Zakat is the concept of obligatory charity in Islam. It’s how we give back, out of our wealth, to those in need. Our world has an immense amount of economic and wealth inequality, Zakat is a means to tackle both these chronic issues. Your Zakat helps us to uplift people, empower communities and ensure those most in need are receiving the care they require.
What is Zakat?
The word Zakat means ‘purity’ or ‘to purify.’ All Muslims who are in possession of wealth/income above a set minimum amount (known as Nisab), is obliged to give 2.5% to the needy. This act is a way of purifying one’s wealth in the sight of our Lord.
We understand that Zakat is your religious duty. At Penny Appeal we go the extra step to ensure your obligation is carried out with the highest level of transparency and accountability.
- We track Zakat funds separately from our other funds
- We manage and distribute according to the prescribed principles
- We ensure funding of projects that are Zakat eligible.
Do you need to pay Zakat?
Zakat is obligatory on Muslim adults of sane mind. Such a person is required to pay Zakat if he/she has been in possession of the Nisab (the set minimum amount of wealth that one must have before Zakat is payable) for one whole year.
Zakat must be paid on cash deposits in bank accounts, and possessions from which wealth can be derived, such as:
- Gold and silver
- Merchandise for business
You don’t need to pay Zakat on personal items from which you can’t/ don’t derive wealth, such as:
- Utensils and furniture
Who can you give your Zakat to?
- The Poor
- The Destitute
- Those employed to collect/administer the Zakat
- To reconcile Hearts (traditionally, this was for new Muslims who after embracing Islam, faced extreme poverty)
- Those who are in debt
- Those in bondage
- Travellers [in need]