There are two types of charity discussed on this page. One being Zakat (compulsory) and the other being Sadqah (voluntary).

Zakat (Self Purification)

Zakat is one of the major religious duties in Islam. Literally, zakah means to "purify". It refers to the purification of a Muslim's wealth and soul. Wealth purification denotes the mobilization of assets for the purpose of financial growth and justified distribution. Purification of the soul implies freedom from hatred, jealousy, selfishness, uneasiness and greed. Other Qur'anic connotations include the purification of sin. Technically, zakah is a fixed proportion collected from the surplus wealth and earnings of a Muslim. It is then distributed to prescribed beneficiaries and for the welfare as well as the infrastructure of a Muslim society in general. This contribution is made payable by a Muslim once in every lunar year (Islamic Calendar/Hijri). Zakah is paid on the net balance after a Muslim has spent on basic necessities, family expenses, due credits, donations and taxes. Every Muslim male or female who at the end of the Hijri year is in possession of the equivalent of 85 grams of gold or more in cash or articles of trade, must pay his or her zakah at the minimum rate of 2.5%. Zakah has a deep humanitarian and social-political value. This religious act prevents the hoarding of wealth and advocates solidarity amongst Muslims because excessive wealth is distributed amongst the poor. The paying of zakah also helps purify one's soul and encourages a Muslim to have gratitude towards God's bounties.

As it has been mentioned, zakah is mentioned vis-à-vis with Salat (prayer) in 30 verses of the Qur'an. It was first revealed in 

	Al-Quran, Chapter 73 Al-Muzzammil, Verse 20
	In the Name of Allah, The Benevolent, The Merciful ".... and establish regular prayers and give regular charity; and loan to Allah a beautiful loan. And whatever good ye send forth for your souls, ye shall find it in Allah's presence, Yea, better and greater in reward and seek ye the grace of Allah: for Allah is oft-forgiving, Most Merciful."

In another verse, Allah declares that those who pay zakah, are included within the Muslim society (Jama'atul Islamiah) - At Taubah: 11

	Al-Quran, Chapter 9 At-Taubah, Verse 11
	In the Name of Allah, The Benevolent, The Merciful "But (even so), if they repent, establish regular prayers, and practice regular charity, they are your brethren in Faith: (thus) do We explain the Signs in detail, for those who understand."

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	Al-Quran, Chapter 98 Al-Baiyina, Verse 5
	In the Name of Allah, The Benevolent, The Merciful They were enjoined only to worship God, sincere in their faith in Him alone - and of upright religion - and to establish the Salat and the Zakat. Such is the upright religion

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	Al-Quran, Chapter 9 At-Taubah, Verse 34-35
	In the Name of Allah, The Benevolent, The Merciful Those who lay up treasures of gold and silver and spend them not in the way of God; give them the news of a painful punishment, on the Day when that [wealth] will be heated in hellfire, and their foreheads and their sides and their backs branded therewith: "This is the treasure which you laid up for yourselves! Taste, then, your hoarded treasure!"

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	Al-Quran, Chapter 3 Al'i-Imran, Verse 180
	In the Name of Allah, The Benevolent, The Merciful Let not those who are miserly with what God has given them of His bounty think that this is good for them. Rather, it is bad for them. That which they withhold shall be hung around their necks on the Day of Arising.

Bukhari and Muslim relate on the authority of Ibn `Abbas (radiyallahu `anhu) that the Messenger of God (sallallahu `alayhi wa sallam) sent Mu`adh to the Yemen he told him, "You are going to a people who have a Scripture, so call them to testify that there is no deity but God, and that I am the Messenger of God. If they respond to this, then teach them that God has imposed five Salats upon them in every day. If they respond to this, then teach them that God has imposed upon them a charity to be taken from the wealthy amongst them and given to their poor. If they respond to this, then beware of taking any more of their wealth! Beware also of the prayer of the oppressed, for there is no veil between such a prayer and God."

Bukhari relates on the authority of Abu Hurayra that the Prophet (sallallahu `alayhi wa sallam) said, "Whoever is given wealth by God and does not pay the Zakat due thereupon shall find that on the Day of Arising it is made to appear to him as a hairless snake with two black specks, which chains him, and then seizes him by his jaw and says, 'I am your wealth! I am your treasure!'" Then he recited the verse,

	Al-Quran, Chapter 3 Al'i-Imran, Verse 180
	In the Name of Allah, The Benevolent, The Merciful  'Let not those who are miserly with what God has given them of His bounty think that this is good for them. Rather, it is bad for them. That which they withhold shall be hung around their necks on the Day of Arising.'

Conditions for Zakah

Several conditions must be fulfilled before zakah can be paid. These conditions are necessary as zakah can only be applied on those who are of legal age and who own enough assets. These conditions are categorized into two broad categories, namely performer and asset.

1. Zakah Performer Muslim
   Every Muslim who is of a certain age and owns enough assets is required to pay zakah.

2. Zakah Asset
   Full Ownership A Muslim will only be required to pay zakah if he or she has full and legal ownership of an asset.

Zakah is payable only on those assets that are acquired for the purpose of creating or generating wealth. Some examples of this type of assets are livestock or crops that are traded or sold, inventory of goods used for trading, and investments such as gold or securities that have potential for appreciation in value. However, zakah is not payable in the case of fixed assets such as buildings, if they are not subjected to "capital circulation".

Assets that exceed a minimum value

Zakah need only be paid on those assets that exceed a minimum value. This minimum value is calculated based on the market price of 85 grams of gold or 595 grams of pure silver. This minimum value is termed Nisab. The Islamic Fiqh and Research Councils, as well as Jumhur (majority) of Ulama' recommend that gold be used as the basis for the calculation of nisab.

Completion of Haul

Haul is defined as the completion period for a zakah asset. The length of time for haul is one Islamic or Hijri year (1 year Hijri = 354.5 days, 1 year Solar = 365.25 days). Zakah is only payable on assets that have been held for at least this period.

Beneficiaries of Zakah

The Holy Qur'an (Sura Al-Tauba 9:60) classifies the due recipients of zakat under the following eight categories.

	Al-Quran, Chapter 9 At-Tauba, Verse 60
	In the Name of Allah, The Benevolent, The Merciful "Zakat is for the poor, and the needy and those who are employed to administer and collect it, and the new converts, and for those who are in bondage, and in debt and service of the cause of Allah, and for the wayfarers, a duty ordained by Allah, and Allah is the All-Knowing, the Wise".

Zakah can only be distributed to any of the eight eligible beneficiaries (asnaf) that are mentioned in the Qur'an, At Taubah: 60. However, priority should be given to the poor and needy. Where there is no central authority to administer zakah, it can be paid directly to the needy.

	Al-Quran, Chapter 9 At-Taubah, Verse 60
	In the Name of Allah, The Benevolent, The Merciful "Alms are for the poor and the needy, and those employed to administer the (funds); for those whose hearts have been (recently) reconciled (to the truth); for those in bondage and in debt; in the cause of Allah; and for the wayfarer: (thus is it) ordained by Allah, and Allah is full of knowledge and wisdom."

1. The poor (Faqir/Fuqara)
   Those without any means of livelihood and material possessions.

2. The needy (Miskeen)
   Those without sufficient means of livelihood to meet their basic necessities. For instance, those who, although may have a job, a house and a car, but whose income is below the minimum requirement.

3. The administrators of zakah (Amil)
   Those appointed to manage and administer zakah. This category is sub-divided into the following categories:

   1. Group of people who go out to the society and determine those who fall Fuqara and Miskeen categories.
       
   2. Those who collect the Zakah money.
       
   3. The accountant of the Zakah money.
       
   4. The administrator, manager, clerical worker or secretary who puts the files in order.
       
   5. Those who handle Zakah distributions.
       
   6. The auditor who audits overall Zakah management and administration.
      
       

4. The sympathisers (Muallaf)
   Those who are inclined to enter or have already converted to Islam.

5. To free slaves (Riqab)
   Zakah can also be used to free slaves or captives.

6. Those who are in debt (Gharimin)
   Zakah can be used to pay off the debts of a person who has borrowed to pay for basic necessities so that he/she can lead a normal life. Zakah can also be distributed to those in financial difficulties e.g. bankruptcy due to the loss of employment and heavy debt.

7. For the cause of Allah (Fisabillillah)
   Zakah can be used to finance any form of struggle or work for the love of Allah. The following examples fall under this category, e.g. Da'wah; building & developing society's infrastructure; defending Muslims, who are being oppressed; assisting poor travellers and sponsoring a student's educational expenses.

8. Those who are stranded during a journey (Ibnus Sabil)
   Zakah can also be used to help a traveller facing difficulties in continuing his journey due to reasons such as loss of money or the break down of his vehicles, the repair of which he cannot afford.

Types of Zakah

Zakah Fitr

Zakah Fitr is a one off payment that is made once in every Muslim Hijri calendar year at any time between the first day of the month of Ramadhan and the first day of Shawal. All Muslims are obliged to pay this, regardless of their age, status or wealth. The amount of zakah payable is approximately 3kg of staple food in the relevant country or an amount of money that is equivalent to the price of the food.

Zakah Al-Mal (on wealth)

Zakah al-Mal is an annual payment based on the amount of wealth owned by a Muslim individual or organization. This payment is obligatory upon any Muslim individual or organization that has completed the requirement of Nisab (minimum taxable amount) and Haul (one Muslim Hijri calendar year). The payment is 2.5% out of the total wealth deemed for zakah.

Zakah al-Mal can be subdivided into zakah on:

• Business
   
• Rental Income
   
• Personal Income
   
• Savings
   
• Gold and Silver
   
• Shares
   
• Livestock
   
• Crop

Some Hadith Concerning Zakat

The Noble Qur'an At-Taubah 9:60

As-Sadaqât (here it means Zakât) are only for the Fuqarâ' (poor), and Al-Masâkin (the poor) and those employed to collect (the funds); and for to attract the hearts of those who have been inclined (towards Islâm); and to free the captives; and for those in debt; and for Allâh's Cause (i.e. for Mujâhidûn - those fighting in the holy wars), and for the wayfarer (a traveller who is cut off from everything); a duty imposed by Allâh. And Allâh is All-Knower, All-Wise.

Hadith - Abu Dawood, Narrated Ali ibn Abu Talib, r.a.

Al-Abbas asked the Prophet (peace be upon him) about paying the sadaqah (his zakat) in advance before it became due, and he gave permission to do that.

Hadith - Abud Dawood, Narrated Anas ibn Malik, r.a.

The Prophet (peace be upon him) said: He who collects more sadaqah than is due is like him who refuses to pay it.

	Al-Qur'an, Chapter 2 Al-Baqarah, Verse 267
	In the Name of Allah, The Benevolent, The Merciful O you who believe! Spend of the good things which 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 Allâh is Rich (Free of all wants), and Worthy of all praise.

While mentioning this verse, al-Bara' said: "This was revealed in relation to us [al-Ansar--the Helpers], because we were owners of palm trees. A man may bring from his palm trees [dates] depending on how much he had, a cluster or two, and hang it at the mosque, and the people of the Saffah who had no food would come to the cluster and beat it with their rod. The green and unripe dates would fall off and they would eat them. There were people who did not seek good. Someone would bring a cluster of bad or inferior quality dates [shis and hashaf] or an already-broken cluster [before it had ripened] and hang it at the mosque. At this time, Allah revealed the 'ayah: 'And seek not the bad [with intent] to spend thereof [in charity] when you would not take it for yourselves save with disdain' [al-Baqarah 267]." Al-Bara' continued: "If one of you receives as a gift something similar to what he gives away, he would not accept it except out of feigned pleasure." Said al-Bara': "As a result of that, each one of us used to offer the good part of what he had." It was narrated by at-Tirmidhi who said: "It is good and sound."

 

In his summation of the subject, ash-Shaukani says: "This [the preceding hadith] means that the owner is not allowed to set aside the bad from the good on which zakah is due, especially in regard to dates as well as, by analogy, the various other categories on which zakah is due. Furthermore, the collector of zakah is not allowed to take it.

DOWNLOAD -----> Zakat Calculator (Excel 7.0 worksheet)

• Zakat al-Fitr and the annual 2.5% Zakat are two different zakats.
  • Zakat al-Fitr (wheat/grain) and is due for each family member and is to be given to the Masjid before Eid al-Fitr each year.
  • The annual 2.5% Zakat is due any time of the year, to be given annually to an Islamic cause, but it does not have to be given to the Masjid.
• Do not draw attention to yourself in your zakat, such as announcing that you gave to charity or making public the amount of your annual 2.5% zakat you gave.
• The annual 2.5% Zakat is usually given during Ramadan, because of the hadith with states that we receive extra blessings for any sadaqa done during Ramadan; however, it can be given annually at any time, basing a year on the Islamic calendar.

Sadaqa
(Voluntary Charity)

Sadqua is voluntary charity and can be given at any time in any amount to the needy. There is no sin upon the person if they do not give Sadqah, however to give it holds great rewards.

One's children, family, and relatives have precedence over others. It is not permissible to give sadaqah to a stranger when you and your dependents are in need of it.

It is related from Jabir that the Messenger of Allah, upon whom be peace, said: "When one of you is poor, he starts with himself. If anything is left, he spends it on his dependents. If anything is (still left) then on his relatives, and then, if more is left, he spends it here and there."

The Messenger of Allah, upon whom be peace, said: "Give sadaqah." A man said: "I have a dinar." He replied: "Give it to yourself as sadaqah." He said: "I have another dinar." He replied: "Give it to your wife as sadaqah." He said: "I have another dinar." He replied: "Give it to your child as sadaqah." He said: "I have another dinar." He replied: "Give it to your servant as sadaqah." He said: "I have another dinar." He replied: "You would be able to assess better [to whom to give it]." This is related by Abu Dawud, an-Nasa'i, and Hakim. Hakim grades it as authentic.

The Messenger of Allah, upon whom be peace, said: "A man has sinned enough if he neglects to feed those in need." This is related by Muslim and Abu Dawud.

Hadith - Abu Dawood, Narrated Abu Sa'id al-Khudri

The Prophet (peace be upon him) said: A man giving a dirham as sadaqah (charity) during his life is better than giving one hundred dirhams as sadaqah (charity) at the moment of his death.

Hadith - Sahih Al-Bukhari 8.50, Narrated Jabir bin Abdullah

The Prophet said, "Enjoining all that is good is a Sadaqa."

Hadith - Abu Dawood, Narrated Ata ibn Yasar

The Prophet (peace be upon him) said: Sadaqah may not be given to rich man, with the exception of five classes: One who fights in Allah's path, or who collects it, or a debtor, or a man who buys it with his money, or a man who has a poor neighbor who has been given sadaqah and gives a present to the rich man.

Hadith - Al-Tirmidhi, Narrated Suraqah ibn Malik, r.a.

The Prophet (peace be upon him) said: "Shall I not guide you to the most excellent sadaqah? It is to provide for your daughter when she is sent back to you and has no one but you to provide for her." Ibn Majah transmitted it.

The Noble Qur'an Al-Baqarah 2:245

Who is he that will lend to Allâh a goodly loan so that He may multiply it to him many times? And it is Allâh that decreases or increases (your provisions), and unto Him you shall return.