The Legitimacy of Establishing Zakat Institutions and Balancing their Operations between Interests and Harms

Abstract

Since the beginning of the Islamic era, there have been mechanisms for collecting Zakat from its owners and distributing it to those who are eligible. Throughout the long history of the Islamic nation, Diwans (departments) or institutions were established for this purpose. In the present era, there is hardly any Islamic or Arab country without an institution that manages Zakat affairs, including collection, organization, arrangement, and distribution. In order to achieve the wisdom behind the legislation of Zakat and the objectives for which it was ordained, Zakat institutions should operate in accordance with the legal, administrative, and Sharia regulations. They should adhere to the teachings of Sharia and consider the realized objectives of Sharia, which serve the interests and prevent harm, while balancing the various interests. This is done in order to safeguard the Zakat funds and protect the rights of both the giver and the deserving recipients. This research aims to define Zakat institutions, examine their legitimacy, and clarify the principles they should follow in their operations, which involve promoting benefits and preventing harm, prioritizing the more important over the less important interests, in order to achieve the wisdom of Zakat legislation and attain the positive outcomes that result from it. The research aims to clarify the jurisprudential perspective on the functioning of Zakat institutions, and to demonstrate methods of balancing interests within their operations. The research adopted a descriptive and analytical approach, relying on its evidences from Islamic sources, and establishing connections between classical and contemporary jurisprudential perspective. The research concluded with several important findings, including that establishing Zakat institutions aligns with the objectives of Islamic Sharia, and serves legitimate interests of the community. It also highlighted that the mechanisms of Zakat institutions should adhere to the principles and teachings of Sharia, and emphasized the necessity of collaboration between Zakat institutions and other relevant entities within the state for mutual benefit. The research further emphasized that the operational mechanisms of Zakat institutions should prioritize benefits and prevent harm for the public, while considering a gradual and organized approach to pursuing those benefits.