A Lucrative Business Model (1)
21 March 2025 • 1.37K views
Some savvy entrepreneurs have devised a clever way to exploit legal loopholes and minimise their tax liabilities. Their strategy is built on three key steps:
Step 1: Set up a Charity Organisation
By setting up a charity, businesses can benefit from tax deductions and gain access to grants and funding from governments, NGOs, and corporate sponsors.
Step 2: Set Up a Mosque Within the Same Building
This allows the business to avoid paying rent, as generous donors will contribute to cover the costs, potentially even purchasing the building outright.
Step 3: Operate the Business Within This Framework
By positioning the business alongside the charity and the mosque, it will function with significantly reduced overhead costs.
The Ethical Dilemma:
While this approach is technically legal, it raises serious ethical concerns. Nonetheless, businesses employing this strategy are often prepared to counter any criticism.
Defensive Strategies Against Public Scrutiny
-> Addressing Criticism of the Charity
The charity should organise visible community outreach initiatives, such as sports programmes, which are both appealing and easy to manage.
-> Addressing Criticism of the Mosque
The mosque should be fully functional, holding daily prayers, Jumu'ah, Tarawih, and educational programmes to maintain legitimacy.
With these measures in place, the business can continue to thrive while presenting itself as a community-focused initiative.
_
(1) Disclaimer: This is not an endorsement of this business model but rather an observation of how some mosques are operated.