The Fatwa issued sets out the general conditions of the IOM Islamic Philanthropy Fund to collect and distribute Zakat, Sadaqah and other Muslim alms as follows:
- Zakat collected from Muslims should be disbursed immediately to the designated recipients [asnāf] as per the provisions contained in at-Tawbah, 9:60.
- Sadaqah and other Muslim alms collected should be disbursed to the respective categories of whom may be identified by the donors.
- Muslim alms should be kept in segregated accounts. A separate special account for Zakat should be established to ensure adherence to the rules of Zakat. Other forms of Muslim alms may be maintained in another separate account.
- Administrative and overhead costs relating to the collection and management of Zakat can be classified under expenses of the collectors of zakat funds (amilina 'alaiha. It is suggested that such expenses should attempt to be low as possible and should not exceed 1/8 (12.5 per cent) of the Zakat funds collected.
- The rulings on expenses for other types of Muslim alms are flexible depending on the conditions set by the donors. However, again, it is suggested to keep these expenses as low as possible.
- The establishment of an Islamic Advisory Board to monitor and validate compliance with Islamic principles throughout the collection, administration, and distribution process.