Innovations in zakah calculation and distribution
A thousand years ago zakah was relatively simple. As new financial products were developed, zakah became a bit more complex. Thankfully, our methods have also developed. Doing calculations is easier than before due to the emergence of personal computers and other mobile technologies. We now have programs, online and mobile applications which can easily be used to automatically calculate zakah. More innovative ways will probably be developed to simplify the process of zakah calculation. What are some of these modern zakah innovations?
Online zakah calculators
As the internet emerged, many of our daily functions have moved online. With the development of secure payment systems you can now pay bills, purchase groceries or book holidays online. Unsurprisingly, we can now also calculate and pay zakah online. Ulama organizations, welfare organizations, government bodies as well as the national zakah bodies of numerous countries have developed their own online zakah calculators. The links to the zakah calculators of the following organizations can be found below:
South African National Zakah Fund
National Zakat Foundation (UK)
National Zakat Foundation (Canada)
Badan Amil Zakat Nasional (BAZNAS)
Mobile applications
Similar to online calculators, numerous organizations allow zakah donations and calculations from mobile applications. Often, these zakah extensions are an addition to a charity or finance based mobile application. Some organization that have made mobile applications available to the public include:
Darul Ihsna, Al Imdaad and SANZAF. You can find the link to these apps by clicking here
All these applications have made zakah calculations immensely simple. However, there is always room for improvement to expedite the process of zakah management and calculations. Some nascent sectors that can be leveraged to assist in the expedition of zakah management and calculations are:
Artificial intelligence and advanced data analytics
There has been immense progress in easing zakah calculations. Due the complexities of certain asset classes, such as shares, zakah calculation may become a bit complex, especially in huge quantities. With data analytics and artificial intelligence becoming more advanced, ubiquitous and affordable we will start leveraging AI and advanced data analytics to refine zakah calculations. With AI and advanced data analytics already used by nascent fintech companies with an Islamic ethos, it is only a matter of time before these technologies become more common in the field of zakah.
Blockchain
Blockchain is a transparent, secure, auditable and efficient system. Since these are all characteristics that we strive towards in zakah dissemination, we can expect blockchain will play a larger role in contributing to the sustainability and efficiency of zakah agencies in the future.
Allah Knows Best
*Most organizations mentioned also accept sadaqa tul fitr/ zakatul fitr