Can a Donation Count Toward Fulfilling Zakat Obligations?


Shafi'i Fiqh

Answered by Shaykh Muhammad Carr

Question

If an employer matches an employee’s donation, can the matched amount be considered for zakat purposes? For example, if I owe $4,000 in zakat and donate $2,000, and my employer contributes the remaining $2,000, would my zakat obligation be considered fulfilled?

Answer

Thank you for your question.

May Allah reward you abundantly for your commitment to fulfilling this sacred obligation. Zakat is one of the fundamental pillars of Islam, emphasizing both spiritual growth and social responsibility. Allah says, “Accept charity offerings from their wealth, cleansing and making them grow thereby to full purity in faith and deed.” [Quran, 9:103].

Structured correctly, your employer’s contributions can be considered zakat. The employer’s contribution is essentially a gift to you. Once you receive the gift, you use it to pay your zakat.

If your employer is paying the zakat directly to the recipient, the arrangement should be structured as follows:

• The employer gifts the amount to you (as a gift (hadiyya), not a legal gift (hiba)).
• You appoint the employer as your agent to distribute your zakat, making the intention of disbursement at this stage. This is necessary because zakat is an act of worship that requires intention.
• If your employer, acting as your agent, is a non-Muslim, you must specify the recipients [See Jamal, Hashiyat al-Jamal].

I pray this is of benefit and that Allah guides us all.

[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Faraz Rabbani

Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefitted from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali, and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door to students. As an imam, he has the unique opportunity to serve his community in daily life.

In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari‘a Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.