Zaka'ah: A Starter's Guide

Zaka'ah: A Starter's Guide

by United Muslim Nations on Saturday, 14 August 2010 at 22:51

"And among those around you of the wandering Arabs there are hypocrites, and among the townspeople of Al-Mad'inah (there are some who) persist in hypocrisy whom thou (O Muhammad) knows not. We, We know them, and We shall chastise them twice; then they will be relegated to a painful doom. And (there are) others who have acknowledged their faults. They mixed a righteous action with another that was bad. It may be that ALLAH will relent toward them. Lo! ALLAH is Relenting, Merciful. Take alms of their wealth, wherewith thou may purify them and may make them grow, and pray forthem. Lo! thy prayer is an assuagement for them. ALLAH is Nearer, Knower." - The Qur'an Surah 9 At-Tauba V. 101-103

What is Zaka'ah?

Zaka'ah literally means 'to purify and grow'. By giving Zaka'ah you purify your wealth and soul. Your wealth is thus blessed (Barakah - from ALLAH) and can increase. Zaka'ah is one of the Five Pillars of Islam.

Zaka'ah requires giving a small percentage of your wealth to charity, helping poor and needy people. It is the duty of the community not just to collect Zaka'ah, but to distribute it fairly, so that it will encourage cooperation among people to help the poor. Zaka'ah is obligatory for those who meet the paying criteria.

ALLAH (SWT) says in The Qur'an: "The alms are only for the poor and the needy, and those who collect them, and those whose hearts are to be reconciled, and to free the captives and the debtors, and for the cause of Allah, and (for) the wayfarers; a duty imposed by Allah. Allah is knower, Wise." (Surah 9 At-Taubah V. 60)

The Prophet (PBUH) said to his companion – who was sent to Yemen to teach people there about Islam – "Tell the people that ALLAH is asking them to undertake Zaka'ah given by wealthy people to the poor." (Narrated by Sahih Al Bukhari)

Many people think Zaka'ah is only a mechanical exercise taking money from the rich and giving it to the poor. This is not the sprit of Zaka'ah. There are other reasons to give Zaka'ah, such as

• It purifies the heart of the individual from being greedy.
• It represents the principle of Takaful (mutual assistance) among society.
• It is a reason to receive the mercy of ALLAH (SWT); as ALLAH (SWT) says: "...My mercy embraces all things, therefore I shall ordain it for those who ward off evil and pay Zaka'ah (the poor their due), and those who believe in Our Revelations." (Surah 7 Al A'Raf: 156)
• It is a reason to enter Heaven (Jannah); as ALLAH (SWT) says: "Successful indeed are the believers, Who are humble in their prayers, And who shun vain conversation, And who are payers of the poor due." (Surah 23 Al-Muminun V 1 to 4)

The proper steps of giving Zaka'ah

Intention

It is important that when giving Zaka'ah, you have the intention of giving it for the sake of ALLAH (SWT). In the absence of intention, your gift is not considered Zaka'ah. However, it can be considered as a voluntary Sadaqah. The intention makes the difference.

Zaka'ah in Ramadan

You must pay Zaka'ah by the due date unless there are serious reasons preventing this. If the due date is in Rajb, you cannot delay till Ramadan. However, if the due date falls in Ramadan, it is good to pay then, since doing good deeds in Ramadan brings more blessings (Barakah). Thus, most people prefer to give during Ramadan.

Appointing someone to give Zaka'ah on your behalf

You can delegate your payment to a trusted agent who is aware of the laws of Zaka'ah. However, you should ensure that the Zaka'ah is paid. If your agent fails to pay it, you must pay it yourself.

Zaka'ah guidelines

Who should pay Zaka'ah?

Adult Muslims of sound mind, whose level of wealth is above Nisaab (the threshold for paying Zaka'ah - see below*)

Conditions for assets to be liable for Zaka'ah

+ You must fully own the asset

+ The asset must be in excess of what you require as a basic necessity

+ You must have owned the asset for at least one year

+ Asset must be equivalent to Nisaab



What is the Nisaab*?

Nisaab is the minimum level of wealth at which you should pay Zaka'ah. It is set at the equivalent value to 85 grams of gold, in cash or articles of trade. Zaka'ah is paid on your net balance after the costs of basic necessities, family expenses, paying off debts and taxes are removed. At the end of the Hijri year, if your wealth is more than the value of Nisaab, you must pay Zaka'ah – at the rate of 2.5 per cent (or 2.577 per cent if you use the Georgian calendar).

Zaka'ah on shares

If you own shares in a company and that company pays Zaka'ah, then you do not need to pay Zaka'ah on those shares. If you own shares to earn a dividend on them and intend to keep them, you must pay the Zaka'ah on the dividend received. If you own shares to actively trade them, you should evaluate them based on the prevailing market value, and add that value to your other wealth when calculating your Zaka'ah payment.

Zaka'ah Asnaf

Categories of people who are eligible to receive Zaka'ah:

• The poor (Fuqara) - people who are extremely poor and have neither material possessions nor a means of livelihood.
• The needy (Miskin) - people with no surplus property or assets beyond their basic needs, or only surplus assets below the value of Nisaab. The Prophet (saw) mentioned start with those who are poor in your family and those from among your relatives first, as charity begins at home.
• Collectors of Zaka'ah (Amil Alyha) - people appointed by the state to collect Zaka'ah without pay from government.
• Debtors (Gharmin) - people in debt due to unforeseen circumstances that cannot get out of debt
• People who act for the cause of ALLAH (Fisabillillah)
• Travellers (Ibn us Sabil) - people who despite being wealthy when at home, need Zaka'ah during a journey.

Calculate your Zaka'ah NOW

http://www.hsbcamanah.com/amanah/personal/charity/zakah_calc.html



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