12 · Success Sadaqah Framework

The flywheel: successful founders voluntarily give back into the Waqf, growing the corpus, the yield, and the next generation of grants.

⚠️ The whole design rests on one constraint: it must be genuinely voluntary and unenforceable. Any binding or conditional give-back attached to a Qard Hasan is a stipulated benefit on a loan = riba = prohibited, and would invalidate the model. Pending SSB ruling (doc 09 Q19–22).

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1. What it is

An invitation, extended to founders the Waqf has supported, to give sadaqah back into the Waqf corpus once their venture is genuinely successful — as an act of gratitude and perpetual charity (sadaqah jariyah), not as a payment.

2. What it is NOT

• ❌ Not equity, not a convertible, not a warrant
• ❌ Not a royalty or revenue share
• ❌ Not a VC-style return
• ❌ Not repayment (Type B principal repayment is separate, doc 11 §3)
• ❌ Not a condition of receiving funding
• ❌ Not contractual, not enforceable, no claim, no debt, no lien

3. The hard rules (compliance guardrails)

1. Never a condition. Funding is never granted, sized, priced, prioritised or refused by reference to whether the founder pledges Success Sadaqah.
2. Never attached to Qard Hasan. With a Type B loan, the Waqf may recover principal only. Any expectation of extra — even moral pressure framed as an obligation — risks riba. The invitation is issued only after the loan is fully repaid or the grant fully used, and is documented as separate and unconnected.
3. No enforcement. No debt is recorded, no receivable booked, no legal claim exists. The Waqf never sues, sets off, or reports non-payment.
4. No penalty for declining. A founder who never gives back suffers no consequence — no exclusion, no de-listing, no reputational marking, no effect on future applications.
5. No accrual. Success Sadaqah is never recognised as an asset, receivable, or projected income in any model, forecast or investor material.

4. Trigger — when the invitation is extended

Only after the founder's venture reaches genuine, sustained success, self-assessed by the founder:

• break-even, then
• profitability, then
• sustainable cashflow (indicatively [4] consecutive profitable quarters), or
• a liquidity event (exit, secondary, major round).

The Waqf does not audit the startup's accounts to trigger this. The founder decides.

5. Suggested benchmark — moral, not owed

Subject to the SSB (doc 09 Q21), we may publish a suggested aspiration, e.g. "consider giving [2–5]% of annual profit after break-even, or [1]% of exit proceeds", expressly framed as:

"A suggestion, never an obligation. Give what you wish, when you wish, or not at all. Nothing is owed."

If the SSB considers even a published benchmark risks being read as a stipulated condition, the benchmark is removed and only the invitation remains.

6. Pledge of intent (optional, non-binding)

A founder may sign a Pledge of Intent — a moral, expressly non-binding statement of intention to give back if successful. It:

• creates no legal obligation and is not a contract;
• is never signed at the same time as, or as part of, the funding documents;
• may be withdrawn at any time, silently, without consequence.

7. Recognition

Those who give back may be recognised — Success Sadaqah honour roll, community standing, invitation to mentor and to the Sharia Investment Committee talent pool. Recognition is non-financial and confers no rights. Founders may give anonymously.

8. Treatment of funds received

Success Sadaqah is received as waqf corpus — perpetual, irrevocable, never spent; only its yield funds future grants. It is not revenue of U21C and is not subject to any U21C fee, unless the SSB expressly permits an administration cost.

9. The flywheel

Waqf yield → grants + Qard Hasan → founders succeed →
  (voluntary) Success Sadaqah → corpus grows → yield grows →
    more grants → more founders → ...

Real, but never assumed. Every projection in this project treats Success Sadaqah as zero until money actually arrives.

10. Reporting

Aggregate only: number of contributors, total received into the corpus. Individual amounts published only with the founder's written consent.

11. Review

Framework reviewed annually by the SSB. If any drift toward expectation, pressure or de-facto obligation is detected, the SSB may suspend the programme.