Zakat & Sadaqah

Zakat is the third pillar of Islam: a fixed share of one's savings given every year to those in need. The word means both purification and growth — it purifies the giver's wealth and heart, and helps the wealth grow in blessing. Allah pairs it with prayer throughout the Quran: “Establish prayer and give Zakat” (2:43). It is not a favour from the rich, but a right of the poor: “In their wealth there is a rightful share for the beggar and the deprived” (51:19).

Allah multiplies what is given for His sake: “The example of those who spend their wealth in the way of Allah is like a grain that sprouts seven ears, in every ear a hundred grains” (2:261). The Prophet ﷺ said that charity does not decrease wealth (Muslim). But whoever withholds Zakat is warned severely (9:34-35): on the Day of Judgment the wealth they hoarded will be made a burden upon them (Bukhari).

Zakat is due on a Muslim who meets all of these conditions:

• Owns wealth that reaches the Nisab (the minimum threshold, see next section), beyond his basic needs.
• Has full and free ownership of it (not a deposit held for someone else).
• A full lunar year (Hawl) has passed with the wealth at or above the Nisab. (Crops and minerals are due at harvest or extraction, with no year needed.)
• Is a sane adult, or has a guardian who pays for a child or person of unsound mind, according to most scholars.

The Nisab is the minimum wealth on which Zakat is due. It is the value of 85 grams of gold (some scholars use 87.5 g), or about 595 grams of silver. The rate on money, gold, silver and trade goods is 2.5% (one fortieth) of the total value. Which one to use for cash — gold or silver — is a point of difference: many contemporary scholars advise the silver Nisab, because it is lower and so helps more of the poor. Check the price of gold or silver on the day you calculate.

Zakat is due on wealth that grows or is kept to grow:

• Cash, bank savings and money owed to you that you can collect.
• Gold and silver (jewellery: scholars differ — the Hanafi school includes it; others exempt jewellery worn for adornment).
• Goods held for trade, valued at the market price.
• Shares and investments held for profit (valued at market price); for shares held long-term for dividends, scholars differ on the base.
• Livestock kept for grazing (camels, cattle, sheep and goats — with their own thresholds), and crops (10% if watered by rain, 5% if by effort, at harvest).
• Not due on: the home you live in, a personal car, household goods, and tools of your work.

Choose a fixed Zakat date each year (many use the 1st of Ramadan) and follow these steps:

• Add up all your zakatable assets on that date (cash, savings, gold and silver, trade goods, receivable debts, investments).
• Subtract the debts you owe that are due now.
• If what remains reaches the Nisab, it is due. If it is below, nothing is due.
• Pay 2.5% of what remains. Example: €12,000 remaining → 12,000 × 0.025 = €300.
• If you are unsure, it is safer to give a little more, and Allah knows your intention.

Allah named the eight categories in Surah At-Tawbah (9:60), and no others: “Zakat is only for the poor, the needy, those who collect it, those whose hearts are to be won over, freeing captives, those in debt, in the cause of Allah, and the traveller in need.” In practice:

• The poor and the needy — those who do not have enough for their basic needs.
• Those employed to collect and distribute it.
• Those whose hearts are to be reconciled (new Muslims, or those whose support helps Islam).
• Freeing captives and those in bondage.
• People in debt who cannot repay.
• In the cause of Allah.
• The traveller who is stranded.
• Not allowed: your parents and grandparents, your children and grandchildren, and your spouse (they are supported already); and the family of the Prophet ﷺ (Muslim). Relatives outside these are the best recipients.

Pay it when it is due, with a clear intention that it is Zakat. It may be paid a little early, but should not be delayed without a reason. Give it with a good heart from good wealth, never from what is worthless. Do not spoil it with reminders or hurt: “Do not nullify your charities with reminders and injury” (2:264). Giving quietly is better, though giving openly is also good so that others follow (2:271). Pay it directly, or through a trusted charity or Zakat fund that will reach the eligible.

Beyond Zakat, Sadaqah is open to everyone, of any amount, at any time. The Prophet ﷺ said: “Every act of goodness is charity” (Bukhari and Muslim), including a smile, removing harm from the road, a kind word, and helping someone carry a load (Bukhari and Muslim). The best charity is given while healthy and while fearing poverty (Bukhari and Muslim). Charity given to a relative in need counts twice: as charity and as keeping family ties (Tirmidhi, Nasa'i). On the Day of Judgment the believer will be shaded by their charity (Tirmidhi).

The Prophet ﷺ said: “When a person dies, all his deeds end except three: ongoing charity, knowledge that benefits others, and a righteous child who prays for him” (Muslim). A well, a tree, a school, a mosque, a copy of the Quran, or a useful book all keep earning reward after death. Make this Dua when you give, as Ibrahim and Ismail did when building the Kaaba:

Zakat al-Fitr is a separate, small obligation on every Muslim at the end of Ramadan, given before the Eid prayer for each person one supports: a sa' (about 2.5–3 kg) of the local staple food (Bukhari and Muslim). It purifies the fast and feeds the poor on Eid. The Hanafi school allows giving its monetary value; other schools prefer food. See the Fasting guide for more.