01

Endowments, companies, and foundations fully owned by Awqaf. Endowment is the entity under the supervision of the Trustee and the General Authority of Awqaf in the Kingdom, the General Authority of Awqaf Law issued by Royal Decree No. (M/11) dated 26 Safar 1437 AH defined the types of endowments. According to Article 1 of the General Authority for Awqaf Law, endowment is classified into three types as follows: a. General Endowment: Endowment conditioned upon specific public charity purposes, either by name or description, such as endowments for Hajj and Umrah pilgrimage times. b. Specific (Family) Endowment: Endowment conditioned upon a specific individual from the descendants or relatives, either by name or description, such as endowments whose funds are restricted to the descendants or relatives. c. Joint Endowment: Endowment whose condition includes more than one type of endowment, such as an endowment that includes disbursements for public charity purposes and disbursements to a specific person. Endowments, companies, and foundations owned by Awqaf are excluded from being subject to zakat if the endowment document states that all endowment disbursements are for public charity and not disbursement to a specific person or if there is a disbursement to a specific person stipulated, it should not exceed (10%) of the total revenues while considering the following: a. Disbursement to a specific person includes everything disbursed to the endower, their descendants, or any certain person; a person does not belong to public charity categories or entities related to the endowment. b. Endowment yield includes all endowment annual revenues including assets revenues, income and profits of investments, companies, donations -etc. c. In the event that more than one endowment owns the Zakat Payer, calculating the percentage of disbursement to a specific person shall be ratio and proportion between these endowments. d. The evidence in determining the percentage of disbursement on a specific person - in the event the endowment document mentions the disbursement to a specific person - shall be through the audited financial statements of the endowment or a report from a certified chartered accountant in the Kingdom. Exceptions conditions for endowments, companies and foundations fully owned by Awqaf. Disbursement to a specific person includes everything disbursed to the endower, their descendants, any certain person; a person does not belong to public charity categories of entities related to endowment. If the endowment document states that all Endowment disbursements are for general charity and not disbursement to a specific person. If there is a disbursement to a specific person in endowment disbursements, a percentage is calculated of Endowment yield. Excluded from being subject to zakat Not more than 10% More than 10% Endowment yield includes all endowment annual revenues including assets revenues, income and profits of investments, companies, donations -etc In the event that more than one endowment own the Zakat Payer, calculating the percentage of disbursement to a specific person shall be ratio and proportion between these endowments. The evidence in determining the percentage of disbursement on a specific person shall be through the audited financial statements of the endowment or a report from a certified chartered accountant in the Kingdom Subject to zakat collection The following should be considered when calculating the percentage of disbursement on a specific person