FALLS CHURCH, Va., April 21, 2022 — Azzad Asset Management, a socially responsible, faith-based registered investment advisor, announced today it has calculated that the firm’s Muslim clients are to give away more than $11 million in zakah-related charity.
Zakah–sometimes spelled zakat–is an obligation that practicing Muslims pay on assets held for a full lunar year, including investments. Azzad calculates and reports to clients each Ramadan the amounts that should be given in charity. Although there is no prescribed time to give zakah, many Muslims, including Azzad clients, choose to pay zakah during the holy month of Ramadan, which began this year on April 2. This year’s zakah total reached an all-time high.
The third pillar of Islam, zakah is assessed on accumulated wealth in order to help those in need. Zakah is not a tax on income; it is instead applied to wealth and savings to encourage the free flow of capital and avoid a concentration of resources among the very few.
Azzad follows best practices and guidelines issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). AAOIFI is a consortium of Muslim scholars who convene to issue guidelines on halal investing and other financial matters. AAOIFI Standard Number 35, which outlines specific guidance on zakah, is considered the authority for Islamic financial services firms.