Transforming Charity into Development

Enrich your Ramadan by giving daily charity.

Ever wonder why our zakat and sadaqat every year couldn’t vanish poverty and beggary in the society. Why the seeker of zakat remain the beneficiary for all time -dependent on the zakat donor? Are Zakat not meant to with stand the weaker section of the economy atleast in the long run.

Background:

Ever since Corona-19 effects starts impacting into all our lives, the small time business and micro level entrepreneur were adversely affected to an unprecedented level leading to almost zero earning in rural areas.

Large scale relief work by way of distribution of food packets and ration kits and even cash support has been and continue to be undertaken.

The traditional way of charity distribution goes towards consumption purpose that ails no development either in the short term. Hence, for charity to impact long term and sustainable to the beneficiries, this has to transform into development.

Thus for a long-term support to identified beneficiaries, a sustainable solution was warranted due. EISAR envision a humble beginning for Relief cum Rehabilitation.

Our goal is to take up the responsibility to transform charity into development by providing a support base through one-time grant followed by a regular follow up by a local team to let the small busineses stand on their own feet to meet their day to day expenses.

To fulfill these objectives, Eisar launched Zakat Fund and its strategy of mobilization and allocation.

TARGET

1.Promote the habit of mutual help and cooperation among the people to hold hand of the underprivileged sections in their neighbourhood.

2. Provide financial assistance (Empowerment Loan /Qard e Hasnah) to 500/- persons/families directly @ approximately INR 20,000/- each for rehabilitation in their previous occupations.

TASK

1-Enrol beneficiaries as members of EISAR;

2- Enrol all assistance seekers as members of EISAR to receive regular handholding in finance and business development in future;

3- Appoint a FOLLOW UP team to look after and assist the beneficiaries for compliance of condition of grant and thereby ensure the success of the Mission.

STRATEGY FOR FUND MOBILISATION AND USE

A- Sources of fund

B- Receipt and transfer

C- Fund USES

FUND MOBILISATION

a- EISAR — as major contributor say min 50% of the annual budget. It will approach and mobilise required fund from the contributions of new promoting partners, CSR contributions, public and private sector national and global charity agencies;

b- EISAR CO-OPERATIVE SOCIETY – shall advance grant to the beneficiaries as directed by local committee as Economic Empowerment grant. Accordingly, it will receive back the same in form of donations from beneficiaries to be deposited in RRFD (rehabilitation revolving fund deposit). The same shall be ploughed back for future grant decided by CMC;

c- STAR PARTNERS – EISAR will approach to the well-wishers to help mobilise/donate INR ONE LAKH per annum or more as per their convenience;

d- INDIVUSAL DONORS – EISAR will approach individuals and accept general or designated contribution minimum INR Rs 10,000/- per person or more as sadqa e Janiya

e- CROWD FUNDING — general public contribution of any amount INR minim 1000/- and above. as lump sum or monthly basis;

FUND RECEIPT AND TRANSFER

All funds mobilised shall be routed and rerouted through Bank Account of EISAR’s, which is a registered Co-operative society with permission from government of India.

The Bank account details for domestic donors is as follows;

TITLE OF ACCOUNT : EISAR CREDIT SOUHARDA COOPERATIVE LTD

BANK : FEDERAL BANK OF INDIA

A/C NO : 19860200003735

IFSC : FDRL0001986

FUND USES 

Exclusively for REHABILITATION GRANT by way of EMPOWERMENT LOAN /Qard e Hasnah to the eligible applicants on the following criteria;

Have a min one-year business experience and or business temperament;

Formally join EISAR and attend business development seminars/ workshops and skill development training arranged from time to time;

Promise to use this grant for resumption /restarting the business activity as a full-time occupation and save min 20% of daily earning and deposit the same in RRFD and their own account in EISAR for their future financial stability;

Promise to attend monthly networking meeting for mutual help and cooperation.

As an exception fund may be used for business start-ups.

IMPACT


Increased level of gainful occupation to post Covid-19 lockdown affected jobless / poor citizens removing their poverty and unemployment


Increase in philanthropy for Hand holding /caretaking for poor and disable neighbours out of spirit of social commitment causing social development;

Arrest and stop the declining trend in country’s GDP/National Economy as a result of accelerated demand for goods and services due to widely distributed multiple income growth;
Increased role of voluntary sector as facilitators in implementing at ground level general welfare schemes floated by private,/ corporate and public sector;

And what not !!! …………

ایثار کو آپریٹیو سوسائٹی کی طرف سے بھٹکل میں قائم اسٹارٹ اپ مالکان کے ساتھ خصوصی نشست

Why Interest free finance is more relevant than ever amid COVID-19

The challenge is to make financial inclusion to reach millions of young muslims to receive financial services to the underbanked population.

Ever since Corona-19 effects starts impacting into all our lives, the breaking lines of our economies showing its fundamental flaw.This is primarily due to systematic banking run and financial crises alarming economic recession that will hit most parts of the world. India, in particular, with varied structural adjustment both to the economy and society, the economic wellbeing of people has detoriated as never before. Unemployment in domestic as well as foreign had a cascading effect due to reverse migration. People working in foreign shores drawing hefty amount are force to leave or remain idle or to return home to safety. It is high anticipation that people would prefer to stay local amid the new normal arise. Have the covid-19 stays for long, the local economies has to flourish.The migrant worker, white collar pofessionals would rather seek local employment and new start up. This hold very true for states like Kerala and Andhra Pardesh or places whose major source of household income comes from freign employment especially in Middle East.

Can Interest Free Finance be a Saviour?

The new noraml is local and unconventional with no hype in the maket – no doubt, the big question staring at most is: what does the future hold? Can Interest free finance has a role to play here? I say with certainty looking at how it fared globally as well as in India. It has a potential to accommodate and rebuild their new lives. For Instance, following global financial crises of 2007, interest free finance were resilient alternative to conventional finance. Social finance solution like waqf, zakat and microfinance provided liquidity to scale up their venture. Recently, India’s Shariah-compliant lenders offered moratoriums without extra charges for pandemic-hit debtors while long serving, huge asset holding multinational banks couldn’t able to offer. In addition, most, if not all, sharia complaint lender has been participating in one or the other way in solving basic problems during this pandemic. This is primarily due to inbuild and inherent structure of the whole system has to offer. It is so engrained to be human centric and circular in nature that everyone in the ecosystem will win.

The younger generation is calling for unconventional approaches to solve financial problem by innovation. This group, generally considered as being more sensitive than previous generations, demands wide transparency towards food, lifestyle, finance, labour, health, urban planning, migration, ecology and environment arrangement. crowdfunding platforms, charity fund raising through fintech is getting traction worldwide.

The Potential

Eisar Co-Op Society, a startup registered with the Karnataka Souhardha Shakari Act 1997, modelled a platform to solve new normal financial problems. Founder S M Abud Asif says, “Anyone who needs help to set up a business or just returned from foregin or other domestic places wants to solve their financial problem by availing our membership, we will offer the most affordable solution. Moulana Shafi Shabandri Nadvi commented the importance of sharia complaint ways of handling business and finance.

This Platform will enable the accessibility of asset based projects, the solution which not only balances the fund raising needs of end users but also offers sufficient protection and security for the financial institution.
When the asset/equipment gets financed, around 50 to 70 percent of the profits will be given to the investors. The members will get the remaining sum. It is a win-win for everyone.”
Most of times people have business ideas which are promising but lacks adequate finance and legal support to invest to turn into reality, while depositor wants return through secure investment, Eisar bridges this gap and makes sure alternative financing arrangement are provided.
The members will get all support and even legal help, if needed. The startup also ropes in many similar cooperative socities operating in bhatkal and in around india, share their technical know-how, as to carry forward and help execute the ideas.
We seek to hire interns with dynamic profile who are committed to helping the poor and who share our mission and values
For details, www.eisarfinance.in
For internship opportunities contact
+91 80-73923662

Online Zakat Solution Competition

Announcement

Online Zakat Solution Competition

Inspired by two Prophetic Hadith and Present Problem statement
Solve the question looking at your local situation.

The hand which gives is better than which takes.
Poverty almost leads to disbelief.

Should money be unattended at conventional Banks and avoid riba ?

How we can solve local economic problems by establishing collective zakat system?

Send your solution by looking @ local situation at your locality. It can be a video, essay or any other form but should be validated by a reasonable data and statistics.

All submissions can be made via direct message on either What’s App (+918310424726) or Instagram (eisar_cooperative_society) or email to abudasif@gmail.com.