Keeping Clear Records for a Masjid or Madrasa: Donations, Fees and Distributions

Why records matter for a masjid or madrasa

A masjid or a madrasa holds money that people have entrusted to it. Those who give are trusting that it will be used for the purpose they had in mind, and those who run the institution carry the responsibility of showing that it was. Clear records are how that trust is kept: they let a donor see that a gift was received, let a committee see where money went, and protect the treasurer from suspicion.

The most common problems are not dishonesty but disorder: receipts not given, entries made from memory weeks later, funds mixed together and no one able to say what a balance is made of. A small set of habits removes nearly all of that.

Donation receipts

Give a receipt for every donation, even a small one, and number them in a running sequence so that none can be removed without a gap showing. A good receipt contains the following.

• The institution’s name and, where it has one, its registration details.
• A receipt number and the date.
• The donor’s name, or a note that the donor wished to remain anonymous.
• The amount in figures and in words.
• The purpose, written as the donor stated it, such as a general donation or a specific project.
• The name and signature of the person who received the money.

Writing the amount in words as well as figures stops an amount being altered afterwards. The donation receipt tool on this site produces these receipts with the amount in words and your logo, and keeps no copy on a server.

Record the purpose; leave the rulings to a scholar

A record should say what the donor said. If a donor states that a gift is for a particular purpose, write exactly that, and spend it accordingly. A receipt tool prints the wording you type; it does not decide how a payment should be classified or whether it satisfies any religious obligation, and neither does this guide. Questions about how a particular fund may be used belong with a qualified scholar. What the treasurer must do is make sure the record is accurate and the money is used as stated.

Keep each fund separate

Do not pool money that was given for different purposes. Keep a separate account in the books for each fund, such as general expenses, a building project, student support or restricted gifts, and a bank or cash balance that matches the total. When money is moved from one fund to another, write down who approved it and why.

The daily closing book on this site can hold these heads, and its trial balance shows that the totals agree.

Madrasa fees and vouchers

Where a madrasa collects fees, a voucher for each student each month keeps both sides clear. The voucher states the student’s name and class, the month, each fee head, the total, the due date, any late-fee rule and the payment details. A paid voucher is stamped or signed with the date of payment, and a copy stays with the office.

• Issue vouchers at the same time every month, from one list of students.
• Print the same fee heads in the same order so guardians recognise them.
• Record every payment against the voucher number.
• Keep a list of unpaid vouchers and follow it up politely and on a schedule.
• Write down any concession given, who approved it and for how long.

Distributions and the signed register

When an institution hands out money, ration or meat, a register protects everyone involved. Each row records the date, the recipient’s name, a short description or identification note, and the amount or quantity, with a signature or thumb impression in the last column. The total at the foot is written in words.

The register is evidence that the distribution happened and who received it. Two people from the committee should check it, and the totals should agree with the fund the distribution was paid from. As with receipts, the register records what was given. It does not decide who is eligible.

Simple controls that build trust

1. Two people, not one, should count and sign for cash collected in a collection box.
2. Bank larger amounts promptly instead of holding cash.
3. Pay by cheque or transfer where practical, and keep the voucher with a written reason for each payment.
4. Have someone other than the treasurer check the books every month.
5. Never mix the institution’s money with anyone’s personal money.

A monthly summary for the committee

At the end of each month, write a one-page summary: the opening balance of each fund, the money received and the money spent, and the closing balance. Attach it to the minutes and, where the institution’s practice allows it, share a summary with the community. Openness is the strongest protection against rumour.

Protecting donor and student information

Donor names, phone numbers and students’ details are personal information. Share them only with those who need them, keep paper copies locked away and keep digital copies on a device only the office can open. Tools that run in your browser, like the ones on this site, do not upload what you type, but the files you download are yours to protect.

• Do not post donors’ or students’ details in a public group.
• Keep copies in a place that is backed up and not on a shared phone.
• Remove details you no longer need.

Common questions

How this guide was prepared

This guide is based on common record-keeping practice for charities and community institutions and on how the donation receipt, fee voucher and distribution register tools on this site work. It covers keeping accurate records only. It does not give legal advice, and it does not rule on how any fund may be used.

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