Islamic Social Financing (ISF) is a Corporate Social Responsibility (CSR) initiative in the form of humanitarian and socio-development programmes by Islamic Financial Institutions (IFI) and corporations.
ISF is done through various approaches and structures that are predefined by Syariah Law. Among the main structures in ISF programmes are Zakat, Awqaf, Purification Fund, Sadaqah, Microfinance and Sukuk.
Innovative investments in humanitarian action through ISF will not only lead to long-term social improvements, but also to long-term resilience and to adaptive capacity-building for communities at risk. Such investments will empower communities to recover more strongly from shocks as well as facilitate social and economic inclusion within their populations.
Datuk Dr. Mohd Daud Bakar is the Founder and Executive Chairman of Amanie Group. One of its flagship companies namely Amanie Advisors, is operating in few cities globally. He serves as the Chairman of the Shariah Advisory Council (SAC) at the Central Bank of Malaysia, the Securities Commission of Malaysia, the Labuan Financial Services Authority, the Astana International Financial Centre (AIFC), Kazakhstan, the First Abu Dhabi Bank, and Permodalan Nasional Berhad (PNB).
MERCY Malaysia has been appointed as a Zakat Collection and Distribution Agent by Lembaga Zakat Negeri Kedah (LZNK) and Majlis Agama Islam Perlis (MAIPS) and Majlis Agama Islam Kelantan (MAIK) respectively. Muslims are encouraged to pay their zakat to the respective Zakat authorities through MERCY Malaysia. Through the Zakat initiative, MERCY MALAYSIA provides an efficient, trusted and discreet route to ensure Zakat contributions go directly to the people most in need.
The obligatory alms that Muslims are required to pay as an obligatory alms tax is known by its Arabic name “zakāt.” Zakat is taken from specific sources of wealth and given to specific categories of recipients. The specific sources of wealth include livestock, savings, trade goods, crops, and minerals.
The 8 categories of eligible recipients for Zakat are mentioned in the Quran: “Alms are only for the poor and the needy, and those who collect them [Zakat], those whose hearts are to be reconciled, captives, debtors, in the cause of Allah, and wayfarers“. (Fuqara, Masakin, Amil, Muallaf, Riqaab, Gharimeen, Fi sabilillah, Ibnu Sabil)
It is a shared responsibility to respond to the burgeoning humanitarian needs, which have reached a new peak. MERCY MALAYSIA’s Zakat initiative is fully Shariah compliant.
To provide an alternative source of funding for Humanitarian works , through an efficient and trusted route for people to fulfil their Zakat obligations, while ensuring their donations go to needy recipients .
MERCY Malaysia’s Zakat initiative is designed to help Muslims fulfil their obligations regarding Zakat. Non-Zakat donations can be made to MERCY Malaysia Humanitarian Fund.
Our focus with the Zakat initiative is ease, speed and transparency –You may transfer your Zakat to our dedicated bank account with the following instructions to ensure it is recorded and spent as Zakat money
Yes, quarterly reports on MERCY MALAYSIA’s Zakat initiative collection and distribution are reported to the respective Zakat Authorities.
MERCY MALAYSIA does not receive funding from governments. We are addressing that shortfall through alternative sources of donations and through innovative programmes such as the Zakat initiative.