Guiding Framework - ICCF

The North American Islamic Trust (NAIT) established its Islamic Centers Cooperative Fund (ICCF) in 1979. ICCF has been serving Muslim community with its commitment to the religious requirements of avoiding Riba (“interest”) and of pooling Muslims’ financial resources as a cooperative for the advancement of Islamic values and American Muslims.

ICCF pool is functioning in a charitable (IRC § 501(c) (3)) manner for advancement of Islam and Muslims. Up to 15% of the ICCF pool is used to extend no-interest loans to build new and to upgrade existing Islamic centers to empower Muslim organizations. It is common for major religious institutions to have affiliated endowment funds and investment vehicles to support and advance their religion and related religious entities.

Over five hundred Islamic centers and affiliates are participating in the ICCF pool. Participants forward funds that exceed their short-term needs to ICCF and these are pooled with funds of other participants. ICCF pool is not a bank, and thus not FDIC-insured. Only the participants may send or withdraw funds; at any time. ICCF can wire-transfer withdrawals for a fee or send a check by mail.

NAIT invests funds of the ICCF pool in Shariah-compliant stocks and real estate in the United States. The ICCF pool’s long term investment gains are shared with the ICCF participants. To preserve participants’ funds, NAIT uses the conservative procedure of retaining a part of the investment gains during good years to shoulder losses in years of economic downturn. Quantum of the gain that is distributed to the ICCF pool participants and what is held in the ICCF pool are dependent upon multiple years’ performance.

ICCF pool will continue to retain a part of the investment gains during good years to shoulder losses in years of economic downturn. Distribution of gains annually will be based on several prior years’ results (up to ten years). NAIT will assess 1.5 percent ICCF pool overhead charge annually that is not subject to be reversed.

NAIT will continue to work for Islam and Muslims. NAIT is appreciative of the ICCF pool participants’ continued confidence in NAIT’s commitment to building the American Muslim community.