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Zakat Policy

  • All Zakat donations received by Penny Appeal Canada are internally tagged as Zakat and ring-fenced for use according to the Holy Qur’an and Sunnah.
  • When a Zakat donation is received, Penny Appeal Canada allocates the funds towards specific projects which serve only beneficiaries that match one of the eight categories of Zakat eligible programs as outlined in the Holy Qur’an.
  • Multiple attempts are made to inform Zakat recipients that they are receiving Zakat in the event they have private information that disqualifies their Zakat eligibility under the eight categories outlined in the Holy Qur’an. Zakat donors are informed at the end of the project of how their Zakat was used, by way of quarterly reports.
  • Zakat eligible beneficiaries are identified based upon need and in accordance with the eight categories noted in the Holy Qur’an:
    • Al-Masakin (The Needy): These are the people that have some but not enough to get by. They deserve Zakat to help them improve their living conditions.
    • Al-Amilina Alayha (The Zakat Collectors): Those who are authorized to collect, preserve, and distribute Zakat money among the needy and poor. A portion of the Zakat collected goes towards paying for administrative costs of the project in the field. By paying for the salaries of those implementing the program internationally, Penny Appeal Canada is able to ensure that Zakat programs are carried out thoughtfully. Our commitment is that Penny Appeal Canada will take 0% from your Zakat for their own administrative cost, however we allow implementation partner on the ground to allocate a maximum of 10% towards the administrative cost of the program.
    • Al-Mualafati Qulubhum: Those that incline their hearts towards good. Zakat may be used to soften the hearts of those who are non-Muslims so they can become Muslims or allies of Muslims.
    • F’il Riqabi (The Freeing of Captives): Those individuals who are suffering due to the incarceration of a family member. Zakat may be used to help the families of those who are awaiting trial and those who have been sentenced.
    • Al-Gharimina (Those in Debt): Zakat may be used to pay off debts of someone who cannot repay on their own. However, one must make sure that the money borrowed by a debtor is/was not used for any un-Islamic or wrong purpose.
    • Fi-Sabilil-Lah (In the way of Allah): These are the people who are striving in the path of Allah far away from their homes. Zakat may be used to help them achieve a better living.
    • Al-Sabili (The Traveler): These are the people who are in a foreign land/country and have no money to eat, survive, or travel back home. Zakat may be used to help those who are internally displaced within their nations and those who are forced to seek refuge internationally due to violence and oppression.

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