zakat Policy

Islamic Relief identifies those who are well below Nisab, working with the poorest of the poor and those who are most vulnerable in the face of conflict and disaster. This includes orphan households, single female-headed households, people with disabilities, and the elderly. 

IRC is committed to utilizing Zakat funds to meet the essential needs of rights holders, emphasizing emergency relief activities such as providing food, shelter, clothing, medication, healthcare, water, and sanitation. 

Where possible, Zakat should also be utilized in a way that provides long-term solutions to the deprivations or needs of disadvantaged people. This could be achieved through developing sustainable livelihood projects, education, health provision, or supporting other sustainable development activities for the poor and needy. 

As a legitimate administrator of Zakat, IRC assumes the role of a duty-bearer with the obligation to respect, protect, and fulfill the rights of rights holders for whom Zakat funds have been collected. The organization is entitled to allocate a reasonable portion, up to 20% (between IR Canada and IR Worldwide collectively), of Zakat funds to cover the costs associated with the delivery of Zakat-eligible projects.

We are committed to ensuring resources are used responsibly and efficiently. This is why we provide 88% of all collected Zakat to directly fund Zakat activities and uplift the lives of our rights holders. This includes the 8% that is provided to our Zakat-eligible implementing partner, Islamic Relief Worldwide (IRW), to directly support program implementation costs and operations in the field. 

As such, IRC allocates the remaining 12% of Zakat funds to cover its management and administrative costs for Zakat implementation. This primarily includes paying for people, facilities, and technology to facilitate the trustworthy collection and delivery of Zakat.

Whilst IRC is inspired by its Islamic values, and proactively seeks to educate our supporters regarding these values and teachings on poverty alleviation, as a humanitarian agency we do not engage in any proselytization activity. As such, IRC does not undertake any Zakat activities under this category.

The use of Zakat funds can rightfully be used for the emancipation of slaves. While projects of this nature are not the primary focus of Zakat spending for IRC, where IRC finds people suffering from a modern form of slavery – such as bonded labour, forced labour, or human trafficking – Zakat funds may be utilized to emancipate people from such forms of slavery (provided that the funds do not profit perpetrators of such acts who have violated national or international law).

Zakat may be used to assist those in debt under specific conditions. Eligible recipients must genuinely require financial aid, excluding those with sufficient wealth to cover their debts. While recipients do not necessarily need to be destitute, they should lack the income or wealth necessary to repay their debt promptly. 

Also, the debt should be due immediately. Those whose debts can be deferred may still be eligible to receive Zakat but could be considered as less of a priority than those who need immediate assistance. IRC relies on its implementing partners to use processes and criteria that verify that only those in genuine debt are supported, with the understanding that IRC should have access to relevant information when necessary.

In the spirit of fulfilling our Islamic responsibilities and adhering to the principles of Zakat, we acknowledge the significance of the concept of Tamleek (ownership) in the distribution of Zakat funds. Tamleek, an essential Islamic principle, emphasizes the transfer of ownership or possession to the rightful rights holders. This principle ensures that Zakat, as a form of worship and social welfare, directly assists those in need by providing them with a degree of ownership or control over the resources provided. 

In light of this, and guided by esteemed scholarly advice, our policy on the utilization of Zakat funds for community projects such as schools and hospitals is crafted with careful consideration of Tamleek. We recognize that community projects serve a vital role in uplifting and supporting Zakat-eligible individuals and their communities. Therefore, our approach is to ensure that these projects, while communal in nature, incorporate the element of Tamleek.

IRC takes the supported opinion that it is permissible to fund communal welfare assets and programs, such as clean water sources, health clinics, education facilities, and agricultural initiatives, in order to alleviate poverty and hardship in disadvantaged communities. These projects aim to empower communities through ownership, subject to specific conditions. 

Furthermore, IRC will use Zakat to fund essential service providers, including teachers, doctors, health workers, disaster recovery personnel, trainers, and agriculture specialists who directly address the needs of rights holders. This funding is subject to conditions and ensures that Zakat is utilized effectively to directly benefit rights holders in need, aligning with IRC's commitment to responsible and impactful resource allocation.

IRC defines travelers as people who are at least 48 miles away from their home and unable to reach their destination (including refugees and internally displaced people) and who have been cut off from their wealth, assets, or source of income. IRC may use Zakat funds to address the diverse needs of the travelers, encompassing provisions for sufficient food, clothing, shelter, transportation, education, healthcare, and any other necessities they may require.