1. Purpose

This policy sets out the principles governing how Shamaazi administers and safeguards funds designated as Zakat, in accordance with Islamic principles, recognised scholarly guidance, and applicable legal and regulatory requirements.

Shamaazi recognises Zakat as a sacred obligation and commits to administering Zakat funds with the highest standards of integrity, transparency, and accountability, ensuring they are used solely for eligible recipients and purposes.

2. Definition of Zakat

Zakat is a compulsory act of worship in Islam requiring eligible Muslims to allocate a prescribed portion of their wealth to specific categories of recipients as defined in the Qur’an (Surah At-Tawbah 9:60).

For the purposes of this policy:

• Zakat funds are religiously restricted funds
  
• Zakat must be applied solely for eligible recipients‍
• The obligation of Zakat is fulfilled only when funds are validly allocated for the benefit of those recipients

3. Donor Intent and Designation

3.1 Zakat Designation

• Donations explicitly designated as Zakat on any Shamaazi platform are treated as Zakat funds and governed by this policy.
• Zakat funds are not interchangeable with Sadaqah or unrestricted donations.

3.2 Transparency to Donors

• Donors are informed how Zakat funds may be managed and deployed.
  
• Where multiple Zakat deployment methods are offered, donors are provided with sufficient information to make an informed choice.
• Where practicable, Shamaazi seeks to respect donor preferences regarding Zakat deployment methods, provided these align with Zakat compliance and operational feasibility.

4. Zakat-Eligible Categories

Zakat funds may only be allocated to individuals or causes falling within the eight categories specified in the Qur’an (Surah At-Tawbah 9:60):

1. The Poor (Fuqara)
   
2. The Needy (Masakin)
   
3. Administrators of Zakat (‘Amilina ‘alayha)
   
4. Those whose hearts are to be reconciled (Mu’allafati Qulubuhum)
   
5. Those in bondage (Riqab)
   
6. Those in debt (Gharimin)
   
7. In the cause of Allah (Fi Sabilillah)
8. The Wayfarer (Ibn as-Sabil)

Zakat does not need to be distributed equally across categories; allocation is based on need and capacity. The Shamaazi Board retains oversight responsibility to ensure that Zakat funds are allocated and administered strictly in accordance with this policy and applicable Islamic principles.

5. Zakat Collection and Segregation

• All Zakat funds are clearly identified and segregated from other donations.
  
• Zakat funds are tracked separately in accounting systems, reports, and partner reconciliations.
  
• Where Zakat funds are managed alongside other restricted or unrestricted funds, they are fully ring-fenced and auditable.

Zakat funds do not form part of Shamaazi’s unrestricted assets and are not available for general organisational use.

6. Zakat Deployment Approaches

Shamaazi’s role is to facilitate the compliant allocation of Zakat funds by:

• Identifying Zakat-eligible beneficiaries and causes
  
• Conducting appropriate internal due diligence
  
• Supporting donors and intermediary funders in making informed grant decisions
• Monitoring and reporting on the application of funds

MWhere Zakat funds are granted via Donor-Advised Funds or intermediary charities, disbursement is undertaken by the relevant funding entity in accordance with its legal and regulatory obligations.  Shamaazi also recognises that legitimate scholarly opinions allow for different methods of Zakat deployment, provided beneficiary eligibility and rights are preserved.

Shamaazi may support one or more of the following allocation approaches:

6.1 Direct and Immediate Disbursement

• Zakat funds to be transferred promptly to eligible recipients or delivery partners acting on their behalf.
  
• This remains the preferred approach for urgent humanitarian and hardship needs.

6.2 Programmatic or Staged Disbursement

• Zakat to be deployed through structured programmes addressing ongoing needs (e.g. healthcare, education, livelihoods).
  
• Disbursement can occur over time, provided beneficiaries are verified as Zakat-eligible.

6.3 Sustainability and Long-Term Benefit Models

• Zakat can be deployed using mechanisms intended to enhance long-term benefit for Zakat-eligible beneficiaries, such as endowments designed specifically to lift beneficiaries out of chronic and structural poverty.
  
• Such mechanisms may include asset-based, pooled, or managed structures where:
  
  
  • Beneficiaries are identified or clearly defined in advance
    
  • Funds are irrevocably allocated for their benefit
    
  • Zakat is not used for the benefit of Shamaazi, donors, or non-eligible parties
    
  • Risks, timelines, and governance are transparently documented

7. Beneficiary Allocation and Entitlement

Before Zakat funds are deployed:

• Funds must be allocated to
  
  
  • Identified Zakat-eligible individuals, or
    
  • A defined and verifiable class of Zakat-eligible beneficiaries
    
• Once allocated, funds cannot be reclaimed or redirected for non-Zakat purposes.

This allocation establishes beneficiary entitlement in line with recognised scholarly interpretations.

8. Timing of Zakat Use

• Shamaazi aims to ensure Zakat funds are applied promptly and responsibly.
  
• Where immediate disbursement is not appropriate or where structured deployment is used:
  
  
  • Funds must still be allocated for the benefit of eligible recipients without undue delay
  • The rationale for timing decisions must be documented

9. Permitted and Prohibited Uses

9.1 Permitted Uses

Shamaazi may suggest Zakat funds may be used for:

• Direct relief and essential services
  
• Poverty alleviation and hardship relief
  
• Programmes benefiting Zakat-eligible individuals
• Necessary administration directly related to Zakat delivery, where supported by scholarly guidance

9.2 Prohibited Uses

Shamaazi agrees that Zakat funds may not be used for:

• Non-Zakat-eligible activities
  
• General fundraising or marketing
  
• Organisational debt unrelated to Zakat beneficiaries
• Purposes that conflict with Islamic principles or donor intent

10. Administration and Costs

• Shamaazi would not use segregated Zakat funds for general operating costs.
  
• Where administration costs are supported from Zakat:
  
  
  • They must be essential, proportionate, and directly attributable
    
  • Issued directly from the appropriate DAF partner who holds the Zakat funds
    
  • They must be transparently disclosed and reported
  • They must align with recognised scholarly opinion

11. DAF and Charity Partner Requirements

DAF partners and implementing charities receiving Zakat funds must:

• Confirm acceptance of this Zakat Policy
  
• Demonstrate capacity to manage Zakat-compliant funds
  
• Ensure Zakat funds are applied only to eligible purposes
• Maintain clear records, reporting, and audit trails

12. Reporting and Accountability

Shamaazi commits to:

• Maintaining clear records of Zakat collection, allocation, and use
  
• Reviewing partner reports to ensure compliance
• Providing donors, upon request, with confirmation of Zakat usage and beneficiary categories

13. Governance and Oversight

• Shamaazi’s governing body retains ultimate responsibility for Zakat compliance.
  
• Decisions involving interpretation or non-standard deployment approaches must be documented and, where appropriate, informed by scholarly advice.
  
• Any breach of Zakat compliance will be addressed promptly and transparently.
  
  

14. Non-Compliance

Where Zakat funds are found to be misapplied, we will request that:

• Disbursement be suspended
  
• Funds be redirected to eligible purposes
  
• Partnerships be reviewed or terminated
• Donors be informed where appropriate

15. Policy Review

This policy will be reviewed annually, or sooner if required due to changes in scholarly guidance, regulatory developments, or operational experience.

Closing Statement

Shamaazi is committed to safeguarding the integrity of Zakat while ensuring it is delivered effectively, responsibly, and with dignity to those entitled to it.