It is fardh (compulsory) upon every adult muslim to pay monies to charity if they qualify beyond the minimum threshold required and this is known as zakaat.
Zakaat is a pillar in Islam and is fundamental to a muslims belief and must be fulfilled on a yearly basis if one qualifies to pay zakaat.
When zakaat is paid, a muslim will fulfil one the pillars of Islam, increase the closeness to the almighty, purify ones wealth and ensure distribution to the ones who are most needy.
The basic requirements to pay zakaat is that one has to be an adult, possess monies or assets beyond the minimum threshold and the zakaat is payable every lunar calendar (every 354 days).
The assets which qualify to asses whether zakaat is payable are:
- Cash money / savings (in any currency)
- Gold / silver
- Stock in trade
- Shares
- Loans given out
- Pension funds
- Retirement annuities
We do not provide advice individually as to what amount of zakaat is payable and we recommend you seek advice from local ulama with knowledge of zakaat and pay your zakaat accordingly.
There are various zakaat calculators online which maybe able to assist but we cannot recommend any specific website you can use.
It is your responsibility to ensure the correct amount of zakaat is paid.
How much Zakaat to pay?
The minimum amount of zakaat payable is 2.5% value of all moneies / assets as listed above.
Am I eligible to pay zakaat?
Zakaat is payable if you the minimum amount of zakaatable wealth, which is know as Nisab.
In the Hanafi madhab silver is used to calculate the nisaab and the weight of the silver to be eligible to pay zakaat is 612.36 grams, therefore if a person owns 612.36 grams of silver or equivalent value in assets or monies or more then zakaat is payable. As of 19/12/2022 the value of the silver (612.36 grams) was approximately £376.54, therefore if you had monies over that amount then 2.5% of the total amount is payable as zakaat.
Where will the zakat donation be used?
ALC Foundation will ensure that all donations for zakaat are spent on causes eligible for zakaat.
Zakaat, at ALC Foundation will only be used to help the poor and needy and in accordance with what the quran has prescribed:
[Quran 9:60] The alms are meant only for the poor and the needy and those who are in charge thereof, those whose hearts are to be reconciled, and to free those in bondage, and to help those burdened with debt, and for expenditure in the Way of Allah and for the wayfarer. This is an obligation from Allah. Allah is All-Knowing, All-Wise.
Sadaqah
A sadaqah is a voluntary act of charity and can be more far reaching than zakaat as it is not limited to monetary donation and can be given at any time without any restraints. A sadaqah can be money donation but also donation of goods, services, time and even a smile. Any act of kindness can be sadaqah.
ALC Foundation accepts sadaqah donations in the form of money in order to help the poor and needy.
The definition of sadaqah is righteousness and in practical terms it is an act of kindness.
Examples of sadaqah can be:
- Donating money to the poor
- Building a well
- Teaching others quran
- Smiling at others
- Watering / planting a tree
- Taking care of animals
- Helping the sick