Principle
The financial framework is based on accounts. An account represents fund dedicated for a purpose and it has expenses and revenues.
Account Types
Ihsan will have the following account types:
Operation Account: responsible for the monthly and day-to-day expenses. In particular: Utilities, Building Payment and Salaries.
Projects Account(s): responsible for one or more project expenses. There will be one main projects account and several accounts for the ongoing projects such as scouts, helping those in need, Ihsan UC, etc
Building Account: responsible for paying off the building, one-time maintenance (not monthly), upgrade, etc
Line of Credit Account: serves as emergency backup account to ensure financial health
Income Sources
Ihsan will have the following sources of income:
Program Fees: fees charged to attendees to participate in a program.
Franchise support fees: Fees charged to other organizations/groups to help them implement or copy one of our programs
Friends program: on going donations from friends of Ihsan payable on a monthly basis or annual basis (program is already calculated and sent in previous emails)
Sponsorship program: One time large donation to sponsor an area of the building. For instance mosque, main hall, lounge, study room, etc. (program still need to be calculated)
Shares program: One time small donation to sponsor a share in the building. The building will be divided into shares that anyone can donate towards (program still need to be calculated)
Grants: income from grants
General donations: donation left in donation boxes in the different events
Business sponsorship: sponsorship from business to specific programs or projects
Income Source for Each Account Type
The different sources of income will feed into the different accounts as following:
Operation account receives revenue mainly from the Friends program
Building account receives revenue mainly from the Sponsorship program and Shares program
Line of Credit Account receives a pay back from any account that borrows from it. (more rules and regulations are still needed)
A specific project account receives revenue from the program fees, franchisee support fees, grants, general donations and business sponsorship that are provided to this project
Facility & Administration Overhead
A 25% overhead will be assessed on the following sources of income:
Program Fees, Franchise Support Fees, Grants, General donation and Business sponsorship.
The 25% overhead will be distributed as following:
15% to the operation account
10% to the main projects account (this can be used to provide seed funding for new projects and assist existing projects if needed)
Financial Organizational Structure
The financial organizational structure will be as follows:
The treasurer is the highest financial authority. He or she is responsible for monitoring the accounts, coordinating the sources of revenues, allocating the overhead, approving project budgets, providing monthly financial health report, etc
The project leader has full financial responsibility over their project account (if their project warrants an account). He or she will be a signatory on the account and will be responsible for writing checks, using debt card, depositing revenues and coordinating with the treasurer.
The president and the treasurer will be signatories on all accounts
The financial committee is the financial health monitor