Zakat Fund Policy
Adhering to strict Shariah protocols to ensure your Zakat is handled with the highest level of integrity, reaching those most deserving of your support.
At Orphan Love Foundation, we consider Zakat a sacred trust (Amanah). This policy ensures that all Zakat contributions are handled with the highest standards of Shariah compliance, transparency, and accountability. It outlines how Zakat may be used, including the limited and essential operational expenses required to deliver Zakat-funded programs.
1. Purpose of the Policy
This policy establishes the Islamic and organizational guidelines for collecting, managing, distributing, and allocating Zakat funds — including the permissible use of a limited portion for operational needs related directly to Zakat programs.
2. Islamic Foundations
2.1 Qur’anic and Fiqh Basis
Allah (SWT) has specified the categories of Zakat recipients in Surah At-Tawbah (9:60). One of these categories is “al-`āmilīna ʿalayhā” — those who manage, collect, and administer Zakat.
3. Permissible Use of Zakat
In accordance with classical Islamic jurisprudence and modern fatwas...
These expenditures fall under “al-`āmilīna ʿalayhā”, provided they are reasonable, documented, and directly linked to Zakat activities.
4. Non-Permissible Uses
- Salaries of staff not involved in Zakat
- Luxury expenses or non-essential items
- Investments for organizational growth
- Interest-bearing activities (riba)
- Unrelated projects or expenses
5. Operational Limit
OLF maintains this operational expense cap depending on the nature of the project.
Donor Options:
1. General Zakat Fund (standard allocation)
2. 100% Beneficiary Use (OLF covers costs via Sadaqah)
6. Governance
Reviewed by Shariah Supervisory Board. Accounts are maintained separately and audited annually with clear records for beneficiary verification.
7. Transparency
Annual Zakat impact reporting, separate accounting, and evidence-based transparency regarding operational utilization.
8. Policy Review
Reviewed annually by the Shariah Supervisory Board to reflect current Islamic scholarly consensus and humanitarian governance.
Conclusion
Orphan Love Foundation is deeply committed to honoring the sanctity of Zakat. By maintaining strict Shariah compliance, transparent systems, and a responsible operational structure, we ensure that Zakat reaches those who are truly eligible — the poor, the vulnerable, and the orphaned — with dignity and efficiency.