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Zakat is a means of purifying one’s wealth and soul. It is one of the five pillars of Islam, and a financial obligation for every eligible Muslim.

By giving your Zakat through Unity Aid, you can rest assured that it will be used to support and uplift some of the most disadvantaged communities around the world.

Your Zakat donations are handled with the greatest of care to ensure they reach eligible recipients quickly and securely.

Anyone who’s a Muslim, adult (has reached puberty) and is sane, is expected to give Zakat if they have the minimum amount of wealth, which is known as the Nisab.

You can find out the latest Nisab rate here or use our Calculator and it will instantly tell you if you own more than the current Nisab rate.

 

Purpose

Zakat is an obligation commanded by Allah upon any sane, adult Muslim who is in possession of wealth over a certain threshold (Nisab). Throughout the Qur’an, Zakat is mentioned alongside prayer, emphasising the sacred and essential nature of Zakat as an act of worship. As a core pillar of Islam, the Qur’an teaches that Zakat is not a matter of voluntary charity, but an obligation relating to matter of communal justice and protecting the rights of the poor. Zakat is a unique redistribution of wealth, transferring wealth from the richest members of society to the poorest.

Zakat benefits individuals on both a spiritual and materialistic level. By purifying wealth, Zakat allows for the purification of the heart of the Muzakki (the one who pays Zakat). Zakat enables humility, generosity and a detachment from material belongings to be instilled into those who pay Zakat. It offers novel opportunities for those who give Zakat to move closer to Allah. As well as benefiting those who give Zakat, it has immense power in supporting those who receive Zakat. They can break cycles of poverty and move out of extreme poverty and need, promoting self-sufficiency, independence and dignity.

Zakat is the third pillar of Islam, following only faith and prayer, and so Gateway Foundation and its subsidiarises believe it should be at the core of its work. The charity is in a unique position to assist Muslims in fulfilling their religious obligation of Zakat by facilitating the distribution of Zakat through projects which protect lives and dignity, strengthen communities and lift people out of poverty around the world.

Unity Aid honours the responsibility of distributing Zakat in accordance with Islamic values and teachings that are placed upon them by donors, beneficiaries and by Allah himself.

 

Aim

The overall aim of this Zakat Policy is to ensure that the charity can fulfil its trust of Zakat distribution in the best way possible. This policy ensures that the charity’s Zakat activities are in line with Islamic teachings and guidelines.

The aims of this policy are:

  • To improve internal and external communications around the charity’s Zakat activities.
  • To ensure that the charity’s Zakat activities are conducted in the most transparent and Islamically compliant manner possible.
  • To provide clear guidance to the charity staff (particularly in Fundraising, Finance and Programmes), contractors and partners on how Zakat should be fundraised for, allocated, distributed and monitored.
  • To provide clarity to donors and beneficiaries on how they should expect the charity to fundraise, allocate and distribute Zakat.
  • To enable the charity to utilise Zakat within its programmes in a manner that ensures maximum impact and efficiency in reducing suffering and poverty.

 

Who Pays Zakat

Zakat must be paid by an adult (who is Baligh), must be Muslim, and they must be sane and in complete ownership of the Nisab (Please note that all three schools of thought other than the Hanafi school state that Zakat should be paid on qualifying wealth owned by the insane and children).

 

What is Nisab and its’ amount?

To be liable for zakat, one’s wealth must be more than a threshold figure, termed the ‘Nisab’. To determine the Nisab there are two measures, either gold or silver.

  • Gold – The Nisab by the gold standard is 3 ounces of gold (87.48 grams) or its cash equivalent. This will vary with the market value of gold.
  • Silver – The Nisab by the silver standard is 21 ounces of silver (612.36 grams) or its equivalent in cash. This will vary with the market value of silver.

 

Zakat Eligibility

In the Holy Qur’an (Surah Al-Tawbah, Ayah 60), there have been eight groups of people identified as being eligible to receive Zakat. These are:

  1. Al-Fuqara – The poor
  2. Al-Masakin – The needy
  3. Al-Amilina Alayha – Those who collect and administer Zakat
  4. Al-Mu’allafal Qulubuhum – Reconciliation of Hearts
  5. Fir Riqab – Those held captive or enslaved
  6. Al-Gharimin – Those in debt
  7. Fi Sabilillah – Those in the path of Allah
  8. Ibn Al-Sabil – Wayfarers (travellers)

 

Policy Particulars 

  • Zakat funds will be considered as a restricted fund.
  • Zakat payments are collected into a specific, restricted fund and payments are directed to clearly identified projects
  • Zakat donations collected are spent as soon as possible or within one Islamic calendar year.
  • Zakat will be given to the beneficiary either as cash, in-kind or as possessions where the ownership of the Zakat Funds is to be transferred to the recipient.
  • Gift Aid can also be claimed by the charity on Zakat payments if the Zakat payer is eligible and willing to complete a Gift Aid declaration form. The Gift Aid will be treated as an admin donation.
  • If the charity is unable to spend Zakat donations in a particular requested manner, this Zakat will be reallocated to where they are most needed in line with this policy’s guidelines.
  • Zakat cannot be spent on infrastructure (such as mosques, schools/public buildings), third-party services or skills training (anything else like the aforementioned projects) due to the absence of the condition of human ownership of Zakat funds. The exception to this is if a project is deemed necessary by the charity and it does not fall under traditional categories of Zakat or does not entail ‘ownership’, then it may be permitted by exception with two conditions:
    • Presence of a confirmed necessity
    • Scholarly Approval

 

Fundraising Zakat 

  • Where donors insist that their Zakat goes to a specific fund (e.g. country or sector), before accepting the donation the charity must clarify whether it is possible for Zakat to be allocated in this way among their Zakat activities. Once the charity has accepted this donation, the charity must respect the wishes of the donor as much as possible.
  • On some occasions, the charity may feel as though they are unable to fulfil the wishes of the donor, perhaps due to a lack of projects in that country or sector, or if the donor’s conditions contravene our policies. In this instance, the charity must either:
    • Communicate clearly to the donor that the charity may not be able to spend the Zakat in the requested manner and encourage the donor to give Zakat to an alternative fund.
    • Refuse the donation on the grounds that the charity does not have the capacity to spend the Zakat in the requested manner.

 

Zakat Allocation 

There are several principles which guide the decision-making process of the allocation of Zakat.

  • The Zakat Allocation Team is responsible for allocating Zakat to the beneficiaries.
  • The Zakat Allocation Team is comprised of representatives from the programmes, fundraising and finance teams, The Board of Trustees and Islamic Scholars who will collectively determine which projects to fund with Zakat.
  • Delivery Contracts must clearly state what funds are being used to fund a project (e.g., the amount of Zakat; Sadaqah or general donations being used). It is the responsibility of the programmes team to ensure partners and regional offices are fully aware when they are receiving Zakat funds

 

Monitoring & Evaluation of Zakat 

Zakat-funded activities must be frequently examined and evaluated to ensure their compliance with the charity’s Zakat Policy.

  • The primary responsibility for ensuring that Zakat funded projects are monitored and evaluated lies with the Programmes Team.
  • The ultimate responsibility for ensuring that Zakat-funded projects are monitored and evaluated according to the principles of this policy lies with the Board of Trustees.

 

Policy Review  

The Zakat Policy will be reviewed on an annual basis to ensure continuing appropriateness.

 

Affirmations of Review

I have read the Unity Aid Zakat policy document and can agree that it is in accordance to the Shariah, and Allah knows best – Mufti Dilwar Hussain, Oldham

I have read and reviewed Unity Aid’s Zakat Policy. According to my understanding, the policy meets the Zakat standards set by the Qur’an and Sunnah. الله اعلم بالصواب، Allah knows best. – Mufti Muhammad Mahfuz, Rochdale