A world where the wealth of the affluent eases the suffering of the poor, where generosity helps balance privilege. This vision is at the core of Zakat, one of the five pillars of Islam that obligates Muslims to give a fixed percentage of their wealth to those in need. By understanding and fulfilling the obligation of Zakat, you cleanse your wealth and empower entities that build bridges within the muslim community.
What is Zakat?
Zakat means "purification" and "growth." It is meant to cleanse one's wealth by distributing a percentage of it to those less fortunate. The main objective of Zakat is that it should act as a social leveler and eliminate the widening disparity between the rich and the poor.
You can donate your Zakat to Al Mustafa Welfare Trust, and we ensure that your Zakat is being spent where it is most needed. Every penny you donate goes directly to those in need, profoundly changing the lives of thousands of families and individuals.
Understanding Zakat Rules
Eligibility for Paying Zakat
Every Muslim who fulfills certain conditions must pay the Zakat as it is compulsory. The individual must be a mature (pubertal) adult and meet the minimum level of wealth (Nisab) for a lunar year (Islamic).
Nisab: The Minimum Threshold
The Nisab is the minimum amount of wealth that a Muslim must possess before being required to pay Zakat. It is equivalent to 87.48 grams of gold or 612.36 grams of silver. Zakat is obligatory for Muslims to be paid once a year when their wealth has attained or exceeded the Nisab, after accounting for remaining property or assets.
Zakat comes in two forms: Zakat ul Mal and Zakat ul Fitr. Both are mandatory, and we shall discuss both forms beginning with Zakat ul Mal.
The Rules of Zakat al-Mal
Following are the 5 Fundamental Zakat ul Mal Rules:
- Every sane adult Muslim must give Zakat from his wealth annually. Certain other conditions, such as being free of debt, must also be met to be able to pay Zakat.
- You pay a constant unit of wealth. Zakat is 2.5% of the excess wealth that you have had for a one-year lunar period.
- A person must own the nisab for one lunar year before he/she is required to pay Zakat on that surplus wealth.
- Zakat must be paid as soon as it becomes due (one lunar year after Chattel acquired Nisab)
- Zakat must be given to the needy, poor, slaves, to those in debt or to the stranded travelers.
The Rules of Zakat al-Fitr
The other kind of Zakat is Zakat al Fitr or Fitrana. It applies each Ramadan before the day of Eid and is obligatory upon those who meet the nisab threshold, irrespective of age or rank.
- Fitrana is obligatory upon a person once a year; it should be given in Ramadan before the day of Eid.
- Every family member is obliged to pay Zakat.
Fitrana is the price of a meal that must be given to a recipient in need before the start of the Islamic year's Shawwal month.
Al Mustafa Welfare Trust is a beacon of trust and accountability in Zakat distribution. Our transparent practices regarding Zakat usage assure donors that their contributions make a real difference.
Your Zakat donation reaches the vulnerable, including children, those affected by war, disease, and climate disasters, and individuals in dire need.
Rules for Paying Zakat on Gold
Zakat is a religious obligation, and it requires Muslims to pay a certain amount of wealth every year to help the needy and deserving ones. When it comes to gold, there are specific rules about how and when Zakat should be paid.
Nisab Threshold
The Nisab for gold is approximately 87.48 grams or 2.75 troy ounces of gold. To determine if you have reached the Nisab, calculate the total weight of all the gold you possess. If it equals or exceeds 85 grams, you are obligated to pay Zakat on it.
Rate of Zakat
The Zakat rate is 2.5% (or 1/40) of the total value of the gold owned.
Types of Gold included to pay for Zakat
Jewelry: Gold jewelry that is owned and regularly worn is subject to Zakat if it reaches the Nisab threshold.
Bullion and Coins: Gold held in the form of bullion or coins, is subject to pay for Zakat.
Mixed Ownership: If the gold is jointly owned, each owner calculates their share individually to see if it meets the Nisab threshold.
Calculation of Zakat on Gold
Step 1: Weigh all the gold you own.
Step 2: Determine the current market value of gold per gram. Step 3: Calculate the total value of your gold by multiplying the weight by the current market value.
Step 4: Pay 2.5% of this total value as Zakat.
Let’s take an Example: Assume you own 100 grams of gold, and it exceeds the 85 grams Nisab. Now if the current market value of gold is $60 per gram, the total value of your gold is 100 grams × $60 = $6000. The Zakat is 2.5% of $60000 which would be $150.
Thus, you need to pay $150 as zakat on gold.
Zakat Exemption Rules
Not everyone is obligated to pay Zakat. You are exempt if:
- Your total wealth falls below the Nisab threshold.
- You possess wealth for less than one lunar year.
- You are financially struggling or burdened with debts that reduce your wealth below the Nisab.
- You rely on Zakat or charity for your basic needs.
- You have non-liquid assets (like property you live in or essential personal items) that do not exceed the Nisab when combined with other wealth. These exemptions ensure that Zakat is fair and only required of those able to give.
Making Sure We Stick to Zakat Rules
We take our responsibility to uphold Zakat rules seriously. To ensure your zakat donation is distributed correctly and ethically, we work closely with a qualified Islamic scholar who verifies every step of our process. This ensures we remain compliant with Shariah principles while maximizing the impact of your contributions.
With this assurance, you can donate with confidence, knowing that your Zakat fulfills both its spiritual and practical purposes, helping the most vulnerable in a way that truly counts.