Home Zakat Information 13.5 Deposits and Pledges
Zakat Information
13.5. Deposits and Pledges
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Deposits and Pledges

 

A Zakat-able asset (e.g. gold coins) which is pledged to a creditor as security for a loan is not subject to Zakat because the owner (pledgor) is deprived of possession and therefore cannot dispose of the asset for the duration of the pledge for his own benefit. Similarly, a deposit paid by a tenant under a lease to a landlord as security for the fulfillment of the tenant's obligations is not subject to Zakat. The same principles would apply to other forms of deposits, e.g. electricity.

 

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Sitara-e-Isaar Awarded to Hidaya Foundation

Hidaya Foundation was awarded Sitara-i-Eisaar (Star of Sacrifice) by the Government of Pakistan, in recognition of the results-oriented relief efforts during the 2005 earthquake in Pakistan.

Combined Federal Campaign

Hidaya Foundation is a non-profit 501(c)(3) with FEIN 77-0502583. All cash and in-kind donations are tax deductible. Hidaya puts it’s best effort to utilize the funds donated for a specific project, sometimes circumstances dictate we use funds otherwise.