The Quranic foundation

The distribution of Zakat is not a matter of organisational discretion. Allah has defined eight specific categories of recipients in the Quran, and Zakat may only be directed to these categories.

إِنَّمَا الصَّدَقَاتُ لِلْفُقَرَاءِ وَالْمَسَاكِينِ وَالْعَامِلِينَ عَلَيْهَا وَالْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِي الرِّقَابِ وَالْغَارِمِينَ وَفِي سَبِيلِ اللَّهِ وَابْنِ السَّبِيلِ ۖ فَرِيضَةً مِّنَ اللَّهِ ۗ وَاللَّهُ عَلِيمٌ حَكِيمٌ

"Zakat expenditures are only for the poor and for the needy and for those employed to collect it and for bringing hearts together and for freeing captives and for those in debt and for the cause of Allah and for the stranded traveller - an obligation imposed by Allah. And Allah is Knowing and Wise."

Surah At-Tawbah, 9:60

100% of Zakat collected by NZF is distributed strictly and exclusively to the eight Quranic categories defined in Surah At-Tawbah 9:60.

• Al-Fuqara - The poor
• Al-Masakeen - The needy
• Al-Amileen - Zakat Officers
• Al-Mu'allafatu Qulubuhum - Those whose hearts are to be reconciled
• Ar-Riqab - Freeing of captives
• Al-Gharimeen - Those in debt
• Fi Sabilillah - In the cause of Allah
• Ibn As-Sabil - The wayfarer / stranded traveller

No Zakat funds are used for general organisational operations, marketing, rent, IT, governance, or any expense that does not fall within one of the eight categories above. This is a binding policy commitment.

What “Zakat Officers” (Al-Amileen) means at NZF

This category refers specifically to those employed in the administration of Zakat: its assessment, collection, and distribution. Islamic scholarship permits up to 12.5% of Zakat collected to be allocated to this category.

At NZF, Al-Amileen refers exclusively to staff directly involved in Zakat assessment and distribution only. It does not include:

• Marketing or communications staff
• Finance, HR, or governance staff
• IT systems or operational overheads
• Rent, utilities, marketing or any other general expenses

How all other operational expenses are funded

All expenses that fall outside the eight Quranic Zakat categories, including all general organisational costs are funded exclusively through non-Zakat (Sadaqah) sources. These include below

• NZF Support Sadaqah donor contributions
• General Sadaqah
• Grants
• Dividends and investment returns

What our operational expenses include

The following expenses are funded entirely by non-Zakat (Sadaqah) sources:

• Staff salaries - compliance, finance, HR, marketing, and operations
• Superannuation and employment entitlements
• Rent and utilities
• Regulatory compliance and licences
• Safeguarding and risk management
• Finance, audit, and governance
• IT software and subscriptions
• Technology and infrastructure
• Community programs
• Zikkies thrift stores operations

NZF operates entirely within Australia, with local staff on Australian wages, superannuation, and tax obligations. All financials are reported in full compliance with ACNC requirements. When comparing employee expense percentages across charities, note that operating models vary significantly - a simple ratio does not reflect differences in structure, scale, or service delivery.

Governance and transparency

NZF’s full financial reports are published on the ACNC website and in our annual reports. The ACNC Financial Overview references “Employee Expenses” which corresponds to the operational expenses described above - funded through non-Zakat sources except for Zakat assessment and distribution staff.

Our commitment to governance protects donor trust, beneficiary dignity, and the long-term sustainability of Zakat services for the Australian Muslim community.