The Fund’s approved principal target capital is US$10 billion, consisting mainly of contributions by the IDB and its member countries. The Fund was established in the form of a Waqf (i.e. Endowment), which means that operations under the ISFD will be financed only from the returns on investment of its capital resources.
The ISFD can also utilize the funds derived from its financing operations or any other sources as deemed appropriate by the BOD/management –such as grants from member countries, Zakat, in-kind contributions or donations by philanthropists. Expenses related to the Fund (including facilities and services provided by the IDB) are charged against the income of the Fund.
Although part of the IDB, ISFD is administratively keeps separate accounts and balance sheet. The Board of Executive Directors of the IDB is also the Board of Directors (BOD)
of the ISFD and the IDB Board of Governors (BOG) is also the Board of Governors (BOG)
of the ISFD.