There are two main models of zakat distribution: i) disbursement through the state public budget, and (ii)
disbursement through specialised zakat organisations.
Disbursement of zakat through the state public budget
In this approach, the disbursement is based on the budgeted items with emphasis on the beneficiaries’
needs. The Islamic government specifies the actual zakat proceeds and the expenditure used for the
collection, then assigns an institution to undertake zakat disbursement in accordance with the Islamic
shari’ah and administrative principles. This approach is still practiced in countries like Saudi Arabia and
Yemen. As mentioned, Muslim charities in the west do not fall within that category.
Disbursement of Zakat through Zakat institutions
In this approach the zakat collectors are independent of the state public budget. Therefore, disbursement
is managed separately though specific institutions. This approach is practiced by charities and
organisations in the UK and elsewhere. Zakat funds are disbursed to beneficiaries through either direct
or indirect methods. In the direct method, funds are disbursed directly to the identified beneficiaries in the
forms of cash, online transactions and via vouchers for materials (for example food, clothes, etc.). In the
indirect method, trusted and vetted partners disburse funds (for example schools, orphanages, etc.).
The other most obvious method is when the original owner of the zakat disburses it directly to the
recipient. This approach should be taken where possible. However, it is practically impossible in most
cases as there are legal and logistical issues making it difficult to implement. In addition, giving zakat
through an institution will enable prudent giving while looking at sustainable benefit.
Disbursement of Zakat through Zakat institutions
In this approach the zakat collectors are independent of the state public budget. Therefore, disbursement is managed separately though specific institutions. This approach is practiced by charities and organisations in the UK and elsewhere. Zakat funds are disbursed to beneficiaries through either direct or indirect methods. In the direct method, funds are disbursed directly to the identified beneficiaries in the forms of cash, online transactions and via vouchers for materials (for example food, clothes, etc.). In the indirect method, trusted and vetted partners disburse funds (for example schools, orphanages, etc.). Gift of Knowledge will use a combination of direct and indirect methods to disburse Zakat.
In this approach the zakat collectors are independent of the state public budget. Therefore, disbursement is managed separately though specific institutions. This approach is practiced by charities and organisations in the UK and elsewhere. Zakat funds are disbursed to beneficiaries through either direct or indirect methods. In the direct method, funds are disbursed directly to the identified beneficiaries in the forms of cash, online transactions and via vouchers for materials (for example food, clothes, etc.). In the indirect method, trusted and vetted partners disburse funds (for example schools, orphanages, etc.). Gift of Knowledge will use a combination of direct and indirect methods to disburse Zakat.
The other most obvious method is when the original owner of the zakat disburses it directly to the
recipient. This approach should be taken where possible. However, it is practically impossible in most
cases as there are legal and logistical issues making it difficult to implement. In addition, giving zakat
through an institution will enable prudent giving while looking at sustainable benefit.
