Can I Give My Zakat to Fund Charitable Organizations?

As a rule, it is not permissible to give zakat to fund the running of an Islamic organization. Zakat may only be given to an individual who falls into one of the eight categories of recipients that are mentioned in the following verse of the Quran.

Zakat belongs only to the poor, those short of money, zakat workers, those whose hearts are to be reconciled, slaves who are purchasing their freedom, those in debt, those fighting for God, and stranded travelers. (Quran, 9:60)

Islamic organizations are abstract entities that don’t fall into any of these categories. 

Although it is not permissible to give one’s zakat to fund the running of an organization, it is permissible to appoint an organization to act on one’s behalf to distribute one’s zakat to deserving recipients. 

But if you do that, you must have confidence in three things.

First, you must have confidence that your zakat reaches its deserving recipients. A charitable organization that does not distribute its zakat funds according to one of the four schools of Sacred Law cannot be authorized to distribute zakat funds because they are considered religiously incapable of distributing zakat. 

Second, you must have confidence that your zakat reaches its deserving recipients immediately. Unfortunately, many organizations store up zakat funds and then distribute them over an extended period of time. This is not permissible. Zakat funds belong to their recipients, not to the organization, and an organization that delays giving those funds to deserving recipients is usurping someone else’s property.

Third, you must have confidence that the organization is not using your zakat in order to benefit itself. An organization may do this openly or it may do this secretly. 

An example of doing this openly is when an organization collects zakat and then gives it to zakat eligible recipients on condition that they do some kind of work for the organization. An organization that does this is openly using your zakat funds to benefit itself. This is not permissible. Your zakat funds must reach their deserving recipients without the stipulation of any conditions.

An example of doing this secretly is when an organization collects zakat and then uses that zakat to help zakat eligible customers buy its product so that it can make a profit. This may happen with educational institutions that collect zakat to help zakat-eligible students pay their fees. Here, there are two things you must watch out for. First, the zakat-eligible students must have explicitly authorized the organization to collect zakat on their behalf and use it to pay their fees. Without this authorization, the organization is simply appropriating zakat funds for its own benefit. The second thing that you must watch out for is that the organization must be a not-for-profit organization that charges reasonable fees. If it is a for-profit organization, or if it is a not-for-profit organization that charges unreasonably high fees in order to cover unreasonable expenses (such as exorbitant salaries, wasteful expenditures, and profit-seeking advertising budgets) then the organization is not using your zakat funds responsibly. It is using your zakat funds for its own benefit. (It’s important to note here that just because an organization has non-profit status does not mean that it will use your zakat funds responsibly. I recommend everyone read this excellent article by Danya Shakfeh: Do Non-Profits Make Profits?)

Finally, beware of giving your zakat to individuals or organizations who have been involved in scandals. If you hear of a scandal, that is a red flag that deserves investigation. It is not blameworthy to investigate whether or not someone--even if they are a religious figure or religious organization--is worthy of your trust. In fact, when your trust involves your discharging your religious obligations, it is obligatory for you to investigate. If the person or organization is sincere, they will have full transparency and disclose everything that you ask to know. If it looks like they are trying to cover something up, distribute your zakat elsewhere.

The best zakat recipient is always someone you know personally--a family member, a friend, a neighbor, a colleague, a refugee, a single mother, and so on. A well-to-do Muslim who personally reaches out to help another Muslim who is struggling has not just discharged his obligation; he has spread love and removed ill-will. This is one of the wisdoms of zakat that can be lost when we delegate the distribution of our zakat to people we don’t know.

If you want to refresh your knowledge of what constitutes a deserving zakat recipient, you can listen to the following lesson from a course that I teach called The Sacred Law of Worship, Beauty, and Entertainment.