Make the most of the End of Financial Year (EOFY) 2024-25

As the end of the financial year draws near, so does the dreaded tax season. Many of us have started sorting through our receipts, trying to figure out which purchases we can claim as a deduction on our tax return. These include any significant charitable donations made towards an ACNC-registered charity with DGR status, such as Islamic Relief Australia.

However, as Muslims, is it possible for us to claim any donations (Sadaqah, etc.) we make as tax deductions? The short answer? Yes! But to help you further, here are answers to some commonly asked questions on claiming a tax deduction for your donations.

FAQs: Tax Deductions and EOFY Charity Giving

How do tax deductions work for Australian charities?

The Australian Taxation Office (ATO) lists “gifts and donations” as eligible for tax deductions. If you make a donation over $2 AUD to a charity that has DGR status (as Islamic Relief Australia does), you can claim that back as a deduction on your tax return. This means you get a component of what you gave before the end-of-financial-year (EOFY).

What are EOFY donations? 

End of financial year (EOFY) donations are charitable donations made before midnight on 30 June. In Australia, donations of $2 or more to a registered charity with Deductible Gift Recipient (DGR) status can be claimed as a deduction on your tax return. EOFY donations can help reduce your taxable income (allowing you to pay tax on a lower income) while supporting the causes you care about most. 

To qualify, your donation must: 

• Be made before 11:59 pm AEST on 30 June 
• Be to an organisation with DGR status (like most registered charities) 
• Be a true gift, not a contribution (you don’t receive anything in return) 
• Have a receipt or proof of the donation 

How do EOFY donations help with your taxes?

While you won’t be able to get a refund for all your EOFY donations, they can reduce how much tax you pay.

Here’s how it works.

When you lodge your tax return, you can claim any eligible donations made during the financial year.  

For example, if your income is $70,000, and you donate $1,000 to a DGR-endorsed charity, you may only be taxed as if you earned $69,000. 

How much return you get back depends on your income and marginal tax rate, but the principle is simple: the more you give (within your means), the less tax you may owe. 

How to make an EOFY donation

Making an end-of-financial-year donation doesn’t have to be complicated. It’s just takes five simple steps. 

EOFY Giving Checklist 

• Choose a registered charity 
• Donate $2 or more 
• Give before 30 June 
• Keep your receipt 
• Claim it on your tax return.

Does claiming donations as a tax deduction affect the intention with which you gave?

No, it doesn’t take away in any way from the initial donation you gave. It has achieved its intention and reached its beneficiary, insha Allah!

Rather, what this means is that you are reclaiming a portion of the money that is rightly owed back to you by Australian tax law. That is then extra money back in your pocket.

If I give what I receive back, is that extra reward?

Yes, insha Allah! It is wealth you could have done something else with, so if you give it back in charity yet again, that is yet another sadaqah for you, insha Allah!

Should I increase my donations at this time of year (at the EOFY)?

You can and should if your situation allows. It means you could claim back more as deductions, and your charity will go further than it may have otherwise.

Where should I donate?

To ANY cause you wish. With Islamic Relief Australia, all your donations are going to be eligible for these tax deductions. In turn, as a signatory to the ACFIC code of conduct, we commit to upholding transparency, effectiveness, and ethical development practices in all our programs, ensuring the support of donors like you reaches those most in need, effectively and sustainably.

We encourage you to look at all our appeals and giving options. Medical aid for Gaza and Sudan are the most important emergency relief campaigns we are running.

May Allah (SWT) reward you for your generosity!

General EOFY donations FAQ 

• Are donations 100% tax-deductible in Australia?

  They can be so long as your donation goes to a registered charity with Deductible Gift Recipient (DGR) status and meets the ATO’s requirements. You can check DGR status using the ABN Lookup. 

• What is the maximum donation to deduct on taxes?

  There’s no fixed limit. However, your donation must be within your ability to claim, as you can’t claim more than you earned.

• Can I claim donations on this year’s tax return?

  Yes, so long as you made the donation before midnight AEST on 30 June. Donations made after that will count for the next financial year. 

• How do I know if a charity is tax-deductible?

  Look for a charity that has DGR status. Most organisations with this status will say this on their donation page. You can also verify it through the ACNC Charity Register or the ABN Lookup. 

As we bid farewell to Ramadan, we look back on a month of faith and generosity, when the spirit of giving brings hope to those facing hardship. 

This Ramadan, your generous donations helped Islamic Relief distribute over 200,300 food packs, reaching over 1,300,371 people in need in 33 countries around the world*. An estimated 19,407 Zakat al-Fitr packs have also been delivered, supporting 102,315 people*.

And as Eid al-Fitr comes and goes here in Australia, our Eid gift distributions are ongoing for vulnerable children around the world, with over 60,000 children receiving gifts*.

From conflict zones to areas affected by natural disasters, our teams have worked tirelessly to ensure that families in crisis get the help they need this Ramadan. Together, we helped families break their fasts with dignity and mark this blessed month.

Here’s a snapshot of some of our distributions around the world.

Indonesia

In the West Java province in Indonesia, your donations helped us give 82-year-old Suartinah, her three children, and her 10-year-old grandson, a food pack filled with staple ingredients to prepare nutritious meals during Ramadan.

Living on a limited daily budget, the elderly widow struggles to afford basic essentials like water, electricity and household necessities, often relying on support from her children.

Palestine

In Gaza’s Zeitoun neighborhood, 36-year-old Ahmed, his wife, and their three young sons have been displaced multiple times after losing their home and livelihood in an airstrike. 

Now living in a crowded shelter, the family struggles with extreme food shortages, and Ahmed’s eldest son, Yusuf, suffers from severe malnutrition. With no income and soaring prices, Ahmed even risked his life trying to obtain a bag of flour to feed his children once. 

Islamic Relief’s Ramadan food basket provided much-needed relief, ensuring families had essential food for iftar and suhoor. This support helped ease their suffering during a time of immense hardship.

Yemen

As Yemen marks 10 years of war, our teams on the ground have reported that cases of malnutrition among children are increasing in remote rural districts of Yemen.

Your generous donations meant that families in need didn’t have to face another Ramadan worrying about their next meal.

Rohingya refugees in Bangladesh

In Bhasan Char, Bangladesh, 43-year-old fisherman Nur lives with his family of 12. “Since our arrival in Bangladesh, we have been dependent on aid and support,” he explains.

“With limited opportunities to earn a living, I sometimes go fishing in the canal and along the seashore, hoping to catch some fish.” Despite these efforts, the family’s survival relies on humanitarian assistance. 

The Ramadan food packs from Islamic Relief this year were a lifeline for Nur. 

“These packages help us prepare proper meals for Iftar, making it easier to observe fasting despite the challenges we face,” he says.

Nur is grateful, saying it “brought us relief and strengthened our faith, knowing that we were not alone in our struggles”.

Albania

For thousands of families in Albania, particularly those in rural areas and mountainous regions, poverty is a daily reality. 

With poor access to clean water, sanitation, health, and education, these families are struggling to build brighter, more stable futures.

Your generous donations helped provide families in need with vital food packs containing oil, rice, sugar, pasta, beans, dates, bulgur wheat, tomato sauce, and other essential items.

Afghanistan

Gul Bibi, an elderly woman in Kabul, Afghanistan, received cash for food assistance this month. For families in need like hers, your support means everything.

Malawi

Around 70.1% of people in Malawi are living on less than $2.15 per day.

The nation heavily depends on agriculture, making it vulnerable to climate change impacts. Climate-induced disasters, such as Cyclone Freddy in 2023, have exacerbated food insecurity and caused widespread crop failures, threatening the livelihoods of millions.

To ease the burden of those struggling to find food for iftar, we provided vital food packs to people in need.

Syrian Refugees

46-year-old Umm Mahmoud lives with her six children as Syrian refugees after being displaced from Aleppo city due to the war. 

After her husband was separated from her and she became deaf from a bombing. She struggled to support her children, especially during Ramadan. “I couldn’t afford to provide food for my children or buy them new clothes for Eid. They longed for Eid outfits or even a special meal, but I couldn’t give them that.”

Your support for our Orphan Sponsorship Program, which also helps Syrian refugees, brought relief to Umm Mahmoud during this blessed month.

Sudan

As Sudan prepares to mark two years of war this April, our Eid gift distributions brought hope to children living in dire conditions.

More than 3.7 million children are now reported to be acutely malnourished and many families are eating just a few mouthfuls of sorghum a day.

Your Eid gifts brought hope to vulnerable children and orphans suffering through things no child should have to endure.

Spreading the Ramadan joy

Thanks to your generosity, Islamic Relief has been able to support families in need across the world this Ramadan. While these distributions have provided much-needed relief, the reality is that for millions, the struggle against hunger does not end in Ramadan.

We remain committed to serving vulnerable communities, working towards a future where no one has to worry about their next meal. With your continued support, we can build on this impact and reach even more people in need.

May Allah accept your kindness and bring ease to those facing hardship, Ameen!

*Please note the figures mentioned in this report are currently estimates. As our Ramadan program is still ongoing, the final report with exact figures will be available in the coming months.

At Islamic Relief, we use your donations in the way that benefits rightsholders the most. To raise the most money for the world’s most vulnerable people and distribute those funds responsibly, effectively and fairly.  

Because for every $1 we spend:

• 86c directly into helping people in need 
• 11c to raise more funds
• 3c on administering the funds and making sure we are accountable

This all ensures we can continue the lifesaving work we do and reach even more people in need, sustainably and with quality care. 

So, for every 1c we spend on fundraising, we raise an additional 10c. That’s an extra $1.10 on top of your $1. Your donation is DOUBLED, Alhamdulillah! 

Are My Donations Being Used Effectively?  

The most important question should be ‘Are your donations being used effectively?’ 

With Islamic Relief, the answer is YES! Each day, Islamic Relief works hard to be a safe pair of hands for your donations. We’re accountable to you, to the people we serve and most importantly to Allah (SWT). 

Alhamdulillah, because of your support, our family has transformed and saved over 120 million lives since 1984. 

In Gaza, we are on the ground daily, providing millions in aid amidst ongoing conflict. In Sudan, we are fighting hunger and malnutrition and granting shelter to the millions displaced. As conflict and disease continue to grip our planet, we’re there to support vulnerable communities in need. 

We don’t claim to have a 100% donation policy 

We aim to use your generous donations in the most effective way possible, whilst remaining as transparent as possible! Did you know that we’re able to multiply your donations? So, we could claim to have a 100% PLUS donation policy, but we don’t. 

Find out why Islamic Relief does not use a 100% donation policy here. 

Together, we’re saving and transforming the lives of some of the world’s most vulnerable people. Without your support, we wouldn’t be able to do any of this. Please continue to give to Islamic Relief and help save even more lives. 

Frequently Asked Questions

• How are your donations spent?

  For every $1 we spend: 

  • 86c goes directly towards helping people in need 
  • 11c is invested in raising more funds 
  • 3c goes towards administrative costs 
• How much of my donation will go directly to people in need?

  How much of my donation will go directly to people in need? 

  For every $1 donated to Islamic Relief Australia, 86c goes directly towards programs and initiatives that help people in need. 

  We spend 3p on administrative costs and invest 11p into raising more funds. 

  For every $1 we spend on fundraising, it makes $11 back. Alhamdulillah! 

  All of our income we use to help people in need. Because admin and fundraising costs are an essential expenditure in helping us to achieve our aims. 

• Are people aware of Islamic Relief Australia’s admin costs?

  We believe in transparency and accountability. Information on admin costs and annual financial accounts is readily available on the Islamic Relief Australia website.

  We also have the information included in our Annual Report. This is independently audited and lodged with ACFID (Australian Council for International Development).

  We also distribute our Annual Reporto key stakeholders, feature it on our website and promote it on social media. In turn, our financial statement is also available on the ACNC website. 

  We are making every effort to make people aware that Islamic Relief has admin costs. As well as why admin costs are a necessary expenditure for a high-performing and transparent charity. 

• Who ensures that admin costs are not being misused?

  Islamic Relief must submit its independently audited accounts annually to the ACNC. This the main body that registers and regulates charities in Australia to ensure that the public can support charities with confidence. 

  The ACNC is an independent, non-ministerial government department accountable to Parliament. If the ACNC has any concerns about the way a charity is running itself or presenting its information, it can hold the charity to account. 

  Islamic Relief is also a member of ACFID. Being a member of ACFID ensures adherence to high ethical and operational standards through the ACFID Code of Conduct. It provides credibility, compliance support, and access to resources. It also helps organisations strengthen policies, meet regulatory requirements, and improve accountability and transparency. All while offering training, networking, and advocacy opportunities to enhance impact and trust with donors and stakeholders.

• Why do we need admin costs at all?

  It costs money to deliver aid and to do it well. Because of admin costs, we can ensure the people who need it most receive the best possible support, and not towards the wrong places. 

  Admin costs can cover a range of necessary expenses. This includes governance costs (e.g. audits), monitoring and evaluation (to ensure the delivery of this project and its planned impact). As well as rent for buildings, insurance, appropriate staff salaries, volunteer expenses, and equipment (e.g. laptops, phones) etc. 

  Islamic Relief ensures that it gets the best value for money to help deliver aid on the ground, and raise more funds for the people who need it the most. 

• Why can’t Islamic Relief staff work for free or volunteer their time?

  The majority of staff at Islamic Relief work on a full-time basis. This ensures our donors’ money is spent in the most effective and impactful way. They are professionals who bring specialist skills and knowledge in order for us to deliver our work to high standards. This is how we can ensure that more people affected by conflict and natural disasters as well as those living in poverty can get the best help they need and deserve. 

  Islamic Relief is also working to help communities build their future with long-term projects. This can take a huge amount of work, commitment, and time for staff. 

  Staff would not be able to do this voluntarily on a full-time basis without a salary. They themselves need to support themselves and their families. Without staff, the work could not continue. 

  Those working for Islamic Relief are also an investment to raise more money, awareness, and funds, which ultimately means we can reach and help more people. 

  The scope of international development, campaigning, advocacy and working to raise awareness of those suffering across the work is a mammoth task and even full-time staff cannot cover everything. This is why we also ask volunteers to help by giving their time to help with events, fundraising, advocacy and campaigning. We engage with over 200 volunteers in Australia – their contribution is invaluable and highly appreciated. 

  Nearly all of Islamic Relief’s overseas staff and volunteers are local people who come from the communities they serve. 

• Do Zakat donations have admin costs?

  Yes – Islamic Relief utilises a small percentage of Zakat donations towards admin and fundraising costs. When you make a Zakat donation, we take a fixed amount of 12.5% in admin fees. 

  In the Qur’an, Allah tells us that zakat is for eight categories of people, including: “…those employed to administer the funds…” (9:60).  

  We have sought the opinion of well-respected scholars, who have informed us that since there are eight deserving categories, each is entitled to a proportion of 12.5%. This means whatever we spend on administrative costs and raising more funds are Zakat-eligible as per the Shariah.  

• Isn’t fundraising costs part of admin?

  Admin costs help us to deliver aid and to do it well. Thus, this ensures the people who need it most receive the best possible support and the money goes to where it is needed. It can cover governance costs (e.g. audits to comply with legal obligations and Charity Commission rules), rent for buildings, insurance, admin staff salaries, volunteer expenses, equipment (e.g. IT equipment) etc. 

  However, fundraising costs are an investment to generate more income which means we are able to help even more people. 

  Together we refer to these as ‘support costs’ and both are essential expenditure in helping us to achieve our aims. 

Why doesn’t Islamic Relief use a 100% Donation Policy? In this explainer, we explore why 100% donation policies aren’t really possible and the relevance of admin fees in Islam. We also examine how having admin fees is one of the best tools we have. As they allow us to support the communities we serve to the fullest, helping them build a brighter future.

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Islam teaches us that Allah (SWT) rewards good deeds abundantly. Kindness to others, reading the Qur’an, doing regular Ibadah (worship) and giving charity are examples of all good deeds we, as Muslims, are greatly encouraged to do. And when they are done with sincere intention, one can earn copious rewards.

Charity-giving, more specifically, Zakat (almsgiving), in particular, forms one of the five pillars of Islam. In 2022, a study by the World Bank and the Islamic Research and Training Institute (IRTI) of the Islamic Development Bank (IDB) estimated that the global Zakat fund reached $550 billion to $600 billion per year. This has the power to lift communities in need out of poverty, providing them with humanitarian assistance and more during times of war, conflict, economic crisis and disaster.

However, when it comes to choosing where to give their donation, the Muslim community face an annual dilemma. The question of a ‘100% donation policy’, and how we navigate the minefield of misinformation that comes with it.

What is a 100% Donation Policy?

A ‘100% donation policy’ or ‘no admin costs’ is a method used by some charity organisations to imply that 100% of a donor’s money, in its entirety, goes straight to those in need. When compared to charities who are transparent about their admin fees, this looks like the superior choice. Understandably, so many would be confused about the ethics surrounding their donation.

When donating to a charity, here are some important questions to consider regarding your donation:

• If 100% of my donation goes directly to those in need, how are those charities covering the costs needed to deliver it directly to them?
• Are the charities promoting a 100% donation policy transparent about how they’re covering their admin costs?

Any charity performing life-saving work is almost certainly employing the relevant means to help them do it, whether that be through staff, vehicles, buildings, and more. All of these cost money. This is why a 100% donation policy wouldn’t work. This is why we encourage our donor community, and beyond, to instead focus on the question, “How effectively is my donation being used?”.

Why Admin Fees are Necessary in Lifesaving Work

We’re here to help provide more information on what exactly happens to your donation when you donate to Islamic Relief. As well as why we don’t use a 100% donation policy, how this isn’t really possible, and why our admin fees are one of the best tools we have for serving the communities at the heart of our work.

Here are five reasons why admin fees are powerful and important for those in need:

It costs to help those in need on the ground

Islamic Relief is fortunate to have been able to provide aid to millions of people in over 40 countries since 1984. We often work in remote areas of the world to get help to those in urgent need. Where our teams face challenges working in conflict zones or after the impact of a natural disaster.

Thus, admin fees help facilitate the delivery of our aid on the ground. They cover essential costs. This includes procedures in conducting needs assessments to ensure our aid is relevant, fuel for cars to transport aid, rent for local offices, salaries for staff and expenses for volunteers who help deliver our life-saving responses. They also cover the costs of monitoring and evaluating the impact of our work. Without admin, our work simply wouldn’t be possible.

It helps us to use your donation in the most effective way possible

Did you know, that for every $1 donated to Islamic Relief, just 3c is used to cover admin costs? Although a minuscule amount, it has an incredible impact on our ability to use your donation as effectively as possible.

Out of your donation, a further 11c goes towards raising more funds for those in need. This portion of your donation is carefully and effectively used to pave the way for ground-breaking work in fundraising. Thus, for every $1 invested, we’re able to raise $10 more, which enables us to continue delivering more aid. Making the remainder of your $1 donation (86c!), going a phenomenal way towards our life-saving work.

Since 1984, your generous donations have helped transform and save over 120 million lives. We couldn’t do this without your support, and we are accountable to you for every penny spent.

Admin fees change the future

You’re helping Islamic Relief to build a brighter future for those in need. As well as delivering aid, Islamic Relief works to campaign for the most vulnerable communities and strives to effect change. This includes campaigning on issues such as climate change, which is having a devastating impact on communities in the global south, as we saw in 2022 during the Pakistan floods.

Your admin fees are not going towards band-aid solutions. The thought leadership that is required to use sustainable energy to power water projects in Lebanon, Yemen and Somalia, and build disaster-resistant housing in Türkiye, Pakistan, and Indonesia. It is the same that is required to mitigate the effects of global issues that tackle the root causes of poverty and inequality around the world.

Admin fees are an Islamically legitimate cost

Zakat has strict rules around the eligibility of the donor and the one who receives it. The impact of this obligatory form of charity is powerful and has the ability to eliminate poverty in the world.

In His divine wisdom, Allah (SWT) decreed that one of the eight people eligible to receive Zakat, are the administrators of Zakat, the al ‘amilina alayha. Islamic Relief enlists the help of scholars to verify the distribution of Zakat at Islamic Relief, and ensure your precious donation goes towards upholding this upright practice.

It’s our calling, our living

Alhamdullilah, since 1984, by the will of Allah (SWT) Islamic Relief has been able to serve the world’s most vulnerable people. Thanks to the support of our volunteers, staff, and generous donors, we are able to carry out life-saving work.

When volunteers donate their time to support our work, Islamic Relief covers their basic expenses. Our staff work incredibly hard to ensure that volunteers’ efforts are properly supported. So we can create the worldwide impact that we have around the globe, moving towards our goal of eliminating poverty.

As an organisation, it’s important to sustain our employees’ abilities. To help us achieve our mission, this includes paying them a salary. Many of our staff see their role in the sector as a calling to help those in need. However, they would be unable to do so without being able to cover the cost of living.

It’s also important for us to consider the incredible skill set of our employees on the ground, who deliver ground-breaking work and solutions to increasingly complex situations across the world. Staff expertise helps us to deliver innovative solutions, like rainwater harvesting in Bangladesh to ensure communities have access to clean water.

Localisation in our work is extremely important to us. That is why 95% of our staff are employed from within the areas and communities we serve, to ensure we’re sensitive to the cultural and religious requirements of those in need. Because our staff are from the areas that we work in, they know what’s needed on the ground. They help ensure that we reach as many people as possible, even in the most difficult-to-access regions like Yemen and Gaza.

You donation helps us save lives

Poverty impacts so many vulnerable people across the world. Islamic Relief will continue to put the most vulnerable first, always. But, in order to do that, we need your support. Transparency around our admin costs is an integral part of the relationship we have with our loyal donors. We are accountable to those in need, and to you, our loyal donors. Thank you.

Zakat (zakaat, zakah), one of the Five Pillars of Islam, is a central part of the faith. It is a mandatory form of charity for every Muslim with wealth over a certain threshold (Nisab).

Its importance in Islam means it’s vital for Muslims to make their Zakat payments on time. Especially as its proper distribution plays a significant role in supporting those in need within our Ummah.

However, what happens when certain circumstances push someone to advance or delay paying Zakat? In this article, we will explore the Islamic perspective on this topic, with guidance that, insha’Allah, helps you be more confident in making your payments.

The Importance of Paying Zakat on Time

As one of the Five Pillars of Islam, it is important for Muslims, who are eligible, to make timely Zakat payments. For Allah (SWT), in the Qur’an, mentions wealth distribution as a “recognised right for the needy and poor” (Al Ma’arj, 70:24-25).

Likewise, Prophet Muhammad (ﷺ) emphasised this ruling, stating “Allah has made it obligatory on (the believers) to pay the Zakat which will be taken from the rich among them and given to the poor among them.” (Sahih al-Bukhari)

As such, timely Zakat payments are important in Islam as serve as a means of protection and support for those in need. Thus, failing to fulfil this obligation on time can result in hardship for those who rely on these funds.

It also may deprive us of the blessings associated with this important Pillar of Islam. For Allah’s Messenger (ﷺ) also said,

“Whoever is made wealthy by Allah and does not pay the Zakat of his wealth, then on the Day of Resurrection his wealth will be made like a baldheaded poisonous male snake with two black spots over the eyes. The snake will encircle his neck and bite his cheeks and say, ‘I am your wealth, I am your treasure.’ ” Then the Prophet (ﷺ) recited the holy verses:– ‘Let not those who withhold . . .’ (to the end of the verse). (3.180).

Sahih al-Bukhari

When is it Permissible to Delay Zakat Payments?

Scholars agree that delaying Zakat payments, even after a day or two, is a sin if done without legitimate reasons and requirements. Therefore, a Muslim who meets the requirements for Zakat must do it on its due date, with five exceptions.

1. Their Zakatable assets are not immediately accessible.
2. They designated their Zakat for poor relatives or desperate community members not immediately (but soon) accessible.
3. They are in the process of (and will soon complete) assessing the need levels of Zakat’s intended recipients
4. A recognised Zakat authority has postponed its collection’s due date for a legitimate reason, such as a natural disaster or economic collapse. During the Caliphate of Umar ibn Al-Khattab, may Allah (SWT) be pleased with him, the Zakat collection was postponed because of famine. The next year, when the famine had ceased, Umar collected the Zakat for both years at the same time.
5. They had paid his or her Zakat in advance.

Advancing Zakat Payments: Supporting the Ummah in Times of Urgency

Where there is an urgent need, Islamic teachings allow Zakat to be paid in advance. The Shafi’i, Hanafi, and Hanbali schools of thought all permit making Zakat payments in advance. The Maliki school and a few other scholars, who are in the minority, disallow it, with two exceptions: (1) when there is a pressing need to aid people facing hardship, and (2) when the timetable of Zakat collectors establishes the collection time close to its due date.

The Prophet (ﷺ) also mentioned that he owed Ibn ‘Abbas the Zakat amount for that year “and another equal amount too” (Muslim). Commentators of this hadith that the Prophet had collected two years of Zakat in advance from Ibn ‘Abbas for the benefit of the Muslim community (Shawkani).

As such, this flexibility of Zakat payments stems from the understanding that it serves to support and protect the most vulnerable members of society. When situations arise that require immediate assistance, advancing its payment can provide much-needed relief and stability for those struggling.

For our brothers and sisters in countries like Palestine (Gaza) and Yemen as well as Syrian Refugees, devastated by war and conflict, receive Zakat early can mean the difference between life and death.

Giving With Zakat Islamic Relief

Islamic Relief dedicates every day to providing aid and assistance to vulnerable communities worldwide. By giving Zakat through our organisation, be confident that your donation will make a lasting impact on those who need it most.

Our teams across the globe take extra care to ensure any Zakat received has maximum impact. Because, at Islamic Relief, we harness the power of Zakat, using it in the most efficient way possible to reduce suffering and poverty. As we want to not only help vulnerable people today, but also to help them escape poverty – for good.

We are serious about Zakat, because we are accountable to you, all those who have a right to receive it, and – most importantly – to Allah (SWT).

Our Zakat fund is shari’ah compliant. As with everything we do, we strive to be both purposeful and true. We are working closely with qualified scholars to ensure that our Zakat policy is in strict accordance with what Allah has ruled. Your obligatory Zakat is an Amanah (trust), and when you entrust us to distribute it carefully and correctly, we take that trust seriously.

Our rigorous governance makes sure that, from the moment you donate to the moment it’s handed over to its rightsholders, your Zakat is in safe hands. Because we ensure we distribute only to those who are eligible under the eight categories stipulated in the Qur’an.

With your Zakat, we can bring relief and hope to people in desperate need. Don’t forget to use our Zakat Calculator today to calculate Zakat.

Every year, in Ramadan and beyond, your Zakat has a huge role in helping us reach more of our Ummah in need.

Together, we’ve faced another year of worsening crisis and ongoing instability and poverty around the world. However, thanks to your generous donations, we were empowered to help over 11.1 million people around the world last year.

Across Palestine, Türkiye, Sudan, East Africa, Afghanistan, Pakistan, Morocco, Libya, and more, we swiftly responded to crises, thanks to your support. This is the power of your Zakat.

The Power of Zakat: It could end global poverty

Zakat (Zakaat, Zakah) is an important Pillar of Islam. It could also have the power to end global poverty.

According to the UN, the amount needed to achieve the first two Sustainable Development Goals – to end extreme poverty and hunger globally – is approximately $300 billion.

Prophet Muhammad (ﷺ) was sent to bring Islam to the entire world. So if we imagine that everyone around the globe gave 2.5% of their wealth to those in need, the annual amount would be trillions of dollars. Imagine what could be done with that!

Yes – Zakat could have the power to end poverty. If everyone around the world gave 2.5% of their wealth as Zakat we could end poverty together, SubhanAllah!

Of course, ending poverty isn’t simple. Conflict, inequality, water shortages, climate change, lack of education, poor public infrastructure and basic human greed all create and shape poverty.

Allah (SWT) has shown us the way – all we need to do is follow. That is the power of Zakat.

Islam has ended poverty before!

There are few leaders who have left a mark on society the way that ‘Umar ibn ‘Abd al-‘Aziz did. He is considered one of the finest leaders in Muslim history, an authority in Islamic law (mujtahid) who had memorised the Qur’an (hafiz), and who used his leadership to serve people.

“O people, obey me as long as I obey Allah; and if I disobey Allah, you are not duty-bound to obey me.”

Umar ibn ‘Abd al-‘Aziz said on becoming the khalifa in 717 AD

He organised the collection of Zakat and distributed it to the needy. He was so successful that, when the treasury later sought those who were poor and eligible to receive Zakat, they simply couldn’t find anyone in any of the lands he ruled over!

After less than two and a half years in power, the great khalifa was poisoned by one of his servants, who had been hired by his opponents. Learning what had happened, ‘Umar asked the servant how much he was paid for the assassination, ordered him to return the fee to the treasury as ill-gotten money, forgave him and allowed him to leave freely.

Even the Emperor of Rome, when hearing of his death, remarked: “A virtuous person has passed away. I would hardly be surprised if I saw an ascetic who renounced the world and gave himself to praying to God. But I am certainly surprised to see a person who had all the pleasures of the world at his feet, but still shut his eyes against them and lived a life of piety and renunciation.”

Islam has given us the answers to all our struggles, from the smallest to the greatest, including global poverty – Alhamdulillah.

Your Zakat is in safe hands

Fulfilling an Amanah (trust)

Islamic Relief’s global Zakat activities are in accordance with the teachings of Islam, enabling Islamic Relief to fulfil its Amanah in the best way possible.

Maximum Impact

Our teams across the globe take extra care to ensure that any Zakat received has maximum impact and is used in the most efficient way possible to reduce suffering and poverty.

Clear Guidance

We work with scholars to ensure clear guidance on how Zakat should be fundraised, allocated, distributed, and monitored.

Transparency

To ensure our Zakat activities are conducted in the most transparent and Islamically compliant manner possible, we ensure internal and external reporting on Zakat projects. We also publish information on how Zakat has been spent in our Annual Report.

We are serious about Zakat, because we are accountable to you, all those who have a right to receive it, and – most importantly – to Allah.

Our Zakat fund is shari’ah compliant. As with everything we do, we strive to be both purposeful and true. We are working closely with qualified scholars to ensure that our Zakat policy is in strict accordance with what Allah has ruled. Your obligatory Zakat is an Amanah (trust), and when you entrust us to distribute it carefully and correctly, we take that trust seriously.

Our distributions around the world are carefully designed to harness the power of Zakat: we want to not only help vulnerable people today, but also to help them escape poverty for good. Our rigorous governance makes sure that, from the moment you donate to the moment it is handed over to those who have a right to receive it, your Zakat is in safe hands, distributed only to those who are eligible under the eight categories stipulated in the Qur’an.

With your Zakat, we can bring relief and hope to people in desperate need.

Don’t forget to use our Zakat Calculator today to calculate Zakat.

For many Muslims, Ramadan marks a month of generosity and giving. There are also many ways to give during this blessed month.

Fulfiling Zakat and Fitrana (Zakat al-Fitr), increasing Sadaqah, or repaying missed fasts through Fidya (Fidyah) or Kaffarah — these can all be ways to give in Ramadan.

So, why do Muslims give more during this month? Ramadan is filled with many opportunities to earn rewards through good deeds and providing charity is one of them.

In fact, the Prophet Muhammad (ﷺ) himself gave more charity during this blessed month than at any other time. In one hadith, Ibn Abbas reported,

“The Prophet (ﷺ) was the most generous of people in charity, but he was generous to the utmost in the month of Ramadan…giving charity like the blowing wind.”

Sahih Muslim

The Importance of Charity in Islam

Caring for and showing kindness towards fellow human beings is central to Islam. Several ahadith refer to this deep affection and brotherhood. This includes one where the Prophet Muhammad (ﷺ) encouraged his people to “love for your brother what you love for yourself.” (Bukhari and Muslim)

In another hadith, he (ﷺ) also said, “The believers are like one body in their mutual love and affection: if one limb is injured, the rest responds with sleeplessness and fever.” (Muslim)

Giving charity is also one of the best ways to aid someone in need. In the Qur’an, many verses emphasise the importance of this good deed. Such as the verse stating how the poor and needy have recognised right, over our wealth (Al-Ma’arij, 70:24-5).

In addition to how charitable acts benefit those who receive it, Islam also highlights the blessings that come to those who give. Especially one who gives their wealth away selflessly for Allah (SWT)’s sake.

Thus, by giving for the sake of others, a Muslim fulfils a duty. To provide for their brothers and sisters in need. Thereby increasing their rewards for this life and the Hereafter.

Ways to Give During Ramadan

Zakat (al Mal)

Zakat al Mal, or almsgiving, is one of the five pillars of Islam. It is a compulsory donation every sane, adult Muslim must make every lunar (Islamic) year if they meet a certain threshold (Nisab).

The amount one pays for Zakat, if they are eligible, is equal to 2.5% of one’s total wealth. The Nisab amount for Zakat in 2025 has yet to be decided.

In 2024, the value of silver was $1.11 (AUD) per gram. If using the opinion of 609 grams of silver for Nisab, the Nisab threshold is approximately $675.99. For 595 grams of silver, it is $660.45 (AUD). This is the amount set by ANIC for 2024.

Many Muslims give Zakat in Ramadan due to the numerous rewards offered in this blessed month. Most Islamic schools of thought also allow individuals to pay their Zakat in advance if there is an urgent need, such as in the case of an emergency or humanitarian crisis.

Due to the situation in many countries like Palestine (Gaza) and Sudan, some Muslims choose to pay their Zakat ahead of time to answer the pressing needs of their brothers and sisters and do so in Ramadan to earn more rewards.

If you’ve already paid your Zakat for this Islamic Year, you do not have to pay it again during Ramadan. However, that doesn’t mean any charity you give during the month won’t count – it’ll be written down and Sadaqah and you’ll receive rewards for it.

Sadaqah

Sadaqah (or Sadaqa) is any voluntary act of charity that is wide-reaching and beneficial. It can be given as monetary charity or as an act of kindness.

Unlike Zakat, which is compulsory and typically given only once every Islamic year, there is no limit to how much Sadaqah you can give and how many times you can give it.

Some examples of Sadaqah include donating money to someone in need, feeding others or looking after someone who is sick or injured. Giving Fidya (Fidya), Kaffarah or Aqiqah can also be counted as Sadaqah.

Fidya (Fidyah) and Kaffarah

During Ramadan, fasting is compulsory on every Muslim who is healthy and of age.

Therefore, if one were to miss their fasts during Ramadan, valid or not, they would have to make up for it later or pay compensation.

Muslims pay Fidya (Fidyah) if they miss a fast out of necessity and are unable to make it up after Ramadan. The payment for each missed fast is equivalent to feeding one person.

If one deliberately breaks a fast without a valid reason and they are unable to make up for it later, Kaffarah is paid. The amount paid for each missed fast is the equivalent of feeding 60 people.

In Australia, the rate for both Fidya and Kaffarah in 2025 is $18 (AUD) per needy person. For example, if a person had missed one day of fasting, then they would need to pay $18 for Fidya or $1080 for Kaffarah.

Zakat al Fitr (Fitrana)

Zakat al Fitr (also known as Fitrana) is a charitable donation of food that must be given before Eid prayer, before the end of the month of Ramadan. If it is paid after Eid prayer on Eid Al Fitr then the donation will count as Sadaqah, making the reward lesser.

Fitrana is obligatory for all Muslims (including babies and children) living in any household with more food than they need. However, the payment itself should be carried out by the head of the household, on behalf of themselves and their dependents.

The amount of food due on each person is described by the Prophet (ﷺ) as one saa’. This is equivalent to four madd. A madd is the amount that can be scooped up when one puts their hands together.

If we translate this amount into a monetary value, based on a food staple such as flour or rice, it is approximately $18 (AUD). Therefore, the amount due for each person, in Australia, is $18. This is the amount set by ANIC for 2025.

Giving with Islamic Relief

This Ramadan, Islamic Relief is continuing its life-saving work. We make sure your donations get to those who need them most. around the world, even in the hardest-to-reach places.

Over the last 40 years, together, with your support, we have saved and transformed the lives of over 120 million people. Alhamdulillah!

We are supporting rightsholders in over 40 countries worldwide. Just like we have been with every major disaster since 1984. And, through all, we deliver food, water and emergency relief to those in desperate need.

None of our work would be possible without the permission, mercy, and generosity of Allah (SWT) and your unwavering support. Together, the Islamic Relief legacy continues on. And you have all been chosen to help us save or change someone’s life for the better.

This Ramadan, help us save even more lives by giving your Zakat and Sadaqah with Islamic Relief.

“…and those in whose wealth there is a recognised right, for the needy and deprived” (Qur’an 70:24-5)  

Thank you for giving your zakat to help vulnerable families globally. As a faith-inspired NGO we are guided by the Prophet’s (PBUH) way of life (Sunnah) and the Qur’an. We take your trust in us very seriously and work tirelessly to ensure your zakat donations are not just a simple transaction, but rather a means to end global poverty and suffering. Your zakat reaches those who need it most in the form of medicine, education, food, water, shelter, and so much more. May you be rewarded for you generosity and faith.  

In 2020, your zakat has touched the lives of over 28,751 people in dire need all over the world. These are some of the ways in which your zakat has been used.  

Providing warmth for refugees and disadvantaged communities in winter 

In 2020, we used your zakat to provide warmth to refugees and displaced families battling freezing winter conditions across Jordan, Bangladesh, Pakistan, and Afghanistan. In these parts of the world, severe storms and blizzards make it almost impossible for vulnerable families to stay warm and dry during winter. Uprooted by war or conflict, the greatest struggle is for refugees and displaced communities who are left exposed to the extreme cold. As part of our 2020 winter campaign, your zakat supported 16,000 men women and children with essentials like clothes, fuel, blankets and mattresses.   

Community-based healthcare for displaced persons in Afghanistan 

With decades of conflict in Afghanistan and the surrounding region, internal displacement is at record levels. Many have had to return to Afghanistan from neighbouring countries and thousands more are internally displaced, leading to a growing humanitarian crises. Using your zakat donations, we are funding a primary healthcare project largely focussed on mothers, children and young people. As part of this project, we will work to deliver: 

• improved maternal healthcare including antenatal and postnatal care for mothers; 
• nutrition support and psycho-social counselling for pregnant women; 
• improved nutritional levels for under-five children; and  
• intensive health support for severely and acutely undernourished children.  

We will also strengthen public health services through improved community-based health points and referrals, with learning and self-development opportunities for young people through youth clubs and community activities. The project will help over 4,000 community members, primarily mothers and children.  

A safe space for Syrian refugees in Jordan 

Syria is suffering as a result of a war that seems to have no end in sight. Syrian refugees are spread all over the Middle East, with many families experiencing trauma and poverty. These refugees have reported overwhelming feelings of isolation and depression, and rising levels of family violence (both verbal and physical). With very limited access to mental health and social services in Jordan, Islamic Relief runs a safe, communal space where women and children can come together, socialise, learn and also heal.  

Your zakat means that we can continue to provide vital support for Syrian refugees dealing with the psychological trauma of conflict in our safe space in Al-Ramtha, northern Jordan. The safe space provides 290 women and children – from both host and refugee communities – critical psychosocial support to help them on their journey to recovery. 

Improving the economic conditions of vulnerable communities in Mindanao, Philippines

This is a three-year development project in Mindanao, Philippines that aims to improve the economic conditions of 1,000 women, people with disabilities and youth in some of the most vulnerable communities in the region. The project is focused on supporting the local community become self-sufficient by increasing the production and marketing of local products.

Building the resilience of vulnerable communities in Indonesia 

Your zakat is benefitting over 3,000 community members in Bima City, Indonesia. The project is assisting mainly farmers achieve two main goals; to learn to prepare for and manage local disasters, and to save lives and livelihoods. Community members are being assisted to improve their farming techniques and to develop additional livelihoods through small business opportunities. Beneficiaries will be supported by training and mentoring initiatives as well as start-up capital. 

Alleviating suffering at home 

Your zakat has also been used to relieve suffering in Australia during 2020. Although Australia is a largely developed country, there are pockets of chronic disadvantage. To address this, we have a partnership with Brothers in Need where, amongst other activities, we support an initiative to provide food and essential items to the homeless.  

Your zakat is making a difference locally and more broadly – in countries that have experienced conflict and disasters, and in communities battling crippling poverty where development is so badly needed.  

In 2019, your zakat is not only helping to fight poverty through sustainable change, but it is providing immediate emergency relief when crisis hits. In the face of hunger, conflict, poverty or disaster, your donation is helping to build healthier, stronger communities.

See below for some of the ways your zakat is making a difference to those who need it most.

A safe space for Syrian refugees in Al Ramtha, Jordan

Your zakat means that we can continue to provide vital support for Syrian refugees dealing with the psychological trauma of conflict in our safe space in Al Ramtha, northern Jordan. The safe space provides women and children – from both host and refugee communities – critical psychosocial support to help them on their journey to recovery.

“The psychosocial support sessions were helpful – the idea of talking about your fears, expressing your feelings, and listening to others’ stories is useful. I met new friends – most of them at the Zumba class…I have seen a big difference in my daughters’ personalities.”
– Rihab, 36-year-old mother and Syrian refugee, Jordan.

A safe educational space in Aceh, Indonesia

In 2019, we used your zakat to complete the development of an earthquake resistant multipurpose community and education centre in Pidie Jaya, Aceh, Indonesia – one of the hardest hit areas from a devastating 6.4 magnitude earthquake in 2016.

Emergency medical support for Syrians

Along with in-kind donations, your zakat continues to deliver critical medical support to Syrians injured as a result of the ongoing conflict. The project spans across 30 health facilities including hospitals, primary health care centres, hospitals and physiotherapy centres in the Aleppo and Idlib Governorates.

Improving the economic conditions of vulnerable communities in Mindanao, Philippines

This year, with your zakat donation, we were able to commence a three-year development project in Mindanao to improve economic conditions for women, people with disabilities and youth in some of the most vulnerable communities in the region. The project will deliver: i) increased income through social enterprises; ii) improved conditions for social enterprises to thrive; and iii) increased participation of women, youth and people with disabilities in the community. The project will establish and strengthen partnerships for producing and marketing local products and help the local people connect with local, national and international markets.

Building the resilience of vulnerable communities in Indonesia

In 2019, we commenced a new project to strengthen the resilience of vulnerable communities living in Bima City, Indonesia. The project, Convergence of Disaster Risk Reduction and Livelihood Resilience for Communities (CODRAL), aims to achieve two main goals over the next three years: firstly, to improve the ability of highly-vulnerable – predominantly farming – communities to prepare for and manage local disaster events, and secondly, to save lives and livelihoods. It will encourage community members to modernise and strengthen their existing farming techniques, and also diversify their livelihoods through small business opportunities, which will be supported by training and mentoring initiatives as well as start-up capital.

Supporting the higher education of Palestinian students in Malaysia

Your zakat is helping to support 21 Palestinian students who are currently studying at universities across Malaysia in various fields of study. This project aims to (indirectly) help strengthen certain institutions in Palestine through the enhanced skills and expertise of these students, most of whom will return to Palestine and apply their learning at home.

 

The Zakat for Prosperity project has supported communities in West Lombok, Nusa Tenggara Barat, through the introduction of simple adaptive farming mechanisms. 

Nusa Tenggara Barat (NTB) is a region of eastern Indonesia.  It has some of the highest levels of poverty and food insecurity in the country.  Sixty-one per cent of rural sub-districts suffer chronic food insecurity, and the majority are in Lombok.  

Most people live in rural communities and more than 90% of the rural population derive their livelihoods from agriculture. This means most people are highly vulnerable to the impacts of climate change. 

How Climate Change Affects Communities 

Rainfall patterns are becoming increasingly unpredictable. This affects the way farmers approach their work and affects planting decisions. Climate Change has lead to declining agriculture production, loss of income and widening staple gaps at the household level.   

In the absence of supporting services such as alternative livelihoods, resource poor households often have no choice other than to accept low wages for occasional unskilled labour or to become migrant workers. 60% of households in the community have at least one relative working as a migrant overseas. 

Migrant workers are often over worked and under paid and their protracted separation causes additional stress and insecurity for their families.  

Working as a Housekeeper to Specialising in Hydroponic Farming Techniques 

Murni, a mother of five whose husband is disabled through a work place accident, has been the main income earner for her family for the past seven years. In order to support her family, Murni spent many years working as a housekeeper in the Middle East.  

Female headed households like Murni’s experience particularly high levels of marginalisation due to limited skills and access to productive assets such as land and capital.  

Now, however – thanks to an innovative hydroponic agriculture project implemented by Islamic Relief – Murni, alongside 300 other farmers and 200 students, have received technical training in hydroponic farming techniques and have additional income to support their families and remain within their local community.  

How We Do It

Our team in Indonesia has built Hydroponic Training and Production Facilities at five Sites in West Lombok. Alongside this, farmers received the hydroponic tools, inputs and technical supervision and training needed to ensure they grow, cultivate and harvest high value vegetables using hydroponic techniques.  

In Hydroponic Cultivation, farmers grow crops in low-cost greenhouses using hydroponic instead of soil.

This also allows farmers to grow crops in controlled temperatures and with limited land.

Virtually any plant can be grown, regardless of the season and the technique uses 20% of the water required in traditional methods, meaning that farmers can still grow vegetables during the dry season.  

Community Response 

Murni says

 “other group members and I are encouraged to run a hydroponic farming business. In the beginning, we were all confused about the farming system, because usually we just cultivate plants in the farm land, how come the plant can grow nicely in water? But after attending hydroponic training from the expert, we understand the system, and now we can grow several kinds of vegetables by ourselves”. 

Murni and the other farmers received further training in business and marketing skills to enable them to maximise their income.  

 “We not only learnt how to grow vegetables through the hydroponic system, but also how to make good packaging and market it strategically”. 

They have been able to produce High Value Hydroponic vegetable products such as green lettuce, red lettuce, kale, water cress, mustard, red/ green spinach and have sold them in the local markets, including restaurants and hotels servicing tourists. The cooperatives have also signed a contract with the largest supermarket in Lombok to supply vegetables every two weeks and have received requests from others. 

“Alhamdulillah, we can gain additional income from the vegetables sold to the market. Demand of the products has increased significantly due to the high orders from supermarket, hotels and restaurants”. 

The income obtained as result has been utilised to further cover the Hydroponic production support and support daily needs of households like Murni’s, who can now generate a meaningful income and reducing their vulnerability to climate change.