“Let not those who, stingingly, withhold that which Allah has bestowed on them of His bounty think that it is good for them. No, it is (actually) bad for them . .
.” (Al Imraan 3:180). The ease of payment has also been found to be a key enabler for proper Zakat and sodaqah mobilization.
The Foundation should look into multiple methods in mobilizing resources for the Fund. Cashless transaction, mobile app transfer, blockchain technology and crowdfunding mechanism are all suitable payment options that may be explored. When proper arrangements are made with concerned authorities, regular or intermittent deductions from source are also potent in encouraging more people to pay Zakat or give general donations either as sodaqah or waqf.
Transparency and accountability would also become inevitable if we are desirous of gaining and maintaining the confidence of every party involved in Zakat related activities, particularly the payers or donors, as the case may be. In this regard, we must take the advantage of technology for enhanced transparency. Through various Zakat apps in different parts of the world today, donors can track their Zakat at any time on the app, check the live reports to learn how many people are being supported with their Zakat contributions, and receive real-time financial statements of the used and yet-to-be used Zakat funds.
When we talk of transparency in relation to Zakat administration, we have three things in mind, namely, Financial Transparency, Managerial Transparency and Programmatic Transparency. Financial transparency happens through the availability of published and easily accessible financial reports, as well as the use of external auditors. Managerial transparency entails having a readily available work and strategic plans indicating the direction and the short and long terms goals of Zakat.
While programmatic transparency presupposes the existence of a database of Zakat recipients and payers, as well as data on the timeliness of Zakat distribution. One important tool that I would urge the Foundation to consider in its bid to ensure a transparent and accountable Zakat fund administration is the Accounting Standard on Financial Reporting for Zakah (Standard 39) by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), which emphasizes among other things, disclosure of sources of Zakat, the use of Zakat fund for each category of Asnaf, and the remaining balance or undistributed Zakat. It is also important to assess not just the process of Zakat collection and distribution, but also the impact of Zakat on the livelihoods of beneficiaries.
To achieve this, a Monitoring and Evaluation (M&E) mechanism would be necessary, with clearly designed KPI and measurable targets. Grievances Redress Mechanisms (GRMs) would also go a long way in getting the voices of our targeted beneficiaries heard, and adjustments and modifications made when necessary. There are other issues that I believe the Foundation will not hesitate to engage experts on the Shariah position relating to them whenever the need arises.
For instance, can we invest Zakat fund before its distribution and to what extent, cross-state distribution (surplus), cross-state collection (deficit) of Zakat, and a whole lot of other issues that are technical in nature and I don’t want to bother this august gathering with too much technicalities. Looking at the formation of the IBILE Zakat Fund initiative, the Foundation will also have to look into its model of operation, whether it is going to be a centralized or decentralized one. In conclusion, just as it is done in other countries, there is a need for uniform standard in measuring the minimum Zakatable income/earnings (nisaab) in Nigeria.
Yes, the nisab is either 85 grams in gold or 595 grams in silver, but how does this translate into the naira equivalent, having regard to both the domestic and global market rates that are ever-changing. The uniform standard can be achieved at a national level by a body like the Nigerian Supreme Council of Islamic Affairs (NSCIA), or at sub-national level by the Lagos State Council of Ulama, if there is any, or any similar body. We in Kwara State are lucky to have a relatively young and energetic Grand Kadi, who since assuming office about two years ago has included monthly release of nisab for Zakat as part of the primary functions of the State Shariah Court of Appeal.
We also appeal to the government of the land to emulate other countries where Muslims constitute a substantial percentage of the citizens, by considering adequate incentives for Zakat payers, in view of the numerous socio-economic benefits the Zakat institution delivers in the society. Tax incentives for Zakat payers are usually provided in two ways, either in the form of deduction of Zakat paid from tax payable, or as deduction of Zakat paid from taxable earnings in any assessment year. Zakat, Waqf, and Sadaqah have tremendous impacts on the society.
They contribute to poverty alleviation, social welfare, and community development. Through effective and efficient management, the trio could help bridge the gap between the rich and the poor and provide a safety net for the most vulnerable members of the community. Waqf simply means you can do better for yourself (why must you restrict yourself to the 2.
5 % compulsory charity?). The beauty of it is that unlike Zakat, you can decide how much to pay, select your favoured beneficiaries, appoint your preferred administrator and design how the waqf should be administered. You may even prescribe a timeline or duration for your waqf (in the Maliki school).
• Prof. AbdulRazzaq AbdulMajeed Alaro teaches at the Department of Islamic Law, Faculty of Law, University of Ilorin, Ilorin, Kwara State. He spoke at the launch/public presentation of the IBILE Muslims Community Zakat and Sadaqah Foundation on July 6, 2024 at the Main Auditorium, University of Lagos, Akoka-Yaba, Lagos.
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