Ramadan Giving: How do I make every penny count for those in need?

With so many Muslim charities fundraising during Ramadan, donors can be left scratching their heads on who to donate money too. The busy landscape, combined with the ongoing catastrophic conditions, war, poverty, famine and natural disaster across the world, can make giving feel very helpless and overwhelming.

As part of The #GiveSmartGiveSafe Series this article will explore what donors can look out for when choosing who to donate to so that every penny counts and makes the most impact for those in need.

“The most beloved people to Allah are those who are most beneficial to people” (Al-Mu’jam Al-Awsat).

As the hadith above reminds us, donations are an investment that can deliver short-term or long-term benefit. When made wisely, they can help charities achieve lasting impact and also reap the most spiritual reward.

Choosing the right causes for maximum impact

Most charities operate within two broad categories: humanitarian aid and community development. Understanding the difference between the two programme types can help you align your donations with the kind of change you wish to support.

Humanitarian aid– provides immediate relief for emergencies such as conflict, natural disasters and food shortages. Donations to these efforts can provide essentials like food, medical aid and shelter to those in need.

Community development-focuses on long-term, sustainable solutions such as education, healthcare and economic empowerment. These initiatives aim to break cycles of poverty and build resilience, establishing societal equality and sustainability.

If you want to support immediate relief efforts, donate to humanitarian aid programmes – we provide guidance on donating in emergencies in our guide here. Humanitarian aid can provide shelter, food, clean water and WASH facilities as well as emergency and ongoing healthcare. In times of crisis, this aid can be vital in saving lives.

If you prefer longer-term impact, focus on charities working in community development. These programmes of work are often more sustainable and can include things like up-skilling, training, employment opportunities, cash grants, sponsorship, education and resources. So whatever your choice, do so with the awareness and research behind it to know exactly what impact your donation is creating.

Maximising giving with Gift Aid

To get the most out of your donation, you can also opt for Gift Aid. Gift Aid is a UK government scheme which allows charities to claim an extra 25p per £1 of the donation at no cost to the donor. This can turn a £20 donation into £25 for the charity! The only eligibility is that the donor must be a UK taxpayer and must have paid at least as much income in Income Tax or Capital Gains tax as their donation.

Checking the Gift Aid box when donating enables charities to access additional funding, providing crucial support to charities whilst maximising your donations at no extra cost.

A little in many hands makes a big difference

Many donors prefer to give their Sadaqah or Zakat to one well-known charity, often overlooking smaller organisations doing equally impactful or local work. While larger charities have broader reach, smaller charities often work in niche areas or under-served communities, where donations can have a direct and transformative effect.

Instead of keeping all your eggs in one basket, consider spreading your donations out amongst charities both small and large. This approach helps support the wider charity sector whilst increasing your personal reward across multiple programmes.

Check the impact to make an impact!

As a final step and to really know if your donation is going to make a difference, it’s absolutely vital that you double-check the impact of your chosen charity BEFORE you click ‘Donate’.

Giving blindly, whilst it may be done in faith, does not make impact and can often result in funds not being used to their full potential and little or no change for those who are vulnerable. As Muslims we have a responsibility to ensure that our money, which is an amanah to us, goes to appropriate causes.

Take a look at the charity’s website and socials to scope their areas of delivery, locations, years of experience and more. Look for reporting and data, including case studies, that show you the work that they do.

If you can’t see evidence that they have worked in a region before or delivered a type of aid before, stop. Approach the charity and ask them for clarity – it’s important that your money has a clear pathway to fulfill your intentions to help those in need.

Your donations have the power to change lives. This Ramadan, give wisely, give with intention, and give with impact. As part of The Good Giving Series, these steps will help you strive for excellence in your donations, ensuring they truly benefit those in need, an act beloved by Allah (swt), as emphasised by the Prophet Muhammad (SAW).

Want to discover how you can achieve ihsan (excellence) in your giving?

Download the Muslim Donor’s Guide now to discover:

The simple checks you should make and why

When and how to give Zakat

What about Admin fees and 100% Donation Policies?

And much more!