Bahá'í Fund - treasurer and Assembly

From Lights of Guidance (to categorize)

Trustworthiness--A Prime Requisite for Those Responsible for the Funds

"A primary requisite for all who have responsibility for the care of the funds of the Faith is trustworthiness. This, as Bahá'u'lláh has stressed, is one of the most basic and vital of all human virtues, and its exercise has a direct and profound influence on the willingness of the believers to contribute to the Fund."

(From a Memorandum of Comments and Suggestions attached to a letter from the Universal House of Justice to all National Spiritual Assemblies, August 7, 1985, in Lights of Guidance, no. 857)

Great Responsibility of Members of the National Spiritual Assembly-- Should Require Two Signatures for Withdrawal of Funds

"In view of the great responsibility placed upon the shoulders of the members of National Assemblies by those who elect them, we have urged National Assemblies to exercise the greatest care in the handling of their National Funds particularly as these funds represent in great part acts of sacrifice on the part of the friends. It is, of course, within your discretion how you delegate the manifold tasks involved in the day-to-day operation of your National Assembly but we earnestly urge you to reconsider the resolutions to which we referred and provide that two signatures be required for the withdrawal of funds, one of which would be that of an office-holder who is a member of your National Assembly."

(From a letter of the Universal House of Justice to a National Spiritual Assembly, August 26, 1973: The Need for Care in Handling Bahá'í Funds, A Compilation of extracts published in Bahá'í Funds: Contributions and Administration, Canada, in Lights of Guidance, no. 858)

The Treasurer of an Assembly Should Never Commingle His Own Funds and Those of the Faith

"...The Treasurer of a Bahá'í Spiritual Assembly, even if momentarily holding Bahá'í funds in his own name, must take the greatest care never to commingle his own funds with those of the Faith or to leave the funds of the Faith subject to the vagaries of fortune which can afflict any one of us."

(From a letter of the Universal House of Justice to an individual believer, June 8, 1971: The Need for Care in Handling Bahá'í Funds, A Compilation of extracts published in Bahá'í Funds: Contributions and Administration, Canada, in Lights of Guidance, no. 859)

Local Assembly of a Large Community Might Appoint a Committee to Assist Treasurer

"Regarding the local funds, it is suggested that until such time as the friends have developed the habit of contributing regularly and freely, any Local Spiritual Assembly which has a large community might appoint a small committee to assist the local Treasurer in the discharge of his responsibilities. Such committees could be appointed after consultation with the Auxiliary Board member or assistant for the area. Great care must be taken in the appointment of the members of the committees; they must be both trustworthy and conscientious and must be imbued with awareness of the importance of maintaining the confidentiality of contributions to the funds."

(The Universal House of Justice: Development of the Local and National Funds of the Faith: Some Comments and Observations, published in Bahá'í Funds: Contributions and Administration, p. 31, Canada, in Lights of Guidance, no. 860)

Treasury Committees, Functions of

"...It is envisaged that these Treasury Committees would serve a number of functions:

--- To render general assistance to the Treasurer, as needed; for example members of the committee could assist with issuing receipts or keeping accounts.

--- To arrange for inspirational talks and discussions at Nineteen Day Feasts or at specially called meetings for the education of the friends in the spiritual and practical importance of contributing to the funds.

--- To receive donations of money on behalf of the local Treasurer and transmit these to him.

--- To receive gifts of produce and handicrafts. The committee would be responsible for arranging for their sale and for handing over the proceeds to the local Treasurer.

--- To receive from the friends written pledges of their hope or intention of making a contribution to the local or national funds, whether in cash or in kind, and to assist in collecting them."

(The Universal House of Justice: Development of the Local and National Funds of the Faith: Some Comments and Observations, published in Bahá'í Funds: Contributions and Administration, p. 31, Canada, in Lights of Guidance, no. 861)

National Treasury Committee

"As to the national fund, in those areas where there are problems as a result of lack of banking facilities, unreliable mail systems and general difficulties of communication, it would be desirable for the National Spiritual Assembly to appoint a national committee to assist the national Treasurer in a manner similar to that outlined above for Local Spiritual Assemblies. Further, it may even be necessary to subsidize, from the national fund, one or more trusted individuals, depending on the size of the national community, who would travel to rural areas to meet with local Treasury Committees, assist them in the execution of their functions, explain the needs of the national fund, collect the donations to the national fund from the local areas and transmit them to the national Treasurer."

(The Universal House of Justice: Development of the Local and National Funds of the Faith: Some Comments and Observations, published in Bahá'í Funds: Contributions and Administration, p. 31, Canada, in Lights of Guidance, no. 862)

The Treasurer is Officer in Charge, but All National Spiritual Assembly Members Are Responsible

"The National Spiritual Assembly has the responsibility to ensure that contributions received are properly receipted, and satisfactory accounts kept of all receipts and disbursements. While the Treasurer normally is the officer in charge of such a sacred obligation, this does not mean that other members are thereby relieved of all responsibility, or are deprived of their right of access to details related to the current operation of the Assembly, in all its aspects.

"Such right and responsibility vested in the individual members of the Assembly do not vitiate the confidentiality of Bahá'í contributions, since the information made available to the Treasurer or other members of the Assembly is to be treated in strict confidence."

(From a letter written on behalf of the Universal House of Justice to a National Spiritual Assembly, January 11, 1977: Compilation of Extracts..., op. cit. No. 858, in Lights of Guidance, no. 863)

Teach Trustworthiness Through Writings--Explain to Individuals that They Will Be Held Responsible for Money They Handle

"The distressing problems of the misuse of funds described in your letter can be resolved in the long run only through a process of loving education of the friends. It is through the dissemination among the believers of appropriate texts from the Writings of the Faith, through carefully prepared articles on this subject based on

the Holy Texts and published in your newsletter, and through talks at conferences, summer schools and other Bahá'í gatherings, as well as discussion of these fundamental issues with the friends at such meetings, that you will be able to gradually attain your objective.

"It is important for your Assembly, in future, to explain to persons who are entrusted with the money of the Faith that in view of the National Assembly's obligation to protect Bahá'í funds, the Assembly will hold them responsible for all monies they receive, and they should therefore render proper accounts to the National Spiritual Assembly, be faithful custodians of God's trust, and be assured that such honesty and faithfulness will be richly rewarded from on high."

(From a letter written on behalf of the Universal House of Justice to a National Spiritual Assembly, May 18, 1980: Compilation of Extracts..., op. cit. No. 858, in Lights of Guidance, no. 864)

The National Spiritual Assembly Should Require Annual Audit of Treasuer's Accounts

"The House of Justice has not established any uniform procedure for Bahá'í treasurers, since methods of accounting and the laws governing such matters vary considerably from country to country and from one situation to another. It advises that on such technical questions the National Assembly's Treasurer can seek the advice of a professional accountant. The National Spiritual Assembly should, of course, ensure that its books of account are audited annually and for this there is no objection to utilizing the services of a non-Bahá'í firm."

(From a letter written on behalf of the Universal House of Justice to a National Spiritual Assembly, July 13, 1981: Compilation of Extracts..., op. cit. No. 858, in Lights of Guidance, no. 865)

Some Guidelines for Treasurers

"In general terms, however, the House of Justice feels that there are certain matters to which National Treasurers should give particular attention.

1. There is the relationship between the National Assembly and the individual believers and local communities. Through whatever correspondence he conducts with contributors to the National Fund and with committees which are drawing on the Fund for their work, the National Treasurer can be a powerful influence in establishing links of loving unity within the community.

2. The Treasurer must be sure to render regular and accurate financial statements to the National Spiritual Assembly so that it can properly plan its work within the means available to it.

3. It is the Treasurer's responsibility to prepare the annual financial report in time for the National Spiritual Assembly to consider it before presenting it at Convention. He also has to prepare the annual budget for the consideration and approval of the National Assembly.

4. The Treasurer should carefully monitor the use of the Fund so that he can warn the Assembly in good time if there is danger of over-spending.

5. In book-keeping, a system must be adopted to ensure that earmarked funds are kept absolutely distinct from those that are at the free disposition of the Assembly, and there should be safeguards to prevent the inadvertent spending of earmarked funds on matters other than those for which they are intended.

6. In addition to keeping accurate records of income and expenditure, the Treasurer should see that the assets of the Assembly are protected and that both assets and liabilities are carefully recorded.

7. The Treasurer should advise the Assembly to set aside sufficient sums on a regular basis to provide for the repair and maintenance of properties owned by the Faith, so that these can be kept in good condition and so that the normal work of the Cause is not interrupted by sudden requirements of large sums for repairs. Usually the task of maintaining the properties is assigned to a special committee or committees, which should be consulted by the Assembly and can suggest a suitable amount to be set aside annually.

8. While it is within the discretion of a National Spiritual Assembly to require only one signature on cheques drawn on the National Fund, experience has shown that it is better practice to require at least two signatures. This is a protection not only to the Fund itself but also to the Treasurer. The funds of the Faith are a sacred trust, and Assemblies should be meticulous in handling and accounting for them."

(From a letter written on behalf of the Universal House of Justice to a National Spiritual Assembly, July 13, 1981: Compilation of Extracts..., op. cit. No. 858, in Lights of Guidance, no. 866)

Desirable for Assembly to Maintain Financial Reserve

"Since, in the nature of things, the levels of contributions and expenditures fluctuate, it is most desirable for an Assembly to hold a reserve adequate to bridge periods of relatively high expenditure and low income. This will help it to avoid making too frequent appeals for the friends to meet financial emergencies. Frequently issued appeals--as distinct from the regular giving of information--may tend to lose their effect. At a time of emergency, the Assembly may have to dip deeply into its reserves--an action that your Assembly has just taken--but they will need to be built up again in due course."

(From a letter written on behalf of the Universal House of Justice to the National Spiritual Assembly of France, February 12, 1987, in Lights of Guidance, no. 867)

Duty of the National Assembly Not to Allow National Interests to be Jeopardized by Individual Considerations

"...it should be emphasized and clearly understood by the friends that the national interests and requirements of the Cause take absolute precedence over individual and private needs. It is the duty of the National Spiritual Assembly to so dispose of the national fund as not to allow the national interests of the Faith to be jeopardized by individual considerations that are obviously transient when compared to the lasting interests of the Cause of God. In rare and exceptional cases, when a believer has absolutely no other means of material sustenance, the National Spiritual Assembly may either contribute towards his expenses from the national fund, or make a special appeal to the body of the believers to that effect. It is for the family, the civil community and the Local Assembly to administer to such local and private needs of the individual. But in case none of these sources has the means to do so, the National Spiritual Assembly may, if it is convinced of the gravity, urgency and justice of the case, appropriate a part of its fund for that purpose."

(From a letter written on behalf of the Guardian to an individual believer, July 17, 1937, in Lights of Guidance, no. 868)

Assembly Should Neither Feel Embarrassed nor Ashamed in Turning to the Friends

"The National Assembly should neither feel embarrassed nor ashamed in turning to the friends, continuously appealing to them to exemplify their faith and devotion to the Cause by sacrificing for it, and pointing out to them that they will grow

spiritually through their acts of self-abnegation, that the fear of poverty should not deter them from sacrificing for the Fund, and that the assistance and bounty of the Source of all good and of all wealth are unfailing and assured...."

(From a letter of the Universal House of Justice to selected National Spiritual Assemblies, February 9, 1967, in Lights of Guidance, no. 869)

"A corollary to the sacred obligation of the friends to contribute to the Funds of the Faith, is the direct and unavoidable responsibility of each Local and National Assembly to educate them in the spiritual principles related to Bahá'í contributions. Failure to educate the friends in this aspect of the Faith is tantamount to consciously depriving them of the spiritual benefits accruing from giving in the path of God."

(From a letter of the Universal House of Justice to all National Spiritual Assemblies receiving assistance from the Bahá'í International Fund, April 13, 1975)

The General and National Interests of the Cause Take Precedence Over the Local Ones--But It May Be Expedient to Develop Local Fund First

"The beloved Guardian has explained that the general and national interests of the Cause take precedence over local ones; thus contributions to local funds are secondary to those to national funds. However, the stability of the National Assembly rests on the firmness of the Local Spiritual Assemblies, and in the matter of educating the friends in the importance of the fund, it is often most practical and efficacious to concentrate at first on the development of the local funds and the efficient operation of the Local Spiritual Assemblies. Then, once the friends understand the principle, and learn from experience at a local level, they will then more easily understand the importance of the national fund and the work of the National Spiritual Assembly."

(From the memorandum of comments and suggestions of the Universal House of Justice, op. cit., No. 858, p. 30, in Lights of Guidance, no. 870)

Assembly Obligated to Advise Believers of All Funds[+F1 (See also XXVI. The Institution of the Huququ'llah, Nos. 1031-1044)]--International, Continental, National and Local

"In educating the friends to be conscious of contributing to the fund as a fundamental element of Bahá'í life, the Assembly should make them aware of the individual believer's prerogative of contributing directly to all the funds of the Faith: international, continental and national as well as local."

(From a letter written on behalf of the Universal House of Justice to a National Spiritual Assembly, February 12, 1987, in Lights of Guidance, no. 871)

Contributions Can Be Sent Direct to Haifa

"Would you please remind the believers in your respective communities that in addition to contributing to the International Fund by means of earmarked donations to the National Fund, they can send contributions direct to Haifa. Cheques should be made payable to BAHA'I INTERNATIONAL FUND.

"This continues the policy established by the beloved Guardian who wrote that participation of individuals through 'contributions directly transmitted to the Holy Land' was 'imperative and beyond the scope of the jurisdiction of National and Local Assemblies.'"

(From a letter of the Universal House of Justice to all National Spiritual Assemblies, December 18, 1963, in Lights of Guidance, no. 872)

Continental Fund

"Nor should the believers, individually or in their Assemblies, forget the vitally important Continental Funds which provide for the work of the Hands of the Cause of God and their Auxiliary Boards. This divine institution, so assiduously fostered by the Guardian, and which has already played a unique role in the history of the Faith, is destined to render increasingly important services in the years to come."

(From a message of the Universal House of Justice to the Bahá'ís of East and West, December 18, 1963, in Lights of Guidance, no. 873)

Pledges Can Be a Useful Means of Encouraging Contributions

"Pledges can be useful as a means of encouraging contributions and of bringing the financial needs of the Cause to the attention of the friends. This method can be particularly helpful in a situation where a Spiritual Assembly has a major task to perform, such as the building of a Haziratu'l-Quds or the establishment of a tutorial school, and needs to have some idea in advance of whether the funds for the project will be available. However, it would be entirely contrary to Bahá'í principles to bring any pressure to bear when calling for pledges or when endeavouring to collect them. Once a pledge has been given it is permissible to remind the donor, privately, of his expressed intention to contribute and to enquire courteously if it would be possible for him to honour his pledge, but Assemblies must be aware that such pledges are not an obligation in any legal sense; their redemption is entirely a matter of conscience. Lists of those making pledges must not be publicized."

(From the memorandum of comments and suggestions of the Universal House of Justice, op. cit., No. 858, p. 30, in Lights of Guidance, no. 874)

Friends in Mass Teaching Areas Should Know Their Blessings and Responsibilities

"...The Assemblies should not hesitate, nor be diffident, in speaking of the Fund to the believers. The friends in the mass teaching areas, however poor or illiterate they may be, are full and equal members of the Bahá'í community; they should know their blessings and responsibilities. The mighty ones of this world rejected the call of Bahá'u'lláh, and it is now upon us ordinary men and women that He has conferred the inestimable bounty of raising up the Kingdom of God on earth. Service to God and His Cause is the heart of the life of every true believer and contributing to the Fund is a vital aspect of such service."

(From a letter of the Universal House of Justice to all National Spiritual Assemblies, December 29, 1970, in Lights of Guidance, no. 875)

"Bring and Buy" Meetings

"...In parts of Africa where the poverty of the friends may be similar to the conditions existing in some parts of your country, the Assemblies organized

'Bring and Buy' meetings to which the friends may bring any material gift, such as eggs, fruit, vegetables, other foodstuffs, or local handicraft. These are placed before the friends, who may buy them at very reasonable prices for the benefit of the Funds. The friends must understand that whilst no Assembly or individual may force the friends to give to the Faith, such giving has been considered in our Teachings as a spiritual obligation and an act of sacrifice, which is closely related to the spiritual development of the individual believer."

(From a letter of the Universal House of Justice to the National Spiritual Assembly of Ecuador, November 27, 1966, in Lights of Guidance, no. 876)

Assembly May Sell Contributions in Kind Through a Professional Auctioneer

"There is clearly no objection to an Assembly's giving contributions in kind to a professional auctioneer to sell and then to use the proceeds for the fund. Whether it would be proper to hold such an 'ordinary auction' among Bahá'ís would depend upon the Assembly's judgement as to whether a properly dignified atmosphere could be observed and also whether it could be construed as bringing pressure to bear upon the friends to contribute which would, of course, be undesirable. In general the House of Justice prefers not to encourage such auctions for the fund."

(From a letter written on behalf of the Universal House of Justice to a National Spiritual Assembly cited in a letter to the National Spiritual Assembly of Malaysia, May 26, 1982, in Lights of Guidance, no. 877)

It is Not Permissible to Impose a Tax or an Assessment on Local Spiritual Assemblies

"As to contributions to the National Fund, it is not permissible to impose a tax or an assessment on Local Assemblies, but you may certainly inform Local Assemblies of the needs of the National Fund and may suggest a certain percentage as a guide to them in making contributions. In doing this you may point out that support of the National Fund is an obligation not only of the believers, but of all Local Assemblies as well. It is permissible, however, for a Local Assembly to fix a percentage of its receipts as an amount to be contributed to the National Fund.

"The House of Justice appreciates the difficult task of educating the Local Assemblies and the believers in the importance of contributing regularly and sacrificially to the Fund and it feels sure that you frequently remind them of the principles of universal participation in this, as well as all other aspects of the Faith, possibly drawing on information contained in your file of circular letters sent from time to time by the House of Justice to all National Spiritual Assemblies on the subject of the Fund."

(From a letter written on behalf of the Universal House of Justice to a National Spiritual Assembly, November 30, 1977, in Lights of Guidance, no. 878)

Local Spiritual Assembly Decides for Itself How to Use Funds--National Spiritual Assembly Can Only Make a Suggestion

"When a donation is given to a Local Assembly, the Assembly itself should decide how the funds are to be used. The National Assembly may wish to suggest to the Local Spiritual Assembly ways in which the money could be more practically spent, but the final decision regarding the use of such funds rests with the local body.

"National Assemblies should avoid instructing their Local Spiritual Assemblies to allocate a certain percentage or portion of their local funds towards specific purposes. They may, however, suggest that the Local Assemblies contribute funds for priority projects at the national level and may also call to their attention national budget and suggest that the communities try to underwrite a part of the national budget. Any National Assembly is, of course, empowered to prevent an institution under its jurisdiction from taking any action regarding the use of funds which would not be to the best interests of the Cause. Such cases, however, are rare...."

(From a letter written on behalf of the Universal House of Justice to an individual believer, October 17, 1985, in Lights of Guidance, no. 879)

Soliciting Funds from Other Countries

"We are asked to tell you that the present policy of the House of Justice discourages National Assemblies from appealing to one another for financial assistance unless such assistance is related to a project which has been defined as a goal of collaboration between the specific Assemblies concerned. If a National Assembly has adopted plans for specific teaching projects and is in genuine need of financial support from an outside source, instead of appealing to other National Assemblies it is encouraged to turn to the Continental Board of Counsellors who will consider the plans and request, and provide assistance to the extent feasible from funds made available to them from the World Centre."

(From a letter written on behalf of the Universal House of Justice to a National Spiritual Assembly, September 5, 1982, in Lights of Guidance, no. 880)

Individual Bahá'ís Free to Contribute to Projects in Any Country They Wish

"As regards collection of funds in other countries, the House of Justice does not wish Bahá'í institutions of any country to appeal for funds to the Bahá'ís of another country, unless the National Spiritual Assembly of that country permits it. This does not mean that individuals are not free to contribute to a Bahá'í project in any country that they wish. For example, if a Bahá'í from another country comes to a conference in ... and he wishes to contribute to your school, there would be no objection. However, an organized and indiscriminate appeal for funds to individuals in other countries should not be made without the consent of the National Assembly of that country."

(From a letter written on behalf of the Universal House of Justice to an individual believer, June 6, 1985, in Lights of Guidance, no. 881)

See also

• Bahá'í Funds