By Dr. Gholam Mujtaba, MS, MD, Ed.D.
Introduction
Zakat and khairat (voluntary charity) are essential obligations in Islam, aimed at ensuring social justice and economic balance within the Muslim community. Historically, these funds were collected and distributed by the Islamic state to maintain transparency and efficiency. However, today, private charitable organizations have assumed this role, often designating a portion of the funds for administrative costs. This shift raises significant theological, ethical, and practical concerns about whether this practice aligns with the original Islamic principles.
1. Zakat as a State Responsibility in Early Islam
Zakat is one of the Five Pillars of Islam and is mandated in several passages of the Qur’an. The Qur’an specifies the rightful recipients of Zakat in Surah At-Tawbah (9:60):
“Zakat expenditures are designated only for the poor, the needy, those employed to collect Zakat, to unite hearts for Islam, to free captives, for those in debt, for the cause of Allah, and for the stranded traveler—an obligation from Allah. And Allah is All-Knowing and Wise.” (Qur’an 9:60)
The collection and distribution of Zakat were originally responsibilities of the state during the time of Prophet Muhammad (PBUH) and the Rightly Guided Caliphs.
•The Prophet Muhammad (PBUH) designated collectors of Zakat (Amil) to oversee the collection and distribution across different regions, such as Yemen and Bahrain.
•Caliph Abu Bakr (RA) declared war on those who refused to pay Zakat to the state, highlighting its importance in Islamic governance.
•Caliph Umar ibn al-Khattab (RA) made sure that Zakat funds were managed and distributed centrally, following the Qur’anic mandate.
Therefore, Zakat was intended to be an institutionalized state function rather than a personal or private matter.
2. The Transition from State-Controlled Zakat to Private Collection
Over time, the management of Zakat moved away from state control due to various historical, political, and social factors.
A. The Decline of Islamic Governance
As centralized Islamic rule diminished, particularly after the decline of the Abbasid Caliphate and the eventual fall of the Ottoman Empire in 1924, the collection of Zakat became decentralized. Local religious institutions and scholars started to collect and distribute Zakat independently.
B. The Role of Colonialism
European colonial powers disrupted Islamic economic systems:
•The British, French, and Dutch rulers introduced Western economic models, undermining Islamic governance.
•Many Muslim-majority nations, upon gaining independence, adopted secular governance, further marginalizing Zakat as a state function.
C. The Rise of Private Charities
In the absence of a structured state system, private charities began to emerge.
•Religious scholars and Sufi orders assumed the responsibility of redistributing Zakat.
•Many Islamic NGOs have gained prominence.
•Wealthy individuals started collecting and distributing resources through independent charity networks.
However, this privatization of Zakat deviates from the original Islamic model, raising concerns about transparency, efficiency, and legitimacy.
3. Theological and Practical Issues Surrounding Private Zakat Collection
A. Transparency and Secrecy in Charity
Islam emphasizes the importance of giving charity discreetly to maintain the dignity of the recipients. The Prophet Muhammad (PBUH) stated:
“When you give to the poor, your left hand should not know what your right hand has given.” (Sahih Bukhari 1421, Sahih Muslim 1031)
Unfortunately, many modern charities promote their charitable activities by sharing pictures of recipients on social media for marketing purposes. This practice contradicts Islamic principles of humility and privacy in giving. The Qur’an explicitly advocates for discreet charity:
“If you disclose your charities, they are good, but if you keep them secret and give them to the poor, that is better for you.” (Qur’an 2:271)
Thus, displaying images of people in need for fundraising campaigns not only undermines their dignity but also contradicts Islamic principles related to charity.
B. Administrative Costs and Mismanagement
In contrast to the state-managed system of early Islam, private organizations often deduct administrative expenses from Zakat collections. Some NGOs allocate as much as 30% of Zakat funds for salaries, marketing, and operational costs. Conversely, early Islamic governance ensured that Zakat collectors were compensated separately from public funds, ensuring that 100% of Zakat reached the intended beneficiaries.
C. Unequal Distribution and Insufficient State Oversight
•Decentralization results in inefficient funding distribution, where some regions receive excessive resources while others are left underserved.
•There are no uniform criteria for determining recipients, as different charities implement varying policies.
•The lack of governmental accountability heightens the risk of misallocation and corruption.
4. Prioritizing Zakat Distribution as Per Qur’anic Guidelines
The Qur’an offers clear guidance on prioritizing charitable giving:
“They ask you (O Muhammad) what they should spend (in charity). Say: ‘Whatever good you spend must be for parents and close relatives (aqraba), orphans (yatama), the needy (miskin), and travelers. And whatever good you do; indeed, Allah is All-Knowing of it.’” (Qur’an 2:215)
This order—close relatives first, then orphans, and lastly, the poor—is often overlooked when Zakat is distributed to organizations. To uphold this prioritization:
•Personal distribution: Those who give Zakat directly should prioritize eligible close relatives first.
•Institutional distribution: Organizations should categorize beneficiaries accordingly.
•Direct assistance programs: Structured funds can ensure rightful recipients get their due share.
•Combining Zakat & Sadaqah: Since Zakat has specific recipients, additional sadaqah can supplement those who don’t qualify for Zakat but are still in need.
5. The Need to Re-establish State-Controlled Zakat
To restore the original Islamic economic justice system, Muslim nations should reestablish a structured and transparent Zakat collection system under governmental oversight. Some modern initiatives include:
•Saudi Arabia has a centralized Zakat authority.
•Pakistan enacted the Zakat and Ushr Ordinance in 1980, which requires banks to deduct Zakat from savings accounts.
•Malaysia has a well-regulated Zakat collection system managed by the Islamic Religious Council.
A transparent, state-controlled Zakat system is crucial for ensuring equitable and efficient wealth distribution.
Conclusion
The shift of Zakat from a state function to private charity organizations has led to issues regarding transparency, administrative inefficiencies, and breaches of Islamic principles of giving. Islam requires that Zakat be collected and distributed by the state to guarantee equitable economic redistribution. A return to a government-managed Zakat system is essential to align contemporary practices with Islamic teachings, ensuring social welfare in an ethical and accountable manner.
About the Author
Dr. Gholam Mujtaba is a distinguished scholar in leadership studies and an authority on Islamic governance, presently serving as the Chairman of the Pakistan Policy Institute USA. He holds several doctoral and professional degrees and has conducted extensive research on Islamic economic systems, governance, and social justice.
