Islamic Relief USA Response: Ahmed Sheikh’s Ehsan Newsletter 2026 Zakat

March 2026

As a threshold matter, Islamic Relief USA (IRUSA) is an entirely independent 501(c)(3) non-profit organization based in Alexandria, Virginia. It has operated in the United States since 1993. The assertion that IRUSA is a subsidiary of Islamic Relief Worldwide is incorrect.

 

IRUSA’s commitment to full transparency and rigorous accountability is paramount. As such, we ensure that our donors and the public have unencumbered access to our comprehensive financial statements, including each year’s IRS Form 990.  We regularly invite our trusted and loyal donor base to closely examine our financial records and annual reports, which are published on our website. For over three decades, IRUSA has consistently upheld its reputation as a trustworthy charity, providing detailed annual reports on the funding and impact of our programs, all of which are available on our website at irusa.org/reports. IRUSA is consistently recognized as a top-tier United States charity by independent evaluators, such as Candid and Charity Navigator (see irusa.org/awards-accreditation/). IRUSA holds the Candid 2025 Gold Seal of Transparency and a four-star ranking from Charity Navigator, the largest charity evaluator in the United States. 

 

IRUSA’s Zakat Policy is robust, stringent, and fully aligned with Islamic principles, ensuring the maximum benefit reaches those in need. The maximum permissible administrative expense for zakat-eligible projects is 20%. This 20% limit is distributed as a maximum of 10% for IRUSA (covering costs like credit card processing and international transfers) and a maximum of 10% for the implementing partner. This contrasts with other organizations that may have a lower administrative rate but no cap for implementing partners. Upon receiving Zakat funds, IRUSA immediately allocates 90% to its Zakat program fund. Implementing partners are subsequently permitted to take a maximum of 10% for administrative expenses. Under no circumstances do IRUSA’s total administrative and operational costs for managing and distributing these funds exceed 20%. IRUSA’s measured and strict approach guarantees that the highest possible amount of Zakat is directly channeled to the beneficiaries.

 

The assertion that IRUSA spent $6 million solely on advertising is inaccurate. IRUSA’s $6 million expenditure on Google services in 2024, as reported on the 990, covered both marketing and IT-related services. Moreover, the two advertisements specifically cited in Ahmed Shaikh’s article were run through “Google Ad Grants for Nonprofits,” a program that offers free advertising space to eligible nonprofits. Consequently, IRUSA did not incur any expenses for these placements. The advertisement that included a reference to Gaza was significantly outdated and has since been removed. 

 

Since October 2023, IRUSA has committed $75 million through 15 distinguished partner organizations operating within Palestine. This funding is dedicated to providing critical emergency relief and humanitarian aid, including food assistance, medical care, winter aid, improved water access, and psychosocial support. IRUSA maintains a rigorous screening process, ensuring all projects meet strict zakat eligibility guidelines. To protect donor funds, IRUSA disburses funds to implementing partners in installments, strictly tied to reporting schedules, project progress, and key milestones, rather than as lump-sum cash payments. 

 

Recognizing the extremely limited number of charities authorized to operate in Gaza (or Palestine), IRUSA has meticulously selected partners essential for delivering life-saving assistance to those in dire need. Our robust due diligence and compliance procedures ensure that all partners meet strict legal standards and are well-positioned for secure and efficient aid delivery. Crucially, IRUSA retains full autonomy over the type of projects implemented in Gaza, including the authority to monitor and audit them on an ongoing basis. In collaboration with its partners, IRUSA curates interventions based on genuine on-the-ground needs. Absent this cooperation, these life-saving projects in Gaza could not be implemented and your donations would not reach the intended beneficiaries.

 

In 2024, approximately 28.9% of IRUSA’s funding consisted of Zakat donations, while more than 70% came from non-Zakat sources. Using the organization’s full financial statements to draw conclusions about how Zakat funds are managed is therefore misleading. While IRUSA recognizes that the absence of a standalone Zakat financial report can make this distinction less visible, this should not be used to make claims about Zakat spending based primarily on financial data that largely reflects non-Zakat activities.

 

The article also characterizes approximately $228 million in total assets on IRUSA’s balance sheet as “stockpiling.” This interpretation misrepresents how nonprofit financial statements report funds committed to humanitarian projects.

 

A substantial portion of these assets represents grant advances (cash) for projects that have already been allocated and sent to implementing programs overseas. Under nonprofit accounting standards, these funds remain classified as advances until projects are fully completed and final reports are received, even though the funds have already been transferred and largely spent in the field.

 

As reflected in IRUSA’s independently audited financial statements, grant advances totaled approximately $112 million as of December 31, 2024, the reporting date for the organization’s Form 990. IRUSA also reported approximately $62 million in cash, while approximately $66.6 million in grant commitments were scheduled for early 2025, which includes Ramadan and Qurbani programs, the organization’s largest humanitarian distribution periods.

 

Accordingly, the majority of assets reflected on IRUSA’s balance sheet represent funds already committed to or actively supporting humanitarian programs, rather than reserves being held back from charitable use.

 

At IRUSA, we diligently ensure that every resource is expended with maximum effectiveness. This is driven by our accountability to our donors, to people in need both at home and across the world, and most fundamentally, to Allah (SWT). We view every dollar donated as an amanah, a sacred trust, and it is our responsibility to ensure that funding is used for its intended charitable purposes.

Islamic Relief USA is a 501 (c)(3) nonprofit organization (Tax ID# 95-4453134) | Islamic Relief USA © 2026 | All Rights Reserved

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