Zakat

Zakat: your questions answered

• What is Zakat?

  Zakat is one of the five pillars of Islam. It is a charitable duty that purifies wealth and is incumbent upon adult Muslims.

• Who is eligible to receive Zakat?

  There are eight categories of people who are eligible to receive Zakat.

  1. The poor
  2. The needy
  3. Administrators of Zakat
  4. Those whose hearts have been recently reconciled
  5. Those who have been enslaved
  6. Those in debt
  7. In the cause of God
  8. Travellers (including refugees)

  A poor person is someone whose property, in excess of his basic requirements, does not reach the nisab threshold. The recipient must not belong to your immediate family, therefore; your spouse, children, parents and grandparents cannot receive your zakat. Other relatives, however, can receive your zakat.

• Why give your Zakat to Human Appeal?

  Donate your Zakat through Human Appeal safe in the knowledge that your donation will go directly to where it is most needed, making you mercy go further. We’ve been trusted to deliver your Zakat for over 30 years. All of our current projects are Zakat-applicable, as well as sustainable and impactful, continuing to benefit people for years to come.

• How much money do I have to possess to qualify?

  You should pay Zakat if your wealth is equal to or above the Nisab (threshold), which varies each year and is based on the price of silver. The Nisab is approximately $404.32 so any money or assets you have above this amount hold a duty of Zakat. Our Zakat calculator automatically updates the Nisab based on the daily value of silver.

• What possessions do I pay Zakat on?

  Any gold, silver, jewellery, stocks and shares, cryptocurrency, savings, money you have loaned to others, property, pensions, and business stock should be included in your Nisab calculation.

• How much Zakat do I pay?

  In concrete terms, you pay approximately 2.5% of your wealth to Zakat, but we’ve made this even easier for you! With our Zakat calculator to help you work out what you owe with an up-to-date Nisab value.

• When should Zakat be paid?

  Once you have more Zakat-eligible wealth than the Nisab and a full lunar year has passed, then Zakat is due immediately, and is then due annually if your wealth stays above the Nisab.

• How much of my savings should I apply Zakat to?

  Zakat applies to any savings that you have held for a full year. Usually this means that you input the minimum that you have had in your account since you last calculated your Zakat one year ago. Include all your bank accounts, cryptocurrency, PayPal balance, and any money at home or in hand. Any interest you have received at the bank is haram and must not be included.

• What does one do about missed Zakat payments?

  If one has missed Zakat payments over the years, then one must make a calculated estimate of the Zakat missed for each year and discharge it accordingly. These payments are still binding on him even if many years have passed by and whether or not he knew they were obligatory.

• Do you have a Zakat policy?

  We have a Zakat policy which has been reviewed by scholars and is available for download below.