LaunchGood

Zakat Policy

Zakat Policy

Updated: 24th February 2025

Zakat is one of the five pillars of Islam, and it is the obligation of every Muslim who has sufficient wealth. Beyond being a compulsory act and a means to purify one's wealth, Zakat also functions as a way for Muslims to support other members of the Ummah in financial need. It is important to note that, unlike other charitable acts and forms of financial assistance, Zakat is governed by specific conditions and rules that must be followed in order to be valid.


The Qur’an identifies eight eligible categories (At-Tawbah 9:60):

  1. The poor
  2. The needy
  3. Zakat collectors
  4. Those whose hearts need reconciliation (Mu’allafa al-qulub)
  5. Emancipation of slaves
  6. Those in debt
  7. In the path of Allah (Fi sabilillah)
  8. The traveler


To ensure that Zakat is dispensed to the correct recipients, LaunchGood has established this comprehensive verification policy. Given that Zakat is a religious obligation that must be allocated to specific recipients to be properly fulfilled, the accurate direction of these funds is paramount. Consequently, fundraisers claiming Zakat eligibility must target recipients who meet the criteria outlined by Shari'ah. This rigorous verification process ensures that only those fundraisers aimed at these specific Shari'ah-compliant recipients receive the “Zakat-verified” badge. This approach maintains the religious integrity of Zakat and helps assure donors that their Zakat contributions are being directed towards the correct recipients.

Zakat campaigns on LaunchGood

(1) The poor and (2) needy

Any individual with insufficient wealth qualifies as a Zakat recipient. The recipients in this category must be Muslims, and funds must go directly to the individual, either as cash or goods—unlike community projects (like building wells) that do not directly transfer ownership to individuals.

Examples of eligible Zakat use:

  • Providing cash assistance to a struggling family
  • Offering essential goods (e.g., food, clothing, medical aid) directly to those in need

Examples of ineligible Zakat use:

  • Building a well that benefits a poor community but does not transfer direct ownership to individuals
  • Funding general community projects that do not provide direct, exclusive benefits to specific Zakat-eligible individuals

(3) Those whose hearts need reconciliation (Mu’allafa al-qulub)

There are different views among scholars:

  • Hanafis: Consider this category only applicable during the Prophet’s ﷺ lifetime.
  • Malikis: Consider this category applicable to non-Muslims who may be encouraged to accept Islam.
  • Shafi’is: Limit it to new Muslims, to strengthen their faith.
  • Hanbalis: Consider both non-Muslim leaders and new Muslims to help spread Islam.

Examples of eligible Zakat use:

  • Supporting a new Muslim in need
  • Providing aid to a non-Muslim community leader interested in learning about Islam

Examples of ineligible Zakat use:

  • Funding general da’wah projects that do not directly benefit individuals

(4) In the path of Allah (Fi sabilillah)

Over time, scholars and institutions have interpreted this category in different ways:

  • The classical view: Focuses on military defense and Hajj pilgrims in need.
  • The contemporary view: Includes supporting Muslim welfare causes, per scholars like Shaykh Yusuf Qaradawi.

LaunchGood verifies campaigns under the contemporary definition if they:

  • Alleviate poverty or improve health for needy Muslims.
  • Promote Islamic interests in areas where Muslims are a minority and are in dire need.

Examples of eligible Zakat use:

  • Building a water filtration system for a poor Muslim community
  • Supporting da’wah efforts in a non-Muslim country

Examples of ineligible Zakat use:

  • Funding military campaigns


Some categories are either non-applicable or difficult to verify. These include:


(5) Zakat collectors

Many classical jurists restricted the definition of Zakat collectors (‘amilin ‘alayha) to those appointed by an Islamic government for Zakat collection and distribution. Contemporary scholars have differed on whether this could apply to charity organizations that operate under a non-Islamic government.

This category is only eligible if the organization is collecting for other recipients. For this reason, LaunchGood does not verify campaigns that solely raise for this category.

(6) The traveler (Ibn sabil)

This category refers to travelers who are, otherwise well-off, stranded or lost access to their funds during their journey.

LaunchGood does not verify these fundraisers, as due to technological advancements, it is unlikely that a person stranded would have the ability to create a campaign/have a campaign created for them but not have access to their funds.

(7) Those in captivity (Riqab)

Historically for helping enslaved individuals gain freedom — however, this category no longer applies today.

(8) Those in debt (Gharimin)

This category applies to two types of indebted individuals:

  • Those with personal debt reducing someone’s net assets below nisab (verified under "The poor and needy").
  • Those with third-party debt taken to prevent harm or conflict. LaunchGood does not verify these cases due to difficulty confirming the situation.

Custom Verification Settings

Since there is a difference of opinion on the definition and eligibility of certain recipients, users can select to toggle on/off any group of recipients regarding which there is a difference of opinion.

LaunchGood allows donors to choose their preferred verification settings based on different scholarly opinions:

(1) Poor and Needy: Valid recipients according to all classical and contemporary scholars
(2) Community Welfare: Valid recipients according to many contemporary interpretations
(3) New Muslims: Valid recipients according to Shafi’is, Hanbalis, and many contemporary interpretations
(4) Religious Support: Valid recipients according to many contemporary interpretations
(5) Non-Muslims: Valid recipients according to Malikis, Hanbalis and many contemporary interpretations

LaunchGood Zakat Policy Review

The position of the Madhabs on Zakat eligibility have been researched and compiled by Shaykh Omar Baig, and checked with respective scholars regarding

Shaykh Omar Baig

Shaykh Omar Baig was born and raised in Mississauga, Canada. He spent some years in North Carolina, Florida, before traveling to New York where he completed his memorization of the Holy Qur’an at Darul Uloom Al-Madania. He then traveled to Chatham, Ontario, to complete his ‘Alimiyya degree at Darul Uloom Canada.

Shaykh Omar continued his studies in Bury, England, where he completed an Ifta’ program in Hanafi jurisprudence under the guidance of senior scholars of the UK. Upon completion, his academic journey took him to the blessed city of Madinah Munawwarah where he spent four years obtaining a bachelor's degree in Islamic Law from the Faculty of Shari'ah.

Expanding his expertise into the realm of Islamic finance, Shaykh Omar recently completed a master's degree in Islamic Finance from INCEIF University in Malaysia. He currently serves as a Fiqh and Hadith instructor at Darul Uloom Canada.


Scholars Consulted

  • Hanafi Madhab review: Mufti Wahajuddin (Michigan, USA)
  • Maliki Madhab review: Shaykh Ma’an Dabbaagh (UK)
  • Shafi’i Madhab review: Shaykh Ibrahim Khidr (Georgia, USA)
  • Hanbali Madhab review: Shaykh Abdullah Ashraf (Texas, USA)


Note: The scholars mentioned above reviewed the definitions of each category based on their respective madhab. However, they do not participate in the actual verification process. Additionally, each madhab may have other zakat-related conditions that fall outside the scope of this policy.

Verification process & Zakat-verified badge

At LaunchGood, every Zakat fundraiser is individually verified for eligibility by our Zakat team. The Zakat-verified badge allows Zakat givers to quickly identify Zakat fundraisers on LaunchGood.

The Zakat-verified badge allows Zakat givers to quickly identify Zakat campaigns on LaunchGood.

For any questions about our Zakat policy or verification process, please contact our Zakat Team.

Frequently Asked Questions

What does LaunchGood not do?

In accordance with our Terms of Use, LaunchGood does not review the internal procedures, accounting, handling, or distribution of Zakat funds that are managed by a fundraising organizer. Users are advised to do their due diligence for any fundraiser they are funding and follow up with organizers to hold them accountable for their use of funds and delivering impact as specified in their fundraisers. After a fundraiser is closed and the funds are released, donors may be notified so that any further follow-ups may be directed to the organization collecting Zakat for accountability and reporting.

Zakat is a religious obligation each individual is responsible for. LaunchGood does its best to facilitate information for the donor so they know how their Zakat will be used. However, it is the donor’s responsibility to ensure their obligation of Zakat is fulfilled.

What does LaunchGood do to ensure fundraiser authenticity?

All fundraisers, including those that are Zakat-verified, undergo our standard review for safety and compliance to ensure authenticity and legitimacy as further detailed by our Trust & Safety team.

Which fundraisers are eligible for Zakat verification?

Any fundraiser that selects the Zakat-eligible option in the Admin tab will go through the Zakat verification process by our team of Zakat experts according to LaunchGood’s Zakat policy.

Zakat-verified badges can only be applied to fundraisers that are approved by LaunchGood’s team of Zakat experts. In order to maintain accuracy, organizers that add their own Zakat-verified badge on the cover, profile photo, or within the pitch may be subject to deletion.

What if your fundraiser includes both Zakat and non-Zakat donations?

For fundraisers that are collecting for a mix of eligible and ineligible causes, we encourage the following wording:


“All Zakat donations will go to and . All other donations will go towards as Sadaqah.”

Example:

“All Zakat donations will go towards orphan sponsorship and providing food. All other donations will be considered Sadaqah and will go towards building the mosque.”


Campaigns with such wording will be marked as Zakat-verified.

What details should you provide to verify your fundraiser's Zakat eligibility?

We encourage providing details pertinent to Zakat eligibility, for example:

  • In which country is the beneficiary orphan being sponsored?
  • What is the amount of the medical loan?
  • Who is the specific audience for the dawah initiative?

Can fundraisers that are not Zakat-eligible still collect donations?

Yes! Fundraisers that are ineligible for Zakat can still collect donations, which can be distributed to anyone unconditionally.

Are credit card processing fees considered part of your Zakat donation?

Credit card fees are not considered part of your Zakat donation. For all donations, mandatory industry-standard credit card processing fees apply.

Depending on the payment processor, country, or card, these processing fees are typically 2.9% + $0.30 per transaction.

We strongly advise all donors to add an additional 3% to their Zakat donation as a best practice.

Does LaunchGood make any money from my donations?

LaunchGood charges 0% platform fees. Donors have the option of leaving a tip at checkout to support LaunchGood’s operational costs.



For any questions about our Zakat policy or verification process, please contact our Zakat Team.