This Zakat Masterclass presentation was delivered at the 10th World Economic Islamic Forum in Dubai 2014 by Iqbal Nasim (Chief Executive). You can listen to the full MP3 version here: https://soundcloud.com/national-zakat-foundation/iqbal-nasim-speaking-at-10th-world-islamic-economic-forum-2014 For more information on the work we do please visit: www.nzf.rg.uk

1. ZAKAT &
POVERTY
ALLEVIATION
nzf.org.uk
BYIQBALNASIM(CHIEFEXECUTIVE)

2. Zakat and poverty alleviation:
Lessons learned
Iqbal Nasim, Chief Executive
National Zakat Foundation
United Kingdom
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3. Setting the context
• Founded in 2011, National Zakat Foundation’s aim is to
institutionalise end-to-end Zakat services, encompassing:
– Education
– Calculation
– Collection
– Distribution
• There is vast untapped potential in both the quantity and
quality of Zakat collection and distribution globally.
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4. Setting the context (2)
• NZF is operational in the UK (2011), Canada (2013) and
Australia (2013): Muslim population over 5,000,000
• 2014 global income > $5m
• 100% local distribution
• Current focus is poverty alleviation:
– grants to individuals and families in need
– supported housing projects
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5. Key lessons
• Respect the role of Muslim scholarship
• Zakat payers:
– Serve them as customers
– Treat them as shareholders
• Zakat recipients:
– Information is power
– Don’t just alleviate but transform
– Know when to say no
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6. Respect the role of Muslim
scholarship
• Zakat is a pillar of Islam
– an act of worship
– strict parameters
• Scholars and practitioners must work hand in
hand to find authentic and relevant solutions
5

7. Zakat payers: serve them as
customers
• What do Zakat payers need and want?
– Education: deepening understanding
– Calculation: clear and user-friendly
– Collection: accessible
• Developing services for Zakat payers the key
to maximising payment and therefore income
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8. Zakat payers: treat them as
shareholders
• Shareholders of companies want:
– integrity of management
– transparency of information
– clear communication
• Are Zakat payers any different?
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9. Zakat recipients: information is
power
• Data gathering and management is critical for:
– correct distribution
– measuring impact
– agenda-setting and advocacy
8

10. Zakat recipients: don’t just
alleviate but transform
• The purpose of Zakat is to transform
recipients eventually into payers
• Alleviation may be satisfactory but
transformation is ideal
• Zakat for education, training, job creation,
empowerment
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11. Zakat recipients: know when to
say no
• The hardest decision is to turn someone away,
but it can sometimes be the right thing to do
• Giving to the ineligible is as problematic as
depriving the ineligible
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12. Concluding thoughts
• Establishing the proper collection and distribution of
Zakat is of great spiritual and economic concern
• More dialogue needed across state and community
Zakat institutions
• Islamic financial institutions and businesses have a
significant role to play in upholding the forgotten pillar
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