12th April 2023
By Lara Raven.
Ramadan is a month of giving, reflection, and spiritual growth for Muslims all around the world. During Ramadan, people are encouraged to focus on charitable acts, and helping those in need. One of the most important ways in which Muslims can fulfil this obligation is by donating and giving Zakat.
Zakat is one of the five pillars of Islam and refers to the mandatory annual donation of a portion of one’s wealth. For Muslims who have the financial means to do so giving Zakat is a responsibility, and considered a purification of one’s wealth and a means of supporting the less fortunate. During Ramadan, the importance of Zakat is heightened, and Muslims are encouraged to give generously to support charitable causes.
One way in which individuals can facilitate their charitable giving during Ramadan efficiently and swiftly is by using a Donor Advised Fund (DAF). A DAF is a charitable giving vehicle that allows HNW individuals, corporates, groups, and foundations to make tax-deductible donations immediately, but the benefit of onward distributing grants to their preferred charities over time. DAFs offer several benefits that make them an attractive option for those who want to maximize their charitable impact.
Opening a DAF with Prism can streamline the donation process, provide tax relief and allow flexibility for one’s charitable giving. To maximise donations, Prism accepts cash, shares, property and cryptocurrency, all of which carry different tax relief for donors. In addition, Prism can distribute funding to charities in the UK and overseas, social enterprises, and private companies for projects with clear charitable objectives.
Prism operates a swift, flexible and personal service. Prism ensures that donations to UK charities are arranged within 48 hours and under a week for overseas organisations. This week, Prism has supported a donor to disburse their Zakat with a £300,000 gift to the National Zakat Foundation (NZF) via their DAF account. Their dedicated relationship manager at Prism has been in touch with NZF to carry out the necessary due diligence as the donation will be utilised to support projects overseas. The donor has peace of mind that their donation is being sent with the highest standard of due diligence, governance and compliance in an efficient manner.
Donating and giving Zakat during Ramadan is an important obligation for Muslims, and using a DAF can be an effective way to do so. To speak to someone about how you could giving Zakat via a Prism DAF, get in touch with Adiva Kalms today – [email protected].
