The issue of Zakat is the focus of much attention and even debate. Confusion around Zakat can arise as this pillar of Islam is handled in many different - and sometimes unclear ways - by different charities. We are here to help de-mystify Zakat and explain the clear and robust policy Al-Badr Foundation has when we help you honor this noble duty.

The lofty guarantee of a 100% Zakat policy is a phrase we now commonly hear. Social media is abuzz with slogans that confidently claim not a single penny of your donation will go anywhere except to the poor. ′None of your money is spent on admin!′ ′No cut is taken for fundraising’, ‘Your entire donation will go where you intended, are the reassurances that come with this.

It sounds perfect. Ideal. Just how Zakat should be handled, right? Perhaps not.

What this 100% Zakat policy means in terms of how your money reaches the poor is often not as clear. It is precisely into these details that we must delve to truly understand how and why Zakat is managed the way it is. Though appealing to the heart, there are many practical and ethical reasons why we do not believe a ‘100% Zakat’ policy can work.

Here are some of them:

Taking funds from elsewhere: Sadaqah and trading income

What we often do not think of is that to ensure a ‘100% Zakat’ policy, funds have to be taken from somewhere else. Money is needed to cover the costs of receiving, processing, and managing donations as well as providing feedback and fundraising. These are costs that all charities incur without exception.

This is essentially an exercise in moving money around. So while the ‘Zakat’ pot remains untouched, others such as the ‘Sadaqah’ pot are used to supplement this. This can mean those who have donated their Sadaqah in Ramadan or at other times of year are having a much larger portion of their donation deducted (often unknowingly) to cover costs elsewhere.

At Al-Badr Foundation, we keep all the categories of donations clear and avoid overlap. Rather than taking money from other pots, we know it is religiously valid and ethically right to use a small percentage of the actual Zakat donation to administer that donation and generate further funds. Above all, this is the approach to Zakat prescribed by Allah (SWT) in the Qur’an when defining how Zakat may be used. This means that giving a small portion of your Zakat donation to us is completely permissible and allows us to ensure your Zakat is handled with the utmost care and is distributed efficiently and effectively to those who need it.

No wealthy founders or investor donors

This grass-roots ethos has continued to sustain our vision. We do not have any affluent founder trustees, nor a team of wealthy donors who cover Zakat or other administrative or fundraising costs. This is deliberate as we do not believe anybody should have a monopoly on charity. By financing our work through valid channels, we avoid the opportunity of being influenced (or even pressured) by the biases of any one person or group of individuals and can – instead – work where there is the greatest need for help. The privilege of assisting the poor extends to us all and therefore, Al-Badr Foundation belongs to us all equally, including and especially you!

The Islamic legitimacy of costs incurred collecting and distributing Zakat

In His eternal and infinite wisdom, Allah (SWT) ordained that one of the categories of people eligible to receive a portion of the Zakat funds are the administrators of Zakat. These are those who are responsible for collecting, storing, guarding, registering, and distributing Zakat. This category of people comes third only after the poor (al-fuqaha) and needy (al-manakin). It is not only understood that there will be costs incurred when collecting and distributing Zakat but a whole category was dedicated for this purpose precisely so we may be open and transparent in where funds are spent.

At Al-Badr Foundation we work with in-house scholars who guide the gathering and distribution of Zakat at every step. Our systems and procedures have come from careful consultation and backing of our religious advisors and this forms the basis of our Zakat policy.

Decades of experience

Al-Badr Foundation is honored to have been handling Zakat donations. Over this time, we have built up the knowledge and expertise to ensure your money reaches those who need it quickly, effectively, and with full transparency.

There is nobody more concerned with the honest and optimum distribution of your Zakat funds than the Al-Badr Foundation. This is because we understand the great Amanah (trust) we have been given by accepting Zakat donations and distributing them on the ground. The responsibility on us is heavy and we are acutely aware of this. We devote a great deal of time, energy, and research to ensuring we provide the best route we can for the distribution of Zakat. This is not only for your sake as a donor but for the sake of our very selves also.

We endeavor to always remain true to our vision of providing a robust, transparent, and effective Zakat service for all. Away from snazzy sloganeering, our commitment to this will never waver as we seek to honor the gift to come in that Allah.