A core tenet of the Islamic faith, Zakat represents the obligation to give to those in need. Encompassing the qualities of compassion, justice, and community welfare, Zakat reinforces Islamic teachings on wealth distribution and care for the less fortunate. Zakat not only fosters a sense of responsibility toward those in need, but it also serves as a means of purifying one’s wealth and nurturing a spirit of generosity and empathy within the Muslim community.
Derived from the Arabic root word “zaka,” meaning “to purify,” Zakat signifies the purification of one’s wealth through the act of giving. At its core, Zakat reflects the principles of economic justice and equitable distribution espoused by Islam. It helps to address the inherent inequalities that arise from the uneven distribution of wealth, ensuring that those who are less fortunate receive the support they require to meet their basic needs and lead dignified lives. By mandating the redistribution of wealth from the affluent to the impoverished, Zakat embodies the Islamic values of compassion, empathy, and solidarity, fostering a sense of collective obligation towards the welfare of others.
Recipients of Zakat
In the Quran, the eight categories of recipients of Zakat are outlined in Surah At-Tawbah (9:60):
- Poor people
- Those in need
- Those employed to collect Zakat
- Those whose hearts are to be reconciled
- Those in slavery
- Those in debt
- Those in the cause of Allah
- Travelers
One of the distinguishing features of Zakat is its comprehensive scope, which encompasses various categories of wealth and assets. According to Islamic principles, Zakat is levied on specific forms of wealth, including gold, silver, investments, savings, cash, rental income, business merchandise and profits, as well as shares, securities, and bonds. However, it’s important to recognize that Zakat isn’t levied on wealth designated for debt repayment or for meeting basic living expenses such as clothing, food, housing, transportation, and education.
Acknowledging the blessings bestowed by the Divine
Each category carries its own prescribed rate of Zakat, calculated based on the value of the assets owned and the passage of time. Through the systematic payment of Zakat, Muslims are encouraged to acknowledge the blessings bestowed upon them by the Divine and to fulfill their duty towards those who are less fortunate.
Specifically, Muslims are encouraged to pay Zakat at a rate of 2.5% of the wealth they possess above the nisab, which is the minimum threshold for Zakat eligibility. The nisab is equivalent to 85 grams of 24k gold, an amount that can fluctuate daily based on gold exchange rates.
The timeline for paying Zakat relies on the hawl, which refers to the completion of one lunar year since the last time Zakat was due on specific assets. The hawl represents the period during which assets are evaluated for Zakat eligibility. Upon the completion of the hawl, individuals reassess their wealth to calculate the Zakat due, considering any changes in assets or liabilities that occurred during the year. This cyclical process ensures that Zakat is paid on wealth that has been held for a full lunar year.
IRUSA eligible to receive Zakat funds
Islamic Relief USA (IRUSA) follows a widely accepted practice among scholars, wherein collectors of Zakat, like IRUSA, are among the eligible groups to receive Zakat funds. According to this practice, IRUSA can allocate up to 10% of donations made to Zakat-specific funds for core operations, including administrative and operational functions.
When making Zakat donations using a credit card, IRUSA encourages donors to add 2 percent to compensate for credit card transaction fees. This ensures that the intended Zakat amount is paid in full, maintaining the integrity of the charitable contribution. Through IRUSA’s online Zakat calculator, individuals can determine the amount of Zakat owed based on their financial circumstances, thereby ensuring transparency and accountability in the distribution of charitable funds.
To ensure that IRUSA’s Zakat-related initiatives align with Islamic principles and guidelines, IRUSA maintains a Zakat Advisory Board of knowledgeable scholars and experts in Islamic jurisprudence and finance. This board helps ensure that IRUSA’s Zakat-related initiatives align with Islamic principles and guidelines. Committed to upholding transparency and accountability, the Zakat Advisory Board provides guidance on Zakat collection, distribution, and utilization, ensuring that funds are allocated to eligible recipients in accordance with Islamic teachings. Through its diligent oversight and adherence to ethical standards, the Zakat Advisory Board enables IRUSA to effectively fulfill its mission of providing humanitarian aid and assistance to those in need, while upholding the integrity of Zakat contributions from donors.
Power of Zakat unites Muslims
The power of Zakat extends beyond its material impact, uniting Muslims in a shared commitment to social justice and human dignity. It serves as a reminder of the interconnectedness of humanity and the moral imperative to stand in solidarity with the marginalized and vulnerable members of society. By embracing the principles of Zakat, Muslims reaffirm their faith in the principles of justice, compassion, and stewardship, fulfilling their duty as trustees of the wealth entrusted to them by the Divine.
Moreover, Zakat serves as a means of spiritual purification and personal growth, fostering a sense of humility and gratitude for the blessings bestowed upon individuals. Through the act of giving, Muslims cultivate a spirit of generosity and selflessness, recognizing that true wealth lies not in the accumulation of material possessions, but in the service of others and the fulfillment of one’s moral obligations.