Zakat Question: Guidelines/Tips on how to disburse Zakat?

Everyday Islamic Finance Personal and Family Finance
#1

Salam all,

Most of the threads are about how to calculate Zakat which are fantastic.

My question is how to pay it out?

Lets say there is £1000/- Zakat to pay out. (Didn’t use £100 as an example as that would simplify the problem).

I get slightly concerned paying lump sum in one pot and personally prefer spreading the love.
(IIRC heard a talk by someone recommending this)

Here is my current system:

  • Some goes hyper local (i.e. via mosque. some to converts.)
  • Some goes local National (i.e. UK)
  • Some goes International orphans/widow (via various charities around the world)
  • Some goes International/Educational/Spread Islam (via various charities in the Western World)
  • Some goes ‘Back home’ i.e. Pakistan (via various charities but focusing Pakistan)
  • Some goes ‘Back home’ i.e. Pakistan (via Parents/family/in-laws)

My concerns:

  • I basically trust 5-6 different chains of trust to insure Zakat reaches eligible people…
  • Each chain has their own criteria for Zakat eligible people…

Is there anything else that can be done except simply trusting these and praying May Allah SWT accept?

Whenever I try to understand who is eligible to receive Zakat, the greatest emphasis seems like it has to be bottom 1% and direct cash handout.

I don’t know someone in need directly at that level.

I have on occasions asked various people to get into direct contact. The response is X/Y/Z is in great need.

I don’t personally think X/Y/Z that were referred are in the bottom 1% category. But have to stay silent to avoid unnecessary fuss.
X/Y/Z can be any of

  • so n so can’t pay their Uni Tuiton fee
  • so n so can’t pay their kids school Tuiton fee
  • so n so’s maid is very needy
  • etc

They are definitely in need and perhaps enter the category of Masakeen.
But aren’t really bottom 1%. Maybe my scale is off.
My very very basic thought process is circulation of wealth so Zakat -> bottom 1%.

And I guess trustworthy charities will be the ones in direct contact.

Anyways. This could turn into an abstract thread with personal recommendations/guidelines and that is ok. Not looking for a fatwa.

JazakAllah
ZubairLK

1 Like
#2

This is a really good question, I have exactly the same issues and have found d it equally difficult to be sure my zakat is reaching those eligble.

I attended the IFG and NZF webinar on zakat on start ups yesterday and found that the first part of the discussion dealt with aspects of this question quite well. There is a recording available on YouTube

Hope this helps

#3

Salaam @ZubairLK - Jzk khayr for your thoughts/query.

My (unstructured) thoughts are:

  1. The first thing we must start with, is whether the recipients are eligible under the 8 categories at 9:60 in the Qur’an. Those people are not necessarily the destitute by the way:
    “ The alms are only for the Fuqara’ (the poor), and Al-Masakin (the needy) and those employed to collect (the funds), and to attract the hearts of those who have been inclined (towards Islam), and to free the captives; and for those in debt; and for Allah’s Cause, and for the wayfarer (a traveller who is cut off from everything); a duty imposed by Allah. And Allah is All-Knower, All-Wise. ”
    There is a lot of fiqhi discussion and debate about exactly what these categories mean - but I won’t go into all that here as I don’t think that is what you were after.

  2. Practically, if we don’t know any such people ourselves, then I think it is a case of trusting the judgement of a charity. I can’t see any real way around that.

  3. Spreading your zakat among different groups is a good idea in my opinion as it spread the love (and the risk of someone messing up in giving your zakat!). But from your side, as long as you give with the right intention and have done the best you can, we pray that Allah is accepting.

#4

Excellent question @ZubairLK. I’ve been concerned about the same issues. @ibrahimkhan thank you for your helpful response. I wanted to clarify if Zakat has to be paid in cash to the eligible recipients. A lot of charities distribute it in ways other than hard cash, for example food packs, orphan sponsorship (education, food, clothing), etc. I am also aware it can be problematic for Zakat money to be spent on communal projects, rather than on individuals. How does one safeguard against these possibilities when giving zakat to charities? Should we be worrying about these things? I must say though that I don’t really know how I would be able to distribute Zakat money other than through charitable organisations.

#5

Assalaamu alaykum,

Zakat can be paid in cash or assets. Both are permitted.

Allah knows best.

#6

Salam,

Thank-you for the insightful responses.

I was spreading some Zakat among charities. On a hunch, I checked the charity commision site for one of them…

Unfortunately, one is sitting on quite a significant reserve fund of £20 million-ish. (I’ll avoid naming it…)
I checked the trustee report. No mention of the word ‘Zaka’ :frowning:

£10ish million reserved for 24 months of charitable activities
£10ish million for a disaster fund in case something happens (hope they opened this purse during covd…)

A follow up question for @Mufti_Faraz_Adam and @ibrahimkhan

I understand zakat given during Ramadan can’t be disbursed immediately by charities. But I also felt sad that any zakat paid may end up sitting in a reserve fund somewhere instead of circulating wealth.

Do you have any thoughts on this matter? The main concern from my perspective that should I consider the zakat to be paid from my side?

The second question is more abstract and open ended. Should charities keep Zakat in a reserve fund? Or should only the sadaqa portion of any donations they receive be kept in a reserve fund to sustain operations? Are there be any guidelines for the administrators of Zakat that they should spend it within a reasonable amount of time?

Jzk

Regards,
ZubairLK

#7

Salaam @ZubairLK - good questions.

My thoughts are:

  1. It is really good to have cash in reserves - but particularly those that are long-term investment-type stuff. One of my bugbears with charities is their lack of focus on sustainability. So I actually think this is in some ways a good thing.
  2. Of course Zakat money shouldn’t sit in the accounts and should be disbursed within the year latest to my understanding, and ideally far quicker.
  3. So my view on “Long-term” money should be sadaqah money.
1 Like
#8

Salam Alaikum,

Since my question is related to Zakaat, I wanted to ask you something with regards to tax declaration of zakat payments. Each year i pay Zakat to charitable islamic organizations like Islamic Relief and some other local organizations, and in Switzerland we are allowed to declare donations to chartiable organizations which are then deducted from taxes. The question is related to the fact that these donations I do declare them at the end of the year with tax declarations as usually the amount is not that small and i can deduct from taxes. I wanted to know if this would be permissible according to Islamic Law or i should not include this in the tax declaration?