Azzad clients to donate $6.7 million in charity from investment accounts this Ramadan

Firm encourages giving zakah to non-profit organizations hurt by coronavirus pandemic FALLS CHURCH, Virginia, 5/5/20 — Azzad Asset Management, a socially responsible, faith-based registered investment advisor, announced today that its Muslim clients are expected to donate approximately $6.7 million in zakah-related charity during the holy month of Ramadan. Zakah–sometimes spelled zakat–is an obligation that practicing Muslims pay on assets held for a full lunar year, including investments. Purification dues, which are another category specifically for Islam-compliant investments, are also calculated by Azzad. Both figures are reported to clients on a consolidated zakah and purification statement sent each Ramadan. This year’s zakah is likely to be given in part to the many non-profit organizations struggling financially in the face of the COVID-19 pandemic. Some mosques, many of which rely on in-person donations to meet a majority of their monthly revenue needs, fear they could be forced end operations entirely as giving dries up due to social distancing and lockdown orders. This Ramadan, Azzad is encouraging its clients to consider donating to mosques and other zakah-eligible non-profit organizations impacted by the coronavirus crisis. The third pillar of Islam, zakah is assessed on accumulated wealth in order to encourage the free flow of

May 5, 2020 No Comments

Azzad clients to give away $6.7 million in zakah this Ramadan

Falls Church, Va., May 20, 2019 — Azzad Asset Management, a socially responsible, faith-based registered investment advisor, announced today that its Muslim clients are expected to donate approximately $6.7 million in charity during the holy month of Ramadan. Azzad reports Islamically mandated charitable totals, or zakah, to clients in an annual statement issued during the month of Ramadan. Many Muslims choose to pay zakah during Ramadan–a month of fasting, worship, and giving–which began this year on May 6. The firm is an advocate of Islamic investing principles, including zakah calculation, and regularly educates the American Muslim community on the topic. The third pillar of Islam, zakah–sometimes spelled zakat–is an obligation that practicing Muslims pay on assets held for a full lunar year. Zakah should be assessed on accumulated wealth in order to encourage the free flow of capital and avoid a concentration of resources among the very few. Zakah is not a tax on income, but on wealth and savings in order to help those in need. Azzad follows best practices and guidelines issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). AAOIFI is a consortium of Muslim scholars who convene to issue guidelines on halal investing and other financial matters. AAOIFI Standard Number 35,

May 20, 2019 No Comments

American Muslim investors to donate $5.6 million to charity in Ramadan

Falls Church, Virginia, June 6, 2018 – Azzad Asset Management, a socially responsible, faith-based registered investment advisor, announced today that its Muslim clients are expected to donate approximately $5.6 million to charity during the holy month of Ramadan. The figure is the highest since Azzad began providing this calculation in 2005. In a statement, Azzad said: “We are once again proud to help our clients fulfill their religious obligations and are gratified to facilitate the donation of more than $5.6 million to those in need. Charity is essential to the proper practice of Islamic investing, and we hold ourselves to the highest standard when it comes to calculating accurate zakah and purification amounts for our clients.” The third pillar of Islam, zakah–sometimes spelled zakat–is an obligation that practicing Muslims pay on assets they have owned for at least one full lunar year. The company calculates that its clients will give approximately $4.7 million in zakah and an additional $900,000 in purification dues, bringing the total to $5.6 million. Azzad reports the amounts to its Muslim clients in annual statements issued during the month of Ramadan. Many Muslims choose to pay zakah during Ramadan–a month of fasting, worship, and giving–which began this year on May 15. The firm regularly educates the

June 6, 2018 No Comments

FAQ about zakah and how Azzad calculates it

Here is some background info on zakah and purification, how Azzad calculates it, and the answers to a few frequently asked questions. Zakah is a financial obligation that every Muslim must pay if they own certain assets that are worth more than a certain amount, called the nisab, if they have owned those assets for at least a period of 12 lunar months, called the hawl. Every year, Azzad calculates zakah due on our clients’ accounts with us. Calculations are performed on 23 Sha’ban to give us time to prepare and send individual statements for clients to receive during Ramadan, when many Muslims choose to pay their zakah. We consider the following when calculating zakah: Whether the investments held in the account are intended for trade or for generating income. Whether the accounts are tax-deferred, taxable, or non-taxable. Any taxes or penalties that would become due if the accounts were to be liquidated and the money withdrawn by the account holder. Any tax calculations are based on the account owner’s federal and state tax bracket. Any penalty calculations are based on the account owner’s age. Asset that qualify as purification (see next section) are excluded from the zakatable total.

April 10, 2018 No Comments

American Muslim investors donate $4.6 million to charity for Ramadan

Azzad calculates zakah amounts for clients to meet Islamic investing requirements Falls Church, Va., June 14, 2017 — Azzad Asset Management, a socially responsible, faith-based investment firm, announced today that its Muslim clients are expected to donate a record amount of money this year in order to fulfill their religious obligation of giving in charity a certain percentage of their wealth. The company calculates that its clients will give approximately $3.9 million in zakah (mandatory charitable giving) and an additional $700,000 in purification dues, bringing the total to $4.6 million. In a statement, Azzad said: Charity is essential to the proper practice of Islamic investing, and we hold ourselves to the highest standard when it comes to calculating accurate zakah and purification amounts for our clients. We are honored to help our clients with their religious duties and are gratified to facilitate the donation of $4.6 million to the underprivileged in society. We remain committed to the ethical, Islamic business practices on which we were founded and look forward to providing this essential service for many years to come, God willing. Azzad reports the amounts to clients in an annual statement issued during the month of Ramadan. Many Muslims choose to pay their zakah during Ramadan–a month of

June 14, 2017 No Comments

Azzad clients to donate more than $4 million in charity this Ramadan

FALLS CHURCH, Va., June 21, 2016 — Azzad Asset Management, a socially responsible, faith-based investment firm, announced today that its Muslim clients are expected to donate a record amount of money this year in order to fulfill their religious obligation of giving in charity a certain percentage of their wealth. The company calculates that its clients will give approximately $3.5 million in mandatory charitable giving, or zakah, and an additional $550,000 in purification dues, bringing the total to more than $4 million. Azzad reports the amounts to clients in an annual statement issued during the month of Ramadan. Many Muslims choose to pay their Zakah during Ramadan–a month of fasting, worship, and giving–which began this year on June 6. “Azzad Asset Management is dedicated to helping American Muslims practice this important pillar of their faith,” said Azzad President and CEO Bashar Qasem, CSAA. “And in today’s challenging climate, it is all the more important to facilitate the good that observant Muslims contribute to their communities. As the financial services industry’s sole provider of tailored zakah calculations for clients, we are pleased to be a part of such a meaningful and socially conscious activity.” Clients are responsible for donating the calculated amounts to the charity or charities of their choice. The Azzad

June 21, 2016 6 Comments

Azzad clients to give $3.7 million in charity

FALLS CHURCH, Va., July 8, 2015 — Azzad Asset Management, advisor to the Azzad Funds and sponsor of the Azzad Ethical Wrap Program, announced today that its Muslim clients are expected to donate a record amount of money this year in order to fulfill their religious obligation of Zakah, or giving in charity a certain percentage of one’s wealth. The Islamic investment firm calculates that nearly $3.2 million will be given in mandatory charitable giving, with an additional $500,000 in purification dues. The amounts are determined using proprietary software and reported to clients in an annual statement. Clients are responsible for donating the amount to the charities of their choice. The third pillar of Islam, Zakah (sometimes spelled Zakat) is universally recognized among the faithful as an obligation–usually stated as 2.5%–that every Muslim must pay on assets above a minimum threshold if held for a full lunar year. Many Muslims choose to pay their Zakah during Ramadan, a month of fasting, worship, and giving, which began this year on June 18. For this reason, Azzad calculates annual charitable amounts for its wealth management clients during this month. Why Zakah Matters Zakah is an important part of maintaining the Islamic ideal of

July 8, 2015 No Comments

Zakah and Purification: Forgotten Pillars of Islamic Finance?

Most people know the basics of Islamic finance: avoid interest, stay away from prohibited lines of business, and make sure your advisory board has the right credentials. But it’s not every day that people talk about zakah and purification. Both concepts are inseparable from Islamic finance but are regularly omitted from the conversation. Let’s look at why this is and what’s being done about it. Key terms As the third pillar of Islam, zakah is universally recognized among Muslims as a requirement for the proper management of their finances. Every Muslim must pay zakah on certain types of assets that have a value above a minimum amount and that they have owned for at least 12 lunar months. Purification is an essential though lesser known aspect of Islamic investing that involves the donation of income earned from any unacceptable business activities by companies in which a shareholder is invested. Since it is possible to unintentionally earn small amounts of prohibited income from otherwise permissible investments, Islamic scholars advise cleansing accounts of such money. Because zakah is not paid on amounts coming from unacceptable or impure sources, purification amounts are calculated first and then subtracted from account balances before determining zakah

August 5, 2014 No Comments

Azzad clients expected to donate a record $3 million to charity this Ramadan

(Falls Church, Virginia, 7/10/14) – Azzad Asset Management announced today that it has mailed annual Zakah and purification totals to clients. Observant Muslims will use the calculated figures to fulfill their charitable giving obligations for the year. Assuming clients donate the amounts reported on their statements, Azzad representatives say that approximately $3 million will be donated to charitable causes in the United States and abroad. In a statement, Azzad said: “Zakah and purification are essential to the proper practice of halal investing, and we hold ourselves to the highest standard when it comes to calculating accurate amounts for our clients. We are gratified to facilitate the donation of $3 million to those in need, a record-breaking amount for the firm. We remain committed to the ethical, Islamic business practices on which we were founded and look forward to providing this essential service for many years to come, God willing.” In addition to providing asset management and investment advisory services to clients, Azzad is an outspoken advocate of the Seven Tenets of Halal Investing, including zakah and purification, and regularly educates the American Muslim community on these sometimes complex issues. See: Calculating Zakah on Modern Financial Assets (YouTube) As the third

July 10, 2014 No Comments

Azzad issues annual zakah and purification statements to American Muslim clients

(Falls Church, Virginia, 7/24/13) – Azzad Asset Management, advisor to the Azzad Funds and sponsor of the Ethical Wrap Program, announced today that it has completed annual Zakah and purification calculations for investors. Statements have been delivered to clients, who will use the calculated figures to determine their required charitable giving for the year. Assuming clients donate the amounts reported on their statements, Azzad representatives say that approximately $2 million will be donated to charity in the United States and abroad. The firm uses a proprietary, self-developed software program to calculate the amount of money clients are advised give to charity in order to fulfill their religious obligations. Clients disburse the money to the charity or charities of their choice. In a statement, Azzad said: Charity is essential to the proper practice of Islamic investing, and we hold ourselves to the highest standard when it comes to calculating accurate Zakah and purification amounts for our clients. We are honored to help our clients with their religious duties and are gratified to facilitate the donation of close to $2 million to the underprivileged in society. We remain committed to the ethical, Islamic business practices on which we were founded and look

July 24, 2013 No Comments