The Zakat Assessment & Verification Scheme (ZAVS)

About ZAVS

The Zakat Assessment and Verification Scheme has been designed to meet the clear and distinct need for independent opinion on Zakat and Zakat Institutions. The scheme provides a foundational opportunity for Institution to undergo an independent assessment of Zakat management and distribution, in the UK or overseas. The scheme aim is to improve the quality, effectiveness and accountability of institutions collecting, managing and administering Zakat Funds.

What are the benefits of having a voluntary assessment?

An external assessment improves internal systems and controls:

The assessment does not just focus on the sharia aspects of Zakat but will gain an understanding of the overall Zakat related institutional systems and controls. This will allow for identification of improvements in systems or controls for which recommendations can be made, making your Institution more efficient and less prone to risks or errors.

An external qualified opinion provides credibility:

Having your Zakat management and delivery verified by an independent, specialist and qualified body can lead to more credibility in the public sphere, than those that have not. This is an asset when seeking to fundraise, build partnerships or present your institution to the Muslim community.

An external qualified opinion gives donors and stakeholders confidence:

Many Institutions are run by small teams of staff or even just a board of Trustees. An independent review can provide transparency to the donors and even Trustees themselves that the Institution is handling Zakat adequately. It can also provide an opportunity for highlighting of any strengthens, issue or challenges to the board.

In sum the scheme allows Institutions to evidence that Zakat has been managed in an ethical, diligent, and appropriate manner. The scheme also fulfils a much needed duty to the different stakeholders involved in the process, from Zakat payers to Zakat recipients – providing assurance that Zakat has been managed adequately.

Zakat Verification is a structured, systematic process to assess the degree to which an organisation is working to or achieves the adequate management of Zakat. The Verification Scheme is managed by the BBSIs. It sets out the procedures and rules of the verification process to ensure it is conducted in a fair and consistent manner for all participating organisations.

Zakat Assessment & Verification Pathways:

Zakat Verification offers two options, using the same tools and standards but with different degrees of rigour and confidence in the results. These are:

Zakat Capacity Assessment:

Provides organisations with an independently conducted assessment of Zakat within the organisation.

Zakat Verification with Certification:

Provides organisations with an independently conducted, scholar-led assessment of Zakat end-to-end management, alongside certification of compliance with the Zakat Standards.

Option

Zakat Capacity Assessment

Primary Purpose

Provides organisations with an independently conducted assessment of Zakat within the organisation.

Provides organisations with an independently conducted, scholar-led assessment of Zakat end-to-end management, alongside certification of compliance with the Zakat Standards.

Tools

Zakat Verification Tool
Zakat Standards

Time Required

Minimum 1 day

Minimum 2 days

Lifecycle

Year 0: Initial assessment
Year 1: Review audit (optional)

Year 0: Initial audit
Year 1: Maintenance audit
Year 2: Maintenance audit

Oversite

BBSI Leadership Team

BBSI UK Zakat Council

Outputs

● Summary Zakat Report with recommendations
● Zakat Improvement Action Plan (optional)

● Full Zakat Report with recommendations
● Stamped and signed, Zakat Verification Certification.
● Zakat Improvement Action Plan (if applicable)

Outcome

● Self-improvement trajectory ● Comparable data in the sector ● Potential step towards the certification option

● Self-improvement trajectory
● Comparable data in the sector
● Certified and accredited as verified Zakat collector and distributer

The Zakat Verification Process

Both options follow the same processes, with the level of scrutiny higher for the full assessment:

Step 1: Data collection process:

Key document review:

organisations will submit their Zakat Policy and other relevant documentary evidence. This is to demonstrate their actual policy and how their procedures, management systems and processes meet their policy. Additionally, organisation will be expected to submit a random selection of project/financial documents.

Staff and other key informant interviews:

A cross-section of staff and other relevant stakeholders will be interviewed to assess the level of knowledge and understanding of the Zakat policy, and the degree to which Zakat requirements are integrated and applied in management, decision-making processes, and practice. The process also cross-checks and verifies the findings from the key document review.

Project site visit

Where there is capacity and feasibility, site visits and interviews with direct delivery teams and beneficiaries may be conducted.

Step 2: Analysis and Interpretation:

Initial Analysis:

● the data collected from organisational documents, key informant interviews and visits to programme and/or project sites will be consolidated and analysed.

Initial findings:

● A report on the outcomes of the process will be produced detailing the findings and will be presented to the organisation for feedback.

Step 3: Finalisation and Dissemination:

Report Dissemination:

● A final draft of the report will be prepared and disseminated to the appropriate stakeholders.

Step 4 (Optional): Improvement Plan:

● BBSI may also lead or support the development of an improvement plan for Zakat Capacity Assessment or for the Zakat Verification process.