It’s the holy month of Ramadan, which means that many Muslims are in an annual period of fasting, reflection, and prayer. It’s also the period of increased Zakat, or charitable giving, in accordance with the Islamic faith.
A rising number of philanthropic organizations are seizing the opportunity to tap some of the billions of dollars that Muslims give in Zakat during Ramadan and steer those funds toward humanitarian causes worldwide. They range from GiveDirectly, a nonprofit that provides cash grants to impoverished people, to United Nations agencies like UNICEF and the UN Refugee Agency, to major international NGOs like Save the Children.
Islamic giving represents a large untapped pool of potential funding for global philanthropy. Research shows that Zakat — an income-based donation of 2.5% of one’s surplus wealth — totals roughly $600 billion per year globally. In the United States, Muslims gave nearly $2 billion through Zakat in 2021. Like many forms of religious tithing, Zakat is often given through unofficial channels, such as to family members in need. That’s changing as more Muslims decide to donate to more established institutions and nonprofits.