By Mufti Muhammad Taqi Usmani
Question:
What is the Islamic legal judgment about charities [run by Muslims] registered as NGO’s (Non-Governmental Organizations) collecting and distributing Zakat money? Is it lawful (in Islam) for such organizations to use part of the collected Zakat money to cover their administration costs (involved in the collection and distribution of Zakat)? Some people have claimed that NGO’s should not collect or distribute Zakat in the absence of Al-Khilafah, (because Khalifa is the only person who has the sole right to do so). What is the Islamic opinion about such claims? (Mostafa Usman, Birmingham).
Answer:
It is permissible for non-government organizations to collect and distribute zakat money among those entitled to receive it on the condition that they fully observe the Islamic rules and principles concerning Zakat and take due care that the money so collected is duly given to the needy.