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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.

KPI / Measure
MetricZakat policy documentation status
Target1
FrequencyAnnual
MethodVerify existence of a documented policy and its review.
UnitBinary
Maturity Levels
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.

Applicability

Organisation Types

mosque-prayer-space islamic-center community-center charity-relief humanitarian-aid zakat-sadaqah-body restaurant butcher-meat-supplier food-manufacturer catering-service bank finance-provider investment-fund insurance-provider accountancy-firm advisory-consultancy bookstore-retail fashion-retail ecommerce-platform private-school training-provider private-healthcare-clinic counselling-practice general-enterprise social-enterprise community-interest-company

By Organisation Size

SizeApplicabilityNotes
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)

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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