Revenues of charities in terms of Islamic law

In this study, the incomes and savings principles of charitable associations are discussed in the context of donation agreements. Associations are one of the non-governmental organizations referred to as the "Third Sector" today. Associations refer to groups of persons with legal personality which are organized around a specific purpose. The aim of this study is to determine the dispositions of associations that are subject to compensation and not, in the context of donation fiqh and to offer some suggestions. Based on the fiqh and fatwa literature, it is seen that donations made to legal entities are considered as charity (sadaqah), and there is no possibility of "recourse" from donation after dispensation. Foundations are managed by trustees, while associations are managed by the board of directors. While the provisions of custody and power of attorney are valid in managing foundations, the provisions of proxy are valid in associations. In this context, the board of directors of the association is accepted as a proxy in terms of fiqh and law. Donations made to charitable organizations are divided into two parts, conditional and unconditional. The non-compliance of the managers of foundations and associations with the conditions in conditional donations is considered as a reason for compensation in terms of fiqh. The dispositions of foundations or associations on donations are shaped according to fiqh principles. In Islamic law, the principles of yad al-amanah are valid for goods that are not subject to possessions or compensation. Dispositions of the administrators, which can be regarded as violation of right, fault and betrayal in such goods, result in compensation or dismissal. In terms of fiqh, the expenditure places of donations are the indispensable expenses of the organization; it should not be an expenditure that would be considered an ornament, embroidery or waste. The jurisprudence rule "saving over the ruled people (rayah) depends on common good (maslahah)" is a universal rule that determines the limit of expenditures based on the administration and the mandate. In this context, since donations to charitable organizations are considered charity in fiqh, it is seen that the expenditure areas must comply with the criteria of the intimacy with Allah, common good (maslahah) and at a minimum level for Hanafi Muslims.