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.
| Metric | Zakat policy documentation status |
|---|---|
| Target | 1 |
| Frequency | Annual |
| Method | Verify existence of a documented policy and its review. |
| Unit | Binary |
Level 1: Initial/Ad-hoc
No documented Zakat policy exists. Zakat management is handled on an ad-hoc basis.
Level 2: Developing
A basic Zakat policy is documented. It outlines the primary sources and general categories but lacks detailed procedures or role distinction (Administrator vs Payer).
Level 3: Established
Formally approved policy implemented; separate bank account with monthly reconciliations; Zakat al‑Māl distributed ≥80% within 90 days of cleared funds; 100% Zakat al‑Fitr before Eid; staff training ≥90%; donor intent captured.
Level 4: Advanced
Quarterly trustee-facing Zakat dashboard reviewed in minutes; documented Due Diligence Matrix implemented; quarterly sampling of 10 cases with pass rate ≥95%; all exceptions have owner + target closure date.
Level 5: Optimizing
Annual Shariah governance cycle (planned review, minuted decisions, action log); external scholarly validation; benchmarking; ≥95% training coverage; zero material exceptions; independent assurance on Zakat controls.
Organisation Types
By Organisation Size
| Size | Applicability | Notes |
|---|---|---|
| Micro | partial | Basic guidelines needed to treat Zakat as restricted funds, but comprehensive appendices, DPIAs, and formal admin allocation methodologies are disproportionate. |
| Small | partial | Simplified written policy required to ensure correct Asnāf distribution; complex mapping appendices and formal board-approved admin methodologies are usually unnecessary. |
| Medium | full | Fully applicable to ensure strict governance, legal compliance for restricted funds, and proper Asnāf distribution across multiple programs. |
| Large | full | Fully applicable. |
| Major | full | Fully applicable. |
Applicable When
- The organization acts as a Zakat Fund Administrator (solicits, receives, holds, or distributes Zakat funds)
- The organization acts as a Corporate Zakat Payer (has a formal corporate Zakat obligation and adopts a policy for calculation/payment)
Not Applicable When
- The organization does not handle Zakat funds nor has any assets subject to Zakat.
- The organization operates in a context where Zakat is not applicable.
Discussion (1)
📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Updated islamic_references from mizan-297.json
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