TS-FS-10
Trust & Stewardship
Financial Stewardship
CORE
Compliance
v2.9.7
Zakat policy documented
This criterion assesses whether the organization has a comprehensive, documented policy governing the collection, management, and distribution of Zakat funds. It distinguishes between two roles: (A) Zakat Fund Administrator (charities collecting/holding/distributing donor Zakat) and (B) Corporate Zakat Payer (entities calculating/paying their own Zakat). A formal policy is essential for compliance, donor trust, and effective administration.
Assessment Questions
- Are you assessing as a Zakat Fund Administrator or a Corporate Zakat Payer?
- Does the organization have a formally documented and approved Zakat policy?
- Does the policy include an 'Asnāf Mapping & Decision Rules' appendix with prioritization logic?
- Does the policy explicitly define the procedures for distributing Zakat to the eight categories mentioned in Surah At-Tawbah, Ayah 60?
- Show the monthly Zakat bank reconciliation pack, preparer/reviewer sign-off, and unreconciled items ageing.
- What are the dual authorisation thresholds for Zakat payments and restricted-fund journals?
- Show the SORP restricted funds note extract where Zakat movements are disclosed and how failed restrictions/refunds are reflected.
- Does the policy separately address Zakat al‑Fitr (collection window, pre‑Eid disbursement)?
- Is there a Board-approved cap for admin costs (‘āmilīn) and is this disclosed to donors?
- Show your Due Diligence Matrix and a sample of 10 distributions with documented sanctions/AML checks.
- How is donor intent captured and managed, including refunds or cy‑près if the restriction fails?
- What are the target timeframes for Zakat disbursement and how is performance monitored (starting from cleared funds)?
Evidence Requirements
- The official, version-controlled Zakat Policy document.
- Asnāf Mapping & Decision Rules appendix.
- Admin/‘āmilīn allocation methodology document and Board approval minutes.
- DPIA, Privacy Notice excerpt, and Retention Schedule.
- Due Diligence Matrix + completed checklists for 5 direct beneficiaries and 2 partners.
- Monthly reconciliation pack with reviewer sign-off.
- Exception taxonomy with codes and closure evidence.
- Shariah advisor/panel endorsement letter and minutes.
- Sample appeal pages/emails showing Zakat intent and admin policy disclosure.
- Zakat distribution register with asnaf classification and tamlīk evidence (receipts/attestations).
- Sanctions/AML screening records.
- Zakat al‑Fitr distribution records (dates before Eid).
Scoring Guidelines
| Level | Rating | Description |
|---|---|---|
| 5 | 5/5 | Comprehensive policy with excellent detail, scholarly validation, annual Shariah governance cycle, and zero material exceptions |
| 4 | 4/5 | Good policy covering all essential elements (Asnāf mapping, Admin cap, DD matrix) with quarterly trustee oversight |
| 3 | 3/5 | Basic policy with minimal requirements (segregation, basic eligibility) but some gaps in operational detail |
| 2 | 2/5 | Informal or severely limited policy documentation |
| 1 | 1/5 | No documented Zakat policy |
Discussion (1)
Administrator
2026-03-07 11:07:49.237879
📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Updated islamic_references from mizan-297.json
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