Understanding Zakat: Achieving Purity Through Charity
The Muslim faith is characterized by acts of purity and sacrifice that aim to achieve enlightenment and the grace of Allah. And at this time of Ramadan, where sacrifice and charity are practiced more than ever, it’s important to understand how Zakat works and how to apply it.
Zakat Defined
In Islam, Zakat refers to the obligation of every able-bodied Muslim to share a portion of their accumulated wealth with charity. Considered as one of Islam’s five pillars, this annual act of giving purifies one’s wealth while supporting the local community.
Zakat has two forms: Zakat Al-Mal, or the Alms of Wealth, and the Zakat Al-Fitr, or Alms of Fast-Breaking. The former is based on one’s total wealth owned during the lunar year, while the latter is a fixed amount given before Eid. To make things easier, we’ll focus on Zakat Al-Mal.
Finding the Magic Number
“How much should I give as zakat?” I hear you ask. Good thing the Prophet Muhammad (PBUH) has assigned an amount for this specific concern. Also called nisab, this is the minimum bar your personal and business wealth should reach to be qualified to give zakat.
To see if you reach nisab, simply add all your personal and business wealth and deduct the dollar value of 85 grams or 3 ounces of gold. If the result exceeds the amount, then you meet the nisab requirements and can prepare your giving.
Now, how much exactly should you give? The simple answer is 2.5% of the total sum of your zakatable wealth and is due once a full lunar year of Hawl.
Easy, right?
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Some Give, While Others Receive
Another question widely asked about Zakat is who is eligible to receive it. There are eight types of people who are qualified, namely:
- The poor
- The indigent
- Those who work to administer zakat
- Those whose hearts are to be reconciled
- Those in bondage
- The debt-ridden
- In the cause of God
- The wayfarer
If you want to know if you can receive Zakat, contact your local mosque.
Zakat vs Sadaqah: What’s the Difference?
When it comes to the discussion of giving, while they may look alike, there’s a fundamental difference between the two. Basically, both forms of Zakat (wealth and fasting) are mandatory acts that should be done once a year. Sadaqah, on the other hand, is voluntary and has no specific amount requirement.
Financial Purity with Annual Zakat
Zakat is not just a way to purify one’s wealth; it’s also a means to support the local community and those in need of assistance. Additionally, knowing how to properly compute it will make giving more rewarding, both financially and spiritually.
Ramadan Mubarak from ijaraCDC!
