Zakat fund transparency concerns rise in Hyderabad during Ramzan

With zakat collections in Hyderabad expected to touch Rs 400 crore this Ramzan, concerns over transparency and alleged misuse have emerged. Many youngsters are now directly distributing zakat to support education and small businesses instead of donating to organisations.

Hyderabad: With several social organisations entering into the zakat collection, there are doubts being raised among the community about the spending of the huge amounts of money collected as donations from the zakat givers.

Zakat is an obligation and Muslims calculate the zakat, one of the five pillars of Islam, on one’s annual savings, with at least 2.5 per cent of it to be distributed among the underprivileged. It is mainly dispensed during Ramzan.

In Hyderabad, every year, around Rs 300 crore of Zakat money changes hands during the month of Ramzan alone every year. With the rise in prices of gold, this year, around Rs 400 crore is expected to be dispensed collectively.

However, with allegations of fund swindling and misappropriation against several organisations, people are exercising restraint in donating money to NGO’s or social organisations.

As a solution, many youngsters have formed into groups and are directly getting involved with the zakat distribution process and are more focused on sponsoring education or setting up small businesses for the unemployed.

“We identify the deserving youth among the food delivery boys, e-commerce delivery executives or bike or cab taxi drivers with whom we interact at some point of the day. Some of them are students doing part-time jobs to fund their education or support their families and we help them and others should also do so,” said Syed Kashif, an IT professional.

Some professionals, who have a zeal for social service, visit the slums and identify the needy and directly help them by funding education of the students or helping the family in setting up a business.

“Not only in the city, but there is also a need for the community to reach out to the brilliant students staying in villages. Small financial assistance to the students will help them excel in their studies and bag good jobs,” said Mir Alamgir, a writer cum social worker.

SQ Masood, a social activist, said individuals, for the sake of doing something, are setting up organisations and collecting zakat donations. “A few social organisations are consuming the community resource for works which are supposed to be the responsibility of the government. Such works can be done by proper representation to the government directly or through Public Interest Litigation. I don’t think there is any need to spend community funds on those subjects,” says Masood.