the third pillar
Our Zakat Policy
holistic care
Key Definitions
Zakat
Zakat is an obligatory element of Islam, and requires that Muslims who have certain amounts or types of wealth under specific conditions give a portion of those possessions to specific categories of individuals. For the purpose of this document, Zakat refers only to money given to IslamicFamily by Zakat-eligible individuals who want IslamicFamily to redistribute this money to the poor and needy.
Sadaqah
Sadaqah refers to charity given to IslamicFamily for distribution in a discretionary manner and maybe used by the organization for covering operating costs, running programs, and the like.
FAQ
Zakat-ul-Mal
The cornerstones of IslamicFamily's zakat policy are allowing Zakat recipients to have dignity andchoice, asking for consent and addressing systemic issues. IslamicFamily sees zakat as the wealth of the poor and endeavours to give recipients maximumautonomy while ensuring proper oversight & CRA compliance. Zakat is a sacred trust not to be used for administration or people who fall outside the eight categories1 mentioned. in the Quran. The priority of Zakat is the community from which it comes, (Edmonton).
IslamicFamily will ask Zakat eligible recipients for authorization to direct their Zakat toward short-term financial relief, food hampers or other services (not covered by IslamicFamily's other funding sources).
During the client intake process2, IslamicFamily will ask questions to ascertain the financial situation and needs of the client - this would include, but not be limited to:
- The amount of wealth they have once all debts and landholdings (other than current place of residence) are considered. This will be substantiated by T4s and/or other documentation. IslamicFamily will not ask about jewelry or similar holdings3.
- (Potential) Access to government support.
- Severity of need.
- Prior use of service, (existing clients will have less of a priority than new ones with comparable needs).
Based on this information, IslamicFamily can 1) determine Zakat eligibility and 2) prioritize clients based on need.
Being Zakat eligible does not guarantee one will receive Zakat – In the event of limited funds, higher needs cases will receive priority. The rationale for prioritizing clients is due to the limited amount of Zakat available and desire to serve those in the greatest need.
Following the intake and verification process, we will inform the client that some of IslamicFamily's services are funded through Zakat4. In order to mitigate the stigma of being eligible for Zakat, we will define what makes someone eligible for Zakat while emphasizing that Zakat is a God given right. We will then discuss the services IslamicFamily can provide and ask the client to authorize IslamicFamily to use Zakat funds to provide them with these services (to be documented with a signed consent form). IslamicFamily would need to specify each service and the length of time the client is to receive this service. For example, if a client is struggling with affordable housing and medical bills they may authorize IslamicFamily to use Zakat funds to pay for the following:
- Rent for a month;
- Food hampers for 6 months;
- Medical bills;
- 10 hours/week with an outreach worker who can help them find more affordable housing resources as well as more gainful employment; should these services not be covered by other funding.5
IslamicFamily will issue payment directly to landlords and bill collectors. For services IslamicFamily offers internally (ie outreach workers) IslamicFamily tracks the value of the service (ie number of hours an outreach workers spend on each client) and will then charge this expense to Zakat funds on a cost recovery basis.
IslamicFamily does not provide direct financial assistance for the following reasons: 1) it could jeopardize the organizations charitable status, 2) it could impact the recipient’s ability to receive government benefits, 3) to mitigate fraud/abuse.
IslamicFamily tracks donations and records the intent of the giver. Donation slips and online giving forms clearly and prominently ask givers to specify if a donation is Zakat. If a donation’s direction is not given it will be directed to operating costs and other programs. IslamicFamily will endeavour to dispense Zakat within a year of the collection date.
IslamicFamily will determine the amount of Zakat available at the end of Ramadan each year. It will use this sum to determine an annual budget for Zakat disbursement. Based on the amount of available Zakat, IslamicFamily's programs will be able to determine how much financial support they can offer to individuals. If a client exceeds the maximum Zakat disbursement allotment, they will have to wait until the following year to reapply (unless there are exceptional circumstances). This is due to the limited amount of Zakat funds and desire to reach more people.
No. IslamicFamily cannot direct Zakat to a specific pre-determined individual due to CRA compliance.
IslamicFamily takes the opinion that the descendants of the Prophet ﷺ are entitled to Zakat because this group does not receive the special treatment normally accorded to them. If they are adamant about not accepting Zakat, funds may be directed to their spouse or an eligible relative if applicable or they may be served through sadaqa.
Non-Muslims who approach IslamicFamily are offered identical services, but they are paid for through sadaqa (general charity) funds, not Zakat.
Endnotes:
- (1) Of the eight groups IslamicFamily focusses only on the poor (al-fuqarâ’) and needy (al-masâkîn)
- (2) Clients are re-evaluated on an annual basis.
- (3) Assessing the value of jewelry would dramatically impede the ability to provide timely financial crisis intervention.
- (4) A common theme that emerged from “Obligations of Zakat Collectors” was that it should be up to the discretion of the recipient how they choose to spend zakat funds.
- (5) Many of IslamicFamily's services are covered by government grants, however government often limits provision of services. eg. Government only covers 4 hours of short-term counselling; when long-term support is needed.
FAQ
Zakat-ul-Fitr & Fidya
Zakat-ul-Fitr, a nominal sum equivalent to the value of one meal, that is paid by every capable Muslim in Ramadan. It bares the same conditions as Zakat-ul-Mal, with the additional restrictions that it must be dispersed in the month of Ramadan before the beginning of Eid. IslamicFamily uses Zakat-ul-Fitr to provide additional food to its regular hampers with an emphasis on in-demand and long-lasting items like meat, cooking oil, dates and staples.
Zakat-ul-Fitr is equivalent to 2.2 litres of staple foods like rice, calculated using Alberta’s Retail Food Prices. As of February 2025, Zakat-ul-Fitr is $14.13 per person. More on the calculation can be found here.
Because the primary collection vehicle for Zakat-ul-Fitr is via mosques; IslamicFamily asks local mosques to pledge anticipated Zakat-ul-Fitr collections to IslamicFamily in advance of Ramadan, and then spends based on the amount of anticipated collection during the month of Ramadan. If a mosque collects fewer funds than estimated, IslamicFamily will make up the difference with sadaqa or Zakat-ul-Mal. If a mosque collects more funds than estimated, IslamicFamily will work to ensure proper dispensation of the wealth to the poor as quickly as possible.
Fidya, which is payment made to expiate fasts, is treated the same manner as Zakat-ul-Fitr; it is directed towards topping up IslamicFamily regular food hampers with additional goods during the month of Ramadan.
Fidya is equivalent to the financial cost of a day’s food based on Alberta’s Nutritious Food Basket. As of February 2025, Fidya is $16.68 per day. More on the calculation can be found here.
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