Ray of Hope's Zakat Fund

The Ray of Hope Initiative (ROH), is a registered charity and a member of the National Council of Social Services (NCSS). In order to support our low-income beneficiaries financially, we crowdfund their everyday needs from living expenses, groceries expenses, school pocket money, diapers and milk powders. Ray of Hope does not only assist the lower incomes but also those that falls through the cracks. One such beneficiary that Ray of Hope is assisting is Irhwan.

23-year-old Irhwan is the sole breadwinner of his family. His father walked out on the family on December 2018, shortly after Irhwan completed his National Service and while he was studying part time for his Higher Nitec. He had to look after his mother who suffered from depression and his 12-year-old sister who had adjustment disorder.

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About Ray of Hope's Zakat Fund

The Ray of Hope Initiative (ROH), is a registered charity and a member of the National Council of Social Services (NCSS). In order to support our low-income beneficiaries financially, we crowdfund their everyday needs from living expenses, groceries expenses, school pocket money, diapers and milk powders. Ray of Hope does not only assist the lower incomes but also those that falls through the cracks. One such beneficiary that Ray of Hope is assisting is Irhwan.

23-year-old Irhwan is the sole breadwinner of his family. His father walked out on the family on December 2018, shortly after Irhwan completed his National Service and while he was studying part time for his Higher Nitec. He had to look after his mother who suffered from depression and his 12-year-old sister who had adjustment disorder.

In order to allow Irhwan to complete his education, Ray of Hope supported Irhwan and his family with S$300 per month for 14 months and NTUC Vouchers worth S$250 for 5 months. Irhwan has now completed his education and is actively searching for employment.

Our Track Record of helping the Malay Muslim Community

Besides getting individuals back on their feet, we support groups of families during the festive season.

For the past 2 years, we ran campaigns called Raya for Hope to give our Malay Muslim families the ability to celebrate the festive season.

 

Zakat Fund Framework

The Ray of Hope Initiative (ROH), a registered charity, is the administrator of the Zakat Fund. Our Board Member, Abdul Jabbar, is the advisor to the Zakat Fund. In 2019, 51.5% of our beneficiaries were Muslims. Year to date, this has increased to 62.2%. The Zakat Fund was initiated this year to help our Muslim beneficiaries financially.

Below are the Asnafs that would benefit from our Zakat Fund:

Fakir

A person who has little material possession and little means of supporting his or her livelihood or sustaining their and their family’s daily needs.

Miskin

A person who is unable and has little means to meet their basic living needs. Zakat disbursement to the poor and needy includes:

  • Monthly Financial Assistance

  • One-Off Special Assistance during Ramadan

  • Self-Improvement Programmes

Riqab

Riqah historically is one where someone frees themselves from slavery. In Singapore’s context, this would refer to those who require some assistance to pursue and aid their education. Disbursement for Riqab includes:

  • Education Grants

  • School Pocket Money and Transport Allowance

Gharimin

A person who is in debt and requires assistance to meet their basic needs. Disbursement for those who qualifies for Gharimin includes:

  • One-Off Assistance for outstanding bills (Utilities, Rent and Conservancy Charges only)

What assistance is Ray of Hope providing for the Muslim Community?

Ray of Hope is a secular organisation and we provide assistance to Singaporeans of all races and religion. These are some of the assistance that our organisation provides for our beneficiaries, Muslims included:

  • Monthly Financial Assistance through Crowdfunding

  • Case Management

  • Referrals to other organisations

  • Counselling

Why is Ray of Hope collecting Zakat?

Ray of Hope is a registered charity and a member of NCSS. Last year alone, 51.5% of our beneficiaries are Muslims. Year to date, this has increased to 62.2%. The financial assistance that we provide our beneficiaries with are entirely dependent on public donations.

Every year during Ramadan, we provide a one-off special financial assistance via our Raya for Hope campaign to our Muslim Beneficiaries. Last year we raised S$14,000 for 72 children and 61 adults. This year for Ramadan, we aim to raise S$15,000 to help 42 families (78 adults and 120 children) tide over the holy month. All Zakat raised will go entirely to our Muslim Beneficiaries according to the different Asnafs.

Based on the statistics above, it is projected that Ray of Hope will be helping more Muslim beneficiaries this year. Therefore, Zakat Fund is one way that we can provide a more stable source of financial assistance.

What Kind of Zakat will be collected?

Only Zakat on Personal Savings will be collected.

What is the rate of Zakat and how do I calculate my Zakat?

The rate is 2.5% of your savings. In order to qualify for paying Zakat on Savings, your savings balance must have a minimum amount (Nisab) for a minimum period, which is 1 Islamic year (Haul).

Steps for Calculating Zakat on Savings:

Step 1:

We are using the Nisab Value (Minimum amount) of $5,802 and to calculate the value of your personal savings.

Step 2:

Look through your bank account and search for your savings balance throughout the year. It does not matter if you deposit or withdraw money through the year as Zakat on Savings is based on the balance and not on the deposits or withdrawals made.

Step 3

In the past 1 Islamic Year (1 Haul), if your savings balance is above the Nisab Value, you are eligible to pay Zakat

Step 4:

Identify the lowest balance in the year. This could occur in any period throughout the year

Step 5:

Your Zakat Savings is then calculated as such: Lowest Balance (S$) X 2.5%

Example of Calculating Zakat from One Savings Account:

Date

Deposit (S$)

Withdrawal (S$)

Balance (S$)

01/04/2019

8,000

0

8,000

10/05/2019

2,000

0

10,000

02/07/2019

0

0

10,000

06/08/2019

2,000

0

12,000

07/09/2019

2,000

3,000

9,000

01/12/2019

0

2,000

7,000

01/04/2020

2,300

0

8,300

Throughout the year the lowest balance, which is highlighted in bold, never fell below the value of the Nisab. Therefore, the Zakat on Savings for 1 Haul period of 01/04/2019 – 01/04/2020 is:

S$7,000 x 2.5% = S$175

Should you have multiple savings accounts, look through each individual account, find the lowest balance and add the lowest balances up. If the combined lowest balances exceed the Nisab Value, you are eligible for Zakat.

How can I give my Zakat?

You can give your Zakat online vis this Zakat Page

Is My Zakat on Savings eligible for tax relief?

Ray of Hope is not an Institution of a Public Character (IPC), therefore, all donations and giving’s made on Ray of Hope is not eligible for tax relief.

Ray of Hope is a secular organization. So why should we give our Zakat to Ray of Hope?

While Ray of Hope is a secular organization, more than 50% of our beneficiaries are Muslims. Last year alone, 51.5% of our beneficiaries are Muslims. Year to date, this has increased to 62.2%. Based on the statistics above, it is projected that Ray of Hope will be helping more Muslim beneficiaries this year. Therefore, Zakat Fund is one way that we can provide a more stable source of financial assistance. The Zakat collected will be used solely for our Muslim Beneficiaries.

100% of funds raised go directly to our beneficiaries. We do not take a percentage cut of donations as our overheads are funded separately by The Majurity Trust, the entire board of Ray of Hope and other generous philanthropists.

100% of our campaigns are verified and there are no compromises. We ensure that the needs of the beneficiaries are genuine. Every campaign listed on the Ray of Hope platform goes through stringent verification. We owe this due diligence to our donors.

The process includes home visits, checking of documents like utilities &/or hospital bills, CPF and bank statements, and bank accounts to understand the financial status, and verifying with social workers and authorities to know the extent of assistance that is already provided, and the gap that needs to be met. Click here to find more about our processes and accountability.

The Ray of Hope Zakat Fund’s Advisor, Mr Abdul Jabbar, is a Muslim and sits on the Board of Directors. For accountability purposes, yearly figures will be published online alongside our audited accounts and annual reports.

Information on the Zakat Fund’s Advisor:

Abdul Jabbar is an Executive Committee Partner in Rajah & Tann Singapore LLP. He heads the firm’s Corporate and Transactional Practice. He has more than 25 years working experience in mergers and acquisitions, joint ventures, banking and finance, general commercial and private client work. Jabbar regularly advises companies including not for profit organisations on corporate governance, compliance and regulatory matters. Jabbar graduated from the National University of Singapore with a Bachelor of Laws with honours.