FALLS CHURCH, Va., July 10, 2014 /PRNewswire/ -- Azzad Asset Management, advisor to the Azzad Funds and sponsor of the Azzad Ethical Wrap Program, announced today that it has mailed annual Zakah and purification totals to clients. Observant Muslims will use the calculated figures to fulfill their charitable giving obligations for the year. Assuming clients donate the amounts reported on their statements, Azzad representatives say that approximately $3 million will be donated to charitable causes in the United States and abroad.
In a statement, Azzad said:
Zakah and purification are essential to the proper practice of Halal investing, and we hold ourselves to the highest standard when it comes to calculating accurate amounts for our clients. We are gratified to facilitate the donation of $3 million to those in need, a record-breaking amount for the firm. We remain committed to the ethical, Islamic business practices on which we were founded and look forward to providing this essential service for many years to come, God-willing.
In addition to providing asset management and investment advisory services to clients, Azzad is an outspoken advocate of the Seven Tenets of Halal Investing, including Zakah and purification, and regularly educates the American Muslim community on these sometimes complex issues.
See: Calculating Zakah on Modern Financial Assets (YouTube)
As the third pillar of Islam, Zakah is universally recognized among Muslims as a requirement for the proper management of their finances. It is an obligation that every Muslim must pay on certain assets that are at or above a minimum amount and have completed a holding period of 12 lunar months. Purification is an essential, though lesser known, aspect of Islamic investing that involves the donation of income earned from any unintended and unacceptable business activities by companies in which a shareholder is invested. Although Azzad follows strict Islamic guidelines when investing for its clients, it advises clients that it is possible to unintentionally earn small amounts of income deemed prohibited and that clients should take steps to cleanse accounts of such money. Since Zakah is not paid on amounts coming from unacceptable or impure sources, purification amounts are calculated first and then subtracted from client account balances before determining Zakah totals. The process results in two dollar amounts, both of which are given to the charity or charities of a client's choice.
Azzad follows best practices and guidelines issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). AAOIFI is a consortium of Islamic scholars who convene to issue guidelines on Islamic investing and financial matters. AAOIFI Standard Number 21, which outlines the principles of Islamic investing and includes specific guidance on Zakah and purification, is considered the authority for Islamic financial services firms.
Azzad's annual Zakah and purification calculations are determined one week prior to the beginning of Ramadan, the holy period of fasting and ninth month of the Islamic lunar calendar. Ramadan began in late June this year. It is considered an especially blessed time to engage in worship, including charitable giving.
About Azzad Asset Management
Since 1997, Azzad Asset Management, investment advisor to the Azzad Funds and sponsor of the Azzad Ethical Wrap Program, has provided investment services designed to help clients enjoy optimum performance without compromising their values. Azzad is a member of the Forum for Sustainable and Responsible Investment and the Accounting and Auditing Organization for Islamic Financial Institutions. The firm is a registered investment advisor based in Falls Church, Virginia.
Please consider a Fund's objectives, risks, charges and expenses carefully before you invest. The prospectus contains this and other important information. For a hard copy, please call 888-350-3369. Read the prospectus carefully before investing or sending money. The Azzad Funds are self-distributed. Azzad Asset Management serves as the Investment Advisor.
SOURCE Azzad Asset Management