Donors trust a charity to use their money the way they intended, especially zakat. Here is how fund accounting, beneficiary verification and online giving work in practice, and how software enforces the rules.

Most charities start with one bank account and a register. That works until a donor asks how their zakat was spent, an auditor asks for fund balances, or a restricted grant is accidentally used for salaries. Fund accounting prevents those moments.

Every gift goes into a fund

The core idea is simple: every donation is received into a fund, and every payment comes out of one. Common funds are:

  • Unrestricted (general): can be used for any purpose, including running costs.
  • Restricted: tied to a purpose, campaign, grant or programme.
  • Waqf (endowment): the capital is kept; only permitted income is used.
  • Zakat: including fitrana and fidya, paid only to eligible beneficiaries.

Rules the system should enforce

In Hayat's charity workspace, the zakat fund pays only verified, zakat-eligible beneficiaries and is never offered for running costs; waqf capital is never spent; restricted funds stay tied to their purpose; and no fund goes below zero unless your settings allow it for unrestricted funds. Your scholars and trustees decide the policy; the software makes sure it is followed.

Verifying beneficiaries

Good practice is a case file for each household with income, assets and debts, a home-visit verification that records a zakat decision, and applications approved within each approver's limit. Aid can then be paid in cash, by bank transfer, as goods from stock, or directly against a hospital or school bill.

Receipts and tax certificates

Each donation should get a numbered receipt on the spot, sent automatically if the donor wants. Receipts carry your registration, NTN and tax wording, and yearly donation certificates can be issued for one donor or all. Cheques should wait as pending until cleared or bounced.

Pledges and campaigns

Monthly pledges on a set day, with pay links, reminders, pause and resume, turn one-off donors into regular supporters. Campaigns with a code, target and dates show progress on each card and on your donate page.

A donate page without an app

Donors can give at a page such as my.hayaterp.com/donate/your-page or from a campaign link: choose an appeal, type and cause, amount, one-time or monthly giving, and an optional dedication. Donors who sign in see their giving history, pledges and certificates.

Programmes, grants and Qurbani

Programmes with budgets by head, grants with tranches and utilisation reports, and Qurbani season management (animals, shares, bookings, collection slips and distribution) keep the busiest periods under control.

Privacy

Donor and beneficiary data is sensitive. In Hayat, AI features such as appeal writing and impact reports never send donor, beneficiary, CNIC or phone data to AI.

Read more about Charity & NGO software in Hayat ERP, or book a demo.

Frequently asked questions

Why should zakat be kept in a separate fund?

Because zakat can only be given to eligible recipients. Keeping it in its own fund, and paying only verified, zakat-eligible beneficiaries from it, shows donors and auditors that it was used correctly.

Can donors give online without an app?

Yes. Hayat gives each charity a donate page where donors choose an appeal, amount and one-time or monthly giving, without installing an app or signing in.