Zakat paid to a U.S. charity recognized under Section 501(c)(3) of the tax code can also be tax-deductible. Starting with tax year 2026, Americans who do not itemize can deduct up to $1,000 in cash gifts, or $2,000 for joint filers, according to the IRS. Before giving, check two things: the charity’s IRS status and its written zakat policy.
Reviewed by Hafiz Maqsood Ahmed.
The tax change matters for Muslim donors because most American households take the standard deduction and, until 2026, got no tax benefit from charitable gifts. The positions on zakat below are those of the named organizations; The Halal Times does not issue rulings, and this is not tax advice. The religious rules, including the eight categories of recipients, are explained in our guide to zakat.
The tax rules for 2026
- Itemizers can deduct gifts to qualified organizations on Schedule A, subject to income limits.
- Non-itemizers can deduct up to $1,000 ($2,000 if filing jointly) in cash gifts to qualified organizations, beginning with tax year 2026, the IRS says in Topic 506. Gifts to donor-advised funds do not qualify for this deduction.
- Receipts: any single gift of $250 or more needs a written acknowledgment from the charity.
The IRS Tax Exempt Organization Search tool lets donors look up a charity by name or employer identification number (EIN) to confirm it is eligible to receive deductible gifts.
How major charities handle zakat
| Organization | Tax status | Zakat policy (as published) |
|---|---|---|
| Zakat Foundation of America | 501(c)(3), EIN 36-4476244 | All donations zakat-eligible; administrative costs drawn from zakat funds as the collectors’ share; donors can direct zakat to a program |
| Islamic Relief USA | 501(c)(3), Tax ID 95-4453134 | At least 80% of zakat to programs, support costs capped at 20%; overseen by a four-scholar Zakat Advisory Board |
| LaunchGood | Crowdfunding platform; deductibility depends on the recipient | “Zakat Verified” badge checked by an internal team; organizers’ distribution not audited |
Islamic Relief USA says in its zakat policy that zakat is distributed to the eight Quranic categories “as soon as practicable,” and that the policy is endorsed by the North American Imams Federation. The Zakat Foundation of America’s FAQ says no administrative costs are taken from its emergency, orphan or seasonal gifts, while costs of running zakat programs come from zakat funds, which it describes as consistent with the share allotted to zakat collectors.
Crowdfunding platforms
LaunchGood, a crowdfunding site popular with Muslim donors, marks some campaigns “Zakat Verified” after review by its own zakat team; organizers cannot add the badge themselves. Its policy, updated in February 2025, limits verification to campaigns for the poor and needy and a few other categories, and says LaunchGood does not audit how organizers spend the money and that “it is the donor’s responsibility” to ensure the obligation is met. LaunchGood charges no platform fee but asks for an optional tip; card processing costs about 2.9 percent plus 30 cents. Our overview of zakat apps and platforms describes other digital options.
A checklist before you give
- Confirm the organization’s 501(c)(3) status with the IRS search tool.
- Read its zakat policy: what share goes to programs, who oversees it and how quickly it is distributed.
- Designate the gift as zakat, so it is kept separate from general donations.
- Keep the receipt, especially for gifts of $250 or more.
- For crowdfunding, check whether the recipient is a registered charity or an individual; gifts to individuals are not tax-deductible.
Businesses paying zakat can see our guide to low-fee zakat payment platforms.
Those living outside Muslim-majority countries can read our guide on paying zakat in a non-Muslim country.
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