FAQs

1.Traditional Rotating Fund

Communities around the world use rotating funds. Rotating funds enable members to save quickly for amounts that can be hard to achieve on their own.

How it works: 

1. every week or month everyone in the group contributes to the common fund
2. every week or month one person takes the whole pot
3. continues until everyone has received the whole amount once

Who gets the pot is usually decided by lottery or negotiation: for example, if someone in the group needs money suddenly, they may ask to have their turn first or on a certain date. 

"Hands" variation: members can pay in multiples of a standard amount, sometimes called "hands". For example, a group may decide to have a "hand" of £20. Each member can put in one hand or multiple hands as long as they do this every week or month. The member will receive the whole pot on rotation once for every hand they put in. Someone paying in 4 "hands" worth every month will receive the whole 4 times over duration of the fund and someone putting in 1 hand per month will receive once. 

2.Food Cooperatives

There are dozens of food cooperatives already using Kin. They are a great way to make savings, eat better and build community. Kin Cooperative is working with Cooperation Town to support neighbourhood food cooperatives across the UK. 

How it works: 

1. members contribute a weekly amount (usually around £5)
2. one member (the treasurer) requests money every time an order is made to pay for the food purchase
3. food is delivered and divided among the members as agreed

If there is money left over, this can build up towards a bigger order later on or for a community party or can be divided back to the members. 

3.Freelance Christmas Fund

Sometimes called "bread funds", groups of freelancers all over the world have created savings clubs to help them manage sudden losses of income. Many self-employed people do not receive holiday pay or sick pay and Christmas can also be a time where there is less work and less income. Starting a savings club with people in the same situation can help you create strong savings habits and a safety net.

How it works: 

1. members pay in as much and as often as they think appropriate
2. when they need their funds, they request the amount from the group

Usually members can only request what they have put in but some groups may decide to create a solidarity fund as well to help newer members especially if they are saving more than they are requesting. 

4.Traditional Accumulating Fund (2 kinds)

Accumulating funds are also common all over the world. They tend to come in two variations: 

1. Community Purchase
2. Interest Free Loan Fund

Community Purchase: is when neighbours, friends or family save together to purchase something that will benefit them all or to support a common cause. They usually contribute equally or by an agreed formula - "each according to their means". 

Interest Free Savings and Loan Fund: is when members effectively allow their savings to be available to oters in the group on the basis that they will pay it back. 

1. everyone in the group commits to contribute to the common savings fund. It can be every day, week or month, it can be the same amount for all the members or different amounts depending on how the group decides members can access the funds (on kin group pages you can always see the total each member has contributed and requested).
2. a member requests a loan and explains how they will pay it back. The group agrees to make the loan.
3. the member pays back the loan over the agreed period. 

Secure variation: some groups may choose to create an additional savings pot to "secure" the loans. Usually this would involve contributing regular smaller amounts on the basis that they should equally carry the burden if a group member fails to pay back money they owe. In this way the security fund is not interest attached to the loan itself and the fund remains halal. 

Got ideas? 

There are thousands of reasons to engage in financial mutual aid. You can also use a kin group for more than one thing at the same time because kin allows you to track how much everyone in your group has contributed and received.

If you want to discuss an idea with us, WhatsApp Kin (faster) or contact Kin. We're always excited to work with you!

 

The short answer is yes. 

You can set up a group because you need money right now. A lot of traditional rotating funds begin this way. 

Unlike for-profit buy-now-pay-later companies like Klarna, with Kin you can pay in 5, 10, 12, or as many you as your group agrees together. And if you aren't able to make a payment, it won't affect your credit score - it's up to your group to decide what happens if a member is unable to contribute in the way they committed to.  

Remember Kin Cooperative is for mutual aid, that means saving together should benefit everyone in your group over time in the way that you have all agreed together. 

Here is an example: 

• Tabi needs a new washing machine because her old one broke.
• She can't afford the £400 for a new one so she contacts 7 friends. If all of them together (Tabi + 7 = 8) put in £50, that's £400 (50 x 8).
• Tabi's friends agree to pay in £50 every month for 8 months. Tabi requests £400 the first month and buys her washing maching.
• Next month, they each pay in again and another friend requests £400.
• They repeat it every month until all of the friends have received £400.
• After 8 months, Tabi has now paid into the group £50 x 8 months = £400, the price of her washing machine. 

If your group collects savings and lends money to members without interest (or riba), then it is halal (Sharia-compliant).

Your group may ask for an administrative fee from members as long as this fee is not contingent on the size of the money request or the duration of repayment. 

Example secured loan fund (halal)

To create a secured, interest-free loan fund, you could set up two related pools:

• Pool 1: The main savings and loan fund. Members contribute regularly, and loans are made from this pool without interest.
• Pool 2: A loan security fund. Members contribute smaller amounts here to provide collective protection against losses.

Both pools grow over time. Members do not withdraw from Pool 2, but if there is a loss or default in Pool 1, funds from Pool 2 can be used to cover it.

This model keeps the system fully halal: zero interest, zero profit-making, 100% mutual aid.

The money belongs to your group

It's not like putting money with a bank that holds it for you personally. When you contribute to your kin group it belongs to your group and your group makes the decisions about how to use it so it is important that you trust the people in your group and especially your group admin who is responsible for approving new members and withdrawals. 

Kin Cooperative is not responsible for the behaviour of people in your group. However, if a member breaks Kin Cooperative's rules or code of conduct, they will have their membership suspended or terminated. If you are worried about anyone in your group or you are unclear about how your group should work financially, you should contact the Kin Cooperative team immediately. 
 

Make a group agreement

Having a group agreement can increase trust and prevent against issues by making it clear that it doesn't benefit anyone to break the rules. In the UK, a written or even spoken agreement can be used as evidence in a civil court. 

Visit the group agreement page now. 

Kin has been developed for financial mutual aid only

That means there are things you cannot use Kin for including but not limited to: 

1. You cannot use Kin to fund anything illegal.
2. You cannot use Kin to avoid tax, or to hide the origin of funds, i.e. money laundering. (See Kin's Anti Money Laundering Policy).
3. You cannot use Kin for individual private profit-making.
4. You cannot use Kin for purposes of transacting business, trade, for supply of a service or anything liable for taxation as income or capital gain.
5. You cannot attempt to coerce someone to use Kin or contribute more, more often or request money in smaller amounts or less often against their will.
6. Admins cannot use their power to approve or deny requests for money for any reasons other than for the agreed, sustainable and equitable operation of the group. 

Anyone may report a group or member to your Kin Cooperative Team at any time. 

Any breach of these rules or any other Kin policy or the term of service may result in suspension of services or expulsion without prior notice.