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Zakat Foundation of America

CharityWatch report issued
July 2023

Top-Rated Charity
A+
CharityWatch Grade
Our independent grade based
on a number of factors.
 
90%
Program Percentage
Amount spent on programs
relative to overhead.
 
$4
Cost to Raise $100
Amount spent to raise
$100 of contributions.

Contact Information

Zakat Foundation of America
PO Box 639
Worth, IL 60482

Other Names

None

Tax Status

501(c)3

Website

www.zakat.org

Stated Mission

To foster charitable giving to alleviate the immediate needs of poor communities and to establish long-term development projects that ensure individual and community growth.

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Data based on Fiscal Year Ended 06/30/2022

Program Percentage: 90%

The percentage of Zakat Foundation of America's cash budget it spends on programs relative to overhead (fundraising, management, and general expenses).

$15,000,000

Calculated Total Expenses

(rounded)

 

Cost to Raise $100: $4

How many dollars Zakat Foundation of America spends on fundraising to raise each $100 of contributions.

$19,000,000

Calculated Total Contributions

(rounded)

Government Funding

0% to 24%

Percentage of cash revenue
coming from government sources

 

Financial Documents

Entity Document Type Tax ID
The Zakat Foundation of America Audited Financial Statements 36-4476244
The Zakat Foundation of America IRS Form 990 36-4476244
Entity: The Zakat Foundation of America
Document Type: Audited Financial Statements
Tax ID: 36-4476244
Entity: The Zakat Foundation of America
Document Type: IRS Form 990
Tax ID: 36-4476244

Governance & Transparency

CharityWatch evaluates certain criteria related to a charity's Governance and Transparency. Donors may want to consider a charity's willingness to be open and transparent with CharityWatch to be a good litmus test for determining its commitment to public accountability.
This charity is Top-Rated
What does it mean to be Top-Rated?
 
Zakat Foundation of America
meets governance benchmarks.
 
Zakat Foundation of America
meets transparency benchmarks.
Transparency
Provides Financial Information
Audit Accessibility
Governance: Policies
Reports regularly & consistently monitoring & enforcing compliance with a written Conflict of Interest Policy
Reports required, annual disclosure by officers, directors, and key staff of interests that could give rise to conflicts
Reports having a written Whistleblower Policy
Reports having a written Document Retention and Destruction Policy
Governance: Financials
Reports providing copy of tax form to all board members prior to filing it with IRS
Reports that financial statements were audited by an independent accountant
Governance: Board of Directors
Reports at least 5 voting board members
51% or more of voting board members reported as independent
Reports documenting minutes of board and board committee meetings
Privacy Policy
Privacy Policy No Sharing  

  Name Title Compensation
1 Halil Demir Executive Director $180,575
2 Raza Farrukh Director of Development and Planning $161,529
3 Amna Mirza Chief Marketing Officer $120,233
1
Name: Halil Demir
Title: Executive Director
Compensation: $180,575
2
Name: Raza Farrukh
Title: Director of Development and Planning
Compensation: $161,529
3
Name: Amna Mirza
Title: Chief Marketing Officer
Compensation: $120,233

CharityWatch Analysts perform an in-depth analysis of charities' audited financial statements and IRS tax filings, and often review other documents such as state filings, annual reports, and fundraising contracts during their evaluations. Below are select notes that CharityWatch believes may be of interest to donors.

According to The Zakat Foundation of America audit of June 30, 2022 (Note 6, In-Kind Contributions), the Foundation received in-kind contributions in fiscal 2022 on which it placed a total value of $266,438. Of this amount, $218,132 is reported as "Food".

[Note: CharityWatch generally excludes the value of in-kind (non-cash) donations of goods and services from its calculations of Program % and Cost to Raise $100. More information on how grades are calculated and the treatment of in-kind donations can be found on the Our Process page.]

According to The Zakat Foundation of America tax filing for the fiscal year ending June 30, 2022, the Foundation reports re: Business Transactions Involving Interested Persons (IRS Form 990, Schedule L, Part IV):

(1) A transaction involving Amina Demir, relative of Executive Director, in the amount of $89,586 and described as compensation.

(2) A transaction involving Donna Neil-Demir, relative of Executive Director, in the amount of $16,813 and described as compensation.

(3) A transaction involving Selma Demir, relative of Executive Director, in the amount of $39,848 and described as compensation.

[Halil Demir is reported as "Executive Director," with total compensation of $180,575 in calendar year 2021, according to IRS Form 990, Part VII.]


The Supplemental Information reported related to the above Business Transactions Involving Interested Persons states (IRS Form 990, Schedule L, Part V):

"The Director of Human Resources and the Director of Operations reviewed each of the individuals' resumes/credentials and interviewed them before hiring. Their compensation was determined taking into account job authority, responsibility, designation and the prevailing rate in job market. Then, the reasonableness of their compensation is reviewed and approved by the board of directors."

According to The Zakat Foundation of America audit of June 30, 2022 (Note 8, Concentration of Foreign Activity):

"Contributions are raised in the United States of America. Certain program activities funded by the Foundation are delivered in foreign countries affected by civil strife, war, famine, or natural catastrophe and are undertaken on behalf of the Foundation by its local regional offices, United Nations related bodies, and/or locally licensed partner non-governmental organizations. It is considered reasonably possible that activity in one or more of these foreign countries could be disrupted due to political events within such countries. This disruption could materially affect the operation of, and amount of contributions raised for, each such program. As of June 30, 2022, the Foundation had assets outside the United States of America with a carrying value of $990,572."

According to The Zakat Foundation of America audit of June 30, 2022 (Note 11, Contingency):

"In April 2020, the Foundation received loan proceeds in the amount of $494,735 under the Paycheck Protection Program (PPP). The PPP loan was forgiven by the Small Business Administration in May 2021. The PPP loan and its forgiveness are subject to examination under the terms of the agreement with the Small Business Administration for a period of six years from the date the loan is forgiven. The Foundation is not currently under examination nor has the Foundation been contacted."

According to The Zakat Foundation of America audit of June 30, 2022 (Note 10, Impact of COVID-19):

"In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a pandemic, which continues to spread in certain parts of the world. To date [November 14, 2022], the impact on the Foundation's operations and results has not been significant and management expects this to remain the case. Management continues to actively monitor the global situation in order to mitigate any potential future impact on the Foundation's changes in net assets and financial performance."