5 Things you Need to Know About Zakat

How is Zakat calculated?

Any Muslim, regardless of age or gender, who has saved money for more than one year is required to pay Zakat, which is 2.5% of their wealth on that money. For example, if a Muslim's total assets are worth $10,000, they would pay $250 in Zakat. Every Muslim who meets the Nisab threshold is required to pay Zakat in order to ensure that wealth is distributed to those in need. Zakat encourages Muslims to be diligent in managing their earnings and expenses.

How many types of Zakat are there in Islam?

There are two types of Zakat in Islam: Zakat and Zakat al-Fitr. 

Zakat is a charitable donation that must be given with the intention of fulfilling the Zakat obligation, while Zakat al-Fitr is a smaller donation that must be made by the head of the household before the start of Eid prayers.

What is Nisab?

The Nisab is the minimum amount of personal wealth that a Muslim must have for one lunar year in order to be eligible to pay Zakat. It is traditionally measured in terms of gold and silver, but is typically calculated in terms of local currency. The Nisab is equivalent to 612.4 grams of silver or 87.5 grams of gold, and the amount of Zakat payable may vary slightly from year to year due to fluctuations in gold and silver prices.

Who is eligible to pay Zakat?

To be qualified to pay Zakat, a person must fulfil five requirements:

1. A Muslim must have reached the age of puberty (as per the Hanafi madhhab).
2. Prior to paying Zakat on the property, a Muslim must have owned the Nisab (minimum quantity of wealth) for one lunar year.
3. A Muslim must be able to enhance his or her riches.
4. The Muslim who is paying Zakat must be mentally stable.
5. A Muslim is only required to donate Zakat to those who are entitled to it.

Who is eligible to receive Zakat?

In general, there are eight groups of people that qualify to receive Zakat:

- The poor*

- The needy

- The Administrators of Zakat

- Those with a heart of reconciliation (those who have embraced Islam or are inclined to it).

- Those who have been enslaved

- The borrowers

- For the glory of Allah

- Travelers (including refugees)

*A poor person is someone whose property does not reach the Nisab and is in excess of their basic needs.

Donating to a cause?

Donating to the right cause is important and we encourage you to donate through HasanaH, a non-profit organization that is 100% committed to financial integrity, transparency, and stewardship. HasanaH does not make individual judgments over which projects qualify for Zakat. Instead, it enables donors to make informed decisions based on reliable data and to direct contributions to credible projects that are aligned with your priorities and values.

Are you looking to make an impact? Feel free to contact us or Discover charitable projects here.