Segregate and control Zakat vs Sadaqah (ledgers, banking, donor intent)

This criterion evaluates whether the organization maintains strict separation and control over Zakat and Sadaqah funds across ledgers, banking, and donor intent capture. For UK reporting, Zakat is treated as a restricted fund under Charities SORP (FRS 102). Minimum compliance requires segregated fund accounting within the General Ledger (GL), while separate bank accounts are best practice. Trusteeship requires safeguarding donors’ trusts by segregating Zakat from Sadaqah (Qur’an 23:8; 70:32) and ensuring collection is handled with integrity (Qur’an 9:103). Mixing funds leading to misapplication risks unjust consumption (Qur’an 2:188; 4:29). Additionally, Sadaqah may be restricted or unrestricted depending on donor terms; the system must capture that restriction separately from the ‘Zakat vs Sadaqah’ type to honour the covenant (Qur’an 5:1).