Zakat Policy

This policy sets how SWB manages its Zakat responsibilities with integrity. It exists to ensure Sharia compliance in how Zakat is collected, managed, and distributed; to define clear roles and decisions; to maintain financial controls and reporting; and to apply clear criteria for identifying eligible recipients.

This policy covers the full lifecycle of Zakat funds at SWB: collection and receipt, fund management, beneficiary verification, and distribution.

It applies to everyone involved: the Board of Directors (oversight and approval), executive management (implementation), the finance department (recording and reporting), programs staff (delivery), and Sharia advisors (religious guidance and audit).

SWB administers Zakat to the highest standard of integrity:

• Islamic compliance: practices derive from the Quran and Sunnah and are reviewed by qualified scholars.
• Transparency: we report openly on how Zakat is collected, allocated, and distributed.
• Accountability: we are accountable to Allah first, then to donors and beneficiaries, so every dollar serves its purpose.
• Separation of funds: Zakat is kept separate from other donations in both accounting and bank accounts.
• Impact and dignity: distribution protects the dignity and privacy of recipients and supports self-reliance.

In line with Islamic jurisprudence, SWB distributes Zakat only to the categories defined in the Quran (Surah At-Tawbah, 9:60). SWB prioritizes the categories most relevant to its educational and humanitarian work.

All Zakat contributions are classified as temporarily restricted funds, kept separate from general donations, Sadaqah, and other revenue, and used only for the eight eligible categories.

The finance department maintains a dedicated sub-ledger or separate bank account for Zakat. Borrowing from Zakat for operating cash flow is not allowed. We run monthly reconciliations and an annual independent Sharia audit.

Our Zakat fundraising is transparent, accurate, and clearly distinct from general appeals so you can fulfill your obligation with confidence:

• Clear distinction of funds: campaigns separate Zakat-eligible projects from Sadaqah or general funds, so your intention (niyyah) is clear.
• Disclosure of administrative use: appeals state our policy on any administrative or distribution costs.
• Accuracy of representation: communications represent the needs of beneficiaries truthfully and protect their dignity.

A Zakat committee oversees allocation using documented needs assessments, Sharia eligibility checks, and impact analysis, with priority for extreme hardship and programs that build long-term self-reliance.

Zakat is disbursed within one lunar year of collection unless there is a valid Sharia-compliant reason for delay, such as the staged rollout of a development project. All allocations transfer ownership (Tamleek) to the beneficiary.

SWB directs Zakat to the poor and needy and keeps it whole. We do not take administrative or operating costs from Zakat. Those costs are covered by separate donations, so your Zakat is used only for its intended charitable purpose, in line with Islamic principles.

We track Zakat from donor to beneficiary to protect the integrity of the process.

We are committed to full transparency on how Zakat is used. You can request clear information about the categories of recipients and the projects your Zakat has supported. We publish annual impact reports detailing Zakat collection and distribution, so you can see the outcomes your giving made possible.

This policy is reviewed at least once a year by the executive leadership team and the finance committee to confirm it works in practice and stays aligned with our mission.

Substantive changes are approved by the Board of Directors, and any changes to Zakat collection, allocation, or management are reviewed and endorsed by our Sharia advisors before they take effect.