We’ve put together a detailed outline of the different types of charity and donations. If you have any further questions, please feel free to contact us by telephone or email.
ZAKAT
WHAT IS ZAKAT?
Zakat is the compulsory alms-giving which is treated as a religious and Islamic obligation or tax. It is one of the five pillars of Islam and has been ordained in the Qur’an.
WHO MUST GIVE ZAKAT?
The giving of Zakat is compulsory upon every single Muslim who is sane, mature and meets the threshold amount (Nisab), male or female.
WHO CAN ZAKAT BE GIVEN TO?
The Qur’an makes mention of eight eligible categories. If it is not given to any of these eight eligible categories, then the Zakat will be void and it will become necessary to re-pay. It is an obligation on one’s own self to ensure Zakat is handled appropriately or given to trustworthy sources to be allocated suitably.
WHAT ARE THE EIGHT ELIGIBLE CATEGORIES?
The eight eligible categories for Zakat are as follows –
- The poor – this means those on a low income, indigent or who do not reach the threshold amount to pay Zakat.
- The needy – this means someone who is in difficulty or extremely destitute.
- Zakat Administrators
- Those whose hearts are to be reconciled – this refers to new Muslims and friends of the Muslim communities.
- Those in bondage – this refers to slaves and captives.
- The debt ridden
- In the cause of Allah
- The wayfarer – this refers to those who are stranded or travelling with very few resources.
HOW MUCH ZAKAT DO I NEED TO GIVE?
Anyone who reaches the threshold amount and fits the criteria to pay zakat must calculate 2.5% of their applicable “zakatable” wealth and pay this as Zakat. Scholars generally advise that a little extra should be given just in case.