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Five terms that make the rest of this site make sense

The 30-second version
5terms that make the rest of the site click
  • Audit, restricted funds, overhead, balance sheet, zakat vs. sadaqa.
  • Each has an everyday comparison.
  • Then check yourself with three quick questions.
Outside auditAn outside accountant checks that the books are true.
Everyday comparisonLike a home inspection by someone who is not selling the house. The seller can say the roof is fine; the inspector checks.
At ADAMSADAMS's own reports say its figures were not audited, and no audit has been published since.E2E11
Restricted fundsMoney given for a stated purpose, which must be spent on it.
Everyday comparisonEnvelopes. Cash in the envelope marked "rent" is not for groceries, even if it all sits in one wallet.
At ADAMSReports do not show which donations were given for a purpose, so members cannot check they were used for it.E8
Overhead (functional expenses)Spending split into programs, administration and fundraising.
Everyday comparisonA restaurant bill split into food, staff and rent. All three are needed; you still want to know the split.
At ADAMSNot reported. Dar Al-Hijrah reports it.E16
Balance sheetA snapshot of what an organization owns and owes on one day.
Everyday comparisonA photo of your bank balance, your house's value and your mortgage, all on December 31.
At ADAMSPublished for 2024: ~$8.9M cash, ~$27.2M total assets.E9
Zakat vs. sadaqaObligatory charity with set recipients vs. voluntary charity.
The differenceZakat is obligatory and may only go to the categories of recipients set out in the Qur'an. Sadaqa is voluntary. When sadaqa is given for a stated purpose, many scholars hold that the institution receiving it is bound to honor that purpose as a trust (amanah).
At ADAMSZakat is one yearly figure, merged with welfare and relief in 2025.E12 Sadaqa given for a purpose is not reported separately.

Check your understanding

Three quick questions. Pick an answer to see why.

1. ADAMS's 2024 report shows headquarters received ~$2.6M & spent ~$3.4M. What does that tell you?

2. Why is an outside audit more convincing than ADAMS's own report?

3. A leader says "It's all in the annual report." What is the best follow-up?

Takeaway

The core question for every donation is simple: was it given for a purpose, and can anyone outside ADAMS confirm it was spent that way?