This article first appeared in The Edge Malaysia Weekly on July 20, 2026 - July 26, 2026

When the Securities Commission Malaysia (SC) chose LC Wakaful Digital Sdn Bhd to establish social exchange Impakrintas, the goal was to address the challenges that donors face in identifying fraudulent non-profit organisations (NPO) and overcoming the lack of transparency.

In contrast, Impakrintas allows NPOs approved by SC to seek donations and funding from corporations and private individuals in an official capacity.

“We want to regain donors' trust because Malaysia has seen many unfortunate scandals and donation frauds that have led people to no longer believe in social projects,” says LC Wakaful Digital group CEO Firdaus Mohamed. “We want to ensure that the work NPOs do is highlighted and to ensure transparency in how these NPOs use the funds raised to promote trust between donors and NPOs.”

In 2024, director of Bukit Aman's commercial crime investigation department Datuk Seri Ramli Mohamed Yoosuf told Bernama that, between 2019 and 2023, there were 85 cases of donation fraud across Malaysia, amounting to RM667,845.

Naturally, such cases of donation fraud have made donors more cautious about where they direct their contributions. Firdaus hopes Impakrintas can help restore confidence in legitimate NPOs seeking support for their projects.

The social exchange is an initiative under the Capital Market Masterplan 2026-2030 to broaden access and participation in social impact financing through the capital market. It is meant to support the development of a more organised and credible fundraising environment for organisations involved in social impact initiatives.

Datin Suliana Shamsuddin Alias, chairperson and executive director of Yokuk Foundation, recalls that her organisation once regularly secured corporate support through outreach efforts, but says the current economic climate has made such assistance increasingly difficult to obtain.

Yokuk is an NPO that provides healthcare services for people living in rural areas or who are unable to travel. It plans to use funds raised through Impakrintas to expand its services to bring nurses and physiotherapists to more homes.

“Previously, NPOs were on their own or had to go through various grants. This social exchange is a real win-win situation. Donors get the platform to properly screen everything and ensure that everything is above board, and it gives NPOs further visibility,” says Suliana.

While SC launched Impakrintas on May 25 at an event, the platform was already open to NPOs on Feb 17.

“We have eight [NPOs] on Impakrintas, with another eight coming in the third quarter. They're in the process of due diligence. We are being very selective of who we onboard, as we want to make sure that this first cohort sets the benchmark for all cohorts to come,” says Firdaus.

Under Section 44(6) of the Income Tax Act 1967, donations made to these NPOs qualify for tax relief.

Firdaus explains that Wakaful Digital charges NPOs a listing fee of 8% for every successful fundraising campaign. Of this amount, RM4 is subsidised through a RM2 million grant from the Ministry of Finance allocated to the social exchange in 2026.

He adds that this grant is designed to help offset platform costs for NPOs and the fee applies only to NPOs and does not affect donors.

Speaking to ESG at the launch, Firdaus says responses from potential corporate donors were very positive. “We take the burden off them, providing the due diligence by giving them the perspectives of what we do with the NPOs, how we verify every aspect of an NPO’s projects, how much they want and what the money will be used for.”

Building trust between donors and NPOs begins with Impakrintas’ onboarding process. Firdaus notes that many NPOs are primarily focused on their work on the ground and often lack the resources to maintain extensive documentation, particularly digital records. As a result, Wakaful Digital invested significant time in guiding its first eight NPOs through the onboarding process, encouraging them to engage independent auditors and meticulously reviewing every submitted document to ensure compliance, accuracy and adherence to required standards.

“I wouldn't say it was smooth sailing, but it was pretty easy once they had all the documentation in place. Since the process is new, it took a lot of handholding to get them there,” says Firdaus.

He adds that the process of getting an NPO listed on Impakrintas follows the SC’s framework and guidelines. Among other requirements, NPOs must submit three years' worth of financial statements and provide proof that their tax-exempt status under Section 44(6) of the Income Tax Act 1967, as approved by the Inland Revenue Board of Malaysia (LHDN), remains valid for at least six months.

“This framework is a good guardrail to ensure that the project is legitimate. If NPOs have all the requirements and documentation in place, it’s an easy process. We usually take two to eight weeks to do our due diligence, depending on how complex the project is,” says Firdaus.

Ivan Lee, general manager and corporate affairs director of NPO Suriana Welfare Society Malaysia, says the platform has helped push Suriana to be more diligent in its reporting and documentation. “It has given us more discipline in executing our projects. We now put a little bit more thought into project planning, execution of funds, documentation, record-keeping and impact monitoring.”

Suriana is dedicated to protecting children from poor or vulnerable families through education, providing food and supplies, and community engagement. Lee says the NPO plans to use the funds raised for its BSF (black soldier fly) HomeGrower Programme, an income-generating initiative that teaches low-income families to convert food waste into valuable protein using BSF larvae, creating a sustainable product that can be harvested and sold.

Firdaus adds that once listed, an NPO is highly unlikely to be delisted, with removal occurring only in cases of fund misuse or a court conviction.

To further strengthen transparency, Wakaful Digital publishes a comprehensive prospectus for each NPO — typically about 32 pages long — outlining its fundraising project and including detailed checklists aligned with LHDN and SC requirements.

“We try to ensure that the fundraising is successful. If they don't raise enough or need to scale down their project, they must inform us, and we in turn will inform our donors,” says Firdaus, adding that Wakaful Digital aims to list at least 200 NPOs on its platform by end-2026.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's App Store and Android's Google Play.