Zakat in the Canadian Context

The Challenge: Being a person of faith, and by extension a community of faith, comes with challenges in every age. Facing and dealing with those challenges to become closer to the Creator is, for a Muslim, is the purpose our existence. Doing so in the modern Canadian context is where zakat-distributing organizations can help Muslims in our communities, and society-at-large.

Zakat is part of an ecosystem that address poverty & social justice.

Zakat & Society

In the Muslim faith, zakat is a religious obligation commanded by God in the Qur’an, the Muslim holy book. From the earliest days of Islam, zakat was given by the wealthy to the poor, indigent, and other disenfranchised individuals. Often this was done on an individual and independent basis. At the same time, the leader of the community would also assist with zakat distribution by offering that service for those who could not distribute their zakat themselves. Later, other zakat-distributing organizations emerged separate and apart from government institutions. In sum, while zakat is a religious obligation, there is flexibility in how it is collected, how it is distributed, and whom it is distributed to. This has been so from the earliest days of Islam.

A strong theme in Muslim scholarship of zakat is its importance not only as a rightful, Qur’anically mandated, transfer of wealth (59: 7), but as having important beneficial psychological effects for individuals and the community at large: zakat payers purify their wealth and learn to control negative emotions such as greed and hoarding (which are condemned in the Qur’an as sinful); at the same time, zakat recipients feel relief from the indignity of poverty which can lead to despair and jealousy; between the two, zakat builds feelings of brotherhood/sisterhood, benevolence, generosity, solidarity and unity in community. Zakat is a dignified institution for poverty alleviation and social justice.

The Prophet Muhammad ﷺ,taught that beneficial actions begin with a good intention. The above spiritual benefits of effective zakat distribution should be primary goals and intentions for zakat-distributing organizations and workers. It is easy to imagine what good intentions look like for the one giving zakat, and the one receiving, but what should intentions look like for zakat distributors? Should the zakat distributor err on the side of being incredibly diligent or should they favour the dignity of recipients? One option means some eligible parties would be turned away, the other the converse. Furthermore, how should the zakat distributor think about addressing systemic issues, and their interactions and engagement with Canadian systems?

“Charity” is voluntary giving, “justice” is about addressing underlying structural reasons that create a class of poor.

Modern Challenges

Our modern context presents certain challenges for zakat collection and distribution. For instance, how and to what extent do we (re)define traditional zakat-eligibility? What is the ruling on modern financial instruments such as salaries, stocks, bonds, RRSPs? The need to disburse under CRA guidelines also complicates the picture. For instance, traditional zakat distribution can be cash, something not generally advisable in the Canadian context as it can affect a client’s eligibility for income supports. Cash equivalents, like gift cards, poorly address this issue because they limit choice and have high admin cost – traditionally zakat is given in the form it was originally taken (so money received would be distributed as money).

Many scholars have opined on how traditional rules can be extended to deal with these and other issues. This report offers suggestions on how to incorporate scholarly advice in these and other areas.

Another challenge is how modern conceptions of zakat differ from “charity” or “social assistance programming”, and the extent to which this unique Islamic obligation should be viewed through those lenses. For instance, modern discourse on charity and social assistance often draws a distinction between the concepts of “charity” and “justice”. These distinctions impact State policies and regulations governing what counts as charitable activities, where “charity” is about voluntary giving of money or goods to the poor, and “justice” is about addressing underlying structural reasons that might create a class of poor, such as racism or classism. Activities addressing justice are often considered political advocacy rather than “charity.” Social justice advocates, however, criticize this distinction as arbitrary, given that as defined, “charitable giving” could end up being a band-aid solution to deeper structural issues that cause poverty.

In the Canadian context, a study of zakat workers found that, by and large, such distinctions were not made, and the common understanding of zakat was to use it for poverty relief. This has implications for what activities a zakat organisation may choose to fund; if we think of zakat as only charity without considering justice, we miss critical elements of our obligations and a larger opportunity to positively increase impact.

A person is eligible to receive zakat if their income does not cover all their basic needs.

Modern Misunderstandings

Zakat distributors are often compelled to serve because of gaps they identify in the community, but most are not equipped to navigate the dual complexities of Islamic tradition and social service.

Zakat cannot be adequately understood through directly reading the Quran; personal interpretation misses the context in which verses were revealed and how they have been historically understood for nearly 1500 years. eg. One may read verse 9:60, and infer that zakat can go to administrators (amilina) & anyone who supports zakat collection, but this is a highly contestable, ahistorical opinion.

Properly understanding zakat requires engaging in dialogue with those who have specialized in the field. Local scholars are an important conduit for accessing those with in-depth knowledge. Specialist should provide historical examples, citations, reasoning, and be comfortable engaging in nuanced discussions; they may also need compensation for their time.

This is similar to medicine. Trusting the internet for medical advice is flawed – even dangerous. Your family doctor is a helpful obvious first step, but depending on the subject and the level of need, they may refer to you a specialist, like a cardiologist. A reasonable expectation is that the cardiologist will spend time with you (and potentially your family doctor) to explain a diagnosis, their reasoning, options & answer questions.

Zakat distributors should begin by engaging local scholars, developing detailed questions, expecting elaboration/ dialogue, & asking for referrals to experts.

Zakat is a dignified institution for poverty alleviation & social justice.