Report Says Muslim Charities Underused in Fighting Poverty

A study issued this week contends that poor bookkeeping and management at Islamic nonprofit groups are keeping idle billions of dollars in resources that could be applied to anti-poverty programs, Reuters writes.

The analysis by the Islamic Research and Training Institute and Thomson Reuters says Muslim charities have yet to develop efficient ways to utilize the fruits of zakat, the faith’s centuries-old tradition of alms-giving, and awqaf, Islamic endowments that often have extensive property holdings.

The report said zakat donations running into the hundreds of millions of dollars a year could help alleviate poverty in countries with large Muslim populations. Islamic groups could better tap this potential by retaining professionals versed in modern nonprofit management as well as compliance with sharia fiscal rules to remain financially viable, said Azmi Omar of the research institute, an arm of the Saudi Arabia-based Islamic Development Bank.