There’s lots to remember during Ramadan, but Zakat is one of the key ones you ought to keep in mind. Although it’s not mandatory during Ramadan, it comes highly recommended. The problem is there are a lot of Zakat rules and it’s important to understand what’s expected from you.
If you’ve ever wondered why Zakat is so important and why people choose to pay it during Ramadan, look no further.
What Is Zakat?
Along with Shahada, Salat, Sawm and Hajj, Zakat is the third Pillar of Islam, making it one of the most important elements in all of Islam.
Put simply, Zakat is an obligatory annual donation to charity expected from every Muslim who meets the specific requirements. Translated to ‘that which purifies’, Zakat is intended to cleanse you of your wealth and is required by Islamic law to be donated each year.
Generosity and donations to charity are one of the cornerstones of Islam. However, you need to remember that Zakat is different to other donations, such as Fitrana or Sadaqah, the latter of which is a voluntary act of generosity.
Who Pays Zakat?
Since not every Muslim is expected to pay Zakat, it’s important to know precisely who is eligible for zakat and who isn’t.
It is possible for you to pay Zakat on behalf of someone else, but you need to make that person aware for them to authorise this donation.
On the whole, Zakat applies to all adult Muslims so long as they meet the Nisab threshold.
What is Nisab?
Nisab is the minimum amount you need to have before you’re obliged to pay Zakat. If you’re below this minimum amount, you are not required to pay Zakat.
We can’t always be precise about the Nisab threshold since it’s not a specific monetary value. It was set by the Prophet Muhammad (PBUH) centuries ago. Back then, the threshold was set at just under 90 grams of gold and about 610 grams of silver.
Of course, we tend not to use silver and gold as currency anymore so use the equivalent monetary value for what this amount would be worth. Nowadays, the silver value of Nisab would be approximately £360, whereas the gold value would be about £4,000. So, if you have over £360 worth of savings, you’re eligible for Zakat.
How to Calculate Zakat?
You don’t want to donate too little for Zakat, so it’s important you know how to work it out.
If you want, you could simply use our online calculator available by clicking here. However, it’s as simple as donating 2.5% of your savings and financial assets.
Note that these don’t include everyday living expenses, like money used for paying bills, mortgages and for essential needs.
When to Pay Zakat?
Zakat is an annual donation. Many choose to donate their Zakat during Ramadan as well. That’s because this is the month in which rewards and blessings from any charitable donations are multiplied.
What Happens to Zakat Money?
Zakat money doesn’t just go anywhere. For example, it can’t go towards building mosques. Instead, there are several specific areas in which your Zakat can be used:
• For those who are traveling or stranded with limited supplies
• For the cause of Allah (SWT)
• To those in debt
• To those enslaved
• To new Muslims and friends of Islamic communities
• To Zakat administrators, such as charities
• To the needy and poor
As a charity that focuses on donating school meals to disadvantaged children, we accept Zakat donations and funnel that money directly to providing children school meals to keep them healthy and focused on their lessons.
If you’d like your Zakat to have the most impact and go towards changing lives, donate your Zakat here.
