Embracing digital giving

Zakat holds significant importance in Islam, serving not only as a means of wealth purification but also as a tool for its augmentation. It bestows sanctity upon one's earnings and assets, with its rewards encompassing divine pleasure, liberation in the afterlife, and the promise of Jannat.

Importantly, giving Zakat isn't an act of charity but rather a fundamental obligation, as it constitutes a rightful entitlement of the less fortunate. "Traditionally perceived as mere charity, Zakat takes on a transformative role when managed systematically, offering substantial potential to uplift the needy and foster societal integration. It stands as a cornerstone for delivering essential aid, education, and healthcare, and nurturing social harmony at the grassroots level," emphasized Hossain Zillur Rahman, Executive Chairman of PPRC.

He further underscores the 'ethical obligation' inherent in Zakat, a quality often lacking in many ongoing development projects. This element has the potential to drive a shift away from self-serving motives towards a more inclusive and beneficial societal approach.

Eid provides an opportunity for the affluent to support the underprivileged by means of donations, which may include Zakat and Fitra. In recent years, the facilitation of financial aid to diverse charity organizations and individuals has notably improved through the convenience of cashless transactions.

Introducing a new process of cashless transactions for Zakat can bring significant ease in terms of time and energy expenditure. Moreover, numerous dedicated Islamic and other social humanitarian organizations could ensure that Zakat funds reach the deserving segment of the impoverished population, thus maximizing the impact of donations.

Nagad, through its Islamic MFS Account, enables users to make donations for charitable purposes, including Zakat, to Islamic organizations dedicated to improving humanity. Users can conveniently calculate their Zakat using a dedicated Zakat calculator. By providing information such as yearly income, investments, gold, debts, and assets, users can ascertain the exact amount.

Once users have calculated their Zakat amount, they can easily access the donation option within the app and transfer funds to any of the numerous organizations that adhere to Shariah principles, including Bangladesh Cancer Aid Trust, Embassy of the State of Palestine, Bangladesh Thalassemia Foundation, AL MARKAZUL ISLAMI-AMI (Sadaka & Donation), and more. These organizations receive Zakat and can assure equitable distribution to needy Muslims under Islamic guidelines.

"In 2022, we started this initiative. By 2023, the volume of transactions for Zakat or donations had increased by 50 percent, and we anticipate a further 50 percent increase this year. Individuals can commence donating with a minimum of BDT10. While people traditionally contribute according to their means, we have observed that a significant portion of transactions fall within the range of 300-400 Taka. Nevertheless, we've also witnessed substantial Zakat amounts, such as Taka 10,000, which undoubtedly reflects a significant value addition," says Muhammad Zahidul Islam, Head of Media and Communications at Nagad.

bKash users have the opportunity to support 28 distinguished organizations, renowned for their extensive philanthropic endeavors over the years, thereby fostering a sense of trust. Donors enjoy the flexibility to disclose their identity or remain anonymous according to their preference. The option to make donations is conveniently accessible within the bKash app, ensuring ease and convenience for contributors.

Currently, bKash customers can easily provide Zakat and Fitra, assistance for food, education, and medical treatment for orphans, destitute, day laborers, and extremely poor to 28 charitable organizations like Bangladesh Thalassemia Foundation, JAAGO Foundation, Shakti Foundation, icddr,b, Dhaka Ahsania Mission, BRAC, etc., throughout the year with bKash.

"However, the number of donations doubles during Ramadan compared to normal times. In 2023, during Ramadan, more than a hundred thousand people donated through bKash," says Shamsuddin Haider Dalim, Head of Corporate Communications & PR at bKash.

Banks are currently offering options for collecting and distributing Zakat in a cashless manner, potentially improving the traditional approach to managing funds. For example, Trust Axiata Pay, or 'TAP,' has introduced a convenient method for paying Zakat, spearheaded by Trust Bank and supported by the Bangladesh Army.

"TAP is committed to facilitating Zakat distribution. We have enlisted several Madrasas and orphanages as recipients of Zakat, with more Madrasas undergoing the enlistment process. Donors can easily view the list of Madrasas by accessing the Zakat tab within their 'TAP' accounts. From the list of enlisted Madrasas, users can select the specific institution to which they wish to donate their Zakat, specify the amount, and proceed with the transaction. The chosen Madrasa will instantly receive the donated funds. Additionally, TAP can allocate Zakat funds to Madrasas if donors do not specify a particular institution," explains S M Akram Sayed, CEO of TAP.

However, Sayed notes that while many individuals have not yet accustomed themselves to giving cashless Zakat, there is a gradual increase in adoption, indicating promising prospects for the future.