No Zakat funds are used for operational or administrative costs

Trustees confirm that 100% of Zakat donations are applied directly to eligible beneficiaries and are not used for salaries, governance costs, marketing, fundraising, or general administration.

Zakat funds are strictly ring-fenced

All Zakat donations are recorded, held, and accounted for separately from Sadaqah, Lillah, Fidya, or unrestricted funds and are treated as restricted funds at all times.

Due diligence and verification are applied

Beneficiary eligibility is assessed through needs-based evaluation, local partner verification, and safeguarding considerations, ensuring that funds reach those most in need lawfully, ethically, and safely.

Robust records and audit trails are maintained
Full and accurate records of Zakat receipt, allocation, and disbursement are retained to ensure transparency, accountability, and readiness for internal review, trustee oversight, or external inspection.

Donor intent is honoured at all times
Zakat is distributed strictly in line with donor designation. Where donor intent cannot be fulfilled, funds are retained until a compliant allocation is possible or reassigned only within Zakat-eligible purposes.

Governance oversight is actively exercised
Trustees maintain collective responsibility for Zakat governance, including periodic review of policies, risk management, safeguarding compliance, and alignment with both Islamic obligations and UK regulatory expectations.

Restoring dignity, stability, and hope Sponsoring an orphan means restoring dignity, stability, and hope. Your support helps provide essential needs such as food, clothing, shelter, education, and psychosocial care—ensuring that no child is left to navigate loss and hardship alone. By sponsoring an orphan in Palestine, Sindh, Uganda, and Peshawar, you become a lifeline for a child whose world has been irrevocably changed, offering them care, protection, and the opportunity to rebuild their future.

Zakat is allocated only to eligible beneficiaries (Asnaf)

• The poor (Fuqara)
• The needy (Masakin)
• Orphans and vulnerable dependants
• Those in debt due to hardship (Gharimeen)
• Those striving in the path of Allah (Fi Sabilillah), limited to humanitarian relief and essential welfare

Eligible Beneficiaries

Al-Fuqarā’ (The Poor)
Individuals or households with little or no means to meet their basic living needs, including food, shelter, clothing, and healthcare. Al-Masākīn (The Needy) Those with some income or support but insufficient to meet essential daily requirements. Al-Yatāmā (Orphans) Children who have lost one or both parents and lack adequate financial and familial support, particularly those affected by conflict and displacement. Al-Gharimīn (Those in Debt) Individuals burdened with legitimate debt incurred due to necessity and hardship, where repayment is beyond their means. Fi Sabīlillāh (In the Cause of Allah) Humanitarian relief and life-saving assistance delivered in crisis zones where beneficiaries are unable to meet basic survival needs due to war, displacement, or persecution.

Riba in Islam – Donate your interest today! – What is Riba in Islam?

In Islam, the most common form of Riba is interest that is charged on borrowed money. This may be in the form of loans or deposits. The literal meaning of Riba in Arabic is ‘to exceed’, referring to the additional money which is added to that which has been borrowed.

Islam forbids interest (Riba), both receiving and paying it. Many of us can end up accumulating interest through our bank accounts even if we don’t want it, so what should we do with Interest money?

Since it is not permissible to utilise interest for one’s own benefit one should donate it to charity. Although there may be no religious reward for doing so, it disposes of the haram funds in a shariah-compliant way.

What is considered Riba in Islam?

In Islam, Riba is interest gained or paid on transactions or savings. This includes:

• Any interest earned from savings accounts, ISAs and other savings investments.
• Interest earned by lending money, property or goods.
• Payments of interest for credit card fees, loans or mortgages.

In the case of donating Riba to charity, you would be required to donate the amount of interest earned e.g. the money accumulated as savings interest.

What is difference between Riba and interest?

Essentially there is no difference. “Riba” is the Arabic word which is used in an Islamic context. As with all Islamic affairs, we would recommend consulting an Islamic expert on finance for any concerns, queries or questions you may have.

Why Riba is prohibited in Islam?

Allah (SWT) tells us in the Holy Qur’an to not engage in interest-based transactions/investments:

“O you who believe! Fear Allah and give up what remains [due to you] of interest, if you are true believers.” – Quran: 2:278

High levels of interest can lead to debts and financial insecurity, exploiting people on low incomes and without a financial safety net. Islam instead encourages non-interest based giving, charity and long-term investments for the benefit of others such as Sadaqah Jariyah and Waqf projects. Zakat also ensures a social-security net for people in need.

Is Riba a major sin?

Riba (interest) is generally considered one of the major sins in Islam and explicitly discouraged in the Qur’an.

What should we do with interest money? Ideally, we should not invest/engage in interest-based activities. However, this may not always be possible. In this case, you can keep note of any interest earned and donate the money to charity in a Shariah-compliant way (for halal purposes). Here at Islamic Relief, your donations help us save lives and are implemented in Shariah-compliant projects.

Riba vs. Murabaha – Murabaha is a financing structure which involves a contract between a lender and borrower in which a set fee is added to the money borrowed, in the place of interest. Riba and Murabaha are similar in that they both involve adding a markup to money that has been borrowed. However, Murabaha is a specific type of financial contract and includes a number of other conditions such as a third party involvement as well as adding a fixed amount of money to a loan, which is agreed in advance. 

What are the types of Riba?

There are two main types of Riba according to the Holy Qur’an and teachings of the Prophet Muhammad (peace be upon him). These are:

1. Riba al-Nasi’ah – This translates to ‘the interest of delay’, and is the most common form of interest. It is time-specific interest- referring to the addition of money on loans in which there is a delay in returning the money.

2. Riba al-Fadl – This translates to ‘the interest of excess’ and is a less common form of interest. It refers to the buying and selling of goods, in which transactions are unfair and exploitative.  It is where two items are exchanged in a particular deal of the same type but the quantity of one of them is more than the other.

“Sell gold for equal [amounts of] gold, sell silver for equal silver, sell dates for equal dates, sell wheat for equal wheat, sell salt for equal salt, sell barley for equal barley. Should one transact in excess, it is riba (interest). Yet sell gold for silver as you like hand-to-hand, sell barley for dates as you like hand-to-hand.” – Hadith | Tirmidhi

How can you get forgiven for Riba?

If you have committed Riba in the past, it’s essential that you ask Allah for forgiveness. Allah extends his Divine Mercy to all those who turn to Him with sincerity and supplicate for forgiveness. The following is a Dua for forgiveness from the Qur’an: رَبَّنَآ إِنَّنَآ ءَامَنَّافَٱغْفِرْ لَنَا ذُنُوبَنَا وَقِنَا عَذَابَ ٱلنَّارِ

Transliteration: “Rabbanaaa innanaaa aamannaa faghfir lanaazunoobanaa wa qinaa ‘azaaban Naar’

Translation: ”Our Lord! surely we believe, therefore forgive us our faults and save us from the chastisement of the fire”(Al-Imran, Chapter 3, Verse 16)

How can Muslims avoid Riba?

In a society where usury is common, it can be difficult to avoid Riba completely. The majority of banks, mortgages and financing systems involve some level of interest. There are differences in opinion among scholars on whether Riba is permissible in certain situations, in which there is no alternative. It’s important to consult your local Imam if you have any questions related to Riba. Here are some tips on how to avoid Riba:

• Avoid taking credit cards if possible, and use interest-free debit accounts only. Credit cards are based on interest and a buy-now, pay-later structure. The later you pay back the credit, the higher the interest charged. If you cannot avoid using credit cards completely, ensure you pay off your credit card debts as soon as possible, before interest charges are added. 
• If you can afford to, aim to rent a home, or save enough money and borrow from friends and family to buy a property without the need for a mortgage. 
• Explore Islamic finance options.  There are currently around 50 Islamic banks offering banking services in 23 countries, including a few Western non-Islamic banks which have Islamic windows. Islamic banks can also offer Islamic mortgages.

What kind of Riba is haram?

Both Riba al-Nasi’ah- ‘the interest of delay’ and as Riba al-Fadl- ‘the interest of excess’ are haram. However, scholars disagree on whether Riba is permissible in certain situations, such as getting a mortgage to buy a house. Some scholars also believe that Riba may only refer to excessive interest. However, to the majority of scholars, the whole concept of interest is forbidden in Islam.

What LKF CIC UK use Riba donations for?

Here at LKF CIC UK, your donations help us save lives and are implemented in Shariah-compliant projects i.e. educational projects.