AML SEMINAR ON ISLAMIC CHARITABLE TRUSTS

In an ongoing effort to prove constructive and informative lectures and seminars not only to its members but the wider Muslim community, AML held a seminar on "The Islamic Charitable Trust - The Best Legal Structure for Muslim Charities". The event was organised at the Muslim World League Offices in Goodge Street in London on 6th January 1999 and the lecture was presented by Mr. Ahmed Thomson, a practising barrister, author of a number of books on Islam and who has extensive experience on advising Muslim organisations in the UK and was involved in the formation and constitution of Muslim Aid, the national charity.

Mr. Thomson focused his lecture on the fact that as Muslims living in a non-Muslim country, whilst having the legal right to practice our religion and establish Mosques and Islamic Centres, certain legal procedures and documentation are needed in order to gain a legally recognised status. In his experience, he advised that many Muslim organisations were adopting a legal structure for their organisation which is not in harmony wit the Sunnah and in so doing have brought upon themselves a number of problems which could have been avoided.

He spoke of the main structures for Charitable Association, the Charitable Company and the Charitable Trust and it is this third option that is the closest to that of the Islamic Waqf. He said that in adopting this form, an organisation could more easily follow the Sunnah of Islam whilst at the same time comply with requirements of the English legal system.

He set out the main advantages of a Charitable Trust e.g. that it is easier to administer without disruption and has greater stability, all members of the Muslim community have their say at meetings open to all before any major decision is made. The main advantage of such a trust is that it is administered by a limited number of trustees who choose their Chairman from themselves and who are free o follow the Sunnah as regards the way decisions are made. He spoke of the essentiality of the trustees being the best of the community and that the Mosque/centre will hence remain in safe hands and that such trustees cannot be removed by elections but by misconduct, sickness, retirement or death. The main advantage that he outlined was that a Charitable Thrust does not have a legally recognised identity of its own, and so this means that property has to be vested in current trustees and actions are conducted by the trustees on behalf of the organisation.

He concluded by saying that the best form of structure for both trustees and members of the Muslim community is the Charitable Trust - provided that all trustees are the best of their community and have taqwa an provided that the Trust Deed has been drafted carefully and correctly.

Mr. Thomson has prepared a handout, which is available by Contacting AML at the usual address.