Zakat

Dinar Dirham Web

Slot at the Zaouia Moulay Idriss II 1

Error creating thumbnail:

Zakat Donation Box in Taipei Mosque 20190519

Zakat is one of the Five Pillars of Islam, serving as a compulsory act of charity designed to support the Muslim community's economic welfare. It is a form of almsgiving treated in Islam as a religious obligation or tax, which, by Quranic ranking, is next after prayer (Salat) in importance.

As one of the most important principles of Islam, Zakat is a fixed percentage of income a believer is required to give to the poor and needy. It is specifically meant to be a way to purify those who give by redirecting their focus away from material wealth. The word "Zakat" itself means "purification" and "growth." Through this act, Muslims believe their wealth is purified, earning them reward in the afterlife, while also helping to improve the lives of the less fortunate in their community.

Principles of Zakat

Zakat is required of Muslims who meet the necessary criteria of wealth. It is not charged on one's entire wealth but on the surplus of wealth, which has been in one's possession for a lunar year. The standard Nisab (the minimum amount of wealth one must have before they are liable to pay Zakat) is equivalent to the current value of 3 ounces (approximately 85 grams) of gold or its cash equivalent. The amount of Zakat to be paid is 2.5% of the total savings and wealth above the nisab threshold.

Eligible Recipients of Zakat

The Quran specifies eight categories of people who are eligible to receive Zakat funds:

1. The poor (Al-Fuqara)
2. The needy (Al-Masakin)
3. Zakat administrators
4. Those whose hearts are to be reconciled
5. Slaves and captives
6. Debtors
7. In the cause of Allah
8. The wayfarer (traveler who has run out of resources)

Calculation and Distribution

The calculation of Zakat is a matter of personal responsibility for each Muslim. It involves calculating the value of all of one's possessions, including cash, gold, silver, and business merchandise, and then determining the 2.5% of the total that is to be given away. While many Muslims calculate and distribute Zakat during the month of Ramadan for its increased rewards, it can be given at any time of the year.

Impact of Zakat

Zakat plays a crucial role in Islamic societies, acting as a form of social welfare and a means to redistribute wealth. It aims to alleviate poverty and reduce inequality by providing support to those in need. Beyond its immediate financial assistance, Zakat fosters a sense of solidarity and brotherhood among Muslims, as it reminds the wealthy of their duty towards the less fortunate.

Contemporary Issues

In modern times, the application and management of Zakat have faced challenges, including differing interpretations of nisab and the categories of eligible recipients. Some countries have institutionalized Zakat, with state-run agencies collecting and distributing funds, while in others, it remains a matter of individual conscience and community organization.