Summary:
Farz Foundation has developed a market driven, need based and innovative Product, having very deep cultural roots. The product is known as Committee (Rotating savings) in Pakistan. The people usually build their assets by this rotating saving activity at a street or a market level informally and without any proper book keeping. How ever Farz Foundation not only makes it formal but uses as another source of income by providing the service of investment in Murabaha as a partner. Farz Foundation in Pakistan proposes this partnership concept based approach to encourage communal savings and profitability to sustain its clients. Members of the committee have regular meetings in order to save and borrow from a communal pool of money. Each member contributes an equal amount of money to the pool and at each meeting; one member takes the pool home by a lucky draw. The idea is for transparency of the entire saving, lending, borrowing process and developing another source of income. The foundation’s role as a manager, monitor and train this committee in bookkeeping. Farz takes part in this Committee as a member by pooling its money also and gets first Committee as par the culture, because, according to the cultural rule, manager gets the privilege of taking the first Committee. It is a triple edge financial service because of its participatory, saving and investing features.

What is a COMMITTEE ? (Community rotating informal savings)
Committees are a popular form of informal saving in many countries and considered as a form of participatory   savings at community level.
Committee is a community participatory informal saving mechanism having a long cultural history. According to this informal saving activity at community level a group of individuals who agree to have regular meetings for a defined period of time in order to save and borrow together and pool a same amount of money by a manager from the same group. Some times the group selects a committee manager from the group who collects a pre settled particular amount of money from the members and gives it to a single member. Sometimes an already known collector initiates a new committee. Usually she or he keeps the first collected amount of money by her or himself.   Committees are the poor man's POOL, where money is not idle for long but changes hands rapidly, satisfying both consumption and production needs.
Meetings can also be regular or tied to seasonal cash flow cycles in rural communities. Each member contributes the same amount at each meeting, and one member takes the whole sum once. As a result, each member is able to access a larger sum of money during the life of the COMMITEE, and use it for whatever purpose she or he wishes. This method of saving is a popular alternative to the risks of saving at home, where family and relatives may demand access to savings.
Every transaction is seen by every member during the meetings. Since no money has to be retained inside the group, no records have to be kept.
COMMITTEE   operates on trust; yet even in societies where levels of trust on financial matters are relatively low; it is possible for COMITTEE to be popular and effective. This is likely to be due to:

Diversity and Distribution
Variously called susus in West Africa and the Caribbean, tontines in Cambodia, wichin gye in Korea, arisan in Indonesia, xitique in Mozambique and djanggis in Cameroon, COMMITTEES are informal or 'pre-co-operative' microfinance groups that have been documented around the developing world. A famous early study by anthropologist Clifford Geertz documented the arisans of Modjokuto in Eastern Java. He described them as "an "intermediate" institution growing up within peasant social structure, to harmonize agrarian economic patterns with commercial ones, to act as a bridge between peasant and trader attitudes toward money and its uses."[3]
The individuals in the COMMITTEE select each other, which ensures that participation is based on trust and social forces (see Social capital), and a genuine commitment to participate.

Farz Committee
Background:
The culture of managing COMMITTEES in Asia has very deep roots. In Pakistan this form of informal saving mechanism is also very popular. The Business Development Department of Farz Foundation has conducted an informal survey and learned that the women and men of almost 60% families of Pakistan save money by committees for their businesses and other major expenses. How ever there are a few risks involve in the operations of committee.

For example:

Product Features

Why Farz Committee
Farz foundation facilitates its members to enhance the income through Muranaha along with making them to support themselves through savings. It also helps to create assets for the clients

Benefits:

THESE COMMITTEES CAN BE USED AS A SECURE FOUNDATION TO THE CUSTOMERS FOR INVESTING MONEY IN FARZ FOUNDATION AS PARTNERS.

The Process of committee

Who can benefit from the committee?

When the process of committee begins:
Fourteen days after receiving Murabaha a social gathering is arranged where this process of committee begins

Who manages Farz Committee?

The sum needed to initiate committee

How to collect committees

How to draw a committee

Policy

FARZ COMMITTEE METHODOLOGY, A Graphical Expression

1st Month of Committee

2nd Month of Committee

The Difference between Farz Committee and Conventional Committee

• Conventional Committee is in formal and without maintaining any book keeping record or receipts.
• Farz Committee is a systematic service having a fool proof book keeping order with all recoveries and payment records by a professional IS (Information System).
• Conventional committee is unsecure and the person managing the committee can be a risk in case of dislodgment, accident, death or dishonesty e.t.c.
• Wile the Farz committee is a risk free committee due to having a sound and legal institution as a manager and a participant as well.
• Most of the time Conventional committees remain late from the due date.
• Farz Committee is an on time recovery and delivery mechanism like a microfinance best practice.

Through this method of Farz committee the client is also encouraged to invest the sum of committee in Farz Foundation upon which the client can get 7 per cent profit as an Motharib. (Islamic investor).This also compliments her or his business which further empowers the client to sustain her or himself. This process also banked the unbanked ones providing this facility at the door step without incurring and charges to the client.  
FARZ COMMITTEE PROVIDES AN OTHER SOURCE OF INCOME TO THE CLIENTS IN CASE OF INVESTMENT IN FARZ FOUNDATION. .......... TOP