Zakat is a fundamental principle of the Islamic faith. Zakat fundraising can help some organizations secure more funds. Not every organization will have a cause that aligns itself with Zakat but for those that do, zakat donations can be maximized — especially during Ramadan. What is Zakat? Zakat is one of the five pillars of…
Zakat is a fundamental principle of the Islamic faith. Zakat fundraising can help some organizations secure more funds.
Not every organization will have a cause that aligns itself with Zakat but for those that do, zakat donations can be maximized — especially during Ramadan.
Zakat is one of the five pillars of Islam. It roughly translates as “purification”. As is the case with the other pillars of Islam, Zakat is a mandatory element of Muslim worship and a religious duty. If they earn enough, Muslims are encouraged to use some of their income to help the less fortunate. By giving a percentage of their wealth to the poor and needy, they can begin to purify themselves.
Zakat is based on the idea that wealth is something to be grateful for and not to be taken for granted. Wealth is ultimately owned by a higher power, with humans taking temporary ownership of it. In line with this, Muslims who earn above a set amount are responsible for helping redistribute wealth to people who have little or none.
By donating Zakat, Muslim donors can remain humble, have a stronger connection with the Islamic faith, and give back to the more neglected members of society.
Who pays Zakat depends on whether they possess the “niqab” — the minimum amount of wealth that must be held for a year to qualify for Zakat. If this isn’t the case, Zakat isn’t required for that year. This means that not all Muslims are obliged to pay Zakat, especially if doing so may result in financial hardship.
Generally, Zakat is around 2.5% of their total wealth and is typically given once a year.
This Zakat calculator can help individuals work out how much Zakat is payable.
Unlike Sadaqa (voluntary charity), Zakat is more restrictive about what it’s used for. Accepting Zakat donations means your organization will need to use the funds appropriately.
Muslims who don’t qualify for paying Zakat may pay Sadaqa, although it will often be less than Zakat. Since it’s a voluntary payment and not an obligation, your organization has more freedom in how to use Sadaqa contributions.
Sadaqa doesn’t always apply to financial donations. Many Muslims will demonstrate it through volunteering and acts of kindness. Muslim supporters may, therefore, look to get involved with your organization beyond donations and this is crucial for helping you raise more funds.
Many Muslims choose to donate Zakat to nonprofits that distribute funds to the poor and needy, rather than paying Zakat directly to beneficiaries.
Mosques are one of the most common recipients of Zakat donations, especially in the US. After that, local poverty relief and overseas relief are popular choices. That doesn’t mean that organizations with different missions can’t engage Zakat donors but it’s often helpful to know which areas are likely to appeal to them already.
Pro tip: Zakat donations can’t be used for any purpose you choose — your work needs to be connected to causes such as helping the poor or debt-ridden people. If Zakat donations are used for purposes outside of this, Zakat donors can feel cheated.
Although Zakat can be paid any time during the year, it’s often done during the holy month of Ramadan. Some tips you can use to engage donors during Ramadan include:
Running a Facebook campaign during Ramanda can keep your supporters updated with the progress of your Zakat fundraising and secure additional donations.
If you’re holding or getting involved in Zakat-related events, you can create Facebook events to help promote them. Ask your supporters to confirm their attendance at these events, which will highlight the event to their Facebook friends.
For more tips, take a look at our blog post on promoting your nonprofit on Facebook.
As part of your Facebook promotion during Ramadan, you can highlight the impact of last year’s donations. Zakat donors can be more likely to give if they can see how their contributions will benefit people less fortunate than themselves.
You can also do this across other social media channels and in your email and direct mail communications with your donors.
You can create a donation page specifically for Zakat fundraising and pre-set suggested amounts for Zakat donors to give. Looking back at Zakat donations from previous years can help you see which donation tiers may be more effective. Here are Some of the Best Practices for Donation Pages.
With Donorbox, you can reach more donors and give your Zakat fundraisers more impact. Islamic donors can quickly and easily pay Zakat in just a few clicks through attractive, secure, and effective donation pages. Our donation forms are fully customizable and accessible to all. You can easily create a donation form and use the Donorbox-hosted donation page to accept Zakat donations.
Here’s an example of an online donation page customized to meet the organization’s needs and creates solely to accept online donations for Zakat.
For more tips on raising funds during Ramadan, check out our Ramadan fundraising ideas.
There’s a great way to give your Zakat-specific fundraising campaign a boost – by turning it into a peer-to-peer campaign. Ask your supporters to create their own fundraising pages under your main campaign and reach out to their own networks (those who are eligible) to give Zakat. This boosts your campaign outreach, helps you get more donations, and gets you more donors.
Donorbox Peer-to-Peer helps you easily turn a simple fundraising campaign into a peer-to-peer one. You can invite supporters from the tool to create their own fundraising pages and get donations for your organization. See how through the below peer campaign, a supporter is helping International Aid Charity accept Zakat donations.
Islamic charities or mosques should set up a donation kiosk at their location or events. It makes in-person giving simple and convenient for people. In the present times, you cannot expect your visitors or supporters to carry cash anymore. Hence, having a donation kiosk makes accepting cashless Zakat donations easier than ever.
The Donorbox Live™ Kiosk app helps you quickly set up a donation kiosk. All you need are an iPad or Android tablet and a card reader device. The app will easily turn your tablet into a donation kiosk and enable donors to use their credit/debit cards or their digital wallets to make a swift donation. These kiosk donations also automatically go into the Donorbox database, making it easy for you to keep track of them.
Sign Up for Donorbox Live™ Kiosk!
It is important for Muslims who are eligible for Zakat to be sure that their donations are being used for helping the poor and needy. Your fundraiser needs to gain their trust.
Some tips for this are:
Pro tip: Plan an email campaign during Ramadan. Inform your former donors via email about the impact they were able to bring via Zakat in the previous year. You can showcase exactly where and how the donations were contributed in the previous year(s) and what you were able to do with these funds. Statistics and reports can be key to doing this.
For more tips on Online Fundraising Solutions, for Islamic Charities, go here.
For organizations working in certain areas, Zakat can be an underrated fundraising opportunity.
Muslims who meet the criteria for paying Zakat are obliged to do so. They must ensure their annual contribution goes to a cause such as helping the poor.
Gaining the trust of Zakat donors can help secure more donations for your organization.
Here at Donorbox, we’re supporting over 50,000 organizations to raise funds, including Islamic organizations.
Sally Aquire is a copywriter with a background in crafting communications and fundraising for a women's center. She writes about fundraising, nonprofit management, and wellness initiatives.
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Sally Aquire