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Legacy Funds
Give the Gift of Education and Leave Your Legacy or That of a Loved One for Future Generations
Why a Legacy Fund
What will your lasting legacy be? Consider setting up a legacy fund with A Continuous Charity that will provide ongoing educational support to Muslim students. This fund can enable you to contribute to the education of not just one student, but many, through principal educational loans. You can name this fund after your family, a loved one, or a business, and tailor it to support students in specific fields or demographics. Every year, A Continuous Charity will provide you with detailed reports on the impact of your fund and the students it has helped.
What is a Legacy Fund
Establishing a Legacy Fund with A Continuous Charity (ACC) offers donors like you a meaningful opportunity to impact the world by creating an educational fund. You determine what fields of study or demographics of students to support as well as the name of the fund such as your family, a loved one, or a business. The setup cost for a Legacy Fund is $10,000 with a one time $300 fund establishment fee. Once established, ACC’s Application Review Committee (ARC) will match your fund with students who meet your specified criteria. These students will receive loans from your fund, and they will know who supported their educational aspirations. Each year, you will receive reports detailing the impact of your fund on these students’ lives. As students repay their loans, the money goes back into your Legacy Fund, allowing ACC to lend it to new qualifying students. This sustainable model ensures your fund continuously supports countless students in achieving their educational goals, offering transformative blessings from Allah (swt) and freeing students from interest-based debt.
Schematic Explained
The schematic will show how the funds are used in a loan-based model vs. a scholarship model. In this example, we will start at $50,000 of donations given by your family. In the scholarship model, we can safely state that once the $50,000 is given out as scholarships, we have reached our maximum benefit as no more money is left. Your family will have to raise funds each year to sustain this model.
2016
- Since ACC’s contract is four years in length, that means the $50,000 given in 2016 will be returned entirely by 2020
- Therefore, on average, $12,500 will be returned each year from the 2016 recipients until 2020.
2017
- So, in 2017, we will have $12,500 of loan repayment from the 2016 recipients.
- If your family could raise another $25,000, then we would have a total of $25,000 + $12,500 which totals $37,500 available for loans.
2018
- So, for the 2018 recipients, we will have the combined total of the loan repayment from the 2016 and 2017 recipients plus whatever is raised from your family.
2019/20
- The same will apply for 2019 and 2020 as per the schematic. The key point is that there will be a point in which the model becomes self-sustaining so that no more donations are needed, and your family can focus on other more significant and vital issues.
As you can see, over four years, the amount loaned continues to grow. As more loans are returned, more loans can be given, thus helping more students than a scholarship model. The critical point is that this self-perpetuating cycle can be sustained without further donations.
Frequently Asked Questions:
Can a Legacy Fund Specifically Support Students Chosen by the Fund's Creator?
No, a Legacy Fund cannot be used to support individual students selected by the fund’s founders. The purpose of a Legacy Fund is to support students in certain fields of study or belonging to specific demographics.
Is There a Requirement to Limit the Fund's Beneficiaries?
No, there is no obligation to restrict the beneficiaries of a Legacy Fund. Fund creators have the flexibility to support students based on the greatest need. ACC advises choosing this option to maximize the impact on those most in need and most qualified.
Can the Legacy Fund be Increased?
Yes, fund creators are encouraged to contribute and fundraise to expand their Legacy Fund, enabling it to assist more students.
Is it Possible to Rename a Legacy Fund?
Yes, fund creators can change the name of their Legacy Fund by contacting ACC National.
Can Additional Founders be Added to a Legacy Fund?
Yes, you can add other individuals as co-founders. These founders will receive student reports, have the ability to rename the fund, and add additional members to the fund.
Can a Legacy Fund be Terminated?
No, once established, a Legacy Fund is intended to operate indefinitely and cannot be terminated or refunded.
Can a Legacy Fund be Divided into Smaller Funds?
No, a Legacy Fund cannot be subdivided. For example, you cannot allocate half of the fund for medical students and the other half for I.T. students. If you wish to support different groups, we recommend setting up additional Legacy Funds for each specific purpose.
Real Testimonial from "Legacy Fund" Donor
Riba is the root cause of many evils in this world. Students are burdened with it unnecessarily. All of us Muslims must establish alternate pathways for it. A Continuous Charity is a phenomenal step in that direction. It is Sadaqah Jariyah. It is incumbent upon all able Muslims to sponsor a few students education so that those students sponsor others, and the cycle of perpetuity goes on without any student seeking a loan with interest. There is a lot of Khayr in that, and the Ajar with Allah SWT is inshaAllah going to be huge.
Establish a Legacy fund and do business with ASWT.
Munavvar Izhar, MD