the accurate processing, recording, and depositing of all donations, managing donor databases, and issuing timely acknowledgments and tax receipts.
Truthfulness: All fundraising materials and verbal solicitations must be accurate and truthful, clearly stating the purpose for which the funds are being raised.
Use of Funds: Donated funds will be used for the purposes for which they were solicited. Unrestricted donations will be used for the general operations of the masjid as approved in the annual budget.
Donor Intent: When a donor designates a gift for a specific purpose (e.g., "Zakat," "Building Fund," "Sadaqa Jariyah"), the donation is considered restricted and will be tracked and used exclusively for that purpose.
Prohibited Practices: Coercive, harassing, or pressure-oriented solicitation tactics are strictly prohibited. The privacy and wishes of donors or potential donors who wish to remain anonymous or be removed from solicitation lists will be respected.
5.1 Jumu'ah & On-Site Collections
Authorization: All on-site collections must be approved by the Board of Directors or its designee (e.g., the Imam or President).
Appeals: The fundraising appeal (khutbah or announcement) must clearly state the purpose of the collection (e.g., "General Operations," "Emergency Relief for [Cause]").
Cash Handling: All cash and checks from donation boxes must be collected and counted by a minimum of two unrelated, authorized individuals. A formal donation log must be signed by both counters before the funds are given to the Treasurer for deposit.
5.2 Event Fundraising
Approval: All fundraising events must be approved by the Board of Directors, based on a proposal from the sponsoring committee that includes a detailed budget and fundraising goal.
Financials: All event revenue (ticket sales, on-site donations, pledges) must be handled in accordance with the masjid's cash handling and financial policies. A full financial report must be submitted to the Board within 30 days of the event's conclusion.
Transparency: The purpose of the fundraiser must be clearly communicated in all event marketing materials.
5.3 Online Giving & Digital Campaigns
Platform Security: All online donations must be processed through a secure, PCI-compliant platform (e.g., Mohid, PayPal, Stripe).
Fund Designation: The online donation form must provide clear options for donors to designate their contributions (e.g., Unrestricted/Sadaqa, Zakat, Building Fund), ensuring donor intent is captured.
Automated Receipts: The system should automatically generate an email receipt for every online transaction.
Social Media: All social media fundraising campaigns must use official masjid accounts and link directly to the approved online donation platform.
5.4 Major Gifts & Pledges
Major Gifts: The Board President or Fundraising Committee Chair should engage personally with potential major donors.
Pledges: Pledges for multi-year contributions (e.g., for a building project) must be documented with a formal, signed pledge agreement detailing the amount, payment schedule, and purpose of the gift.
Timeliness: All donations will be acknowledged in a timely manner.
Online Donations: Acknowledged immediately via automated email receipt.
Check/Cash Donations: Acknowledged with a formal letter or receipt mailed within two weeks.
Tax Receipts: [Masjid Name] is a registered 501(c)(3) organization. All donors will receive an official acknowledgment that can be used for tax purposes. For any single donation of $250 or more, the IRS requires a written acknowledgment stating the amount, and that no goods or services were provided in exchange for the contribution.
Annual Statements: An annual consolidated giving statement will be mailed to all donors by January 31st of the following year.
Donor Recognition: Public recognition of donors (e.g., on a plaque or in an annual report) will only be done with the explicit prior consent of the donor. The wishes of donors who request to remain anonymous will be strictly honored.
Right to Refuse: The Board of Directors reserves the right to refuse any gift that is not consistent with the masjid's mission, could create a conflict of interest, or would be too difficult or costly to manage.
Non-Cash Gifts: Non-cash gifts (such as stocks, real estate, or vehicles) may be accepted subject to review and approval by the Board. Such gifts will be independently appraised, and the masjid will follow all IRS regulations regarding their valuation and acknowledgment.
All donor and prospective donor information is confidential and for the exclusive use of [Masjid Name]. This information will not be sold, shared, or traded with any other organization or individual.
This policy will be reviewed every two years by the Governance Committee and the Finance Committee and updated as needed, with final approval from the Board of Directors.
Date Approved: [Date]
Approved By: [Masjid Name] Board of Directors
This policy provides guidelines for accepting non-cash charitable gifts (such as stocks, bonds, and real estate) made to [Masjid Name]. Its purpose is to ensure that gifts accepted align with the Masjid's mission, are handled legally and ethically, and do not expose the organization to undue risk or administrative burden. This policy aims to encourage philanthropy while safeguarding the interests of the Masjid.
This policy applies to all non-cash gifts offered to [Masjid Name]. Cash, checks, and standard online donations are accepted routinely without needing review under this specific policy, provided they comply with general financial procedures. Key non-cash gifts covered include:
Publicly Traded Securities (Stocks, Bonds, Mutual Funds)
Real Estate (Property, Land)
Tangible Personal Property (Artwork, Equipment, Vehicles)
Other complex gifts (Life Insurance, Retirement Assets – require case-by-case review)
Mission Alignment: All accepted gifts must support the mission and activities of [Masjid Name].
Legal & Ethical Compliance: Gift acceptance must comply with all applicable federal, state (Indiana), and local laws and regulations, as well as Islamic ethical guidelines.
Donor Intent: The Masjid will strive to honor the donor's intent for the use of the gift, provided it is consistent with the Masjid's mission and policies. Restricted gifts must be formally documented.
Fiduciary Responsibility: The Board of Directors holds the ultimate responsibility for accepting gifts and ensuring they are managed prudently.
Professional Advice: The Masjid encourages donors to seek independent legal and financial advice regarding their gifts. The Masjid cannot provide tax or legal advice to donors.
A. Publicly Traded Securities (Stocks, Bonds, Mutual Funds) 📈
Acceptance: Readily accepted. Donors are encouraged to transfer securities electronically directly to the Masjid's designated brokerage account to avoid capital gains tax implications for the donor.
Procedure: Donors should notify the Masjid administration or Finance Committee of their intent to transfer stock, providing the stock name and number of shares. The Masjid will provide its brokerage account details.
Valuation: Recorded at the average market value on the date the securities are received in the Masjid's account.
Liquidation: It is the Masjid's standard policy to sell publicly traded securities immediately upon receipt. Proceeds will be directed according to the donor's designation (if any) or to the general operating fund.
B. Real Estate (Property, Land) 🏡
Acceptance: Accepted only after thorough review and explicit approval by the Board of Directors due to potential liabilities and costs.
Review Process: The donor must provide detailed information about the property. The Masjid (usually via the Finance or a dedicated Ad Hoc committee) will conduct due diligence, which must include:
Appraisal: Obtaining a qualified independent appraisal of the property's fair market value (cost usually borne by the donor).
Title Search: Ensuring the title is clear and marketable.
Environmental Assessment: Conducting at least a Phase I environmental review to identify potential contamination or hazards (cost may be borne by donor or Masjid).
Inspection: Assessing the physical condition of any structures.
Carrying Cost Analysis: Evaluating ongoing costs (property taxes [if any apply after transfer], insurance, maintenance, utilities) and potential liabilities.
Marketability: Assessing how easily the property can be sold, unless the Masjid intends to use it for its programs.
Board Approval: The committee presents findings and a recommendation to the Board. Acceptance requires a formal Board resolution.
Valuation: Recorded at the appraised fair market value.
Use/Liquidation: The Board will determine whether to retain the property for Masjid use or sell it as soon as practicable.
C. Tangible Personal Property (Artwork, Equipment, Vehicles, etc.) 🖼️🚗
Acceptance: Accepted only after review for suitability and potential costs.
Review Process: The Masjid (relevant committee or administration) will assess:
Usefulness: Can the item be used directly in the Masjid's programs or operations?
Marketability: If not usable, can it be readily sold?
Valuation: An independent appraisal may be required, especially for high-value items (cost usually borne by the donor). The donor is responsible for valuation for their tax deduction.
Carrying Costs: Costs associated with storage, insurance, maintenance, or display.
Board Approval: Significant gifts of tangible personal property typically require Board approval.
IRS Form 8283: Donors seeking a tax deduction over $5,000 must complete IRS Form 8283, which may require the Masjid's signature. The Masjid signing only acknowledges receipt, not value.
Donor Intent: Donor informs the Masjid (Administration or relevant committee Chair) of their intent to make a non-cash gift.
Information Gathering: Masjid requests necessary details and documentation from the donor.
Committee Review: The Finance Committee (or other designated committee) conducts the initial review based on this policy. Legal counsel may be consulted.
Board Decision: For significant or complex gifts (especially Real Estate), the committee presents its findings and recommendation to the Board of Directors for a final decision via formal resolution.
Formal Acceptance: The Masjid formally accepts the gift and arranges for transfer of ownership.
Acknowledgement: The Masjid provides the donor with a timely written acknowledgment (tax receipt) describing the gift (but not stating a value for non-cash items, per IRS rules) and confirming no goods or services were provided in exchange.
[Masjid Name] reserves the right to decline any gift that is deemed inconsistent with its mission, potentially difficult or costly to manage, poses liability risks, or is otherwise considered inappropriate.
The Masjid will seek advice from its legal counsel and financial advisors for all significant non-cash gifts, particularly real estate and complex assets, to ensure proper procedures are followed.
This Gift Acceptance Policy will be reviewed at least every three years by the Board of Directors and updated as necessary.
Of course. Here is a detailed Internal Audit Policy and Committee Charter designed for a masjid.
The purpose of the Internal Audit Policy is to establish an independent and objective assurance and consulting function designed to add value and improve the operations of [Masjid Name]. This function helps the organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, internal controls, and governance processes.
This policy is grounded in the Islamic principle of Amanah (the sacred trust), ensuring that all community assets are managed with the utmost integrity, transparency, and accountability for the sake of Allah (SWT).
2.1 Authority: The Internal Audit Committee is a standing committee established by and with the authority of the Board of Directors (BOD). To perform its duties, the committee is granted full and unrestricted access to all of the masjid's records, properties, and personnel relevant to a review.
2.2 Independence: The Internal Audit Committee's independence is essential to its effectiveness.
The committee reports functionally and administratively directly to the Board of Directors.
Members of the committee shall be independent of the day-to-day financial and administrative operations they are auditing. Current employees, the Treasurer, Assistant Treasurer, and the President are therefore ineligible to serve on this committee.
The committee has no direct authority over or responsibility for any of the activities it reviews.
Composition: The Internal Audit Committee shall consist of no fewer than three (3) and no more than five (5) members.
Appointment: Members are appointed by a majority vote of the Board of Directors.
Qualifications: Committee members should possess the knowledge, skills, and experience needed to discharge their responsibilities. At least one member should have professional experience in accounting, finance, or audit. All members must be respected for their integrity, discretion, and objectivity.
Term: Members shall serve staggered three-year terms to ensure continuity.
Chairperson: The committee shall elect a Chairperson from among its members annually.
The scope of the internal audit encompasses the examination and evaluation of the adequacy and effectiveness of the masjid's system of internal controls and the quality of performance in carrying out assigned responsibilities. The scope includes both financial and administrative areas.
4.1 Financial Audit Scope
Donation Handling: Reviewing procedures for the collection, counting (verifying the "two-person rule"), logging, and timely deposit of all cash and check donations.
Fund Accounting: Critically examining records to ensure that Zakat, Sadaqa, Building Funds, and other donor-restricted funds are segregated and used strictly for their intended purposes.
Accounts Payable & Expenses: Testing a sample of payments to verify they are legitimate, properly approved according to the Expense Policy, supported by documentation (invoices/receipts), and paid correctly.
Payroll: Reviewing payroll records for a sample of employees to ensure accuracy in hours, pay rates, and compliance with employment agreements and tax regulations.
Bank Reconciliations: Confirming that all bank and credit card accounts are reconciled on a monthly basis and reviewing reconciliations for any unusual or outstanding items.
4.2 Administrative & Compliance Audit Scope
Governance: Verifying that Board and committee meetings are conducted according to the bylaws, including proper notice, quorum, and accurate minute-keeping.
Policy Adherence: Assessing whether established policies (e.g., HR, Conflict of Interest, Facility Use) are being consistently implemented and followed.
Record Keeping: Ensuring that critical administrative and financial records are securely stored, organized, and retained in accordance with the Document Retention Policy.
HR & Volunteer Management: Confirming that required background checks have been completed for all staff and volunteers working with children or finances and are documented properly.
Asset Management: Verifying the existence of major assets and reviewing the adequacy of insurance coverage.
The Internal Audit Committee will carry out its duties in a planned and professional manner.
Image of an internal audit process flowchart
Annual Audit Plan: The committee will develop an annual audit plan based on a risk assessment of the masjid's operations. The plan will identify the specific areas to be reviewed and the timeline. This plan must be presented to the Board of Directors for review.
Notification: Before beginning a review of a specific area, the committee Chair will notify the relevant department head, committee chair, or board officer.
Fieldwork: The committee will execute the audit by:
Reviewing relevant bylaws, policies, and procedures.
Observing processes (e.g., the donation counting).
Testing a sample of transactions and records.
Interviewing relevant personnel (staff and volunteers).
Draft Report & Discussion: Upon completion of fieldwork, the committee will prepare a draft report detailing its findings. The committee will meet with the relevant personnel (e.g., the Treasurer) to discuss the findings, ensure factual accuracy, and receive management's response and proposed corrective actions.
Final Report to the Board: The committee will issue a final, formal report to the full Board of Directors. The report will include the scope of the audit, key findings, identified risks, and specific, actionable recommendations for improvement, along with management's response.
Follow-Up: The committee is responsible for following up on its findings to verify that management has implemented the agreed-upon corrective actions. The status of these actions will be reported to the Board.
Reporting: The committee will provide a formal report to the Board of Directors at least annually, and more frequently as needed.
Confidentiality: All information, documents, and findings handled by the Internal Audit Committee are considered highly confidential. Committee members must sign a confidentiality agreement. The committee's reports are submitted to the Board of Directors, which is responsible for determining any further distribution or public disclosure of the findings.
The internal audit function is an advisory body. It does not have the authority to implement its own recommendations or to enforce disciplinary measures. Its role is to assess and make recommendations; management and the Board of Directors are responsible for implementation. An internal audit provides reasonable, not absolute, assurance and is not a substitute for a formal external audit by an independent CPA firm.
Policy Approval
Approved by: _________________________
Board of Directors President
Date: _________________________
Attested by: _________________________
Board of Directors Secretary
Date: _________________________
This policy establishes the requirement and procedures for engaging an independent external auditor to conduct an annual audit of [Masjid Name]'s financial statements. The purpose of the external audit is to provide the highest level of independent assurance regarding the fairness and accuracy of the masjid's financial reporting. This commitment to an external audit reflects our dedication to Amanah (sacred trust), transparency, and accountability to our community, donors, and regulatory bodies.
[Masjid Name] shall undergo an annual financial audit conducted by an independent Certified Public Accountant (CPA) firm, selected by and reporting to the Board of Directors (or its designated Audit Committee), in accordance with Generally Accepted Auditing Standards (GAAS).
An annual external financial audit is mandatory if any of the following conditions are met during the preceding fiscal year:
The masjid's total annual gross revenue exceeds $[Specific Amount, e.g., $500,000 or $1,000,000].
The masjid holds significant debt (e.g., a mortgage).
The masjid receives substantial grant funding where an audit is a condition of the grant.
The Board of Directors votes to require an audit, regardless of the above thresholds.
Note: Even if not strictly required by the threshold, the Board is strongly encouraged to conduct an external audit periodically (e.g., every 2-3 years) for best practice governance.
4.1 Responsibility: The selection, evaluation, and recommendation for hiring (or re-hiring) the external audit firm rests with the Audit Committee (or a designated committee/task force if no Audit Committee exists). The final appointment of the auditor requires approval by the full Board of Directors.
4.2 Independence: The selected CPA firm must be independent of the masjid in both fact and appearance. This means the firm and its key personnel involved in the audit should have no financial, employment, or close personal relationships with the masjid's board members, officers, or management staff.
4.3 Qualifications: The selected firm must be licensed to practice public accounting and should demonstrate significant experience in auditing nonprofit organizations, preferably with experience auditing mosques or other religious organizations.
4.4 Selection Process:
The Audit Committee shall issue a Request for Proposal (RFP) to at least three qualified CPA firms, typically every 3-5 years, or sooner if deemed necessary.
Proposals will be evaluated based on the firm's experience, understanding of nonprofit/religious accounting, proposed audit approach, references, and fees.
The Audit Committee will interview finalist firms and make a recommendation to the Board of Directors.
The primary scope is an audit of the masjid's financial statements (Statement of Financial Position, Statement of Activities, Statement of Cash Flows, and related notes) in accordance with GAAS. This includes:
Expressing an opinion on whether the financial statements are presented fairly, in all material respects, in conformity with Generally Accepted Accounting Principles (GAAP).
Assessing the adequacy of the masjid's internal controls over financial reporting.
Testing compliance with donor restrictions (including Zakat and Building Funds) and relevant laws/regulations impacting financial statements.
6.1 Audit Committee Role:
Oversee the auditor selection process.
Serve as the primary liaison between the Board and the external auditors.
Review the proposed audit scope, approach, and fees.
Meet privately with the auditors before, during, and after the audit to discuss findings, controls, and any concerns.
Receive the draft audit report and management letter directly from the auditors.
Review the final audit report and management letter, discuss findings with the auditors, and ensure management responds appropriately to recommendations.
Present the final audit report to the full Board of Directors.
6.2 Management & Staff Role:
Provide the auditors with timely and unrestricted access to all necessary financial records, documents, property, and personnel.
Ensure full cooperation from all staff and relevant volunteers.
Prepare financial statements and supporting schedules as requested by the auditors.
Develop and implement corrective action plans in response to audit findings and management letter recommendations.
6.3 External Auditor Role:
Conduct the audit according to professional standards (GAAS).
Maintain independence and objectivity.
Communicate significant findings, internal control weaknesses, and potential irregularities directly to the Audit Committee/Board.
Issue a formal Auditor's Report with their opinion on the financial statements.
Issue a Management Letter detailing internal control observations and recommendations (if applicable).
The external auditors report directly to the Audit Committee and the Board of Directors.
The final audited financial statements and the Auditor's Report shall be formally accepted by the Board of Directors.
A summary of the audited financial results shall be presented to the General Assembly at the Annual General Meeting.
The Board shall determine the policy regarding public accessibility of the full audited financial statements (e.g., making them available on the masjid website or upon request), balancing transparency with practicality.
The cost of the annual external audit shall be included as an operating expense in the masjid's annual budget.
This External Audit Policy shall be reviewed by the Board of Directors at least every three (3) years, or more frequently as needed, to ensure it remains relevant and effective.