Funds disbursed timely
Assessing whether the organization disburses funds to beneficiaries, projects, and partners in a timely manner is critical. Prompt disbursement is essential for program effectiveness, maintaining partner relationships, meeting beneficiary needs, and fulfilling the purpose of charitable donations. In Islamic tradition, the prompt distribution of Zakat (obligatory charity) and Sadaqah (voluntary charity) reflects upholding organizational Amanah (trust). Unjustified delay in delivering these financial rights contradicts the imperative of Ihsan (excellence) when serving vulnerable populations.
| Metric | Median fund disbursement time (Gross & Net) |
|---|---|
| Target | Domestic: P50 ≤3 working days; International: P50 ≤7; Emergencies: P50 ≤2; Zakat: 100% disbursed within the donor-intended period and within the hawl where applicable. |
| Frequency | Weekly operational dashboard; Monthly management review; Quarterly board assurance |
| Method | Median (P50) and P90 time from 'Payment Pack Complete' (system timestamp) to 'Settlement'. Report Gross vs Net (excluding lawful holds like OFSI/SAR). |
| Unit | Days |
Level 1: Initial/Ad-hoc
Fund disbursements are ad-hoc and reactive. There are no defined procedures or standard timelines, leading to frequent and unpredictable delays.
Level 2: Developing
A basic, informal process for fund disbursement exists but is applied inconsistently. Timelines are not formally defined, and delays are common, though sometimes tracked retroactively.
Level 3: Established
A standardized and documented procedure for fund disbursement is established and consistently followed. Clear timelines for different types of disbursements (e.g., project, partner, beneficiary) are defined and communicated.
Level 4: Advanced
The timeliness of fund disbursements is quantitatively measured against established Key Performance Indicators (KPIs), such as 'median (P50), P90 and % on-time'. Data is regularly reviewed to identify bottlenecks, and corrective actions are taken.
Level 5: Optimizing
The disbursement process is continuously improved based on performance data, stakeholder feedback, and technology adoption. The organization proactively anticipates and mitigates potential delays, ensuring funds are consistently disbursed ahead of or on schedule.
Organisation Types
By Organisation Size
| Size | Applicability | Notes |
|---|---|---|
| Micro | exempt | Disproportionate; lacks staff for segregation of duties and complex FX/KYC checklists. |
| Small | exempt | Too small for 4-way role segregation (Program, Finance, Compliance, Treasury) or system timestamping. |
| Medium | partial | Needs basic disbursement timelines and checklists, but lacks dedicated Treasury or automated system-of-record timestamping. |
| Large | partial | Requires documented SLAs and KYC/sanctions checks, but may combine Finance and Treasury roles rather than strict 4-way segregation. |
| Major | full | Scale and complexity require full system timestamping, FX locking, and strict departmental segregation. |
Applicable When
- Organization is legally constituted
- Organization provides cash assistance, stipends, supplier payments for program delivery, or any third-party transfers.
Not Applicable When
- The organization makes no monetary payments to external parties (beneficiaries, partners, suppliers, grantees) during the assessment period.
- The organization is an endowment (Waqf) or investment fund in a mandated accumulation-only phase, with a formal policy of no disbursements during the assessment period.
Discussion (1)
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