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Case Study :

Public contribution frombenevolent based collection forsocial welfare and example from

successful institution

July 2009

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Indonesias current stats

Total population : 237,512,352[2] (4th July 2008est. estimate)

GDP per capita : US$1,812 (about IDR19,932,000) per year

GDP per capita : estimated IDR 1,661,000 permonth

As of 2006, an estimated 17.8% of the populationlive below the poverty line, 49.0% of the

population live on less than US$2 per day,[95]

andunemployment rate at 9.75%.[96]

Estimated population live with less than US$2 per

day :=

http://en.wikipedia.org/wiki/List_of_countries_by_populationhttp://en.wikipedia.org/wiki/Poverty_thresholdhttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Poverty_thresholdhttp://en.wikipedia.org/wiki/List_of_countries_by_populationhttp://en.wikipedia.org/wiki/List_of_countries_by_populationhttp://en.wikipedia.org/wiki/Indonesia

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Potential fund collected fromZakat

Potential of Fund collected from Zakat on fixedincome basis :

Number of population : 237,512,352 Muslim population : 80%

GDP per capita per month : IDR 1,661,000 Estimated of non disposable income : 10% Rate of collected fund per month : 2.5%

Potential = 237,512,352 x 80% x IDR 1,661,000 x

10% x 2.5%= IDR 789,016,033,344 (IDR 789 billion per

month)

Contribution can be made to population on poverty:

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Company background

Owned and sponsored by a private Islamic bankto support non-core activities of the parentcompany in the area of managing the benevolentfunds

Operates in 25 cities, with 5 exclusiverepresentative offices that operatedindependently, managed by 100 staffs and morethan 500 fund raising volunteers in all offices

One of the largest in Indonesia, in term of assetunder management, chain of distribution, numberof contributors and number of managed parties(financed operators)

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Institution Xs Budget Plan (1)

Fixed contributor on monthly basis : 12,000 Collected fund from monthly income : IDR

3,000,000,000

Collected fund from 24 months effort : IDR

72,000,000,000 Collected fund from CSR contributions : IDR

28,000,000,000

Net fund to be managed : IDR 85,000,000,000

Fund allocation for next 24 months program : 20% : social welfare / emergency (IDR 17

billion)

30% : community development (IDR 25.5

billion)

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Institution Xs Budget Plan (2)

Productive micro financing IDR 42.5 billion Expected net return from financing : 12% p.a.

Expected net return from financing : IDR425,000,000/month

Targeted micro-enterprise partner : 20,000

Average financing exposure per partner : IDR2,125,000

Current practice (as of end of 2008)

Number of micro enterprise partner : 4,800

Amount of fund contributed : IDR 8.3 billion Avera e financin ex osure : IDR 1 729 167

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Institution Xs Budget Plan (3)

Community development fund IDR 25.5 billion

Allocated to Education contribution IDR 10.5billion

Allocated to Orphan program contribution IDR 10billion

Allocated to Apprenticeship program IDR 5 billion

Education Contribution / Scholarship Program Targeted to children from poor family, age 6 18 years

old

Provide scholarship for 5,000 students for 24 months

Average scholarship provided would be IDR 87,500 /month

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Institution Xs Budget Plan (4)

Orphan Program Contribution / Orphanage FundProgram Provides orphanage operational fund for 24 months

Covers formal education fund, daily operation supports,life skill development educations and mental religiouseducation

Expanded to 3 provinces and planned to covers 8,000orphans

Current practice : Deployed in 22 villages in NADsince 2006 Managed fund IDR 3.5 billion for 3,000 orphans and 67

supervisors

A renticeshi and Vocational ro ram started in

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