Zakat Policy

Zakat is a central pillar of Islam—a spiritual obligation (ibadah) rather than a tax. It serves to purify one’s wealth and foster its growth. Zakat is payable annually based on the lunar calendar (hawl) on all zakatable assets, provided they exceed the minimum threshold (nisab).

Fundamentally, Zakat represents the right of the poor to a portion of the wealth of the rich. Once Zakat is distributed, the recipient gains full ownership and the freedom to use the funds as they see fit. While it is an individual’s responsibility to identify and deliver Zakat to eligible recipients, one may appoint a trustworthy person or organization as an agent (wakil) to facilitate this distribution.

How Hidaya Receives Zakat

Donors can fulfill their Zakat through Hidaya by mailing a check, donating online, or utilizing other methods, ensuring “Zakat” is specified in the donation type or comments.

Project Selection: Donors may designate their funds to any of Hidaya’s Zakat-eligible projects or allow Hidaya to allocate the funds where the need is greatest.
Agency (Wakala): By donating, the donor implicitly appoints Hidaya Foundation as their agent to fulfill their Zakat obligation.
Accounting: Every donation is strictly recorded under the Zakat category and tracked according to the donor’s project designations.

How Hidaya Distributes Zakat

In accordance with Quranic guidance (Al-Quran 9:60) and donor instructions, Hidaya Foundation directs Zakat to eligible beneficiaries, including orphans, widows, the elderly, families in extreme poverty, students, medical patients, and disaster survivors.

Methods of Zakat Distribution

Cash Assistance: provided through Support Poor Students, Widow/Orphan Support, and Marriage Support projects.
In-Kind Support: provided through One Million Meals, Disaster Relief, Animal Farming, Farmer Assistance, and Small Business for the Poor projects.
Service Provision: provided through Support Hidaya Schools, Hidaya Institute of Science & Technology, Hidaya Institute of Farming & Agriculture, Job Skills Training, and Medical Assistance projects. The recipient or guardian signs an agreement authorizing the use of Zakat funds to cover these services.

Efficiency and Transparency

Hidaya ensures that 100% of the Zakat donation is transferred to the implementation partners and is committed to distributing all Zakat funds as efficiently as possible within one year of receipt.

Hidaya collaborates with qualified partners and volunteers globally to implement these projects. Islam allows the use of a portion of Zakat funds to cover essential field costs—such as field worker salaries and transportation. Partners in each country attempt to minimize these costs. Actual percentage received by the beneficiary is published in our annual reports.