Zakat, the third pillar in Islam, is a mandatory charity that every Muslim who saved a minimum annual amount needs to donate. Each year, Muslims are required to donate 2.5% of this annual savings amount.
Zakat is meant for eight categories of eligible recipients mentioned in the Holy Quran. Refugees and internally displaced persons (IDPs) typically fall under at least four of these categories: the poor, the needy, the debtors, and the wayfarers.
Desire of donors to dedicate their Zakat to eligible refugees and IDPs Zakat-eligibility of many refugees and IDPs as mentioned above. Around 50% of refugees and IDPs come from Organization of Islamic Cooperation (OIC) member countries. UNHCR’s receipt of several fatwas authorizing it to receive and distribute Zakat following certain conditions
The Refugee Zakat Fund is a trusted, compliant, and effective mechanism harnessing the power of Zakat (and Sadaqah) to assist eligible refugees and IDPs.
The Refugee Zakat Fund focuses on digital contributions for ease, speed, and transparency However, you can also transfer your Zakat to a dedicated interest-free bank account in Geneva:
In 2023, UNHCR distributed Zakat contributions to refugees and internally displaced people in 18 countries in Asia, MENA, and Africa.
Yes, we will be looking at other refugee and internally displaced situations, including Malians, Rohingyas, and Somalis, in the near future. More information will be made available on our website in due course.
Our focus with the Zakat initiative is ease, speed and transparency – we feel that only digital payments provide such characteristics. You may also transfer your Zakat to our dedicated bank account in Geneva with the following instructions to ensure it is recorded and spent as Zakat money
Yes, UNHCR issues reports twice each year (one mid-year and one annual) on the impact of Zakat and Sadaqah contributions made through the Refugee Zakat Fund, as well as how and where they are distributed and the number of beneficiaries. You can read the latest report here, and all previous reports here.
Most fatwas received by UNHCR to endorse the Refugee Zakat Fund, recommend that UNHCR doesn’t deduct fees or wages from Zakat contributions. As UNHCR is committed to complying with the fatwa recommendations, we have been subsidizing, from our non-Zakat budget, Zakat distribution Indirect Support Costs (ISCs), which is a standard 6.5% across all donations that UNHCR receives globally, as well as online donation fees.
The destination of Zakat contributions is dictated by the donor. In every relevant destination country, UNHCR follows a comprehensive vulnerability assessment framework to identify eligible beneficiaries among refugees and IDPs. If a donor leaves it to UNHCR to decide where to spend Zakat, then a specific operation is chosen based on needs, absorption capacity and other criteria.
UNHCR does receive funding from governments; however, due to the unprecedented increase in the number of refugees and IDPs globally, accompanied by the increase in their humanitarian needs, this funding doesn’t cover our important work in the humanitarian response to displacement crises. We are addressing that shortfall through innovative programs such as the Refugee Zakat Fund, which allow UNHCR to meet some of the urgent humanitarian needs of refugees and IDPs.
UNHCR’s Refugee Zakat Fund has received 17 fatwas and endorsements from major Islamic scholars and institutions. These fatwas form the governance foundations for the Fund.
The cash assistance program is one of the most important humanitarian programmes that UNHCR implements, through an expansive cash distribution network in many countries in MENA, Africa, and Asia. Technology such as ATMs, iris scans, and mobile wallets is used to deliver cash contributions including Zakat to the most eligible refugees and IDPs.
Through annual post-cash distribution monitoring exercises, UNHCR has found that recipients consistently spend cash on essentials. Refugees and IDPs primarily spend cash assistance to cover rent, food, healthcare, and debt repayment, among other essentials. The cash assistance program has saved the most eligible families from eviction, helped cover medical costs, reduced child labour and other exploitative work conditions, and ensured many families can send their children to school and repay some of the debts that weigh heavily on their shoulders. The most vulnerable families continue to receive support from the cash programme until UNHCR helps them become self-reliant or finds other durable solutions for them.
Governance of the Refugee Zakat Fund has three pillars: financial governance, Zakat compliance, and assessment and monitoring. You can read more about these pillars here.