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Your Zakat donations provide aid to poor and most needy in over 40 countries worldwide. Provide clean drinking water, care for orphans, deliver urgent humanitarian aid, provide nutritious meals, feed the hungry and care for the elderly.
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The Prophet pbuh said, the dearest of actions to Allah is that which is done regularly, even if it is small. Giving regular charity no matter how small attracts the blessings of Allah swt. Help us bring hope to life to millions around the world Today.
Here at Muslim Global Relief we know how confusing it can be to figure out how to calculate Zakat and working out how much Zakat to pay! That’s why we’ve made our very own Zakat Calculator. You can use our Zakat Calculator to work out your Zakat payment and help us save lives in over 40 countries around the world.CALCULATE ZAKAT
Zakat in the Quran
“And establish prayer and give Zakat, and whatever good you put forward for yourselves – you will find it with Allah.” [2:110]
What Is Zakat?
Zakat is the concept of obligatory charity in Islam where an annual payment is paid by qualifying adult Muslims whose wealth exceeds the Nisab value for one Islamic (lunar) year. It’s how we give back, out of our own wealth, to those less fortunate. The word ‘zakat’ comes from the Arabic ‘to purify’, Allah swt says in the quran: “take from their wealth so that you might purify and sanctify them” (9:103). By recognising that one’s wealth is a gift from Allah (SWT) and giving away a portion of it to others, a Muslim purifies the rest of his or her wealth from greed and miserliness.
In a world of gross social and economic inequality, it is vital for Muslims to uphold the tradition of Zakat. Zakat is a right which the poor have over the wealthy; it is the duty of every wealthy muslim to fulfil this responsibility to those who are less fortunate. Over the years we have used zakat to distribute food and water to the most needy. We have used it to support poor villages, provided people with the means to improve their living conditions and attain their basic needs. We have used it to provide urgent humanitarian medical relief and shelter for people in conflict zones..
Who Can Receive My Zakat?
Zakat cannot be paid to everyone. There are eight specific categories of people to whom zakat can be given: “The alms are only for the Fuqara’ (the poor), and Al-Masakin (the needy) and those employed to collect (the funds); and to attract the hearts of those who have been inclined (towards Islam); and to free the captives; and for those in debt; and for Allah’s Cause, and for the wayfarer (a traveller who is cut off from everything); a duty imposed by Allah. And Allah is All-Knower, All-Wise.” [Al-Quran 9:60]”
1. Al-Fuqara (The poor)
Fuqara are the people who live below the poverty line and don’t have enough means to live a normal life like others. They deserve your zakat in order to meet the daily necessities of their lives.
2. Al-Masakin (The needy)
Masakin are extremely poor and needy people. These people don’t have any possessions or income. Your zakat money can help them in improving their living condition.
3. Zakat collectors
Zakat can be given to the people who are authorized to collect and distribute it among the needy and poor. It includes the trustworthy institutions and NGOS who are working to help underprivileged Muslim communities.
4. Who converted to Islam
Those who are newly converted to Islam are eligible to receive zakat (if they are needy). If someone has converted and is detached from their family and friends, you can give your zakat to them so that they can start their new journey.
5. Freeing captives
Slavery is prohibited in many parts of the world but still people are trafficked and kept as slaves. Zakat money can help slaves in freeing themselves and improve their living standard.
Zakat can be given to pay off debts of someone who cannot repay on his own. However, one must make sure that the money borrowed by debtor is not used for any un-Islamic or wrong purpose.
7. In the path of Allah
Those who are striving in the path of Allah are entitled to receive your zakat. These are the people who are fighting for Allah’s cause far away from their homes. Your zakat can help them have a better living.
8. Wayfarer (Travelers)
For a traveler who is alone in a foreign land and is in need of money to fulfill his objective of traveling. Refugees can be given zakat money as they leave their countries because of violence and oppression in search of a safe and better place.
We’ve put together this list of frequently asked questions to help make the rules of Zakat easier to understand. If you need more help, please don’t hesitate to contact us.
What is Nisab?
Nisab is the threshold for which a Muslim’s personal wealth must be above if he or she is to be eligible to pay Zakat. There are two Nisab values from which the threshold is determined, which are:
- Gold – the monetary value of 87.48 grams of gold
- Silver – the monetary value of 612.36 grams of silver
Because the valuation of gold and silver fluctuates so, too, does the Nisab threshold. This is why tools such as our Zakat calculator prove so helpful as they help Muslims to quantify not only whether they qualify to pay Zakat, but how much it is they owe. A Muslim’s wealth must exceed the Nisab threshold for one full Islamic year, or ‘Hawl’, which is the term for a lunar year, which lasts for 354 days.
What do I count as my Wealth for Zakat?
Your wealth or net assets can be summed up as the liquid assets you possess minus your short term liabilities.
Liquid assets are those that can be transformed into cash very easily. Short term liabilities include your bills, rent, personal loans and credit card debts. Most scholars agree that any mortgage that you may hold, should not be included in that calculation.
Here’s a list of things that should be included in your assets:
- Cash in the bank and at home
- Cash saved for any special purposes e.g. wedding, Hajj, car purchase, etc.
- The value of gold and silver you own
- The value of shares at their market price
- Money owed to you, which is highly likely to be repaid
- If you own a business, the balance sheet value of the stock(s) you possess.
- If you own properties, any rental income that has been saved
You do not need to count the value of your home or land as part of your assets. You also don’t need to include person items, such as a car, clothing, home appliances, etc. as part of your assets.
If you own investment properties (to buy / to let), then any saved rental income will be a part of your assets. The equity value of your investment property portfolio is not included as part of your assets in the Zakat calculation.
If an investment property is due to be sold around your Zakat due date, then the anticipated profit is to be included as part of your assets.
Here is a list of things that should be included in your liabilities:
- The money you owe to others i.e. personal loans (from banks and friends), credit card debts, etc.
- Current month’s rent/mortgage payment or arrears
- Bills that are due
- If you own a business, then business expenses e.g. rent, rates, salaries, utility bills, etc.
- Short term business loans and overdraft amounts are included in your liabilities.
The calculation for your wealth/net assets is:
- Assets – short term liability = your wealth.
As long as your wealth is above the nisab of the day, you are eligible to pay Zakat
Gold & Silver
According to the Hanafi madhab, all gold and silver you own must be included as part of your wealth/assets in the Zakat calculation.
In the Shafi madhab, however, any gold and silver that is for personal use do not need to be included as part of your wealth/assets.
If all of your wealth is in gold, the value of the gold you own must be at – or above – the gold nisab in order to be eligible to pay Zakat.
If your wealth is a mixture of gold and/or silver and cash, it is preferable to use the silver nisab threshold.
Many scholars hold the view that it will be highly beneficial to include all gold and silver that you own as part of your wealth/assets, regardless of whether they are for personal use or not.
What part of my wealth is not zakatable?
Any goods, other than gold or silver, that you have not bought for resale are non-zakatable. No zakat is payable on your personal belongings, such us a house or a car.
Business Goods & Property
The business stock has to be counted as an asset for Zakat purposes. The value to be used is what would appear on your balance sheet. Usually, it is the cost of purchasing the stock.
Business premises do not need to be counted as an asset in the calculation. Any property the business owns (land, retail units, etc.) also do not need to be counted as assets.
What about Mortgages and Loans?
A long-term mortgage is not to be counted as a liability in your Zakat calculation.
Loans that are taken out for personal purposes can be subtracted as a liability in the Zakat calculation
What part of my wealth is ‘zakatable’?
Gold and Silver: Any gold or silver you possess is zakatable, including jewellery according to Hanafi school, because these two metals have intrinsic monetary value.
Other precious metals and stones are not zakatable unless they were acquired for the purpose of trade.
Cash or its Equivalent: Cash at home, in bank accounts, savings, money lent to others,saving certificates, bonds, shares, investment certificates and so on, are all taken into account when calculating zakat.
Stock Purchased for Trade: Any goods you have bought with the intention of selling are included in your zakatable wealth.
I gave a lot of money to charity over the year, doesn’t that count as zakat?
For a donation to qualify as zakat, there must be a clear intention present, either when you separate the zakat money from the rest of your wealth, or when you make the zakat payment.
Can I pay zakat in advance?
Yes, zakat can be paid in advance before the year has ended, but you should make sure you have wealth equal to or above the nisab.
Do I pay zakat on wealth belonging to my children?
Not according to the Hanafi school. A child is not liable to pay zakat, even if in possession of wealth above the nisab threshold. For a child who possesses the nisab or more, the first zakat payment will become due twelve lunar months reaching the age of puberty.
According to both Imam Shafi’ and Imam Malik however, a child who possesses wealth above the nisab value is liable for zakat.
What types of wealth are included in Zakat?
Assets that are included in the Zakat calculation are cash, shares, pensions, gold and silver, business goods, crops and cattle and income from investment property.
Personal items such as home, furniture, cars, food and clothing (unless used for business purposes) are not included.
Can I spread Zakat payments throughout the year?
Yes, zakat can be paid monthly by setting up a regular monthly payment such as a direct debit
Zakat is a mandatory duty on all able Muslims who posses wealth at or above a certain threshold. This threshold is called the Nisab. You only pay Zakat if your net assets equal or exceed the Nisab threshold. Zakat should be calculated on 2.5% of all net savings one possesses that is above the nisab value. Net savings is the total maintained wealth for one lunar year before Zakat is due. If net yearly savings falls below this amount, he or she is exempt from paying Zakat. Only those people whose net capital exceeds the nisab values are obliged to give zakat.
Zakat Donation Projects
Donate your Zakat through Muslim Global Relief safe in the knowledge that your donation will go directly to where it is most needed. All of our current projects are Zakat-applicable, as well as sustainable and impactful, continuing to benefit people for years to come.
From Emergencies caused by natural or man-made disasters, climate change, drought, famine or war, our dedicated on-the-ground teams work to prevent loss of life and reduce suffering as much as possible for affected children, as well as their families and communities
We kick-start development in remote villages around the world, empowering rural communities by providing the basic necessities of life from Water, Sanitation, Education, Livelihood and Socio-Economic Development thus lifting them out of poverty Purify and protect your wealth by giving your Zakat.
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