SHOKKHOM

A Sustainable Livelihood Project

THE SMALLEST BUSINESS MODELS IN THE WORLD Run By Zakat Fund

SHOKKHOM, a Bengali word that means being efficient or competent in a particular field of profession. In the Islamic community, Muslims are obliged to pay a percentage, annually under Islamic law on certain kinds of property and use it for charitable and religious purposes. But in Bangladesh, using Zakat’s money, people tend to purchase clothing and distribute those to the poor. This results in momentary happiness in the destitute family but doesn’t bring much development in their lifestyles. To make appropriate use of Zakat money, we initiated to create a Sustainable Livelihood project titled “SHOKKHOM”.

This was first implemented in 2016 at a very small scale involving only two families to see its results. Considering its positive outcome, we held it at a larger scale in 2017-2021, helping 800 destitute families. This project involves raising Zakat money and using it to create an income-generating source for destitute families. We give the breadwinner of the destitute families, a chance to become an entrepreneur and thus improve their own living standards. The projects are being implemented in: Dhaka, Kustia, Barisal, Patuakhali, Khagrachair, Rangpur, Gazipur, and Burimara. Considering Shokhom is an initiative that is based primarily on monitoring, we have particularly chosen these areas in Bangladesh as OBHIZATRIK’s volunteer support in these areas is the strongest. The sole motto of this project is “To help the families to such an extent that they won’t be needing help next year rather they will be capable of providing Zakat for other poorer families”.

 In 2021-2022, OBHIZATRIK aims to empower 2000 families under SHOKKHOM who lost their livelihood/job due to Covid19.

The Process

Built through consultation, observation, and trial-and-error, the following process is followed for every SHOKKHOM startup:
(click the following items to see the details)

Step 1: Identify Candidates

The candidate selection process usually entails notification/announcement done in deprived areas, reviewing, screening, interviewing, testing then selecting the best available candidate.

The candidate selection process usually entails notification/announcement done in deprived areas, reviewing, and screening, interviewing, testing then selecting the best available candidate. Application forms are circulated in different areas by volunteers which the interested participants are asked to fill in and submit.

Candidates for a Shokkhom project are selected based on the following criteria:

  • Financial History: All individuals are checked for any existing loans/credit history and verification of current sources of income.
  • Any marketable skills: Any existing skills (basic arithmetic, farming, selling, sewing etc.) are put into account when coming up with the individual’s business plan
  • Reputation: Neighbors and/or family members are contacted for the individual’s social reputation and for verification
  • Desire to improve: Finally, the individual’s desire to improve social standing by honest means and willingness for hard work are also taken as KPIs.

Once the candidates are selected, a project and a donor are assigned to the candidates

Step 2: Assign Donor and Project

Each participant in the project has their own needs, skills and criteria, requiring different business models. The Shokkhom project currently has thirteen types of startup, each varying in size, operability and required investment. The models are developed based on the following:

  • Proper market conditions
  • Amount of investment
  • Existing skill set of the individual

Donors can either reach out to volunteers of the Project or contact by phone or mail, after which their donated amount and any other requirements are documented. People who wish to donate are reached out to by a network of 140 volunteers in 7 districts across the country. Success stories and campaigns are carried out to bring in more donors primarily through social media.

Step 3: Train and Disburse Funds

After a donor is found and a business model is developed, all individuals undergo 7 to 10 days of orientation on the following, conducted by volunteers:

  • Business development: Focusing on how to develop and run the business in question, including scaling up
  • Technology: Operating and/or repair and maintenance of any tools involved
  • Financial management: Basic financial literacy such as bank account opening, basic arithmetic and saving

After procurement of any tools involved (eg. a van or sewing machine) and building of infrastructure where required (eg. Shed for a farm) and training, keys to the business is handed over to the beneficiary.

Donors can either reach out to volunteers of the Project or contact by phone or mail, after which their donated amount and any other requirements are documented. People who wish to donate are reached out to by a network of 140 volunteers in 7 districts across the country. Success stories and campaigns are carried out to bring in more donors primarily through social media.

The Result - SHOKKHOM SUMMARY

Planning and Project description of SHOKKHOM 2021

SHOKKHOM BUSINESS MODEL FOR 2021

SOME FAQ ABOUT ZAKAT

SHOKKHOM as a International Research Topic for Poverty alleviation

যাকাতের অর্থ দিয়ে দারিদ্র বিমোচন ক্ষুদ্রঋণ এর থেকে বেশি কার্যকর এই নিয়ে “Islam, Neoliberalism and Social Inequality in Bangladesh: A Social Policy Perspective” শীর্ষক একটি রিসার্চ বিট্রিশ জার্নালে প্রকাশিত হয়েছে যার লেখক ঢাকা বিশ্ববিদ্যালয়ের প্রফেসর A. I. Mahbub Uddin Ahmed স্যার।
এটি মূলত স্যার গত ২০১৭ সাল থেকে অভিযাত্রিক ফাউন্ডেশন এর যাকাতের অর্থ দ্বারা পরিচালিত জীবিকা প্রকল্প “সক্ষম” উপর ২ বছর ব্যাপি গবেষণা করে লিখেছেন।
স্যারের এই রিসার্চটির সারাংশ (Abstract)-
The main objective of this chapter is to explore the relationship between zakat and reduction of social inequality in Bangladesh via historical development of Bangladesh social policy, social welfare regime and social welfare practices from 1201 to the present. It compares the neoliberal strategy of microfinance and Islamic strategy of zakat through Shokkhom Project data of a zakat-based Third Sector, Obhizatrik. It collects profiles of 82 beneficiaries, 49 males and 33 females, who received zakat between 2016 and 2017. Out of total 33 zakat recipients of Dhaka District, 13 case studies, 9 males and 4 females, were conducted for expediency. The chapter finds that Islamic welfare practice of zakat is more effective in the alleviation of poverty and ensuring social welfare than the neoliberal strategy of interest-based microfinance.
অনলাইন জার্নাল লিঙ্কঃ https://link.springer.com/…/10.1007/978-3-030-57753-7_13

ZAKAT MONITORING COMMITTEE

SHOKKHOM Project is supervised by a team of experienced Islamic Scholars. 
Responsibilities of Zakat Committee: 
  1.  Ensure 100% transparency of the ZAKAT amount. 
  2. Monitor the full process from candidate selection to project execution. 
  3. Monitor the yearly audit process
  4. Give written/verbal Fatwa any kind of questions regarding ZAKAT, SHOKKHOM, and its implementation. 
  5. Yearly four physical meetings with the OBHIZATRIK core team and SHOKKHOM Project team. 
  6. Give answers to any kind of question raised from donors. 
Zakat Committee Members:
1. Mufti Farhad Bin Hannan
Head Mufti: Zamia Talimia Madrasa, Dhaka
Khatib: Shamsun nur Jam-e-Masjid, Middle Badda, Dhaka
2. Mufti Ubaidur Rahman Hammad
Muhaddis: Jami’a Darul Ulum, Matijhil, Dhaka
Instructor and Head of Department (Workshop): IFA Consultancy Ltd.
3. Mufti Ibrahim Khalil
Khatib: Al Habibia Jam-e-Masjid
Principal: Madrasatul Huda Al Arabia
 4. Mufti Sheikh Belal Mahmudi
Principle: Darul Ulum Muhammadia Madrasa
5. Mufti Neyamutullah
Assistant Head Mufti: Markazut Taqwa Al Islamia, Dhaka
( Higher Islamia Education and Research Center)
SHOKKHOM Project Coordinator:
Arif R Hossain:
Mr Arif R Hossain is the adviser of the OBHIZATRIK Foundation and project coordinator of SHOKKHOM Project. He has been monitoring and supervising the SHOKKHOM project since 2016. In professional life Mr. Arif R Hossain is a famous media personality, activist, social worker, and blogger, also he is the Director of Advanced Development Technologies Ltd

SHOKKHOM FULL PROCESS SUMMARY

Zakat in the Quran

[2:215] “They ask you about giving: say, “The charity you give shall go to the parents, the relatives, the orphans, the poor, and the traveling alien.” Any good you do, God is fully aware thereof.”

[9:60] Charities(Sadaqaat) shall go to the poor, the needy, the workers who collect them, the new converts, to free the slaves, to those burdened by sudden expenses, in the cause of Allah, and to the traveling alien. Such is GOD’s commandment. GOD is Omniscient, Most Wise.

[2:3] who believe in the unseen, observe the Contact Prayers (Salat), and from our provisions to them, they give to charity.

[2:43] You shall observe the Contact Prayers (Salat) and give the obligatory charity (Zakat), and bow down with those who bow down.

[2:83] We made a covenant with the Children of Israel: “You shall not worship except GOD. You shall honor your parents and regard the relatives, the orphans, and the poor. You shall treat the people amicably. You shall observe the Contact Prayers (Salat) and give the obligatory charity (Zakat).” But you turned away, except a few of you, and you became averse.

[2:110] You shall observe the Contact Prayers (Salat) and give the obligatory charity (Zakat). Any good you send forth on behalf of your souls, you will find it at Allah. Allah is seer of everything you do.

Personal Zakat

Understanding the concept of Zakat lies at the core of Islamic Belief system as Zakat has been declared as one of the basic pillars of this life system. Here we Business will try to illustrate the idea of Zakat and some directions to calculate Zakat on personal level.

Business Zakat

Allah SWT Says: O! You who believe! Spend the good things you have ( legally) earned and of that which We have produced from the earth for you, and do not aim at that which is bad to spend from it, (though) you would not accept it save if you close your eyes and tolerate therein. And know that Allah is Rich (Free of All wants) and worthy all Praise.

How much is Zakat ?

Zakat is levied at 2.5% of all Zakat-able assets after deducting specific liabilities for the year. The annual payment of Zakat is done according to the lunar calendar. Items like jewellery and gold are Zakat-able items and their worth should be factored in when calculating totals.

The Meaning of Zakat

The literal meaning of Zakat is purification. Therefore, by giving Zakat, a Muslim is essentially purifying his soul and his wealth. This word is mentioned in many instances in the Qur’an alongside Salaat (prayer).

Who is eligible to receive Zakat?

“As-Sadaqat (Zakat) are only for the Fuqara’ (poor), and Al-Masakin (the needy) and those employed to collect (Zakat funds); and for to attract the hearts of those who have been inclined (towards Islam); and to free the captives; and for those in debt; and for Allah’s Cause (i.e. for Mujahidun – those fighting in the holy wars), and for the wayfarer (a traveler who is cut off from everything); a duty imposed by Allah. And Allah is All-Knowing, All-Wise.”

When Should I Pay Zakat?

Once your wealth has passed the Nisab threshold, you are eligible to pay Zakat. However, it is not paid straight away. Zakat should be paid after your wealth has been held for a full lunar year but only if the value remains above the minimum threshold amount.

What is Nisab?

The term Nisab is defined as the threshold amount that a Muslim’s wealth should total to make them eligible to pay Zakat. There are two values used to calculate the Nisab threshold – gold and silver at the value of 612.36 grams of silver and 87.48 grams of gold. The monetary value is calculated on the current price of gold and silver when working out your Zakat contribution.
When talking about Nisab thresholds, you may also come across the term ‘Hawl’ which is the term used to describe the lunar year, the Islamic year or 354 days. The payment of Zakat is expected to be made once every Hawl after your wealth has crossed the Nisab threshold and has remained above the threshold for a full Islamic year.

How Much Zakat Do I Need to Pay?

Zakat is calculated on the following:
2.5% on annual savings and personal wealth
5% on farmer’s assets where crops are irrigated out of the farmer’s pocket
10% on farmer’s assets where crops are irrigated by rain
20% on precious resources found on your property within the lunar year, such as oil, gold and silver

  • Male benificiary
  • Female benificiary
Donate your Zakat in our livelihood project “SHOKKHOM”.
For Zakat Donation, Call: +88 01701666300
SHOKKHOM IMPACT:

SHOKHOM at a Glance

Your Zakat Can Change some lives

Project Beneficiary

Total Zakat Donors

Number Of Project Area

TOTAL SHOKKHOM Department VOLUNTEERS
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Raised: $15.00
Goal: $20,000.00

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