Purpose This policy outlines the guidelines for the collection, management, and distribution of Zakat by Ejabh Organization, ensuring adherence to Islamic principles and promoting transparency and accountability.
Scope This policy applies to all Zakat funds collected and distributed by Ejabh Organization, ensuring compliance with Shariah guidelines and local regulations.
Zakat Calculation
Nisab Threshold: Zakat becomes obligatory for Muslims possessing wealth above the Nisab threshold for a full lunar year. The Nisab is calculated based on the value of gold or silver:
Gold: 87.48 grams
Silver: 612.36 grams
Zakat Rate: 2.5% of the total eligible assets held for one lunar year.
Eligible Assets: Include gold, silver, cash, business assets, merchandise, livestock, agricultural produce, and investments such as stocks, bonds, or rental properties.
Zakat Collection
Eligibility: Zakat is obligatory upon any sane, adult Muslim who possesses wealth above the Nisab for a full lunar year.
Collection Channels: Zakat contributions are received through various channels, including online payments, bank transfers, and cash deposits.
Documentation: Proper documentation and receipts are issued for all Zakat payments received.
Fund Management: A dedicated Zakat fund is maintained separately from other donations or charity funds.
Zakat Distribution
Zakat is distributed to eligible recipients as per the categories mentioned in the Qur’an (Surah At-Tawbah 9:60):
The poor (al-fuqarâ’): Individuals struggling to meet their basic needs for food, shelter, and essential items.
The needy (al-masâkîn): Those who have some means but still cannot fulfill their basic necessities.
Zakat administrators (al-‘âmilîna ‘alayhâ): Individuals appointed to manage and distribute Zakat funds.
Those whose hearts need reconciliation (al-mu’allafatu qulûbuhum): Individuals who have recently embraced Islam or need support to strengthen their faith.
Captives or slaves (ar-riqâb): Those in bondage seeking freedom (historically relevant).
Debtors (al-ghârimîn): Individuals in debt due to pressing needs.
In the cause of Allah (fî sabîlillâh): Activities that promote the welfare of the community and uphold Islamic values.
Travelers in need (ibn as-sabîl): Individuals stranded or in need during their travels.
Ejabh Organization focuses its Zakat distribution on the first two categories:
The Poor (Al-Fuqara): Individuals struggling to meet their basic needs for food, shelter, and essential items.
The Needy (Al-Masakin): Those who have some means but still cannot fulfill their basic necessities.
Governance and Oversight
Zakat Committee: A dedicated committee oversees the collection, calculation, and distribution processes, ensuring compliance with Shariah principles and regulatory requirements.
Audits: Regular audits and reports are conducted to maintain transparency and accountability.
Reporting and Transparency
Annual Reports: Detailed reports on Zakat collection and distribution are made available to donors and stakeholders.
Record Keeping: Comprehensive records are maintained for all Zakat transactions.
Independent Audits: External audits are conducted to ensure integrity in the Zakat management process.
Amendments and Review
Policy Review: This policy is reviewed periodically to ensure alignment with Islamic jurisprudence and any changes in regulatory requirements.
Approval: Any amendments are approved by the Zakat committee and relevant authorities.
This policy ensures that Ejabh Organization’s Zakat collection and distribution align with Islamic teachings and ethical standards, providing donors with confidence that their contributions are managed responsibly.
Zakat FAQs
Here’s a list of Frequently Asked Questions that you can use for further guidance:
What Is The Difference Between Zakat And Sadaqah?
– Zakat: Mandatory for eligible Muslims, calculated at a specific rate, with designated recipients.
– Sadaqah: Voluntary charity that can be given at any time, in any amount, to a broader range of beneficiaries.
What is the difference between Zakat and Zakat al-Fitr?
– Zakat: Mandatory for eligible Muslims, calculated at a specific rate, with designated recipients. – Sadaqah: Voluntary charity that can be given at any time, in any amount, to a broader range of beneficiaries.
– Zakat: The general form of almsgiving based on accumulated wealth and paid throughout the year.
– Zakat al-Fitr: A specific type of Zakat due at the end of Ramadan, before the Eid prayer. It is usually a smaller, fixed amount per person.
Is There Zakat On Cryptocurrency?
Yes, most contemporary Islamic scholars agree that there is Zakat on cryptocurrency.
Cryptocurrencies, despite their digital nature, are considered wealth that holds value and can be traded for goods and services. Like gold, silver, and other currencies, they can meet the requirements to be considered zakatable assets.
How do I calculate my Zakat?
– Determine the total value of your zakatable assets.
– Subtract any permissible debts.
– If the remaining value exceeds the nisab, calculate 2.5% of that amount. This is the amount of Zakat you owe.
