Prepared for Deleted 5. | Delivered September 29, 2020
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To determine a donor profile and to provide estimates on total donated to Shari'ah organizations. Additional details surrounding motivations, interests, pains, and/or the tools used to donate would be preferable.
As there are not specifics surrounding donations to Shari'ah specific organizations, as a proxy these findings will focus on donations in general as a part of zakat, which calls for anyone
Muslim as a religion to donate
2.5% of their wealth once a year
to help the poor and needy. Of note, most data in these findings will be estimates and predictions, as John
, of the National Philanthropic Trust U.K., states certain religious obligations within Islamic teachings stress the importance of being "
private and not boastful
about your philanthropy."
US DONATION INSIGHTS
According to VOA, Islamic Relief USA received
$19.3 million in zakat contributions
Belkacem Nahi, regional manager for Islamic Relief USA, states that zakat contributions range anywhere from "
$25 to a $1 million
, depending on the person’s wealth. People who give extra zakat will receive more of a reward from God, while helping those in need.
There are "Islamic regulations in place for
determining how much zakat
a person should give" and as such many Muslim organizations offer z
on their websites.
GLOBAL DONATION INSIGHTS
Based on data collected from the United Nations, CNN Business reports that zakat contributions ranged anywhere "between
$232 billion and $560 billion
globally in 2015."
Privacy in zakat is wide-spread. Further data illuminates that while the "six Gulf states alone were
home to more than 5,000 people worth $30 million
or more in 2016 (with an estimated combined riches at $994 billion.)" only "
20 donations of $1 million
of more" were tracked from that region in 2015. A Harvard Business Review report states that "calculating the
amount of zakat generated in Arab countries is next to impossible
. Most Arabs make their donations privately and informally, so there are no records."
BEHAVIORS OF ISLAMIC DONORS
The Islaminc Research and Training Institute (IRTI) released
a study in 2017 examining the motivations of Islamic donors
. Highlights from this study are provided below:
64 % of donors pay zakat because it purifies their wealth.
Benevolence and concern for the poor and the needy motivates 63% of donors.
Interestingly, though privacy in donations is touted in may other sources, this study found that "37% (of respondents) feel that zakat organizations must acknowledge his/her contribution through a letter or a note or some other form of recognition."
40-41% of respondents feel that the central government should collect and distribute zakat.
While 67% of respondents state they have a fair knowledge of how to estimate their zakat liability, 27% need professional advice and assistance.
Individual zakat donors place a lot of value on audit with 58% opting for mandatory and independent financial audit and 65% for Shari’ah audit.
This study further segments
donors into three clusters. Characteristics of those cluster groups are included below:
Traditionalist — parsimonious,
Traditionalist — conservative
Individualist — anarchist
No data was uncovered that illuminated any details surrounding specific donations to Shari'ah organizations, as such donations (especially zakat) has been focused on.
As there is limited information on these types of donations, it is not suggested that attempts be made to create either a demographic or psychographic profile.
We were not provided a geographic focus for this project, so we assumed a broad approach and looked both at the US and globally to provide insights. If a more targeted approach is desired, for example, the United States, this would have to be clearly communicated to us in any reply.