Client Name

The Dawood Foundation

Faculty Advisor

Mr. Abdul Rahim Suriya

SBS Thought Leadership Areas

Entrepreneurship and Innovation

SBS Thought Leadership Area Justification

The project significantly enhances operational efficiency by streamlining the accessibility and management of tax records, an essential element for ensuring smooth internal processes within non-profit organizations. The project has improved the ease with which staff can access, update, and verify tax records. This improved system helps ensure that the foundation complies with all legal requirements and is better prepared for audits and other compliance activities. Moreover, by improving tax compliance, the project strategically supports The Dawood Foundation’s ability to allocate resources efficiently toward its core mission.

Aligned SDGs

GOAL 16: Peace, Justice and Strong Institutions

Aligned SDGs Justification

In alignment with the United Nations Sustainable Development Goals, this project contributes directly to SDG 16 (Peace, Justice, and Strong Institutions) by enhancing transparency, accountability, and efficient record-keeping within the non-profit sector.

NDA

Yes

Abstract

This Experiential Learning Project (ELP) presents a response to a large issue in tax record management within Pakistan’s non-profit sector. This report uses the case of The Dawood Foundation’s internal processes to study this phenomenon. The complex tax compliance requirements of the Income Tax Ordinance, 2001 puts furth challenges for the companies in how to interpret and implement them, thus this project sets out to put together the best practices for a full revamp of tax related records. Through in-depth document analysis and expert consultations, it was found that the most urgent issue is the management of withholding tax records and Computerized Payment Receipts (CPRs). To tackle this problem, a very hands-on approach was implemented which included qualitative research, data collection, and organization. A system of record keeping was established through Microsoft Excel, whereby the data was classified using the relevant sections of the Ordinance. This process helped improve the accuracy, audit readiness, and the Ordinance compliance of the foundation’s tax information. Some opportunities for digital automation and better internal controls were discovered as well. This iterative method disclosed a better picture of the operational issues that non-profits face and brought forward the need for pro-active control measures to avoid taxing penalties due to non-compliance. The project served as a bridge between academic theory and real-world tax-related practices which in turn fostered critical thinking, adaptability, and problem solving. As a result of this project, a model was put out which is replicable, promotes transparency, increases donor confidence, and plays a role in the long-term sustainability of non-profit organizations who must sustain in a very complex regulatory environment. As a result, the financial accountability of The Dawood Foundation improved, and this project proved how strategic record structuring can reduce compliance risk. It was recommended to TDF that continuous staff training and policy standardization must be implemented to see a lasting impact which will allow the organization to flourish, operate more efficiently, and with greater fiscal discipline. Routine internal audits and clearly defined document protocol steps were recommended to resolve the few misalignments between operational flow and state tax requirements. By documenting each stage of the process and working with real time financial data, the team was able to get a detailed look at tax governance frameworks and internal audit prep. This learning journey was made more valuable because of the input received from the finance staff, the auditors and the legal consultants. They added practical relevance to the steps put forth as solutions. Consequently, this project not only gave out a technical product in the form of improved records but also made a large-scale strategic impact on The Dawood Foundation’s learning and capacity building efforts.

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

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Available for download on Monday, June 17, 2030

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