Accountability and Governance in Zakat Institutions – II

In Part I of Accountability and Governance in Zakat Institutions, we presented a broad comprehension of the concepts of accountability and governance from the standpoint of Islamic organizations, such as, the ZIs and also their foundations in the Shariah. In this part, we move to more specific operational procedures and discuss the requirements that must…

Accountability and Governance in Zakat Institutions – I

Accountability implies the duty of an entity to use (and prevent misuse of) the resources entrusted to it in an efficient and effective manner. This however, needs to be done within the boundaries of the moral and legal framework of the society. Further, the entity must provide an account of its actions to various stakeholders…

Risk Analysis for Zakat Institutions – II

In Part I of this document on risk analysis for Zakat Institutions, we identified certain risk factors within the broad category of reputation risk. Here are other risks within the broad categories of business risk and operational risk. Business Risk: Business risk is associated with a ZI’s business environment, including macroeconomic and policy concerns, legal and…

Risk Analysis for Zakat Institutions – I

A zakat institution (ZI) intermediates between an individual or institution liable to pay zakat (muzakki) and an eligible beneficiary of zakat (mustahiq). It ensures that zakat funds are managed (mobilized and allocated) efficiently (at least cost) and effectively (with maximum impact). Traditionally, a ZI is expected to play a key role in providing for basic…

How Awqaf can Incentivize Private Investment

A waqf is a social institution. It is central to the Islamic ecosystem. As an act of piety, a waqf provides connect between religion and economic development. Awqaf initiatives dovetail into major sectors of the economy – commercial and developmental – including real estate, education, healthcare, social welfare, food and water security and climate management.…