Depending on how you donate your Zakat, it may only be an act of worship which you observe once each year. During the year, circumstances can change. this is the reason why each year, many donors seek guidance on how to calculate their Zakat and donate it correctly in line with the Qur’an and Sunnah. We have compiled a Zakat FAQ in order to help guide you through some of the most frequently asked Zakat questions we come across with our donors. Questions have been answered in accordance with the Hanafi School of Law – some answers may be subject to difference of opinion between Madhabs. Please seek advice from your local Scholar if in doubt!
Your Zakat Questions Answered
The word Zakat has 2 meanings
1 – Tahara – Purification. 2 – Zarh – Grow/increase.
Zakat in Islam is the ownership of a certain amount of wealth, to take the wealth and to pass it along to those in need. Each year, Muslims who qualify to give Zakat donate 2.5% of their wealth to others who are in need of receiving provision.
Zakat can be looked upon as the first social security system in history and modern case studies have suggested that if the wealthiest people in the world donated Zakat it could alleviate worldwide poverty. It’s important to remember that a Muslim believes that the 2.5% they seek to donate doesn’t really belong to them to being with – but in the knowledge of Allah this has been reserved for those less needy than themselves. Those who can be in receipt of Zakat can being from within one’s own family, to a student of knowledge, to the most impoverished around the world!
Only for those who fulfil the 5 conditions of:
- To be a Muslim
- To be free (not a slave)
- To be Mature (above the age of puberty)
- To be saine (unable to make sound decisions for themselves – this differs in other Madhabs)
- One must be in the possession of Nisab
Calculating Zakat is simple! Add together all of your liquid assets, including any gold/silver and savings.
Divide the total by 100.
Times the result by 2.5.
That is the amount if Zakat you need to pay.
Those who are in possession of provision above the Nisab threshold.
If a persons Nisab is below the 2 thresholds, they are eligible to receive zakat. See below to find out about the 2 thresholds.
A minimum amount of wealth specified in Sharish which requires you to pay Zakat if your wealth surpasses this threshold. The one above this threshold gives Zakat and the one below can receive Zakat. According to Islamic Law nisab is calculated based on an equivalent amount of gold or silver. The wealth includes all forms, gold, silver, cash, savings etc equivalent to the value of the amount of gold or silver set as the Nisab (minimum threshold). The nisab is wealth equivalent to 87g gold or 25oz silver – this never changes however the value of currency in relation to gold or silver does. So it’s necessary each year to check the nisab equivalent to the currency your wealth is held in due to the price of gold and silver fluctuating – on the day in which Zakat is paid.
Check the current value of your liquid assets against the Nisab threshold. It is accessible wealth only. It does not include your home, car etc…
According to the Ulema one should use the lower threshold of silver in order to be able to give.
87g gold or 25oz silver – As per February 2022 this is the equivalent of £3717.67 if you use the gold nisab or £303.67 if you use the silver nisab – please check today’s rate as the nisab value in currency is subject to change based on the current rate of gold and silver.
If the children are the true possessors of the wealth, no.
If the child is has reached maturity – yes.
No – the intention must be made when the wealth is donated in order for it to qualify as Zakat.
As long as you separate your Zakat money and make the intention that it is for Zakat on the day in which you calculate your Zakat you can then spread this over multiple donations. However it must have been calculated and set aside from the rest of your wealth. If someone donated without an intention for Zakat, it cannot be accepted as Zakat.
No – as long as you make the intention. We enable you to tell us, to ensure that we distribute your Zakat correctly. However, all of our current humanitarian aid projects are Zakat eligible.
Yes – as long as you have intended it e.g. you know you will be able to access savings in 1 years time which is currently not accessible. You can pay Zakat on this money in advance gradually on the asset before you can access it, as long as the intention is made. You need to remember to deduct this amount from what is due each time you calculate your Zakat which is due thereafter.
Charity if the best of Deeds. You can still donate voluntary charity or Sadaqah which is one of the best Deeds a Muslim can observe! During the Month of Ramadan donating Sadaqah receives even higher rewards! This differs from Zakat which is one of the 5 pillars of Islam, as opposed to being a voluntary act of giving it is compulsory.
The Prophet Muhammed ﷺ said “The Shade of a believer on the day of Judgement will be his Sadaqah” – Ahmed
Revive uses the Hanafi Fiqh criteria in managing and distributing Zakat funds
Any beneficiary must be eligible to Zakat according to the categories mentioned by Hanafi sources.
1. Emergency Relief Fund (The Bread Factory is a form of emergency relief)
2. Orphans Fund
3. Rebuilding Fund
4. Education Fund
A Zakat payer can allocate his Zakat to any funds she/ he pleases.
In the emergency relief fund – Revive – acts as your representative (Wakeel) and we collect funds on this assumption. Relevant supplies are purchased for the categories of Zakat (predominantly from the Fuqara & Masakeen – poor and destitute) for the emergency appeals.
The al-Qalam Shariah Panel as well as other scholars advised using the ‘Wakalah’ (agency) model to allow paying staff with Zakat. This model is famously used in a number of Darul Ulooms and Islamic seminaries in India, Pakistan and Bangladesh to fund administrative operations and causes where direct Zakat use might not be permissible or may be contested among different scholars and schools. This framework ensures Zakat is paid and distributed in valid manner strictly according to all.
The Wakalah model functions in the following manner:
Zakat recipients make Revive an agent (wakil) on their behalf to receive zakat funds and spend it in their needs and in avenues according to the policy of Revive. This is by means of a clause that recipients sign. The wording of this clause is as follows: “Should my application be successful then I consent to Revive receiving and disbursing Zakat funds on my behalf in a manner that the organisation sees fit and in line with the needs highlighted in my application.”
The flow of funds is as follows:
- The zakat payers give their zakat to Revive.
- Revive holds the zakat as agent of the zakat payers.
- When an applicant is successful in his application he is either given a cash grant or he authorises Revive to pay a third party on his behalf. The third party may be a service provider, creditor, caseworker or other. He also authorises Revive to use the funds in line with the strategy and policy at Revive.
- The third party receives the zakat as agent of the recipient and the zakat is discharged at this point.
- The third party then takes possession in its/his own right as a fee for services, as a gift or grant.
Under this Wakalah model, Revive is authorised by the poor person to fund, on behalf of the poor person, categories and avenues as outlined in the Revive policy in its capacity as agent of the poor person.