Version: 1.0
Effective Date: 06/18/2026
Approved By: Board of Directors
Review Cycle: Annual
Applies To: All Zakat donations received by SDI globally
Governing Verse: Surah At-Tawbah 9:60 — Eight Asnaf with contemporary application

SECTION 1 — QURANIC FOUNDATION AND PURPOSE

1.1  The Quranic Verse of Zakat

The foundation of all Zakat distribution at Spring of Dignity International is the explicit Quranic command establishing the eight eligible categories of Zakat recipients:
إنَّمَا الصَّدَقَاتُ لِلْفُقَرَاءِ وَالْمَسَاكِينِ وَالْعَامِلِينَ عَلَيْهَا وَالْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِي الرِّقَابِ وَالْغَارِمِينَ وَفِي سَبِيلِ اللَّهِ وَابْنِ السَّبِيلِ فَرِيضَةً مِّنَ اللَّهِ

Innama as-sadaqatu lil-fuqara’i wal-masakini wal-‘amilina ‘alayha wal-mu’allafati qulubuhum wa fi r-riqabi wal-gharimina wa fi sabili llahi wabni s-sabili faridatan mina llahi

“Zakat expenditures are only for the poor and for the needy and for those employed to collect Zakat and for bringing hearts together and for freeing captives and for those in debt and for the cause of Allah and for the stranded traveler — an obligation imposed by Allah.”
Surah At-Tawbah, 9:60 — Holy Quran

1.2  SDI Scholarly Position

This interpretation maximizes the reach of Zakat to serve the most vulnerable, consistent with the Maqasid al-Shariah, the overarching objectives of Islamic law  which include the preservation of life, intellect, progeny, dignity, and wealth.

SECTION 2 — THE EIGHT ASNAF: SDI CONTEMPORARY INTERPRETATION

The following table presents each of the eight Quranic categories, the classical definition, and SDI’s contemporary application based on the liberal scholarly consensus.

SECTION 3 — FI SABILILLAH: THE BROADEST CATEGORY

3.1  Why Fi Sabilillah is SDI Primary Zakat Category

Fi Sabilillah is the category under which the overwhelming majority of SDI’s humanitarian programs qualify for Zakat funding. Under the contemporary liberal scholarly consensus, it is the most expansive category. SDI’s position rests on a documented scholarly consensus spanning over a century of Islamic reform jurisprudence.

3.2  Scholarly Evidence

Shaykh Rashid Rida — Al-Manar (died 1935): “Fi Sabilillah encompasses general public interests essential for the sustenance of religion and state, including hospitals, roads, and supporting Islamic education and da’wah institutions.” — Tafsir Al-Manar, 10/435-436

Shaykh al-Maraghi — Tafsir Al-Maraghi (died 1945): “The scope of fi sabilillah includes all public welfare initiatives, not just individual efforts. It extends to any organized effort serving the Muslim community and humanity.” — Tafsir Al-Maraghi, 10/145

Egypt Dar al-Ifta: “Multiple fatwas from 1941, 1958, and 1979 permit Zakat allocation to public welfare projects and social services under the fi sabilillah category.” — Fatwas by Shaykh Abdel-Majid Salim (1941), Shaykh Hassan Mamoun (1958), Shaykh Gad al-Haq (1979)

International Islamic Fiqh Academy (2025): “IOM’s Islamic Philanthropy Fund is a legitimate Shariah-aligned mechanism for delivering humanitarian assistance. Millions of people under IOM’s mandate meet at least four of the eight Zakat categories.” — Fatwa issued 2025 — alongside International Union for Muslim Scholars (2025) and IKTISAD (2020)

Assembly of Muslim Jurists of America — AMJA: “The Zakat eligibility of Islamic organizations defending the cause of Islam and Muslims is a mainstream position among contemporary scholars. Those who disagree should at least find it excusable and defensible.” — AMJA Online — Zakat Eligibility of Islamic Organizations

3.3  SDI Programs Under Fi Sabilillah

SECTION 4 — ZAKAT COLLECTION AND SEGREGATION

4.1  Zakat as a Trust

Zakat received by SDI is an amanah  a sacred trust — from the donor and from Allah. It is not organizational income. Every dollar of Zakat must be distributed to eligible asnaf recipients. SDI acts as an Amil on behalf of donors and this responsibility is non-negotiable.

4.2  Segregated Zakat Fund

SDI maintains a dedicated, segregated Zakat Fund completely separate from all other organizational funds. Zakat funds must:

• Be held in a dedicated Zakat bank sub-account or clearly segregated account
• Never be commingled with general organizational funds under any circumstances
• Be reported separately in all financial statements and IRS Form 990
• Be audited separately from general organizational finances annually
• Be disbursed to verified Zakat-eligible recipients within the same fiscal year — carryover beyond 12 months requires documented justification

4.3  Donor Zakat Declaration

Every donor designating a contribution as Zakat must indicate this on the donation form or provide written notification before or at the time of donation. SDI cannot retroactively reclassify a general donation as Zakat. Donors giving both Zakat and Sadaqah in a single transaction must specify both amounts separately.

SECTION 5 — ZAKAT DISTRIBUTION FRAMEWORK

5.1  Distribution Principles

SDI distributes Zakat according to these governing principles drawn from scholarly consensus:

• Priority to the most vulnerable: Al-Fuqara and Al-Masakin receive the highest priority in all distributions
• Geographic flexibility: Zakat may be distributed locally in the USA or internationally.
• Timely distribution: Zakat must be disbursed to eligible recipients within the same Hijri year where possible
• Transparency: every distribution is documented with beneficiary verification, amount, eligibility category, and date
• Donor accountability: SDI provides an annual Zakat Impact Report to all Zakat donors

5.2  Priority Ranking for SDI

5.3  Non-Muslim Beneficiaries

SDI adopts the Maliki and Hanbali positionthat Zakat may be given to non-Muslims in specific circumstances:

• Non-Muslims in crisis contexts (Gaza, Lebanon, Syria) who live alongside Muslim beneficiaries and whose exclusion would harm Muslim community cohesion
• Non-Muslim community leaders whose cooperation is essential to protecting Muslim communities or ensuring humanitarian access — per Al-Muallafah Qulubuhum
• Non-Muslims in the USA or Canada in integrated community programs — per principle of fostering social harmony

Important Condition: Non-Muslim beneficiaries of Zakat must not be hostile to Islam or Muslims. SDI staff must document the eligibility basis for any non-Muslim Zakat recipient. When in doubt, classify as Sadaqah rather than Zakat for non-Muslim recipients.

5.4  Zakat Cannot Be Used For

• Construction of buildings or infrastructure not directly serving eligible beneficiaries
• Endowments, reserves, or investment funds
• Salaries of staff not directly engaged in Zakat collection or distribution
• General organizational overhead, marketing, or fundraising costs
• Recipients who are wealthy or financially self-sufficient
• Immediate family members of SDI directors or officers without Board approval
• Any purpose constituting a conflict of interest under SDI’s Conflict of Interest Policy

SECTION 6 — SADAQAH POLICY

6.1  Sadaqah vs Zakat

Sadaqah (voluntary charity) is not subject to the same asnaf restrictions as Zakat. SDI accepts both and maintains separate accounting. Sadaqah may be used for a broader range of program and organizational purposes.

6.2  Donor Choice

SDI gives all donors the clear option to designate their donation as Zakat, Sadaqah, or undesignated (treated as Sadaqah). No donation is treated as Zakat without explicit donor designation. This protects donors’ religious obligations and SDI’s jurisprudential compliance.

SECTION 7 — ACCOUNTABILITY, REPORTING, AND COMPLIANCE

7.1  Annual Zakat Impact Report

SDI produces an Annual Zakat Impact Report for all Zakat donors within six months of fiscal year close, including:

• Total Zakat received during the fiscal year
• Total Zakat distributed broken down by asnaf category and country
• Number of beneficiaries reached disaggregated by sex, age, and displacement status
• Al-Amileen costs as a percentage of total Zakat — confirming compliance with 12.5% cap
• Any Zakat carried forward with documented justification
• Certification by CEO and Treasurer of full policy compliance

7.2  Internal Compliance Controls

7.3  Scholar Consultation

SDI maintains a relationship with at least one qualified Islamic scholar with Zakat jurisprudence expertise. Any novel, uncertain, or contested question of Zakat eligibility must be referred to this scholar for a written ruling before funds are disbursed. The ruling is documented and filed with the relevant distribution record.

7.4  Misuse of Zakat Funds

Any misuse or improper distribution of Zakat funds constitutes a serious breach of religious trust and organizational policy. Staff responsible are subject to immediate termination and potential legal action. SDI will notify affected donors and implement corrective action within 30 days of discovery.

SECTION 8 — POLICY GOVERNANCE AND REVIEW

This Zakat Policy is adopted by the Board of Directors of Spring of Dignity International and is binding on all staff, volunteers, and implementing partners handling Zakat funds. It shall be reviewed annually by the Board Treasurer and Director of Programs, with material changes requiring full Board approval.

This policy is publicly available on SDI’s website and provided to all donors upon request. SDI is committed to full transparency in Zakat administration as both an Islamic obligation and organizational accountability commitment.