Giving Compass' Take:

• Aamir A Rehman and Francine Pickup explain how the United Nations Development Programme has partnered with BAZNAS to harness Zakat money to fund the SDGs where natural mission alignment exits.

• How can other religious organizations be called to align their giving with the SDGs? 

• Learn about a halal investing platform. 

Zakat is a form of philanthropy found around the world. All Muslims eligible to pay it must donate at least 2.5 percent of their accumulated wealth. As such, it is one of the largest forms of wealth transfer to the poor and needy in existence. Inspired by the Muslim faith, Zakat is now a global phenomenon of relevance and not only in Muslim majority countries.

Alleviating hunger, poverty, and inequality, promoting peace and protecting the environment are central to the core Islamic principles known as the Maqasid Shariah. The Quran identifies eight categories of eligible use for Zakat, including helping the poor and needy, refugees and displaced people and liberating those in bondage. Zakat thus aligns strongly with numerous SDGs, including no poverty (SDG 1), zero hunger (SDG 2), reduced inequalities (SDG 10) and others. Collaborating with Zakat donors and administrators reflects the spirit of partnership for the goals (SDG 17).

Through an innovative partnership, UNDP Indonesia has partnered with BAZNAS – the national Zakat collection body – to harness Zakat funding for SDG-related projects. Here’s how the partnership works:

  1. BAZNAS collects funds as per its organizational mandate
  2. BAZNAS makes grants to the UNDP to implement projects, and
  3. The UNDP implements projects in accordance with the UN Charter and the UNDP’s global policies.

Also, the UNDP, in keeping with its principles and policies, makes no representations about religious law and will never discriminate on the basis of religion. It only accepts grants on terms consistent with its global principles. The first major collaboration between BAZNAS and the UNDP was the installation of micro hydropower plants, which bring electricity to more than 4,500 people in four remote communities. This is part of a larger renewable energy project supported by the Global Environment Facility.

Read the full article about Zakat for the SDGs by Aamir A Rehman and Francine Pickup at United Nations Development Programme.