UNHCR’s Refugee Zakat Fund is a trusted, compliant, and effective distributor harnessing the power of Zakat to transform the lives of refugee and displaced families, including in hard-to-reach areas.

With the rapid growth of the global Islamic economy and philanthropy sector, and given the increasing desire by Zakat donors and institutions to channel a portion of Zakat funds to refugees and IDPs – 60% of whom are coming from member states of the Organization for Islamic Cooperation – UNHCR piloted the receipt of Zakat funds in 2017 and 2018, receiving $14.4M, with which it assisted 6,888 families in Jordan and Lebanon. Based on this, UNHCR launched in 2019 the “Refugee Zakat Fund”: a trusted, compliant and effective distributor harnessing the power of Zakat to transform the lives of refugees. The Fund is subject to rigorous governance, ensuring transparency at every step, from donation to distribution of Zakat funds to eligible families. UNHCR implements several humanitarian programmes, including shelter, healthcare, education, economic inclusion and cash assistance. The latter was identified as the best fit for Zakat distribution, assuring funds are received by the most vulnerable beneficiary families. UNHCR is covering overhead costs associated with Zakat distribution from non-Zakat sources.

UNHCR’s Refugee Zakat Fund follows a 100% Zakat distribution policy, ensuring 100% of Zakat contributions are delivered directly to eligible families most in need. Through the Fund, vulnerable families, including women and children, are supported with cash assistance to cover basic needs such as rent, food, healthcare, and debt repayment. In some specific cases, Zakat may also be distributed in the form of in-kind assistance, such as core relief items, and hygiene/shelter/education kits. UNHCR’s Refugee Zakat Fund is subject to rigorous governance and oversight, ensuring transparency at every step, leading to the provision of assistance. This governance approach entails the following pillars:

• Zakat Compliance
  • Scholars: the Fund is Zakat compliant, backed by fatwas from credible scholars and institutions.
  • Infrastructure: follows fatwa recommendations by dedicating 100% of funds to Zakat eligible refugees.
  • Compliance review: annual 3rd party field visits to monitor distribution and issue compliance reports.
  • Donor centric: the destination of the funds is decided by the Zakat donor/ partner at the onset of partnership.
• Assessment and Monitoring
  • Vulnerability assessment framework: to identify eligible beneficiaries, updated on yearly basis.
  • Innovation: use of technology in distribution, to increase efficiency and minimize fraud and duplication.
  • Post distribution monitoring: twice a year, to measure impact and improve implementation.
• Financial Governance
  • Management & accountability: funds are kept in a dedicated interest-free bank account in Geneva.
  • Traceability: all funds are dedicated to Zakat compliant cash assistance programmes in identified countries with high needs.
  • Transparency: UNHCR publishes annual Zakat reports, and partners are provided with customized reports.