Sadaqah (Charitable Gift) Deed (Pakistan)

A Sadaqah (Charitable Gift) Deed in Pakistan sets out the parties' commitments as a formal deed, taking binding effect on execution and attestation.

The Trusts Act 1882 is the primary statutory framework governing charitable trusts in Pakistan. Section 1 of the Trusts Act 1882 applies throughout Pakistan. A charitable trust is one created for the benefit of the public or a section of the public — including relief of poverty, advancement of education, advancement of religion, and other purposes beneficial to the community. Under Section 4 of the Trusts Act 1882, a valid trust requires: a capable author (the donor or settlor); a trustee who accepts the trust; a beneficiary (which in a charitable trust is the public or a class of the public); the trust property; and the trust purpose. Section 6 of the Trusts Act 1882 requires that the intention to create a trust be apparent from the instrument, the subject matter be certain and transferable, and the beneficiaries (or class of beneficiaries) be ascertainable.

Sadaqah in Pakistani law is closely related to, but distinct from, Waqf (Islamic charitable endowment). A Waqf involves the permanent dedication of property for religious or charitable purposes under the Waqf Properties Ordinance 1979 (administered by provincial Auqaf Departments — Punjab Auqaf Department, Sindh Auqaf Department), and once constituted, waqf property cannot be alienated or sold. Sadaqah, by contrast, transfers absolute ownership from the donor to the recipient — the recipient may deal with the property as absolute owner, subject only to any conditions attached to the gift at the time of transfer. A Sadaqah Deed may be used to gift property to a charitable organisation registered under the Societies Registration Act 1860, a trust registered under the Trusts Act 1882, a welfare foundation, a mosque committee, a madrasa (religious seminary), or an individual in need.

For immovable property, the transfer by way of Sadaqah requires a registered deed executed before the Sub-Registrar in the district where the property is located, under Section 17 of the Registration Act 1908. The Sadaqah Deed for immovable property must also be on appropriate stamp paper under the Stamp Act 1899, with stamp duty calculated on the market value of the property as assessed by the District Collector or the valuation table maintained by the provincial Board of Revenue. In Punjab, the transfer of immovable property without consideration (gift) attracts a reduced stamp duty rate compared to a sale deed. Capital Gains Tax (CGT) under Section 37 of the Income Tax Ordinance 2001 and federal excise duty implications should be evaluated with a tax advisor at the Federal Board of Revenue (FBR) before executing a Sadaqah Deed for high-value property.

A Sadaqah (Charitable Gift) Deed in Pakistan is needed whenever a Muslim donor wishes to make a formal, documented charitable gift of property or assets that creates a legally enforceable transfer of ownership and a clear record of the charitable intention — going beyond an informal donation.

A Sadaqah Deed is required when a donor transfers land or a building to a mosque, madrasa, orphanage, or charitable organisation registered under the Societies Registration Act 1860. Without a registered deed, the recipient institution may be unable to record the property in its name at the relevant provincial Board of Revenue — the Patwar system in Punjab, the Revenue Department in Sindh — and disputes may arise among the donor's legal heirs after the donor's death.

A Sadaqah Deed is needed when a wealthy individual or family wants to establish a formally documented charitable fund during their lifetime, contributing cash, shares, or property to a charitable trust under the Trusts Act 1882, with the deed specifying the purposes for which the charitable fund may be used — education scholarships, medical treatment for the poor, construction of wells or water filtration plants in rural areas of Punjab, Sindh, or Balochistan.

A Sadaqah Deed is required when an overseas Pakistani remitting funds or transferring property to a charitable institution in Pakistan wants a formal record of the transfer for purposes of tax deduction in the foreign country of residence, or for compliance with anti-money laundering (AML) requirements of the receiving institution under the Anti-Money Laundering Act 2010 and the Financial Monitoring Unit (FMU) guidelines.

A Sadaqah Deed is needed when an estate is being administered after a Muslim person's death and the family wishes to fulfil a bequest or charitable obligation (including sadaqah jariyah) directed by the deceased — for example, donating a portion of the estate to a hospital, mosque, or charitable trust as directed in the deceased's Will (wasiyah) or as an act of ongoing charity on the deceased's behalf.

A Sadaqah Deed is required when a corporate entity in Pakistan — a company registered under the Companies Act 2017 — wants to formalise a corporate social responsibility (CSR) donation of property or assets to a charitable organisation, creating a documented transfer that can be presented to the board of directors, shareholders, and the Securities and Exchange Commission of Pakistan (SECP) as evidence of the CSR expenditure.

A valid Sadaqah (Charitable Gift) Deed in Pakistan under the Trusts Act 1882 and Hanafi Islamic law principles must contain the following essential elements.

Donor Particulars: Full legal name, CNIC number (13-digit NADRA format), address, and religious faith of the donor (Al-Mutasaddiq). The donor must be an adult of sound mind, in full ownership of the property being gifted, and acting without duress or undue influence — the Contract Act 1872 applies to the validity of consent in the gift transaction.

Recipient Particulars: Full name or registered name of the charitable recipient — whether an individual in need, a mosque committee, a charitable society registered under the Societies Registration Act 1860, or a trust registered under the Trusts Act 1882 — together with registration number, address, and the name and CNIC of the authorised representative accepting the gift on behalf of the institution.

Description of Gifted Property: A precise description of the property being gifted. For immovable property — land or buildings — this must include the survey number (khasra number), khata/khatuni number, area in kanals and marlas (Punjab land measurement units) or square yards (Sindh), the Mouza (village) or urban address, tehsil, district, and province. For movable property — cash, gold, jewellery, vehicles, shares — a complete description of the asset, market value, and mode of delivery (cash transfer by bank cheque or RTGS to a named account at a scheduled bank regulated by the State Bank of Pakistan).

Charitable Purpose Statement: A clear statement of the sadaqah purpose — relief of poverty, construction of mosque or madrasa, funding of medical treatment, scholarship for students, providing clean water — together with the donor's intention (niyyah) of performing sadaqah for the pleasure of Allah (SWT). Under Hanafi fiqh, the charitable intention is essential to the validity of sadaqah and distinguishes it from a commercial transaction.

Irrevocability Declaration: A statement that the gift is irrevocable upon acceptance by the recipient, reflecting the Hanafi rule that a completed gift (hiba) followed by delivery and acceptance (qabd) cannot be revoked except in limited circumstances recognised in classical Hanafi texts and applied by Pakistani courts — for example, a gift from parent to child may be revoked if the recipient's conduct warrants it, but charitable sadaqah is generally considered irrevocable.

Delivery and Acceptance: The deed must record the delivery of the property to the recipient and the recipient's acceptance of the gift. Under Hanafi law and Section 123 of the Transfer of Property Act 1882 (for immovable property gifts), delivery and acceptance are essential to complete the gift transfer. For immovable property, registration under the Registration Act 1908 serves as the legal equivalent of delivery.

Witness Attestation: Two adult Muslim male witnesses (or equivalent under Article 17 of the Qanun-e-Shahadat Order 1984) must attest the deed, providing their full names, CNIC numbers, and addresses. Witness attestation is important for subsequent registration and for establishing the deed's authenticity before courts, revenue authorities (Patwari, Tehsildar, Sub-Registrar), or the Auqaf Department.

Registration and Stamp Duty: For immovable property, the Sadaqah Deed must be registered at the Sub-Registrar's office under Section 17 of the Registration Act 1908, with stamp duty paid under the Stamp Act 1899 based on the market value assessed by the Collector. In Punjab, gifts to charitable institutions may qualify for reduced stamp duty rates — the donor should confirm the applicable rate with the Sub-Registrar's office or the Punjab Board of Revenue before execution.

Forms-legal.com provides this Sadaqah (Charitable Gift) Deed (Pakistan) template reflecting the requirements of the Trusts Act 1882, the Transfer of Property Act 1882, the Registration Act 1908, and Hanafi Islamic charitable gift principles as recognised in Pakistani jurisprudence. Donors transferring high-value immovable property or creating charitable trusts should obtain guidance from a qualified Advocate enrolled at the Lahore Bar, Sindh Bar, Peshawar Bar, or Islamabad Bar, and from a tax advisor for FBR compliance purposes.