Founder s Message. Bismillah Ar-Rahman Ar-Raheem As Salamu Alaykum wa Rahmatullahi wa Barakatuhu,

Transcription

1

2 Founder s Message Bismillah Ar-Rahman Ar-Raheem As Salamu Alaykum wa Rahmatullahi wa Barakatuhu, My name is Dr. Athar Haq, and I am the founder of A Continuous Charity (ACC). As a child my father emphasized the importance of pursuing and gaining a higher education and that it was one of the greatest life achievements. Alhamdulillah, Allah blessed me with a family who could finance my education completely. However during my journey; I met hundreds of Muslim students who were unable to finance their education or ended up with mountains of interest-based debt. The Muslim community has lost many things such as: (1) the bright and talented individuals who cannot pursue their education because of not wanting to sacrifice their religious principles. (2) the support of those who have accumulated large amounts of interest based debt and not mention. (3) the millions of dollars paid towards interest instead of being invested into the Muslim community. Witnessing the desperate need, I started helping Muslim students by giving them educational loans. It was a simple process by which we would develop a contract and I would directly pay for their education. By hand picking friends and students, I was able to ensure repayment. It was then when Allah had enlightened me to make this a community effort. After discussing the idea with other colleagues, we decided to start the first Muslim charity that would collect money from the community and use it to give non-interest based loans to Muslims for higher education. We decided to call our organization A Continuous Charity (ACC) based on a hadith of the Prophet Muhammad (may peace be upon him): When a man dies, his good deeds come to an end except three: Sadaqah Jariyah (A Continuous Charity), beneficial knowledge, and righteous child who will pray for him. (Muslim) We believe that ACC manifests this hadith. All donations become a Sadaqah Jariyah because when these loans are repaid, they will be re-used to help countless Muslim students achieve their education for generations to come. Through our highly selective application process, we choose the best and most talented Muslims with the highest level of character. Not only do these students repay their loans to help other students but they also continue helping their families and communities through their profession and community work. I ask you to make sincere du aa for us and help us build ACC so we can educate the next generation of American Muslims. Sincerely, Athar Haq, D.O. President and Founder of ACC Faculty Associate at UTSW 2 A Continuous Charity

3 Table of CONTENTS Founder s Message... 2 Mission... 4 Vision... 4 Our Beliefs... 5 Our History... 6 Student Debt Crisis Earn More with a Degree... 7 Cost of Education... 7 How You Can Help... 8 Collection of Funds... 8 Application Process... 9 Who We Gives Loan to?... 9 Application Criteria Determining Loan Maximum Lifespan of Loans Minimum Monthly Repayments Flexibility of Repayment Repayment Delinquency Loan are Sadaqah Loan Delinquency Known Depreciation of Funds ACC Loan Types Student Educational Loan Refinancing One to One Loans Applying for the Loan Establish Family Trust Establish an ACC Chapter Responsibilities ACC Loan (Demographics) Financial Accomplishment Invite ACC to Your Community FAQs A Continuous Charity 3

4 A Continuous Charity Foundation First Muslim Charity that collects money from the community and uses it to give non-interest college loans. Legal Status ACC is a non-profit 501(c)3 corporation. Tax ID #: Address P.O. Box 1702, Ballwin MO, Primary #: Website secretary@acontinuouscharity.org Mission To promote the Islamic and intellectual development of Muslims in America by providing non-interest based loans for higher education. Vision A Continuous Charity hopes to nurture a generation of Muslim professionals who will be well-versed in the traditional and Western sciences, using them for the benefit of mankind. Facebook facebook.com/acontinuouscharity YouTube I hope that all of you will take part in this initiative and be part of this project. - Imam Nadim Bashir 4 A Continuous Charity

5 Our Beliefs (1) Education, both Islamic and Western, is from Allah and is one of greatest keys to success in this life and the next. Allah says, It is only those who have knowledge from among His slaves that fear Allah Qur aan Fatir: 28. (2) Muslim communities equipped with Islamic and Western education are necessary for our development in the 21st century. It was narrated by Anas ibn Maalik that the Prophet (peace be upon him) said, The seeking of knowledge is obligatory for every Muslim. Ibn Majah, Sahih. (3) Muslims should search for alternatives to interest-based loans to fund their education. Allah says, O you who believe, do not consume interest, doubled and multiplied, but fear Allah that you may be successful Aal-Imran: 130. (4) It is the responsibility of the Muslim Community to support their Muslim students in attaining their education by providing non-interest based loans as the collective goal is to improve the plight of the Ummah. It was narrated by Abu Musa that the Prophet (peace be upon) said, The relationship of the believers is like the bricks of a building, each strengthens the other Bukhari. (5) This effort will not only benefit the future of Muslims, but will benefit all of humanity. Especially when they meet Allah. On the authority of Abu Hurayrah, the Prophet (s) said, When a man dies, all his deeds come to an end except for three: a continuous charity, beneficial knowledge and a righteous child who will pray for him Muslim. A Continuous Charity 5

6 National Board of Directors Our History ACC started as an educational loan and scholarship program for Muslims seeking a higher education. The founders realized the limitation of scholarships and wanted to maximize the benefit of the funds raised. Then all donations were transformed into non-interest based loans. With this new strategy, ACC would be able to help more students purse their education with the same pool of funding that would renew itself as students paid back their loans. ACC has since launched its chapter program, which is designed to shift the responsibility of educating American Muslim students from a national organization to local communities. We believe that every masjid, Muslim organization, and the community is responsible for helping their local students in pursuing their higher education while adhering to their religious principles. Our goal is to open hundreds of local chapters across the United States who will raise local funds to benefit local students while ACC maintains the accounts, follows all government regulations, ensures repayment, produces legally binding contracts, and produces public financial reports. ACC maintains a National Board of Directors who oversee the interests of the Foundation as outlined in the ACC bylaws. President: Athar Haq Treasurer: Sulaiman Morgan Secretary: Tasmiha Khan Adviser: Omar Malik Listing of Board of Directors about-us/our-team.html National Shurah Council A Continuous Charity s Religious Council consists of varying Islamic Scholars who are well versed in the Islamic Legal Jurisprudence as it relates to Islamic loans. All loaning policies and procedures are presented to the Religious Council for review and approval before being implemented by ACC. Listing of Current Council Members about-us/our-religious-council.html 6 A Continuous Charity

7 Student Debt Crisis Earn More with a Degree Cost of Education A Continuous Charity 7

8 Student Debt Crisis How You Can Help Collection of Funds Collecting Funds From the Community ACC collects funds from Islamic Centers, business sponsorships, student repayments and grants. All funds are then used to provide non-interest based loans for college, university, and graduate school. Funds are collected year round. 8 A Continuous Charity

9 Application Process Application Season: January 1st - March 31st Students apply online at Application Review: April 1st - May 31st ACC reviews all applications to determine which students will receive the loans. This process involves a review of the online application and interviews with applicants. The application review process is detailed below. Awarding Process: June 1st July 1st ACC awards students the loans during the above mentioned period. Prior to the awarding, each recipient signs a legally binding contract ensuring repayment over a certain term. Consequences of non-payment are outlined clearly. Each loan repayment scheme is personalized for each student depending on which field they are pursuing and how much they have been awarded. Who We Give Loans To High school students entering college/university. Students in an accredited college/university. Graduate students. Graduates who have degrees and are working but still have interest based educational loans (0% refinancing). A Continuous Charity 9

10 Application Criteria ACC uses 5 criteria when determining loan recipients. (1) Merit is determined by examining the applicant s academic achievements, test scores, class standing, GPA, and other awards. The better a student does academically the more points he/she will receive in this category. (2) Islamic scholarship represents the student s simultaneous quest of Islamic knowledge. Examples include learning Arabic, memorizing the Quran, attending weekly halaqah, weekend seminars, etc. (3) Community involvement examines how involved an applicant is in the greater Muslim and non-muslim community. Examples include volunteering at a local food bank, being the president of a club or school organization(s), tutoring, feeding the poor, etc. 100 Point Scale The 100 Point Scale is a system developed by ACC that is used to determine loan recipients for ACC. Each of the 5 ACC Application Criteria are worth 20 points for a total of 100 possible points. The Application Review Committee is comprised of ACC staff and volunteers who review all the applications. (4) Need is determined by looking at the financial portfolio of the applicant including spouse and parents. Other scholarships such as FAFSA are included for review. The greater the need, the greater the points assigned for this section. (5) Geographic location implies that if an applicant resides in a locality that has invited ACC for a community event, fundraising, khutbah, etc. then these applicants are at an advantage as ACC feels obliged to return the funds to the local communities that have supported us and our cause. 10 A Continuous Charity

11 Determining Loan Determining Loan Amount and Repayment Period The Application Review Committee (ARC) will determine the loan amount given to each student and the repayment period based on the strength of their application, amount requested, and amount of funds raised during that calendar year. Maximum Lifespan of Loans ACC will ONLY give loans to students who can realistically payback their total loan within 4 years. No loan lifespan can exceed the 4-year maximum. If an applicant cannot payback their loan within 4 years then a lesser amount may be loaned out which that person can payback within the 4 year maximum time. This clause can be amended as ACC expands, as funds increase, and if the student s condition changes. Minimum Monthly Repayments When determining a recipient s minimum monthly repayment the application review committee will determine the maximum a recipient can repay without it becoming a burden on the recipient. However minimum monthly payments are started immediately after loan is awarded. Legally Binding Contracts All students wishing to receive ACC loans must sign and submit all repayment contracts to ACC National or the local chapter. Failure to sign all documents will prevent the awarding of loans. Flexibility of Repayment In Islam, a loan is a form of Sadaqah (charity). In those cases where a student is unable to meet their minimum monthly payments due to financial hardship then ACC must contact the student in order to determine a new minimum monthly payment. This flexibility may modify the minimum monthly repayment and may extend the lifespan of the loan. This flexibility reflects the mercy and compassion demonstrated in the Quran and Sunnah and will be determined by the ARC. I whole heartedly support this organization and I hope that you will too - Sheikh Omar Suleiman A Continuous Charity 11

12 Repayment Delinquency Loans are Sadaqah As mentioned above, loans are a form of sadaqah. We still believe that students are obliged to repay their loans; however, in cases where a student is unable to due to loss of work, injury, or other life circumstances ACC will work with them to reassess their loan repayment. In some cases we may choose to reduce the monthly amount, reduce payments to $0, or forgive the loan entirely. Loan Delinquency Only in those cases when a student refuses to repay their loan without any life changing circumstances will ACC take action to ensure repayment, which are listed below: (1) ACC will take all appropriate actions to speak with the student in order to find a solution but if the student still refuses to repay their debt the following actions may be taken. (2) Damage to credit rating by student loanee or cosigner. (3) Garnishment of wages. (4) Withholding of tax refunds. (5) Possible loss of eligibility for federal and state financial aid. Known Deprecation of Funds The funds ACC uses while giving out loans depreciates by the following three factors: (1) Inflation: The process of currency losing value as more of it is produced by the U.S. government. (2) Operational Costs: Our operational costs are capped at 15%. ACC is still yet to reach that mark and we work hard to ensure that our operational costs hover around 10%. (3) Default of Loan: In those cases where a student is unable or unwilling to pay back their loan. It is crucial that the community understands that this is the natural process of loaning money without interest. With this understanding, we hope that Muslim community continues to donate generously to help support ACC in educating the Muslim Ummah. 12 A Continuous Charity

13 ACC Loan Types ACC provides educational loans to Muslim U.S. citizens who are students studying at any American accredited college or university pursuing any degree. Student Educational Loan These loans are given to students who apply online, meet the ACC criteria, and can be given to any of the above-mentioned categories. The amount of the loan and repayment is determined on an individual basis by the ACC loaning committee. The student receiving the loan will make monthly payments until the loan is re-paid in full. The loanee pays back exactly the amount borrowed without any fees or profit gained by ACC. Refinancing ACC will refinance pre-existing loans from student graduates. ACC will pay off an existing educational interest based loan for a graduate. ACC will only pay the principle and will not pay any interest on behalf of the student. The loanee will repay the total amount borrowed without any fees or profit gained by ACC. One to One Loans ACC provides a 1 to 1 loan to students from individual or group donors. The 1 to 1 program works when a donor or group of donors wants to give a loan to a particular student of their choice. ACC has created a program to help facilitate this agreement and ensure repayment. Donor(s) first choose a student they wish to loan money to. They then determine the amount they want to loan the student and a repayment period. Once that is determined, ACC will create a contract between the donors, the student, and ACC. The donors will then donate money to ACC that will be used as a non-interest loan for the student. Repayment of the 1 to 1 loan will occur between the recipient and donor while ACC provides its services to ensure repayment to the donor for a 6.5% fee of the total loan. Applying for the Loan The ACC application process is completely digital. Interested students must visit and apply online. The application process begins on January 1st and goes through March 31st of every year. Application Instructions Help Video: A Continuous Charity 13

14 Establish Family Trust Leaving your family s legacy is easy with ACC. We offer two solutions that will allow you to help other students seeking a higher education. Family Trusts: An ACC Family Trust is a way for your family to open a trust with ACC. Your family can put money into the account and ACC will use it to provide non-interest educational loans. We then loan those funds to students and mention that it is on behalf of your family. when the students pay back their loans, the funds go back into your account becoming available to be loaned again and again to future students. Thus, your family s trust becomes a continuous charity and blessing for you, your family, and the countless students that it benefits. ACC produces all documents and reports so that your family is able to stay on top of your trust: (1) Student Reports: ACC gives you reports of the students who have received your loans. (2) Financial Reports: ACC will give you monthly financial reports that cover the amount of funds in your account, which students have received what loans and their amounts, along with repayment history. (3) Loan Recommendations: As a partner of a trust you are given the ability to recommend students who you believe are qualified and deserving of these loans. (4) Legacy Donation: Leave a lasting legacy by including ACC in your will, by including a sentence or two within your will so that you can ensure that you continue to support the education of American Muslims and free people from interest debt. As a community, we should be standing up and we should take a step forward to suppor this organization - Imam Nadim Bashir 14 A Continuous Charity

15 Establish An ACC Chapter Opening an ACC Fund to help Local Students The ACC Fund program is quite simple. ACC opens a fund in your local city or state (example: Chicago, Florida, New York). Once the fund is opened, the local community can start to put money into that fund through fundraisers, business investments, private donations, etc. The money that is collected will be used to give non-interest based loans to local Muslim students studying in that city or state. When the students pay back their loans, the money goes back into the local fund and is available for the next student. ACC maintains the funds, ensures repayment, and follows all government regulations allowing for the community to simply focus on raising as much money as possible and determining who the loans should go to. Why start an ACC Fund? Starting an ACC Fund has numerous benefits. Most communities have the capacity to raise funds for loans but then are not equipped with platforms to get into legally binding contracts with students and follow-up with students for years (or decades) to ensure repayment. At ACC, we do have that capacity. In essence the community is only responsible for raising money and selecting the recipients. We Take Care of Everything: (1) Starting the Fund: ACC will do all the legal work to open, maintain, and manage the local fund. (2) Contracts: We develop legally binding contracts that all recipients sign to ensure they are legally bound to pay back their loan. (3) Repayment: We have a system in place to ensure that all students pay back their loans, even if it takes years or decades. (4) Government & IRS Compliance: We make sure that the fund follows all government regulations and tax codes. (5) Financial Reports: We produce public financial reports so that you know how much money is in your community s fund, how much has been loaned to students, and other financial reports to keep you informed. We should thinking of raising our standards and find a way to collectively protect ourselves from Riba - Imam Omar Suleiman A Continuous Charity 15

16 Responsibilities Responsibilities for an ACC Fund Local Fund Head: As a Fund Head, you are the go-to person that helps ACC manage the local fund, organize fundraisers, educate the community, and award loans to students. We recommend you become a Fund Head if you are a member of a small community. Local Fund Committee: As a member of the Fund Committee, you will be a part of a local team of people who will help ACC manage the local fund, organize fundraisers, educate the community, and award loans to students. We recommend a Fund Committee be created in larger communities such as New York, Los Angeles, Chicago, Texas, Florida, etc. By having a committee, responsibility is shared and more people are able to help manage a larger fund. What are my Responsibilities & Benefits? Fundraising: We need energetic, passionate, and well-networked people in all communities who can help raise money for the fund. Let s face it: the demand for non-interest loans is high and the supply of funds is scarce. The more money you can raise, the more students you will help. 1 Education & Outreach: ACC requires all Fund Heads or Fund Committees to hold regular educational workshops. We believe that the community should have a better understanding of higher education, how to pay for it, the evils of riba (interest), applying for financial aid, and other aspects of higher education. Don t worry, we provide the educational materials and resources - we just need you to help educate your community. 2 Determine Which Students Are Awarded the Loans: As a Fund Head or as a part of the Fund Committee, you are given the privilege of determining which students are awarded the non-interest based loans, the amount of the loan they will receive, and the repayment period. ACC will send you all the applicants that applied in your region and guidelines to help you determine which students are deserving of the loans A Continuous Charity

17 ACC Loans Demographics Loans By Degree & Area of Study A Continuous Charity 17

18 ACC Loans Loans By Gender & Area of Study Loans By State 18 A Continuous Charity

19 Financial Accomplishment September December 2014 Total Funds Raised $209, Total Amount Loaned $170,504 Number of Loans Awarded 21 Students Average Student Loan $8, Amount Repaid $34,589 Percentage of Loans Repaid 21% Operational Expense $33, Operational Expense as Percentage 16% ACC Expense Graph A Continuous Charity 19

20 ACC would love to visit your local community to hold an educational outreach program and workshop. We believe that making a dramatic change in Muslim college debt requires us to educate the community about college and the costs associated with it. Our talks cover the following classes: College Prep Courses Reducing College Debt Class How to pay off student debt faster The evils of riba and the Islamic Importance of Education The Student Debt Crisis Invite ACC to Your Community To invite us to visit your community please contact secretary@acontinuouscharity.org FAQs (1) Is ACC a non-profit organization? Yes, A Continuous Charity is an official non-profit (501 c3) organization. Alhamdulilah, we received our non-profit IRS letter in June of We are proud to be the first Muslim Charity in America that collects funds and uses them to provide non-interest College loans to Muslims pursuing higher education. (2) How do I apply? There is an online application process which requires some biographical information and uploading of some documents such as 2 letters of recommendation and a financial statement. Please refer to the Application Instructions page for more details. We have 1 application season lasting 3 months. All applications will be reviewed together. There is a 4-6 weeks review of applications and then a 4 week interview process. (3) Are there any hidden charges/fees? There are absolutely no hidden fees or charges, and no application fees. You pay back exactly what you borrow. (4) After paying the loan back, do I have to pay anything else? There are no extra charges. For example, after receiving a $10,000 loan, you will be expected to pay back $10,000 over the course of your payback period. 20 A Continuous Charity

21 (5) How much money does ACC loan out? Our average loan amount changes each year and is dependent on two primary factors. 1. The strength of your application which includes your community service, Islamic scholarship, field of study, payback period, and need. 2. How much money ACC has raised during that year s application season. The more ACC raises the more we are able to loan to students. (6) How does ACC ensure that students/graduates pay the loans back? ACC has a legal team that produces legally binding repayment contracts. ACC enters into these legally binding contracts with all loan recipients to ensure repayment of all educational debts. We ensure payback in multiple ways. 1. Choosing the Applicant: The application process (including letters of recommendation, credit check, and interview) help us select those who we believe are reliable and sincere. 2. Co-Signer: When awarding the loan, we also have the recipient have a co-signer. 3. Legally Binding Contract: ACC gets into a legally binding contract with every student. These contracts clearly stipulate the conditions of the loan, and that repayment is necessary. (7) How Does ACC View the Loans? In Islam a loan is a type of Sadaqah. We hope to embody this concept when we loan students funds. If a student is unable to make their monthly payments due to external factors such as losing a job, an unexpected expense, injury, or other issues then ACC works with the student to make it easier for them to pay us back. We may reduce the monthly amount, we may void the loan until the person gets back on their feet, or we may forgive the loan entirely. (8) How long do students have to pay back their loan? How much are the monthly payments? Average Loan Repayment: Our average loan repayment is 4-6 years. Minimum Monthly Repayments: When determining a recipients minimum monthly repayment the application review committee should determine the maximum a recipient can repay without it becoming a burden on the recipient. Flexibility of Repayment: In Islam a loan is a form of Sadaqah (charity). In those cases where a student is unable to meet their minimum monthly payments due to financial hardship, ACC must contact the student in order to determine a new minimum monthly payment. This flexibility may modify the minimum monthly repayment and may extend the lifespan of the loan. Every contract is individualized and it s during the writing of the contract that an ACC official and the student will sit down to determine the monthly payments and the payback period. Factors that determine the payback period include: personal credit history, field of interest, amount of money loaned out, income of the student, and quality of application. (9) How is ACC funded? ACC is funded by donations from the community, businesses, grants and investments. Currently ACC is in the process of establishing investments. (10) How does ACC determine who gets loans? After submitting the online application, each application is given a score out of 100. This 100-point scale is determined by the following: merit, Islamic scholarship, community service, need, and location. Location A Continuous Charity 21

22 becomes an advantage to students applying from locations and regions of the country that have invited us for fundraisers. Students are graded on the 100-point scale and those who receive the highest scores are likely to receive the loans. (11) Does ACC give any scholarships? ACC does NOT give educational scholarships. (12) Who can apply for a loan? High school students about to start college College students who have not yet graduated Graduate students pursuing a PhD, Masters, JD, Medical, and other degrees at accredited Universities. Students who have received their degrees and are looking for a non-interest loan to pay off their existing interest-bearing loan. (13) Are there any limitations to the field of study? There are no limitations to the field of study. (14) What does ACC do if a student intentionally does not pay back their loan? Default: For those students who intentionally choose to not pay back their loans even though they are financially able to do so then ACC will take all actions to contact the student and remind them to pay their loan. If the default continues than ACC may take the following actions: You may lose eligibility for deferment, forbearance, and repayment plans. You may lose eligibility for additional student aid or loans. Your account may be assigned to a collection agency. Loan will be reported as delinquent to credit bureaus, damaging your credit rating. This will affect your ability to buy a car or house or get a credit card. Federal and state taxes may be withheld through a tax offset. This means that the Internal Revenue Service can take your federal and state tax refund to collect any of your defaulted student loan debt. Default occurs if a student does not make a payment in 270 days. (15) Do you hire employees? Yes, we are proud to be an equal opportunities employer. Our main office is in St. Louis, MO. Some of our staff members work remotely across the United States. We believe that the only way to provide exceptional service to the community is by hiring professionals who will run the organization. (16) How can I donate? By donating to ACC you are directly investing in the education of the American Muslim community and freeing them from interest-based debt. Donors can mail ACC a check, donate using cash, or online at (17) How can I help? You can help by making du aa for us our success in helping educate the Muslim Community. You can also help by donating to help fund the education of Muslim students. Last but not least, you can have your community invite us to have a community event to help raise awareness and funds. 22 A Continuous Charity

23 (18) Does ACC open chapters? Yes, ACC does open chapters. The 1st step to open an ACC Chapter is to open an ACC Muslim College Fund (MCF). An ACC MCF is a local fund opened by ACC that allows local communities to raise funds that will be used in order to provide non-interest college loans to local students. (19) Who s a Part of Your Board? ACC has a national board comprised of 5 members. These members are responsible for producing organizational wide policies and practices for the organization. To view a list of all current board members visit (20) Do you have a Shura Council? Yes, ACC maintains a Shura Council of various Islamic Legal Scholars who review and approve ACC s policies and procedures to ensure they remain Sharia compliant. (21) Our contact information: To send us a letter address it to, A Continuous Charity P.O. Box 1702, Ballwin MO Telephone: (636) secretary@acontinuouscharity.org (22) When is the application season? Our application season begins on January 1st March 31st. All students must apply online at (23) Types of ACC loans? 1. Educational Student Loan: An educational loan given to students who are seeking a loan to finish their degrees. 2. Refinancing Loans: Loans that are used to pay off existing student debt to 1 Loan: Loans that are given by a specific donor or group of donors for a specific student. The donors give the funds to ACC who in turn loan it to the student. ACC and the student enter into legally binding contract and the student pays back ACC, who in turn pay back the original donors. (24) How to open a chapter? Opening an ACC chapter is simple. Visit to submit your application to open a chapter today. (25) Are loan repayments tax deductible? Yes, ACC is a registered 501(c)3 non-profit charity and all donations are eligible for tax deductions. (26) Do you do independent audits? Yes, ACC will begin conducting independent audits starting in A Continuous Charity 23

24