Zakah (Zakah Al Mal) FAQ Guide
Zakat Al-Fitr/Sadaqatul Fitr: (or fitrah) is a Wajib (compulsory charity) which becomes payable on the occasion of Eid-ul-Fitr. The Noble Messenger of Allah ( Sallallâhu ‘alayhi wasallam) said:
“The fast remains suspended between Heaven and Earth until the fitrah is paid.” Rasulullâh Sallallâhu ‘alayhi wasallam made charity of Fitr compulsory as a purification of fasts from useless talks and vile discourses and also as food for the poor .(Hadith-Abû Dawûd).
Sadaqatul Fitr is wâjib (compulsory) upon all and it is not permissible to delay the payment of fitrah later than the Day of Eid for:
1. Who is alive at dawn on the day of Eid-ul-Fitr.
2. On whom Zakaat is Wajib, or who possesses goods free of debt in excess of his personal needs (e.g. house, clothing, furniture, etc.) to the value upon which Zakaat is obligatory.
3. On the father, on behalf of his minor children.
POINTS TO REMEMBER:
4. It is essential that Sadaqatul Fitr be distributed to the poor and needy Muslim before the Eid Salaah (prayer) hence, we ask each and every one of our community members to donate it as early as possible so we have ample amount of time to donate the fitrana to the needy. However, if this obligation has not been discharged timeously it should be done as soon as possible.
5. It is preferable to give one’s Sadaqatul Fitr firstly to needy relatives, thereafter to one’s needy neighbours and then to other needy Muslims.
Zakah: (alms) is one of the five pillars of Islam. Its importance can be realized from the fact that in 82 verses of the Qur’an Zakah is associated with prayer (Salah), such as: “Establish regular prayer and give Zakah; and obey Allah and His Messenger.”Quran (33:33)
“And We made them (descendants of Abraham) leaders, guiding by Our command, and We sent them inspiration to do good deeds, to establish regular Prayers and to practise Zakah; and they constantly served Us”
Quran (21:73)
• Zakah is the right of the poor. Zakah is not considered a favor that is given to the poor by the rich. It is the right of the poor on the wealth of the rich. Allah says: “..(In their) wealth there is a known share for the beggars and the destitute” Quran (70:24-25). Zakah, therefore, is unlike charity that is given to the needy voluntarily. Withholding Zakah is considered depriving the poor of their due share. Thus one who pays Zakah actually “purifies” his wealth by separating from it the portion that belongs to the poor.
VIRTUES OF ZAKAH
Allah says in the Quran: “The parable of those who spend their wealth in the way of Allah is that of a grain of corn. It grows seven ears and each ear has hundred grains. Allah increases manifold to whom He pleases.”(Quran 2:261)
The Beloved Messenger of Allah (pbuh) is reported to have said about Zakah:
• Zakah is a (great and strong) bridge of Islam.
• If a man pays the Zakah due on his property, it causes its evil influence to vanish.
• Gains the pleasure of Allah.
• Increases wealth and protects from losses.
• Causes Allah’s forgiveness and blessings.
• Protection from the wrath of Allah and from a bad death.
• A shelter on the Day of Judgment.
• Security from seventy misfortunes.
Zakah is obligatory on an adult sane Muslim who has wealth that reaches or exceeds a certain level called the Nisab for a lunar year. Unlike tax, however, Zakah is an act of worship for which one receives reward from Allah Ta’ala. Ignoring to pay Zakah, on the other hand, is a major sin. The rate of Zakah is 2.5%.
Remember … “The upper hand is better than the lower hand (i.e. he who gives in charity is better than him who takes it).” (Hadith- Bukhari)
In summary,
Zakat al-Fitr is paid by the head of the household for each member of the family, before Eid al-Fitr prayer.
Zakat al-Mal (commonly called “Zakat“) is due when a person’s wealth reaches the nisab amount and can be paid anytime during the year.
Zakah Funds can be deposited directly to the ISOD account – Importantly please cite the reference as Zakat al-Mal or Zakat al-Fitr
Name of the Account: Islamic Society of Darwin
BSB: 065-903
Account number : 00903289
The Meaning and Purpose of Zakat
The literal meaning of Zakat is ???to cleanse??? or ???purification???. In the Islamic faith, Zakat means purifying your wealth for the will of Allah SWT; to acknowledge that everything we own belongs to Allah SWT and to work towards the betterment of the Muslim Ummah. According to Islamic regulations, Zakat is 2.5% of one year???s total cumulative wealth. This amount is then distributed to the poor. Prophet Mohammad (PBUH) has said ???Whoever pays the zakat on his wealth will have its evil removed from him??? (Ibn Khuzaimah and at-Tabaraani).
Zakat as a Means of Spiritual Purification
Zakat is not only a means to purify one???s wealth but it is also a spiritual purification which serves as a means to draw an individual closer to the Creator, Allah SWT. Ibn Taimiah said that, ???the soul of one who gives zakat is blessed and so is his wealth???. It is quite clear from the above narration that in addition to being a moral obligation, Zakat is also a spiritual one which is why millions of Muslims every year give Zakat to the poor.
‘In their wealth there is a known share for the beggars and the destitute??? (70:24-25)
We mentioned how Zakat is a means of connection between the person and Allah SWT. It also provides a connection between the giver and the recipient. The entire concept of donating a fraction of one???s wealth to the poor is a highly honourable act; one that comes with valuable lessons as well as blessings. First and foremost, it teaches Muslims self-discipline, allowing the giver to free themselves from the love of possessions and greed.
Who Should Pay Zakat?
Zakat is one of the five pillars of Islam. As such, it is compulsory on Muslims, provided they meet certain conditions and criteria. Any Muslim who possesses the required nisaab (the minimum amount of wealth that one must have before zakat is payable) for one whole year is bound to pay Zakat on that wealth. It is imperative that Muslims know exactly how much Zakat they owe and How to Calculate Zakat so that the right amount can be given to the intended recipient.
A lot of people choose Ramadan as the month in which they pay their zakat and for good reasons. Ramadan is the month of blessings and the rewards for all good deeds is far greater in this blessed Ramadan that in any other month.
The Beneficiaries of Zakat?
To put it in simple terms, people who are poor and suffering are eligible to receive Zakat money. They can be any of the following:
The Poor & The Needy – these people may have some wealth and funds but it is not enough to make up for the nisaab.
The Destitute People – who have no wealth or funds. They are living their life on the very basics necessities of life.
Zakat Collectors – People who collect Zakat as well as distribute it.
Muslim Converts – This category was specifically designed to get new Muslim converts who were genuinely poor on their feet. It still exists to this day.
People in Debt – People who are in debt but cannot pay it back are eligible for Zakat.
Travellers – Muslims who are in the middle of their journey and out of money are eligible for zakat donations.
Zakat Cannot Be Used For:
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- building mosques
- to bury the deceased
- to clear the debt of the deceased
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How Society Uses Zakat
Muslims donating their Zakat to relief aid organisations around the world, it is a pivotal way to fight poverty. ISD Aid uses these funds to help poor communities in Darwin. Zakat funds also go towards emergency relief in case of natural disasters and Tsunamis such as Syrian Emergency Appeal.
Making the Intention of Zakat
Making an intention is integral in Islam. It can be found in virtually every discipline in the Islamic faith. Muslims make an intention to pray before they pray. The same goes for fasting and Hajj. It is therefore, mandatory to make intention of giving zakat, either at the time of organising the payment or at the time of payment.
Items That Fall Under the Scope of Zakat
Jewellery and Precious Metal Case in point, Gold and Silver. Both are come under Zakat even if they are used merely for decorative purposes. The reason behind it is simple; they contribute towards your cumulative wealth and as such their worth must be tabulated when calculating Zakat.
Bank Accounts – Any cash, bonds, stock one might have in their savings account. The amount should be in the bank for one year. Loans given or funds received are also part of the Zakat process.
Cattle and Crops – Cattle and crops that are in excess of one’s need.
TAKE ALMS FROM THEIR PROPERTY THAT YOU MAY PURIFY AND SANCTIFY THEM AND PRAY FOR THEM. VERILY YOUR PRAYERS ARE A COMFORT FOR THEM (9:103)
General Conditions of Zakat
Making Niyat is only half the task. Muslims must also consider the following conditions in order to ensure their Zakat contribution is paid correctly.
Recipient???s Eligibility: It is absolutely imperative that every shred of aid given reaches only those who need it most. As such, recipients of Zakat must be sufficiently poor to receive it. In a nutshell, if they don???t have personal assets that either meet or exceed the nisab, they are eligible to receive Zakat.
Paying Zakat In Advance: People who wish to pay for Zakat for future years can certainly do so. Keep in mind that the pre-paid amount can be offset against the actual zakat liability incurred in future years.
Payment in Kind: Zakat can be paid in many ways. The ideal way for today’s fast paced world is cash or if some people prefer, they can pay in kind as long as the value of goods are equal to the cash amount and furthermore, the recipient has agreed to accept the goods in kind.
Zakat and Tax:
Some people might think Zakat is a form of tax. It is not. Zakat and tax are two entirely different things. One is a spiritual act and an obligation as a caring human being and the other is a requirement of secular law. The concept of Zakat is to assist the poor and those who are suffering in order to help them end their suffering and get back on their feet.
ZAKAT AL-FITR (FAQ Guide)
What is Fitrah?
Fitrah is also often referred to as Sadaqat al-Fitr. The word Fitr means the same as Iftaar, breaking a fast, and it comes from the same root word as Futoor, meaning breakfast. Thus, in Islam, Fitrah is the name given to the charity that is distributed at the end of the fast of Ramadan.
How is Fitrah calculated?
The amount of Fitrah payable is called a saa, ie the minimum prescribed amount. It is the same for everyone, regardless of their different income brackets. One saa is traditionally (two handfuls or 2.176kg, approximately) of food, grain or dried fruit. This calculation is based on Ibn Umar’s report that the Prophet (SAW) made Fitrah compulsory and payable by a saa of dried dates or a saa of barley.
What is the status accorded to Fitrah?
It is a duty that is compulsory on every Muslim, whether male or female, minor or adult as long as he/she has the means to do so. The head of the household may pay the Fitrah on behalf of family members.
In reference to this, Abu Sa’eed al-Khudree said, “On behalf of our young and old, free men and slaves, we used to take out one saa of grain, cheese or raisins during Allah’s Messenger’s (SAW) lifetime”. [Sahih Muslim 2:469 (2155)]
Bear in mind that Fitrah is only compulsory for a particular period of time. If one misses the time period without a good reason, he has sinned and cannot make up for it. This charity becomes obligatory from sunset on the last day of fasting and remains obligatory until the beginning of the Eid prayer (that is, shortly after sunrise on the following day). However, it can be paid prior to the above mentioned period, as many of the companions of the Prophet (SAW) used to pay Fitrah a couple of days before Eid.
What is the main purpose of Fitrah?
The main purpose of Fitrah is to provide those who fasted with the means of making up for their errors during the month of fasting, thereby purifying their Ramadan fast. Fitrah also provides the poor with a means with which they can celebrate with dignity the Eid-ul-Fitr festival that concludes the end of Ramadan together with the rest of the community.
Ibn Abbas reported, “The Prophet (SAW) made Fitrah compulsory so that those who fasted may be purified of their idle deeds and shameful talk (committed during Ramadan) and so that the poor may be fed. Whoever gives it before Eid prayer will have it accepted as Zakat, while he who gives it after the prayer has given Sadaqah.” [Abu Dawood 2: 421 (1605)]
Hence, the goal of Fitrah is the spiritual development of the Believers. By making them give up some of their wealth, the believers are taught the higher moral characteristics of generosity, compassion (sympathy for the less fortunate), gratitude to God and the righteousness. But, since Islam does not neglect human material needs, part of the goal of Fitrah is the welfare of the poorer members of society. Fitrah effects a circulation of wealth within society. Each individual is required to calculate how much charity is due from himself and his dependents, and consider who in the community at large are in need of such charity. Thus, Fitrah contributes to developing compassion with action towards the needy. Bonds of love, brotherhood and sisterhood, across levels of society are thereby built.
Is it permissible to pay Fitrah in cash?
Nowadays, Muslims are generally allowed to pay in cash an equivalent value of one saa of Fitrah. Scholars opined that Fitrah can be paid in cash if it is better from the point of view of the recipients. If one who gives Fitrah is relatively wealthy, it would also be better for him or her to pay more than the amount of a saa..
Who are the recipients of Fitrah???
The recipients (asnaf) of Fitrah are the same as those of Zakah.