Employment of Zakat Funds in Islam: A Jurisprudential Study

Abstract

Zakat is mandatory contribution in Islam. It is the command (Pherman) of Allah revealed in holy interaction/discourse of Prophet Mohammad (PBUH) with Allah. Islam stands for social and economic solidarity among the followers of Islam. It seeks to provide the basic needs of the individual out of the Zakat contribution pool. For this study, the aim is to discuss the noble and holy idea of employing zakat funds. The employment of Zakat funds are permissible in certain forms and prohibited in some. This distinction is made from the perspective of Islamic jurisprudence. The study proceeded with this aim and reached the following results: (i) the employment of zakat funds is undoubtedly meant for helping the poor, disabled, destitute, and sick or orphaned individuals. (ii) Zakat has five forms in which Zakat funds are deployed/dispensed; (iii) Zakat funds take the form of investment; (iv) Zakat funds are meant to be spent in public interests; (v) Zakat funds are converted into endowments. The forms of spending (iii) and (v) are prohibited by some jurists. They contend that the permissible forms of fund-employment are: (a) providing a vocational tool (felicitation giving equipment such as tools, instruments or other things) to the needy; (b) establishing projects that benefit the poor as a privileged group/class. The study makes recommendation that Zakat controlling institutions should take care of employment of Zakat resources-pool/reservoir in providing jobs to the unemployed poor and others eligible as per Islamic philosophy and the provision of vocational tools, instruments or equipment so that the eligible poor skilled individuals are able to work more efficiently to earn their livelihood.