How ICAC evaluates charities.
This page sets out the ICAC Audit Framework — the assessment criteria, scoring categories, evidence standards, and certification decisions that determine whether a charity meets the standard for ICAC certification.
A structured, multi-category assessment
The ICAC Audit Framework applies a consistent, structured methodology to all charity assessments, regardless of size, region, or sector specialism. Every audit is conducted against the same five assessment categories, each of which is scored on a standardised rubric. The combined score determines the certification outcome.
The framework is informed by established international standards in charity governance and nonprofit accountability, and by Islamic finance and Zakat distribution principles including AAOIFI (Accounting and Auditing Organisation for Islamic Financial Institutions) Sharia Standards where applicable to fund management and Zakat compliance.
All assessment decisions are made by the ICAC Certification Panel — an independent body that reviews the full audit record and issues a formal determination. No single auditor has unilateral authority to certify or reject a charity.
Five categories, 100 points total
Every charity is assessed across five weighted categories. Each category is scored out of 100, and the category scores are combined into a weighted overall score.
Financial Transparency
Weight: 25%Evaluates the quality and completeness of financial disclosures, including independently prepared accounts, annual reports, and public accessibility of financial data. Auditors assess whether donors can clearly trace how funds are received, allocated, and spent.
- Independently prepared and audited financial statements
- Publicly accessible annual accounts
- Clear breakdown of administrative versus programme expenditure
- Auditor independence and qualification
- Timely financial reporting
Governance & Leadership
Weight: 25%Assesses the structure, independence, and accountability of the governing board and executive leadership. Effective governance is a foundational requirement for sustainable and trustworthy charitable operations.
- Independent governing board with defined roles and responsibilities
- Documented conflict-of-interest policy
- Board diversity and relevant expertise
- Formal policies for executive accountability and performance review
- Transparent decision-making processes and meeting records
Programme Impact
Weight: 20%Reviews the evidence base for programme outcomes, including how charities measure, record, and communicate their impact to donors and beneficiaries. ICAC does not assess subjective social value, but examines whether impact claims are substantiated by verifiable data.
- Documented programme objectives and measurable outcomes
- Evidence of monitoring and evaluation processes
- Beneficiary reach data with supporting documentation
- Programme-to-overhead ratio alignment with stated mission
- Field verification of delivered services where applicable
Ethical Fundraising
Weight: 15%Examines fundraising materials, donor communications, and appeals to confirm claims are accurate and proportionate. Misleading appeals, emotional manipulation, or undisclosed deductions are specific indicators auditors look for.
- Accuracy of fundraising claims and campaign statistics
- Clear disclosure of deductions, fees, and fund-routing
- Absence of fabricated or unsubstantiated impact claims
- Donor data protection and consent practices
- Compliance with applicable fundraising standards and codes
Zakat Compliance
Weight: 15%Specific to charities that collect or distribute Zakat, this category assesses whether Zakat funds are handled in accordance with classical Sharia principles. ICAC references AAOIFI Sharia Standards and established scholarly guidance in this evaluation.
- Segregated Zakat fund accounting
- Distribution to recognised Zakat-eligible categories (Quran 9:60)
- Documented Sharia supervisory oversight or scholar review
- Absence of Zakat funds used for administrative or non-eligible purposes
- Annual Zakat compliance disclosure in published accounts
How scores translate to outcomes
The overall audit score is calculated as the weighted average of the five category scores. The certification panel then applies the following thresholds to determine the formal outcome.
Score 85–100
Certified — Exemplary
All five categories meet the highest standard. Full public certification awarded.
Score 70–84
Certified — Satisfactory
Core requirements met across all categories. Certification awarded with annual monitoring.
Score 55–69
Conditional Certification
Partial compliance. Certification may be issued with formal improvement requirements and an expedited review.
Score Below 55
Not Certified
Significant gaps identified. Certification declined. A formal written response with improvement guidance is issued.
What counts as acceptable evidence
ICAC auditors work exclusively with primary documentary evidence. Verbal assurances, undated materials, and self-declarations without supporting documentation do not constitute acceptable evidence under the ICAC Audit Framework.
Acceptable primary documents include independently prepared financial statements, signed board minutes, formal policies approved by the governing board, written beneficiary reports, and correspondence with statutory regulators. All submitted documents are subject to independent verification.
Where a charity operates internationally, evidence must demonstrate compliance across all active jurisdictions. ICAC assessors may request supplementary documentation where primary evidence is ambiguous or incomplete.
Field assessment visits — whether conducted on-site or virtually — allow assessors to verify operational claims and interview relevant personnel. Field assessment findings form part of the formal audit record and are considered by the certification panel.
The principles that govern every review
Independence
ICAC auditors and certification panels operate independently of the charities under review, the organisations that nominate them, and any fundraising or advocacy activity. No commercial relationship exists between ICAC and the charities it assesses.
Evidence-Based Assessment
All audit findings are grounded in documentary evidence and verifiable data. Auditors do not issue findings based on reputation, stated intent, or unsubstantiated claims by the organisation under review.
Public Transparency
Audit outcomes, scores, and key findings are published in full in the ICAC public registry. Donors, regulators, and civil society should be able to review any certified or non-certified charity's audit record directly.
Annual Renewal
ICAC certification is valid for 12 months only. All certified charities undergo a full renewal assessment each year. This ensures that certification reflects current standards rather than a historical snapshot.
Get Started
Ready to apply for an ICAC audit?
Charities that meet the intake criteria can submit an application for review. ICAC will confirm eligibility and outline the next steps in the audit process.