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Zakat

Policy

100 - Zakat

Religious Dues

Qurbani

Zakat Policy

As a Muslim-based organization, OINUSA recognizes the importance of Zakat as an act of worship and charitable giving. OINUSA is committed to ensuring that Zakat is collected and distributed in a transparent and responsible manner, in accordance with the principles and requirements of Zakat. This policy outlines the guidelines for the collection and distribution of Zakat funds by OINUSA to support orphans and widows.We will distribute your Zakat within 12 months.

Orphans in Need USA is committed to using no more than 10.5% of Zakah contributions for administrative or project-related expenses involved in the collection and distribution of these funds. This percentage aligns with the scholarly guidance that limits administrative costs to one-eighth, drawing parallels to the category of ‘Amilīn alayhā (those who manage Zakah funds). This policy is periodically evaluated with a Shariah advisor to ensure compliance and practicality, and adjustments may be made as necessary under expert guidance.

The administrative expenses are necessary for the effective management, collection, and execution of Zakah projects, covering needs such as fund transfers, staff salaries, and transportation.  Although Orphans in Need USA is authorized to retain up to 10.5% for these expenses, donors are not expected to increase their Zakah contributions to offset this administrative portion. However, it is important to transparently communicate this policy to donors as appropriate.

Introduction

OINUSA is a non-profit organization committed to improving the lives of orphans and widows around the world. As a Muslim-based organization, OINUSA recognizes the importance of Zakat as an act of worship and charitable giving. OINUSA is committed to ensuring that Zakat is collected and distributed in a transparent and responsible manner, in accordance with the principles and requirements of Zakat. This policy outlines the guidelines for the collection and distribution of Zakat funds by OINUSA to support orphans and widows.

Principles of Zakat

Zakat is one of the five pillars of Islam, and it is an obligation on all Muslims who are financially able to give. The purpose of Zakat is to purify one’s wealth and provide to those in need. Zakat is meant to be given to specific categories of people, including the poor, the needy, debtors, those working in the cause of Allah, and others. In accordance with Islamic law, orphans are eligible recipients of Zakat funds. OINUSA understands the importance of Zakat in fulfilling the duty to care for those in need, and has established the following principles for the collection and distribution of Zakat:

  • Zakat will be collected and distributed within 12 months in a transparent and accountable manner, in accordance with Islamic principles.
  • Zakat funds will only be used for eligible recipients as defined in Islamic law.
  • OINUSA will work with reputable Islamic scholars to ensure that all Zakat funds are collected and distributed in accordance with Islamic principles.
  • OINUSA will provide regular reports to donors on the collection and distribution of Zakat funds.

Eligible Recipients

OINUSA will collect Zakat funds to provide the basic needs of orphans and widows. Eligible recipients of Zakat funds will be identified based on their needs and circumstances. The Qur’an (9:60) specifies eight categories of people to whom Zakat may be donated, and OINUSA will adhere to these categories. Orphans in Need USA’s Zakat policy is based on the following categories:

  • The Poor (“Fuqara”)
  • The Needy (“Masakeen”)
  • Zakat Collectors (“Amil”)

Collection and Management of Zakat Funds

  • Payments will be collected into a specific, restricted fund within OINUSA.
  • Channels of collecting and spending Zakat will be clear to allow the payer clarity and transparency over their Zakat payment and where and to whom it will be spent on.
  • Zakat payments will not be used to cover any administrative or operational costs incurred by OINUSA.

Distribution of Zakat Funds

OINUSA will allocate Zakat funds toward supporting eligible orphans and widows in accordance with Zakat principles and requirements. These funds will be utilized to provide basic necessities such as food, clothing, shelter, and education to orphaned children in Muslim-majority countries. To ensure that all Zakat funds distributed to orphans align with Islamic principles, OINUSA will collaborate with reputable Islamic scholars.

All Zakat payments received will be used exclusively for programs and emergency responses to support orphaned children in Muslim-majority countries, as specified on our website. Zakat donations collected will be spent within the annual spend/lunar year requirement, and the frequency of collection can be split throughout the year according to the payer’s preferences.

Reporting

OINUSA is committed to transparency and will create an annual Zakat Report to provide regular updates to donors on the collection and distribution of Zakat funds. In addition, OINUSA will categorize the Zakat spend on its 990 reports, beginning in 2023.