Should Zakat Be Used for Humanitarian Finance?

On March 26 a very interesting document “An Act of Faith: Humanitarian Financing and Zakat” prepared by Chloe Stirk was launched at an event hosted by Development Initiatives and Muslim Charities Forum in London. The paper echoes the concerns expressed by UN Humanitarian Summit at the ever-increasing demand and supply gap for humanitarian funds. For instance, the paper points…

Revisiting Islamic Philanthropy for Sustainable Opportunities Finance

2nd Yayasan Tun Ismail Berdafter Public Lecture on Islamic Finance at Kuala Lumpur Plan of Lecture: Opportunities Finance in Islam Institutions of Islamic Philanthropy 2.1. Institution of Zakat 2.2. Institution of Waqf Meeting the Resources Gap 3.1. Estimating the Resource Gap 3.2. Estimating the Potential Resources from Zakat 3.3. Estimation of Potential Resources from Waqf…

Challenges to Zakat Mobilization: Case of Sudan

The following are some of the critical success factors and challenges to optimizing zakat collection from crops, livestock, trade and business, salaries and professional incomes, minerals and other sources. A problem that persists across all categories of zakat is identified as lack of public awareness of the mandatory nature as well as the rules of…

Trends in Zakat Mobilization in Sudan

The zakat system in Sudan has evolved over time. The system has been fine-tuned over the years with proactive changes in the legal and regulatory framework. The formal organization of zakat in Sudan began in the 1980s with private foundations collecting zakat in accordance with Shariah law. This formed the basis of successive laws of…

Hierarchy of Principles for “Good” Zakat Laws

Zakat laws across the globe display wide variation. They vary in their goodness. They vary with respect to clarity, coherence and complexity. Goodness of the laws is about the content of laws, their architecture, their language and their accessibility. While it is not surprising that zakat laws and their subordinate regulations may be complex there is no reason…

Proposed Zakat Law for Maldives

The following is a draft of proposed zakat law for Maldives. It has been prepared following the “hierarchy of core principles” that I intend to elaborate in my next blog. Comments are welcome. THE ZAKAT ACT, 201x (DRAFT)   CONTENTS Chapter I: General Provisions Title, Definitions, Objectives, General Principles Chapter II: Zakat Management Infrastructure General, Zakat…

Behavioral Dimensions of Zakat Contribution by Individuals: A Survey

The purpose of this survey is to gain a basic understanding of what governs the behavior of zakat payers and then map the same with what the environment offers to them in terms of products, practices, policies, regulations and what-have-you. It would also be interesting to study how the factors may differ for alternative forms of charity…

Plantation Waqf to Promote Education: Sale and Waqf Back

In a few earlier blogs I have highlighted cases where the concept of waqf  has been used in an innovative manner, e.g. creation of a corporate waqf for provision of healthcare (Wakaf An-Noor); education, encouragement to art and culture (Vehbi KoC Vekfi); livestock for adahi (Awqaf New Zealand) for Muslims living in Western countries; relief…

Musharaka-Based Microfinance by BoK ? IV

Livestock production is an important component of the local economy in Sudan, providing food, employment, foreign exchange earnings, a source of wealth, and supply of inputs and services, such as draught power, manure and transport. The livestock subsector however, faces numerous constraints, including a heavy disease burden, low productivity exacerbated by drought and insecurity, the…

Salam-Based Microfinance by BoK ? III

Salam has traditionally been understood as a mode of agricultural finance. Indeed, as scholars point out, one of the reasons why salam is admissible as an Islamic mode, even while violating the basic Shariah rule of “do not sell what you do not have”, is because of its economic significance.  It provides a mechanism to…

Islamic Participatory Microfinance by BoK ? II (Abu Halima)

The Abu-Halima Greenhouses Project of IRADA, designed in 2011, uses a composite model of intervention that combines several “smart” factors and is designed to address several critical social issues including lack of food security, unemployment and poverty. It aims to open new economic opportunities for young university graduates with formal education in agriculture. The project…