Transparency and governance
How we manage your Zakat and Sadaqah
Zakat and Sadaqah are governed by distinct Islamic rulings and held in completely separate funds at NZF. This page explains exactly where each goes and why.
The Quranic foundation
Zakat distribution is not a matter of organisational discretion. Allah has defined eight specific categories of recipients and Zakat may only go to these.
إِنَّمَا الصَّدَقَاتُ لِلْفُقَرَاءِ وَالْمَسَاكِينِ وَالْعَامِلِينَ عَلَيْهَا وَالْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِي الرِّقَابِ وَالْغَارِمِينَ وَفِي سَبِيلِ اللَّهِ وَابْنِ السَّبِيلِ ۖ فَرِيضَةً مِّنَ اللَّهِ ۗ وَاللَّهُ عَلِيمٌ حَكِيمٌ
"Zakat expenditures are only for the poor and for the needy and for those employed to collect it and for bringing hearts together and for freeing captives and for those in debt and for the cause of Allah and for the stranded traveller, an obligation imposed by Allah. And Allah is Knowing and Wise."
Surah At-Tawbah, 9:60
01
Al-Fuqara
The poor
Those with no means of subsistence
02
Al-Masakeen
The needy
Those with insufficient means
03
Al-'Amilina 'Alayha
Zakat Officers
Those employed to collect and distribute Zakat
04
Al-Mu'allafatu Qulubuhum
Hearts to be reconciled
Those being drawn toward Islam
05
Ar-Riqab
Freeing captives
Liberating those in bondage
06
Al-Gharimeen
Those in debt
Those unable to repay what they owe
07
Fi Sabilillah
In the cause of Allah
Those striving in Allah's path
08
Ibn As-Sabil
The stranded traveller
Wayfarers cut off from their means
How funds flow at NZF
Two separate funds, each governed by its own Islamic ruling. Neither can substitute for the other.
100% to Quranic recipients
The poor, needy, those in debt, wayfarers and other categories, including Zakat Officers (Al-'Amilina 'Alayha) up to 12.5%
NZF operations and programs
All staff other than Zakat officers, technology, rent, compliance, program activities, and a small number of hardship cases outside Zakat eligibility
Our policy commitment
No Zakat funds are used for general organisational operations, marketing, rent, IT, governance, or any expense outside the eight Quranic categories. This is a firm policy, not a target.
What Al-'Amilina 'Alayha means at NZF
Islamic scholarship permits up to 12.5% of Zakat collected to go to Zakat Officers. We apply this category narrowly.
Al-'Amilina 'Alayha, funded partially by Zakat
Al-'Amilina 'Alayha refers exclusively to staff directly involved in Zakat assessment and distribution only
Up to 12.5% of Zakat collected
Not Al-'Amilina 'Alayha, funded by Sadaqah
Marketing and communications
Management, Finance, HR and governance
Technology and IT systems
Rent and utilities
All other operations
How our operations are funded
Every operational expense outside the Al-'Amilina 'Alayha category is funded through Sadaqah sources only, never Zakat.
Sadaqah donations
Our primary source of operational funding from the community
Grants
Government and foundation grants for eligible programs
Investment returns
Dividends and returns from Waqf and endowment funds
What Sadaqah pays for
Staff salaries - compliance, finance, HR, marketing, and operations
Superannuation and employment entitlements
Regulatory compliance and licences
Safeguarding and risk management
Finance, audit, and governance
IT software and subscriptions
Technology and infrastructure
Zikkies thrift stores operations
NZF operates entirely within Australia, with local staff on Australian wages, superannuation and tax obligations. When reviewing employee expense percentages across charities, keep in mind that operating models vary considerably. A simple ratio does not reflect differences in structure, scale or service delivery. Our full financials are reported in compliance with ACNC requirements.
Governance and transparency
Our commitment to governance protects donor trust, beneficiary dignity, and the long-term sustainability of Zakat services in Australia.
ACNC registered charity
All financials are published annually on the ACNC website. The "Employee Expenses" line in our ACNC overview refers to operational costs funded through Sadaqah sources, except for Al-'Amilina 'Alayha staff funded through Zakat.
Scholar-governed Zakat policy
All Zakat policies are overseen by a panel of reputed Islamic scholars. NZF is an official partner of the Australian National Imams Council.