Falls Church, Va., May 20, 2019 — Azzad Asset Management, a socially responsible, faith-based registered investment advisor, announced today that its Muslim clients are expected to donate approximately $6.7 million in charity during the holy month of Ramadan.
Azzad reports Islamically mandated charitable totals, or zakah, to clients in an annual statement issued during the month of Ramadan. Many Muslims choose to pay zakah during Ramadan–a month of fasting, worship, and giving–which began this year on May 6. The firm is an advocate of Islamic investing principles, including zakah calculation, and regularly educates the American Muslim community on the topic.
The third pillar of Islam, zakah–sometimes spelled zakat–is an obligation that practicing Muslims pay on assets held for a full lunar year.
Zakah should be assessed on accumulated wealth in order to encourage the free flow of capital and avoid a concentration of resources among the very few. Zakah is not a tax on income, but on wealth and savings in order to help those in need.
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.
