How to Digitise Your Madrasa Records in 5 Simple Steps

Introduction

The fee conversation is the one most maktab committees find most uncomfortable. Islamic education feels like it should be free — or at least, as affordable as possible. The community should support the institution. Allah will provide.

All of this is true. And it is also true that teachers need to be paid, premises need to be maintained, software needs to be subscribed to, insurance needs to be in place, and DBS checks need to be processed. Goodwill does not pay these bills.

The institutions that handle fees badly — that charge too little, collect inconsistently, exempt too readily, and never reconcile their accounts properly — are the institutions that eventually cannot afford to keep their best teachers, that run sessions in deteriorating premises, and that close when a key volunteer burns out.

This guide is about getting fees right — for the sustainability of the institution and the fairness to the community it serves.

Why Getting Fees Right Matters

Under-charging for Islamic education has consequences that compound over time:

Teacher quality: The institution that cannot pay competitive sessional rates will lose qualified teachers to better-paying alternatives — including mainstream school TA roles, tutoring, and other community organisations.

Teacher burnout: Teachers who are underpaid (or unpaid) and also expected to manage administrative tasks, parent communication, and curriculum planning will burn out. The maktab that has burned through three teachers in four years is a common story — and almost always a fee story underneath.

Premises quality: Institutions that cannot pay proper rent end up in borrowed spaces with unreliable access, shared rooms, and inconsistent facilities. The quality of the learning environment matters.

Programme development: Buying better Qaida books, running teacher training, implementing digital management systems — all require budget. An institution that perpetually breaks even has no capacity to improve.

Sustainability: The maktab that closes because it cannot cover its costs has failed every student who was enrolled in it and every family who depended on it. Sustainability is not a commercial concern — it is a community responsibility.

The True Cost of Running a Maktab

Most maktab committees significantly underestimate their actual cost per student because they do not account for all cost categories. Use this framework to calculate your true per-student cost:

Cost Category Framework

Direct teaching costs:

• Teacher sessional rates × hours per week × weeks per year
• Any preparation or planning time paid
• Supply/substitute teacher costs

Premises costs:

• Rent or premises contribution (even if “free” from the mosque, there is an opportunity cost)
• Utilities (heating, lighting)
• Cleaning
• Equipment maintenance

Staffing overhead:

• DBS check processing fees (typically £18–40 per check)
• Safeguarding training costs
• HR/employment administration

Administration:

• Management software subscriptions (e.g., Ilmify)
• Accounting software or accountant fees
• Insurance (public liability, employers’ liability)
• Printing and materials

Curriculum resources:

• Qaida books, Islamic Studies materials
• Whiteboards, markers, basic equipment

Reserve contribution:

• A target of 1–3 months’ operating costs held as reserve

Sample Cost Calculation: Evening Maktab

Institution profile: 60 students, Monday–Friday, 5 sessions/week, 90 minutes per session, 3 teachers

This institution needs to charge at least £29/student/month to break even at full enrolment. Allowing for 10% vacancy (typically 54 paying students rather than 60), the breakeven fee is £32/student/month.

Many UK maktabs charge £20–25/month and wonder why they cannot sustain quality. The maths does not work.

Common Fee Structure Models

Model 1: Flat Monthly Fee

Every student pays the same monthly fee regardless of number of sessions attended.

Pros: Simple to administer, predictable income, encourages attendance
Cons: May feel unfair if some students attend fewer sessions; doesn’t account for family size discounts

Best for: Maktabs with consistent session schedules and similar enrolment across the student body

Example: £35/month per student, regardless of which sessions are attended

Model 2: Per-Session Fee

Students (or parents) pay per session attended.

Pros: Fair for irregular attenders; low barrier to entry
Cons: Unpredictable income; complex to track; discourages commitment

Not recommended as the primary model — unpredictable income makes financial planning impossible

Model 3: Sibling Discount Structure

Flat monthly fee with reductions for second and third siblings.

Pros: Recognises the financial pressure on larger families; encourages whole-family enrolment
Cons: Slightly more complex to administer

Example:

• First child: £35/month
• Second child: £28/month (20% discount)
• Third child: £21/month (40% discount)
• Fourth child and beyond: £15/month or free

Model 4: Tiered Programme Fees

Different fees for different levels of enrolment (Qaida/Nazirah, Hifz, advanced Islamic Studies).

Pros: Reflects different levels of teacher time and resource required
Cons: More complex administration; requires clear level definitions

Example:

• Qaida/Nazirah programme: £25/month
• Hifz programme (part-time): £40/month
• Hifz programme (full-time intensive): £80/month
• Islamic Studies only: £20/month

Model 5: Income-Adjusted Sliding Scale

Fee varies based on family income, with families self-reporting their income bracket.

Pros: Most equitable; ensures no family is excluded by financial hardship
Cons: Complex to administer; relies on honest self-reporting; requires a clear policy

Best for: Larger, well-resourced institutions with dedicated administrative capacity

Sample Fee Schedules for Different Institution Types

Sample A: Weekend Maktab (2 days, 3 hours each)

30 students, 2 teachers, hired hall

Sample B: Evening Maktab (5 days, 90 minutes)

60 students, 3 teachers, mosque premises

Sample C: Full-Time Hifz Institution

40 students, 4 teachers, dedicated premises, boarding for 15 students

How to Handle Fee Reductions and Hardship Cases

Every Islamic educational institution has a responsibility to ensure that financial hardship does not prevent a child from receiving Islamic education. But this responsibility must be managed fairly and sustainably.

Best Practices for Hardship Fee Reductions

Have a written policy. The policy should specify how families apply for a reduced rate, what evidence is required (or whether self-declaration is sufficient), what reductions are available, and how often the situation is reviewed.

Separate the decision from the relationships. The committee chair or principal should make hardship decisions, not the individual teacher. This protects teachers from awkward conversations and ensures consistency.

Time-limit reductions. Offer reduced rates for a defined period (one term, one academic year) with a review at the end. Circumstances change — a reduction appropriate last year may not be appropriate this year, and vice versa.

Maintain a small hardship fund. A ring-fenced hardship reserve — funded by Gift Aid, community donations, or a small supplement on standard fees — allows you to offer genuine reductions without it coming from operating costs.

Track reduced-rate students separately. Know what proportion of your student body is on reduced rates and what the total subsidy value is. This informs your financial planning and your fundraising targets.

Fee Collection Methods

Standing Order (Recommended)

Parents set up a monthly standing order from their bank account. Fees arrive automatically on a fixed date each month. Reduces late payment, reduces administration, provides predictable cash flow.

Setting up: Share the institution’s bank account details with parents. Request that they set up a standing order for the agreed monthly amount, with the student’s name as the reference.

Limitation: Some families — particularly recent arrivals or those without stable bank accounts — cannot set up standing orders. Always offer alternatives.

Bank Transfer

Parents transfer fees manually each month. Requires more active chasing when payments are late.

Better than cash because it creates a bank record and eliminates cash-handling risks.

Cash

Still used by many maktabs. Creates handling, counting, and recording obligations. Cash must be counted by two people, receipted, and banked promptly. Cash-heavy institutions are at higher risk of undetected discrepancies.

If accepting cash: Issue a numbered receipt for every cash payment. Record the payment in your fee management system immediately. Bank cash weekly.

Online Payment Platforms

Some institutions use GoCardless, Stripe, or similar platforms for recurring online payments. These provide excellent tracking and automation but charge processing fees (typically 1–2% of each transaction).

What to Do About Late and Non-Payment

Late and non-payment is one of the most uncomfortable aspects of running a maktab — it feels wrong to pursue a community member for money, particularly when the money is for Islamic education.

But consistency in fee collection is not about being hard-hearted. It is about sustainability. An institution that lets late payments slide — from some families, in some months — is an institution that subsidises those families from the contributions of the families who do pay. This is unfair, and it is financially unsustainable.

A Progressive Response Framework

Month 1 late: Automated reminder sent through your management system. No personal contact yet.

Month 2 late: Personal message from the administrator. Friendly, assuming a reason: “We noticed your fee for [month] hasn’t come through yet — is everything okay? Please let us know if there are any difficulties.”

Month 3 late (total balance = 3 months): Personal conversation with the family — by phone or in person. Discuss whether there is a hardship situation that should be addressed through the formal hardship process, or a practical issue (standing order not set up, bank details changed) that can be resolved.

Month 4+ (total balance = 4+ months): The principal or committee chair has a formal conversation about the outstanding balance and agrees a payment plan or, in genuine hardship cases, a formal fee reduction.

Note: A student should never be sent away from class because their family owes fees. The student is not responsible for their parents’ payment behaviour. Address the payment with the parents; never punish the child.

GDPR and Fee Records

Fee records contain personal data — family names, payment amounts, financial information. Under UK GDPR:

• Fee records must be stored securely (not in a personal spreadsheet on an unsecured computer)
• Access must be restricted to authorised staff (the principal, treasurer, and committee chair — not all teachers)
• Fee records must be retained for the required period (typically 7 years for financial records, aligned with HMRC requirements)
• Fee records must not be shared externally without explicit consent

A dedicated management system with role-based access control — like Ilmify — ensures that fee records are accessible to authorised staff and protected from unauthorised access.

How Ilmify Manages Fee Collection

Ilmify’s fee management module is designed for the specific payment patterns and administrative capacity of community Islamic schools.

Fee record tracking: Record each student’s agreed fee amount, payment dates, and amounts received. Outstanding balances calculated automatically.

Receipt generation: Issue digital receipts for each payment — directly to the parent through the app. No manual receipt books.

Outstanding balance alerts: Automatically flag students with outstanding balances for administrator follow-up. No manual reconciliation.

Fee reports: Generate fee reports by student, by class, or by month — for your treasurer’s monthly review and annual accounts.

Multi-currency support: For institutions serving internationally mobile communities, or institutions operating across multiple countries, Ilmify supports fee management in multiple currencies.

Role-based access: Fee data is visible only to administrators — teachers see student Hifz and attendance data but not fee records.

Integration with parent portal: Parents can see their own fee history and outstanding balance through the parent portal — reducing “did you receive our payment?” queries.

💡 Stop chasing fees by handIlmify tracks every payment, flags outstanding balances, issues receipts, and generates treasurer reports — automatically.See Ilmify’s Fee Management Features →

Conclusion

A sustainable madrasa fee structure is one that accurately reflects the true cost of running the institution, builds in reserves for sustainability, offers genuine hardship provisions without being exploited, and is collected consistently and transparently. It is not about profit — it is about ensuring the institution can continue to serve its community for decades, not just until the founding committee burns out.

Ilmify’s fee management module handles the tracking, reporting, and receipt generation that makes consistent fee collection possible without consuming all of the administrator’s time.

See Ilmify’s fee management features →

Related articles in this series:

• Madrasa Student Report Card Templates and Best Practices →
• How to Manage a Maktab Without a Dedicated Administrator →
• How to Run a Maktab in the UK in 2026 →