At LaunchGood, our mission has always been to empower the global Muslim community to fundraise for what matters most to them. Along the way, we’ve faced countless decisions that test our values and commitment to serving our users with trust, transparency, and integrity. One such decision recently led us to rethink how we approach payment processing fees for Zakat contributions—a choice that underscores our unwavering dedication to our donors.
The Amanah: balancing revenue and user trust
As a platform, we rely on tips from donors to sustain and grow our operations. These tips enable us to provide critical support to fundraisers, enhance our platform’s functionality, and reach more communities in need. However, when it comes to Zakat, we recognize the immense spiritual and ethical responsibility associated with this pillar of Islam.
Zakat is not just another donation; it is a divine obligation meant to purify one’s wealth and directly uplift those in need. For this reason, ensuring that 100% of a donor’s Zakat reaches its intended beneficiaries is paramount. While we’ve always strived to maintain transparency by showing the correct ‘Zakatable’ amount to donors through our tracker and report, we realized that our default fee structure—where a percentage of contributions is allocated toward covering payment processing platform fees—might inadvertently create barriers to fulfilling this sacred obligation with complete trust.
The decision: giving donors the option to cover fees
After much reflection and dialogue, we made the difficult yet principled decision to offer donors the option to cover the fees associated with their Zakat contributions. This means that users can now choose to pay an additional amount to cover processing and platform costs, ensuring that 100% of their Zakat goes directly to the causes they support.
We understand that this decision might impact our revenue. By giving donors an additional cost to cover and more decisions to make in the checkout flow, we anticipate a potential reduction in tips, which are a critical part of our operating budget. However, we believe that the trust and confidence of our community are far more valuable than short-term financial gains. Our priority is to empower our users to fulfill their Zakat obligations in a way that aligns with their faith and values.
Why this matters?
This decision is about more than just fees; it’s about reaffirming our commitment to the principles that define us as a platform. Here’s why it matters:
- Trust and transparency: By allowing donors to cover fees, we provide clarity and peace of mind that their Zakat contributions are being used exactly as intended.
- Empowering the community: This choice puts the power back in the hands of our users, respecting their autonomy and their understanding of their obligations.
- Leading with integrity: Upholding the sanctity of Zakat demonstrates our dedication to being a values-driven platform, even when it comes at a financial cost.
The road ahead
While this decision might pose challenges in the short term, we are confident that it will strengthen our relationship with the LaunchGood community in the long run. By prioritizing trust and transparency, we are investing in a future where more people feel confident using our platform to fulfill their religious and charitable obligations.
To our donors, fundraisers, and supporters: thank you for trusting us and for inspiring us to continually improve. Your feedback and support fuel every decision we make, and we are honored to be a part of your giving journey.
Together, we can continue to make a difference in the lives of those who need it most. And as always, we remain committed to serving you with the highest standards of integrity, transparency, and compassion.
LaunchGood
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