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CWE-CWR-12 Compassion, Welfare & Environment Community Welfare & Relief CORE Excellence v2.9.7

Transparent zakāt and sadaqah distribution

Evaluates the organization's transparent systems for zakāt and sadaqah management. Upholding this sacred trust (amānah) is vital for institutional excellence, building donor confidence and ensuring that aid is distributed with integrity and accountability to verified recipients. The system must ensure zakat is allocated only to the Qur’anic asnāf (9:60) with a defined ‘āmil policy, and that sadaqah is treated as restricted where donor-imposed purposes apply under SORP fund accounting.

KPI / Measure
MetricTimeliness
Target≥90%
FrequencyMonthly
Method% of zakat disbursed within 12 months
UnitPercentage
Maturity Levels
Level 1: Initial/Ad-hoc

Basic, informal processes are used. Funds may be co-mingled, and distribution relies on personal judgment with minimal documentation.

Level 2: Developing

A formal policy exists. Segregated bank accounts are used for zakāt. Basic records of collections and distributions are maintained.

Level 3: Established

Policy fully implemented. Sanctions screening operational for partners. Documented cost allocation and admin policy in place. GDPR DPIA completed for beneficiary processing. Verification of eligibility is documented.

Level 4: Advanced

Periodic independent Shariah audits. Partner monitoring and end-use verification performed and sampled. Public disclosure includes admin share and carry-forward reasons.

Level 5: Optimizing

Integrated system with automated screening and risk scoring. Near-real-time dashboards. Independent assurance over restricted funds. Routine QA sampling with published verification rates.

Applicability

Organisation Types

mosque-prayer-space islamic-center community-center charity-relief humanitarian-aid zakat-sadaqah-body

By Organisation Size

SizeApplicabilityNotes
Micro partial Must legally treat Zakat as restricted, but formal documented cost-allocation methodologies and month-end reconciliation packs are disproportionate.
Small partial Restricted fund rules strictly apply, but formal cost-allocation policies and month-end reporting packs can be simplified.
Medium full
Large full
Major full

Applicable When

  • The organization collects and distributes Zakat funds.
  • The organization collects and distributes Sadaqah funds.

Not Applicable When

  • The organization does not collect or distribute Zakat or Sadaqah funds.

Discussion (1)

Administrator 2026-03-07 11:08:00.967968

📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Updated islamic_references from mizan-297.json

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