1. Purpose 

The purpose of this policy is to ensure that all Zakat donations received by United Hands Relief  (UHR) are collected, managed, and distributed in strict accordance with Islamic principles as  outlined by the Fiqh Council of North America (FCNA) and supported by trusted Muslim  American scholars. This policy ensures that Zakat funds are spent only on eligible beneficiaries  and programs that fulfill the religious obligation of Zakat. 

2. Scope 

This policy applies to all UHR staff, volunteers, board members, and departments involved in the  solicitation, acceptance, management, accounting, and distribution of Zakat funds. 

3. Guiding Principles 

UHR adheres to the following principles: 

∙ Zakat is a sacred trust and must be handled with the highest level of integrity,  transparency, and accountability. 

∙ Zakat funds must be kept separate from general donations and used exclusively for  eligible categories. 

∙ All Zakat decisions must align with the rulings of the North American Fiqh Council and recognized Muslim American scholars. 

∙ UHR must ensure that Zakat reaches those who are Islamically eligible and in the most  dignified and effective manner.

4. Eligible Zakat Categories 

UHR will distribute Zakat only to beneficiaries who fall under the eight categories of recipients  identified in the Qur’an (Surah At-Tawbah 9:60): 

1. The Poor (Al-Fuqara’) 
2. The Needy (Al-Masakin) 
3. Zakat Administrators 
4. New Muslims / Those whose hearts are to be reconciled 
5. Freeing captives 
6. Those in debt 
7. In the cause of Allah (Fi Sabilillah) – as defined by FCNA 
8. Travelers in need 

UHR prioritizes categories most relevant to its mission, including low-income families, refugees,  orphans, emergency relief, and individuals in verified financial hardship. 

5. Accepting Zakat Donations 

UHR will: 

•  Clearly label all Zakat donation channels (online, checks, pledge cards, campaigns). ∙ Allow donors to designate their Zakat to specific eligible programs. 
• Provide donors with transparent explanations of how Zakat is used. 
• Issue receipts that clearly identify the donation as Zakat. 

If a donor does not specify a category, UHR will allocate the Zakat to the most urgent eligible  needs. 

6. Management and Accounting of Zakat Funds 

• Zakat funds must be tracked separately in UHR’s accounting system. ∙ Zakat may not be mixed with general Sadaqah or restricted funds. 
• Administrative expenses charged to Zakat must comply with FCNA guidance and be  limited to reasonable, necessary costs. 
• Financial reports must clearly show Zakat income, allocations, and remaining balances.

7. Zakat Distribution 

UHR will ensure that:

• All Zakat recipients are verified as eligible according to Islamic criteria. 
• Funds are distributed promptly, prioritizing urgent needs. 
• Zakat is used only for programs that directly benefit eligible individuals, such as:

1.  Food assistance 
2. Emergency medical aid 
3.  Housing support 
4. Debt relief 
5. Cash assistance 
6. Orphan and widow support (when meeting Zakat criteria) 

• Zakat is not used for construction, capital projects, or long-term infrastructure unless  explicitly permitted by FCNA rulings. 

8. Compliance and Oversight 

• The Finance Department and Programs Department must jointly ensure compliance with  this policy. 
• Any uncertainty regarding eligibility must be referred to UHR’s Islamic Advisory  Committee or a qualified scholar. 
• Annual audits will include a review of Zakat management and distribution.

9. Donor Communication 

UHR will maintain transparency by: 

• Providing annual Zakat impact reports. 
• Offering donors clear explanations of how their Zakat was used. 
• Respecting donor intent at all times.

10. Policy Review 

This policy will be reviewed every two years or as needed to ensure continued alignment with  FCNA rulings and scholarly guidance.