Firm reports record-high totals for zakah-related charitable giving
Falls Church, Virginia, April 20, 2021 — Azzad Asset Management, a socially responsible, faith-based registered investment advisor, announced today that its Muslim clients are expected to donate approximately $10 million in zakah-related charity during the holy month of Ramadan.
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 the amounts that should be given in charity each year. This year’s total, a record-setting amount, comes after the firm itself topped $1 billion in assets under management in 2020.
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. Many Muslims choose to pay zakah during Ramadan–the lunar month of fasting, prayer, and giving–which began this year on April 13.
Azzad is an advocate of Islamic investing principles, including zakah, and regularly educates the American Muslim community on the topic. The firm’s calculations follow internationally accepted guidelines issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). AAOIFI is a consortium of Muslim scholars who convene to issue guidance 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.
Azzad’s zakah calculations are audited annually by a third-party accounting firm specializing in Islamic financial transactions.
About Azzad Asset Management
Since 1997, Azzad Asset Management has provided investment services designed to help clients enjoy optimum performance without compromising their values. The firm is based in Falls Church, Virginia.