Most Muslims give generously. But very few give strategically — and the gap between those two things can mean thousands of dollars left on the table, missed tax advantages, and charitable intentions that never quite get organized into a coherent plan.
In December 2025, AMCF hosted Beyond the One-Time Gift: Smart Tools for Strategic Philanthropy — a free webinar in partnership with the National Muslim Planned Giving Council. AMCF co-founder and Chief Development Officer Muhi Khwaja walked attendees through donor-advised funds, endowments, giving circles, and a timely breakdown of the tax law changes every Muslim donor and nonprofit leader needs to understand heading into 2026. Executive Director Shazeen Mufti and Giving Circle Manager Lisa Kahler rounded out the conversation with live Q&A that got surprisingly practical, surprisingly fast.
Here is what you need to know.
AMCF: The Infrastructure Behind Muslim Giving
Founded in 2017, AMCF is the only community foundation in the United States dedicated to American Muslim philanthropy. Among more than 700 community foundations nationwide, it is uniquely positioned at the intersection of Islamic values and sophisticated philanthropic infrastructure.
The numbers speak for themselves: over $26 million distributed to 1,000+ nonprofits, more than 245 donor-advised fund families, 27 endowments, and approximately $9 million in assets under management — all invested through Andalus Capital in Sharia-compliant options. During Ramadan 2025 alone, more than $2 million moved through AMCF to Muslim-led and Muslim-serving organizations.
“A big part of what we do,” Muhi explained, “is connecting the dots between families, resources, and nonprofits — and providing the infrastructure to make that happen.” That infrastructure includes donor-advised funds, endowments, the Women’s Giving Circle, the National Muslim Planned Giving Council, and a nonprofit resource center available to any Muslim organization in the country.
Donor Advised Funds: A Smarter Way to Give
A donor-advised fund (DAF) is one of the most powerful and underused tools in American philanthropy — and for Muslim families, it fits naturally with how Islam already frames charitable giving.
Here is how it works:
- You contribute cash, stocks, or other appreciated assets to your DAF account at AMCF.
- You receive an immediate tax deduction for the full value of your contribution.
- AMCF invests your funds in Sharia-compliant options through Andalus Capital while they sit in the account.
- You distribute grants to any eligible 501(c)(3) nonprofit on your own timeline — this year, next year, or years down the road.
The result? Your zakat and sadaqah are organized, growing in halal funds, and ready to deploy — all from one account. At tax time, AMCF provides a single consolidated receipt instead of a stack of acknowledgment letters from every charity you supported.
Practical details from the Q&A:
- Minimum to open: No hard minimum, but $2,500 is the suggested starting point.
- Annual fee: .75% of assets, or $175 — whichever applies — on the first $500,000.
- Contribution frequency: One lump sum, monthly contributions, or both — flexible.
- Privacy: Because AMCF is the nonprofit of record, your family’s giving is anonymous to the outside world. One tax receipt, no itemized disclosure to the IRS of every charity you supported.
- Legacy planning: You can name beneficiary nonprofits, add family members as advisors, and turn your DAF into a multi-generational charitable planning tool.
One stat that often surprises people: AMCF distributes approximately 74-75% of assets under management annually. “We were founded by nonprofit leaders,” Muhi noted. “We understand the philanthropic ecosystem. The values of Islam — especially zakat — are that you distribute annually. We’re practicing what we preach.”
The Appreciated Stock Strategy: One of the Most Overlooked Benefits
One of the most financially impactful — and most underutilized — DAF strategies is donating appreciated stock instead of cash. Muhi walked through this in detail, and it is worth understanding clearly.
Here is the scenario: you bought a stock for $100 per share eight years ago. Today it is worth $150. If you sell it, you pay capital gains tax on the $50 gain. But if you transfer those shares directly to your AMCF DAF instead of selling them first:
- You avoid the capital gains tax entirely.
- You receive a charitable deduction for the full current market value — $150 per share, not $100.
- AMCF liquidates the shares and invests the proceeds in Sharia-compliant options.
- If you want, you can repurchase the same stock at today’s price, resetting your cost basis for future gains.
“Transfer the shares to the charity instead of selling,” Muhi said. “That’s the critical piece. It’s more advantageous for you and your family to donate appreciated assets rather than selling first and then donating the cash.”
This strategy works for individual stocks, mutual funds, and other halal investment holdings you have held for more than one year. Your CPA should be discussing this with you — and if they are not, it may be worth bringing it up.
What the ‘One Big Beautiful Bill’ Means for Muslim Donors in 2026
One of the most timely sections of the webinar covered the tax law changes coming out of the One Big Beautiful Bill Act — changes that affect how Muslim donors and Muslim nonprofits should think about charitable giving going forward. As always, consult your CPA for personalized guidance, but here is the overview Muhi provided:
1. New charitable deduction for non-itemizers
Starting in 2026, taxpayers who do not itemize will be eligible for a fixed charitable deduction of $1,000 (single filers) or $2,000 (joint filers) on cash donations to public charities. Note: gifts to donor-advised funds and private foundations do not qualify for this specific deduction.
2. The 60% AGI limit is now permanent
The Tax Cuts and Jobs Act of 2017 raised the deduction limit for cash charitable contributions from 50% to 60% of adjusted gross income. That provision was set to expire in 2025 — but the new bill makes it permanent. High earners can continue to deduct up to 60% of their AGI in cash charitable contributions.
3. New $1,700 tax credit for scholarship donations
Starting in 2026, U.S. citizens and residents who donate to 501(c)(3) organizations that provide scholarships for elementary or secondary education expenses can receive a tax credit of up to $1,700. This is a credit, not just a deduction — which means a dollar-for-dollar reduction in your tax bill, not just your taxable income.
4. New 0.5% AGI floor for itemizers
Itemizers now face a new rule: only donations exceeding 0.5% of their adjusted gross income are deductible. This floor applies alongside the existing 60% ceiling. Additionally, taxpayers in the top 37% bracket will see their charitable deduction benefit reduced to 35 cents per dollar donated.
5. New 1% floor for corporate charitable deductions
Businesses may now only deduct charitable contributions exceeding 1% of taxable income, up to the existing 10% ceiling. This effectively incentivizes companies to give more — amounts below 1% are no longer deductible. Unused deductions can be carried forward up to five years.
What this means for your giving strategy:
- Consider “bunching” — consolidating multiple years of giving into a single large contribution in one tax year to maximize your deduction.
- Front-loading gifts into your DAF in 2025 locks in your deduction while giving you flexibility to distribute those funds to charities in future years.
- Talk to your CPA before December 31st — the window for year-end giving strategies closes fast.
Endowments: Long-Term Sustainability for Muslim Nonprofits
While DAFs are built for donors, endowments are built for organizations. Any 501(c)(3) can establish an endowment with AMCF — and the process is simpler than most nonprofit leaders expect.
The suggested starting point is $10,000, though there is no hard minimum. The paperwork is a straightforward MOU agreement — no brokerage account to set up, no investment committee required. Andalus Capital manages the investment through AMCF. “If you have board approval to open an endowment for your nonprofit,” Muhi said, “partnering with AMCF is very easy to do.”
The endowment grows over time, and distributions fund your organization’s programs in perpetuity. For Muslim nonprofits facing the uncertainty of grant cycles, government funding cuts, and donor fatigue, an endowment is the difference between an organization that survives and one that thrives regardless of what any single year brings.
A notable detail from the webinar: the majority of Women’s Giving Circle grantees from the most recent cycle elected to direct their grant funding toward starting or growing an endowment — a sign that Muslim nonprofit leaders are increasingly thinking about sustainability alongside impact.
The Women’s Giving Circle: Collective Giving That Compounds
The AMCF Women’s Giving Circle is proof that collective giving multiplies impact. Members contribute as little as $5/month, nominate Muslim nonprofits they believe deserve support, and vote together on which organizations receive funding each cycle. No single large donor controls the outcome — it is one person, one vote.
In three cycles, the Circle has collectively raised and distributed $55,500 to 9 organizations. The 2025 cycle’s three grantees — Minnesota Deaf Muslim Community ($7,500), 200 Muslim Women Who Care ($4,500), and Nachair Collective ($3,000) — each received not just funding, but connections, capacity-building support, and a platform that has outlasted the grant cycle itself.
The 2026 cycle is open now. Membership starts at $5/month; voting membership at $35/month or $420/year.
Estate Planning and Philanthropic Advisory: AMCF Has the Network
For families with more complex financial situations — particularly those with significant assets, business interests, or multi-generational wealth — AMCF provides access to the National Muslim Planned Giving Council: a network of CPAs, wealth managers, financial advisors, and estate planning attorneys who serve the Muslim community.
“If you need a CPA, or if you need an estate plan, we can make introductions for you,” Muhi said. This is a service available to DAF families and nonprofit endowment partners — part of what makes AMCF different from simply opening a DAF at a national provider with no community connection.
Ready to Give Smarter?
Whether you are a donor looking to organize your zakat and sadaqah, a nonprofit leader thinking about long-term sustainability, or a Muslim professional wondering how to make your appreciated assets work harder for the causes you care about — AMCF has the tools and the team to help.
🏛️ Explore Endowments for Your Nonprofit
🤝 Join the Women’s Giving Circle