This Zakat policy sets out how Save the Children seeks to fulfil the Shariah requirements of receiving and administering Zakat payments on behalf of Muslims.*
Use of Zakat payments
Zakat payments made to Save the Children are allocated to a segregated general Zakat fund held by Save the Children. The Zakat funds are used to support Zakat-eligible projects in the Muslim-majority countries in which we operate.
A maximum of 12.5% of Zakat payments is allocated towards the administrative and support costs of Save the Children.
Administration of Zakat payments
Save the Children will administer payments of Zakat as follows:
- Zakat payments by givers who select the Zakat option on Save the Children’s payment platforms are marked and identified.
- Zakat payments are paid into dedicated, interest free bank accounts, where the funds will be held until being sent to the relevant countries for implementation of Zakat-eligible projects.
- Zakat payments are utilised within one lunar year in accordance with Shariah rules.
- Where we can uplift the amount given through recognised tax schemes (for example Gift Aid in the UK) we will treat any uplift as an unrestricted donation which may be used to support our Zakat-compliant project work, without any deduction from the amount of any Zakat given to Save the Children.
Save the Children uses the following procedures to ensure that we comply with this Zakat policy:
- Save the Children trains and supports its staff on the practical application of the principles of Zakat to ensure compliance with all the Shariah requirements.
- Specially trained staff at Save the Children work on project delivery and its effect on recipient communities in-country.
- Our policies and procedures will be subject to an independent annual review by a Zakat specialist and an Islamic scholar to ensure that the Zakat fund is operated in accordance with the principles of Shariah.
Transparency in respect of our compliance with Zakat principles is of foremost importance to Save the Children. Our reporting process in relation to Zakat will focus on several key areas:
- We will demonstrate how our programme activities have been selected and remain in line with beneficiary and activity guidelines for Zakat compliance.
- We will account for and report on compliance with our policy to restrict administrative costs to a maximum of 12.5% of any Zakat given through our annual reporting process.
- We will provide further comprehensive evaluation including the provision of visual reporting to the extent possible.
- We will report on the matters above in our annual financial report and by setting out the work we undertake on our website.
The Fatwa is an Islamic opinion and declaration. Save the Children has received a Fatwa from Shaykh Haytham Tamim that this Zakat policy and its planned practices in relation to Zakat are Shariah compliant.
*Save the Children will act as a Wakeel deputy to the Zakat givers, to deliver their Zakat to the ultimate Zakat beneficiaries.