Zakat

 “True piety is this: to believe in God, and the Last Day, the angels, the Book, and the Prophets, to give of one’s substance, however cherished, to kinsmen, and orphans, the needy, the traveler, beggars, and to ransom the slave, to perform the prayer, to pay the Zakat.” (Qur’an 2:177)

What Is Zakat ?

Zakat is one of the five pillars of Islam, the literal translation of the Arabic word is “to cleanse” or “purify”. Paying Zakat on your wealth purifies and increases the remainder of it, also serving as a reminder that everything we own belongs to Allah. Islamic regulations outline that Zakat is 2.5% of one’s wealth which is distributed to the poor. The Prophet (Peace be upon him) said “Whoever pays the Zakat on his wealth will have its evil removed from him” (Ibn Khuzaimah and at-Tabaraani).

What Are The Benefits Of Zakat ?

Zakat not only purifies ones wealth but is also a spiritual purification and draws an individual closer to their creator. Ibn Taimiah said, ‘the soul of one who gives Zakat is blessed and so is his wealth’, therefore it is a spiritual obligation to give Zakat.

‘In their wealth there is a known share for the beggars and the destitute’ (70:24-25)

Zakat also creates a connection between the giver and the recipient, even the idea of giving a fraction of one’s wealth to the poor is an honorable act which has numerous attributes. The benefits for the individual include, learning self discipline- allowing the giver to free themselves from the love of possessions and greed.

Who Needs to Pay Zakat?

A  Muslim who is a sane adult, in possession of the nisab (the minimum amount of wealth that one must have before zakat is payable) for one whole year. See the current monetary nisab value in the How to Calculate Zakat section.

A lot of people choose Ramadan as the month in which they pay their zakat; both to remember it, and also because the reward for good deeds done in this blessed month is multiplied.

Who Benefits From Zakat?

1) The Poor & the Needy – These people may have some wealth, but not enough to make up the nisab.

2) The Destitute – Such people have nothing other than the very basic necessities; they are worse off than the poor and destitute.

3) Those employed to collect the zakat – this refers to those that collect as well as distribute the zakat.

4) To reconcile hearts – traditionally, this category was for new Muslims who after having become Muslim, faced extreme poverty due to their decision.

5) Those who are indebted, but unable to settle their debt

6) Travellers who have run out of money and would therefore have no way of reaching their final destination without help.

Zakat cannot be used to build mosques, to bury the deceased, or to clear the debt of the deceased. 

How Muslim Aid uses Zakat for the benefit of the recipient?  

Zakat helps people in poverty. Muslim Aid uses the funds raised to help poor communities to start small businesses and gain the skills needed to empower themselves, in order to come out of poverty. The Zakat funds also go towards emergency relief. 

Niyaat Of The Zakat?

It is mandatory to make intention when giving sachet, either at the time of organizing the payment or at the time of payment.

Zakatable Items:

• Gold and silver are both zakatable items in any form, be it jewellery, decorative or household objects, and are calculated at 2.5% of the market value. The general opinion is that they contribute towards your wealth, and so zakat must be paid.

• All cash and bank balances in your savings account are zakatable. The amount should be in the bank for one year. Loans given and funds are also zakatable.

• Business on business, zakat on partnership firms, zakat on agricultural products, zakat on animals, and liabilities deductions.

• Cattle and crops which are in excess of one’s need.

‘Take alms from their property that you may purify and sanctify them and pray for them. Verily your prayers are a comfort for them’ (9:103)

General Conditions For Zakat To Be An Obligation

Besides making niyat for zakat, individuals must also consider the following conditions in order for their zakat to be validated.

• Eligibility Of Recipient: The recipient must be sufficiently poor so that the value of all their non-essential personal assets is less than the nisaab (means minimum amount of wealth upon which zakat is payable) amount.

• Recipient’s Ownership: The recipient must be made to own the assets given in zakat (scholars therefore advise against giving zakat to general causes such as hospital trusts. This is because theses funds are not directly owned by the recipient). The donor cannot reserve any rights over the wealth given in zakat.

• Prepaying Zakat: It is permissible to pre-pay zakat for future years. In this case the amount that is pre-paid can be offset against the actual zakat liability incurred in future years. However at the time of payment the intention must clearly be for future years.

• Payment In Kind: Zakat can be paid either in cash or in kind as long as the value of goods are equal to the cash amount and the recipient has agreed to accept the goods in kind. 

‘Establish regular prayer and give zakat’ (73:20)

Zakat and Tax:

Zakat and tax are two entirely different things; one is a spiritual act and an obligation and the other is a requirement of secular law. Zakat is solely used to help those in poverty and not used for any other societal needs. 

How To Calculate Your Zakat: (include Zakat calculator and description here)