Our Methodology
Our Research, Review & Assessment Process*
MuslimGive analyzes each charitable organization across four Core Research Areas. Phase 1 of the research process concentrates on evaluating the organization’s level of transparency and accountability, specifically focusing on the extent of information disclosed by the charity and its accessibility to the public.
Transparency enables organizations to be accountable for their operations, expenditures, and policies. Thus providing donors with visibility into how their contributions are utilized and managed.
Each Core Area is allocated a distinct score/grade, which collectively determines the charity’s overall rating.
The allocation of scores, grades, and the weightage of Core Areas is currently under review and may be subject to adjustments. Consequently, these modifications could potentially impact the charitable organization’s final score and grade.
- MuslimGive analysts and team members carry out focused research across four Core Research Areas, by analyzing the charity’s website, the regulatory body website – Canada Revenue Agency (CRA) in Canada, Internal Revenue Service (IRS) in the US, Charity Commission for England and Wales in the UK, and publicly accessible information and data.
- A score and grade is assigned to each Core Area, before a final overall grade rating is allocated to the charitable organization.
- A summary of the research findings, scores and grade rating is sent via email to the charity to review and verify. Accompanying this are explanations, score guides and compliance with MuslimGive Standards documentation to ensure transparency and offer guidance. Two further follow up emails are sent.
The organization is given 10-21 days to arrange a call to discuss, review, verify and update their website. - A charity assessment profile is created for the charity and published on www.muslimgive.org.
Click here to receive updates when a new charity profile is published.
Eligibility Criteria
MuslimGive assesses charitable organizations that have been operating for a minimum of two years.
Core Research Areas
Charity Status
MuslimGive conducts an analysis of each charitable organization to determine whether it is registered in its respective country.
The Charity Status Core Area contributes to 30% of the overall charity grade rating.
Registered charities are allocated 30/30 points. Unregistered charities are allocated 0/30 points.
A registered charity is established exclusively for charitable purposes and is operating for public benefit.
Registering a charity is a crucial step in complying with regulations, such as filing annual reports and financial statements. It provides certain tax benefits such as exemption from income tax and the ability to issue tax receipts for donations. It is an important step in ensuring that it operates in a legal, transparent and accountable way.
In Canada there are over 73,000 registered charities. A registered charity is granted official designation by the Canada Revenue Agency (CRA), and receives tax-exempt status under the Income Tax Ac. In order to receive charitable status, the organization must meet the regulatory requirements set forth by the CRA and thereafter obtain a unique charitable registration number.
In the UK, a charity must be registered with the Charity Commission for England and Wales.
In the US, a charity or non-profit organization must apply for 501(c)(3) status with Internal Revenue Service (IRS). The IRS is responsible for granting tax-exempt status to nonprofit organizations, including charities, under section 501(c)(3) of the Internal Revenue Code.
A non-profit organization in Canada or the UK that has not received the registered charity designation by the government or the regulatory body responsible for this, does not fall under the registered charity category.
MuslimGive Standard
Each charity that is operating to seek donations must be officially registered in its operating country.
Financial Accountability
The Financial Accountability Core Area of MuslimGive is dedicated to evaluating the financial transparency, efficiency, and sustainability of each charitable organization.
This assessment, contributing to 30% of the overall charity grade rating, focuses on three key domains:
Transparency is assessed based on the availability of professionally prepared financial statements and impact reports on the charity’s website.
Spending Analysis evaluates the allocation of revenue between charitable programs, administrative costs, and fundraising, with specific standards set for each category.
Sustainability is measured through the Revenue Spent Percentage and Reserve Spending Ratio, ensuring prudent financial management and operational stability.
MuslimGive’s standards serve as clear benchmarks for promoting transparency, optimizing efficiency, and fostering responsible sustainability, thereby ensuring comprehensive financial accountability.
Click here to learn more about MuslimGive’s Financial Accountability Explanations, Assessment Criteria and Standards.
Zakat Policy Compliance
Within the Zakat Policy Compliance Core Area, MuslimGive assesses organizations that collect Zakat to evaluate their adherence to specific policies. These policies serve as indicators of the level of caution and Shariah compliance maintained by these organizations. Given the differences of opinions regarding Zakat utilization, the establishment of a transparent public policy becomes imperative to evaluate organizational compliance accurately. Importantly, a readily accessible Zakat Policy ensures that donors are informed of the compliance standards before contributing their Zakat to such charitable organizations. It is essential to emphasize that the payment of Zakat is the responsibility of the donor, who must conscientiously distribute their wealth, either directly or through a recognized charity. Hence, the onus lies with the donor to thoroughly research a charity’s Zakat compliance status.
MuslimGive recognizes that the complexity of researching such matters may pose a challenge for the average donor. To address this, our panel of Shariah experts have set specific standards that serve as clear directives, ensuring transparency in the allocation and distribution of zakat funds and other important factors, thereby upholding zakat compliance.
This area contributes to 30% of the overall grade rating.
Click here to learn more about MuslimGive’s Zakat Policy Compliance Explanations and Score Guide.
Governance & Leadership
MuslmGive analysts research an organization’s Governance & Leadership by examining the charity’s website, the regulatory body website and other publicly accessible information.
A set of metrics have been put together to assess this Core Area, which contributes to 10% of the overall grade rating.
Click here to learn more about MuslimGive’s Governance & Leadership Explanations and Standards.
*The ratings/grades granted to the respective charity is our opinion based on our assessment of the charity using our established criteria and publicly available sources and information provided by the respective charity, where available.
