Financial Assistance / Zakat

ISLAMIC CENTER OF THE CAPITAL DISTRICT – 21 LANSING ROAD NORTH – SCHENECTADY, NY 12304

PHONE: (838)723-1110 – EMAIL: ZAKAT@ICCDNY.ORG

Zakat Distribution Policy For ICCD

Zakat Distribution Policy

First approved by the Board of Trustees: March 2022

Last Reviewed by Zakat Committee and Updated: April 2026

In the Name of Allah — the Most Compassionate, Most Merciful.

1. INTRODUCTION

This document is intended to be the Policy Document to provide a framework and guideline for future Zakat distribution by the Zakat Committee (ZC). It should be reviewed on a regular basis.

Zakat is the third of five core pillars of Islam. The distribution of Zakat and its use has been outlined in the Qur’an (9:60), demonstrated in the prophetic traditions and explained further by our predecessors.

The Qur’an (9:60) outlines eligible recipients of Zakat as follows: the poor and needy, those who administer Zakat, those whose hearts need winning over, slaves for the purpose of freeing them, those in debt, the cause of Allah, and wayfarers/travelers.

2. ICCD ZAKAT DISTRIBUTION CATEGORIES

It is not necessary that Zakat be disbursed to all categories of individuals by ICCD as some categories may not exist in the local community or are not an immediate priority. Further, members of the ZC waive their claim to be recipients of any portion of the funds from the Zakat fund.

Zakat may be given to those in debt. Zakat can be given to the creditor on behalf of the debtor with the latter’s acknowledgement.

3. ZAKAT FUND

The Zakat fund is a separate, designated fund established by the ICCD. As such, it is an approved recipient of funds designated for Zakat. Its receipts consist entirely of designated Zakat giving and its expenses consist of funds disbursed for its stated and intended purposes at the direction of the ZC. Monies are to be disbursed to eligible Zakat recipients as soon as possible preferably within twelve months of receipt. As such, there is no guarantee the Zakat fund will have a balance on a continuous basis.

4. ZAKAT COMMITTEE (ZC)

The ZC acts on behalf of those who have entrusted the ICCD with their Zakat offerings. Its primary responsibility is to disburse Zakat to eligible persons in accordance with Islamic guidelines. In addition to the ZC being accountable in front of Allah, the ZC is also accountable to the ICCD Board of Trustees (BOT). The ZC is appointed by the BOT. The ZC consists of 3 to 7 members who must be approved by all members of the BOT. One of the members of ZC will be the Senior Imam of ICCD. Committee members must be known in the local community for their excellent character and trustworthiness. Committee members will identify amongst themselves the chair of the ZC. Since ZC members are exposed to confidential information, they should sign a confidentially agreement before assuming their role.

5. ZAKAT RECIPIENT SCREENING CRITERIA

Priority will be given to Muslims who are unable to cover the costs of their food, housing, clothing, basic utilities, medical treatment, and transportation to and from employment. Every applicant must go through qualitative and financial screenings as follows:

Qualitative screening criteria:

All applicants must fulfill the following criteria:

• The applicant must be Muslim, residing in the Capital Region of the Albany, NY area
• The reason for applying to ICCD must be Shariah compliant
• The beneficiary must be an individual in need and not just a service. Zakat cannot be used to fund services to people directly unless the beneficiary consents to using their Zakat payment to fund a service.
• The applicant cannot pay for running costs and overheads of schools, mosques etc.

Financial screening criteria:

• An applicant must be regarded as Faqir (poor) or needy based on the time of application, from a Shariah perspective.
• Applicants’ net wealth must be below the Gold Nisab (threshold) to be eligible for Zakat or not be able to meet their current basic living costs.
• Poverty in the context of Zakat is ascertained by the following asset assessment:

The following asset values must be considered in the application form:

• gold and silver assets,
• cash assets,
• business stock,
• receivables of loans and sales, and
• investments in Zakatable assets.

The following debts can be deducted:

• Any outstanding debt which is payable within the calendar month and
• Any amount saved to pay off a debt which is payable within the next 12 months.

If the net value is below the Gold Nisab, the applicant will be eligible for Zakat.

6. APPLICANT ASSESSMENT

To be considered by the ZC for funding, potential recipients must successfully fill out and sign the Zakat Application Form (Appendix 1) and provide the necessary documentation required for verification purposes. Application should be made available on the website and on the ICCD premises. For consideration of zakat funds, the following documentation is required with the application and must be reviewed by the ZC:

• Payroll statements wherever possible
• Government-issued ID of applicant to verify identity and residence
  • If ID does not include current residence in the Capital Region, then a utility bill or lease agreement/mortgage statement must be provided along with the ID.
• Confirmation of all financial assistance being received at the time of application
• If payment of rent, utility bills, or outstanding receipts to sustain basic living needs are being requested, then copies of the invoices or lease agreement must be provided

Personal assets such as one’s house, car, clothes, household appliances, technological devices are not taken into consideration when assessing a beneficiary. The recipient may own a house and a car, yet they may still receive Zakat.

7. ZAKAT DISTRIBUTION PRINCIPLES

• All Zakat distributions are given from the Office of the Imam, including authorized Zakat Committee members who act on behalf of the Imam. Funds disbursed by any other entity are not Zakat funds from ICCD.
• Beneficiaries of Zakat-al-fitr are required to sign for receipt of Zakat funds in the Office of the Imam.
• Zakat should be distributed within twelve months of collection. The Zakat account should be cleared within twelve months of receipt of funds.
• Zakat Fitr will be distributed prior to Eid prayers or earlier during Ramadan.
• Zakat does not necessarily have to be paid in cash. Zakat can be distributed in kind as long as the value covers the Zakat liability.
• The Zakat payment should be consistent with the screening criteria in Section 5 above
• A service cannot be stipulated in lieu of a Zakat payment.
• The process should be simple and not complex or bureaucratic.
• The process should allow for addressing emergency needs quickly.
• Seek out people that may not ask but may be needy.
• Be sensitive and compassionate.
• Maintain confidentiality.

8. CRITERIA FOR DISTRIBUTIONS TO REFUGEES

As an institution, the ICCD is not responsible for the material or financial support of refugees, however, refugees who meet the criteria as outlined in this policy will be considered Zakat eligible and reviewed per the requirements of this policy. Refugees typically receive 3-6 months of financial assistance from the government upon arrival to the U.S. Confirmation of assistance received will be required of refugee applicants as part of the Zakat eligibility review. Refugees may also be guided to other assistance programs, including the ICCD Food Pantry.

9. CRITERIA FOR DISTRIBUTIONS FOR BURIALS

As outlined in the Quran (9:60), Zakat funds are not to be used to pay directly for burials. The cost of the burial should come from the deceased’s resources. If the deceased does not have sufficient financial resources, then the next of kin/family is responsible. If the next of kin/family does not have sufficient resources, then the next options for financial support are Bait-al-Mal or community donations.

If the family of the deceased is Zakat eligible per the criteria in this policy, then the family may apply for Zakat funds and use the funds as needed.

10. ADMINISTRATIVE PROCEDURE

Before any Zakat donation is made, the Zakat Committee will undertake an assessment as to whether the payment is in line with this policy by having all applicant fill out the application form. The ZC will endeavor to complete review within two weeks of receipt of application by the ZC.

The ZC is authorized to approve or reject applications and to decide on the amount to be disbursed up to an amount of $2,000. All approvals are by a majority agreement of the ZC.

As general guidance, the ZC will endeavor to limit Zakat disbursement per household to a total of $2,000 to a family of four (small family unit) in one year (12 month period of time). For larger families, higher amounts up to the limits specified in this policy are applicable.

Zakat Fitr will be estimated based on past year collections and disbursed as early as possible in Ramadan but in any case, prior to the Eid prayers.

All applications, whether accepted or rejected, are to be filed with supporting documentation in a locked cabinet for a period of seven years for future reference.

For approved requests, the Treasurer will issue a check in the amount approved by the ZC. Checks must be directly issued in the name of the beneficiary to whom the applicant owes the debt, e.g., landlord, utility company, hospital, etc. Under some circumstances, checks may be issued in the name of the applicant.

If there is uncertainty on the part of the Zakat Committee as to whether a donation would be in line with this Policy, the matter will be referred to the Imam for Shariah matters and the BOT for administrative concerns for their advice.

The BOT will satisfy themselves that all donations are in line with this Policy, as well as in line with ICCD’s objectives. BOT will be provided quarterly Zakat disbursement reports by the Treasurer.

The BOT will be informed of any single Zakat disbursement greater than $2,000 prior to the amount being disbursed. The ZC will provide the BOT with the rationale for providing a distribution in excess of the limit established by this policy.