Zakat is one of Islam’s 5 pillars and an essential obligation for Muslims with the financial means to perform it.
It is a form of charity that is mandatory for sane, adult Muslims who meet certain eligibility criteria.
This article will outline the steps to perform zakat in a simple and easy-to-understand manner.
Following these steps, you can calculate and distribute your zakat responsibly and effectively.
Step 1: Understand the eligibility criteria for zakat recipients and givers
Before calculating zakat, it is important to understand the eligibility criteria for zakat recipients.
The eligible recipients of zakat include the poor and needy, those in debt, those who are stranded while traveling, and those who work for the cause of Allah.
On the other hand, 4 conditions of zakat must be met for it to be valid, which include the following:
- The giver must be a Muslim.
- The wealth being given must meet the minimum threshold or nisab.
- The wealth from which zakat is given must be held for a full lunar year.
- It must be given to eligible zakat recipients.
It is best to consult with a qualified Islamic scholar or a reliable zakat organization to determine eligible zakat recipients.
Step 2: Calculate your zakatable assets
The next step is to determine the value of your zakatable assets. These include cash, gold, silver, business inventory, and investment property.
Non-zakatable assets include a personal residence, car, and items, such as clothing and furniture.
Calculating the total value of zakatable assets you have held for one lunar year is crucial.
Step 3: Determine the zakat rate
The zakat rate is fixed at 2.5% of the total value of the zakatable assets you have held for one lunar year.
This rate applies to most types of zakatable assets, including cash, gold, silver, business inventory, and investment property.
To determine your zakat rate, you need to calculate the total value of your zakatable assets that you have held for 1 lunar year, as explained in the previous step.
Once you have determined the total value, multiply it by the zakat rate of 2.5% to specify the amount of zakat you owe.
It is important to note that zakat is calculated based on the Islamic lunar calendar, which is approximately 11 days shorter than the Gregorian calendar.
You can also consult a qualified Islamic scholar or zakat organization if you have any questions or concerns.
Step 4: Calculate your zakat amount
Once you have determined your zakatable assets, you should calculate the total value of the assets you have held for 1 lunar year.
For example, if you have $5,000 in cash, $2,000 worth of gold, and $3,000 worth of business inventory you have held for 1 lunar year, your total zakatable assets would be $10,000.
It is important to note that zakat is only payable on the excess of your zakatable assets above the nisab threshold, the minimum amount of wealth that makes you eligible to give zakat.
The nisab threshold is based on the current value of gold and is subject to change.
The nisab, by the gold standards, is 3 ounces of gold, which is equal to 87.48 grams of 24 karats or its cash equivalent. This is approximately 5471 USD worth of gold as of 24 April 2023, and it varies with the market value of gold.
Step 5: Distribute zakat to eligible recipients
The final step is to distribute zakat to eligible recipients. There are 8 kinds of people who can be given zakat, and they are mentioned in the Holy Quran:
“Zakah expenditures are only for the poor and for the needy and for those employed to collect [zakah] and for bringing hearts together [for Islam] and for freeing captives [or slaves] and for those in debt and for the cause of Allah and for the [stranded] traveler – an obligation [imposed] by Allah. And Allah is Knowing and Wise.” – Al-Tawbah, 9:60
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In some cases, it may be possible to distribute zakat directly to the eligible recipients. It is important to ensure that zakat is distributed fairly and justly.
Therefore, donating your zakat to trustworthy charitable organizations working on the ground with the poor and needy is highly recommended.
Donate your zakat to poor refugees
We believe at Bonyan Organization that every person deserves access to basic human necessities like food, water, shelter, and healthcare, regardless of their circumstances.
At Bonyan, we work tirelessly to provide emergency relief supplies, healthcare initiatives, education and vocational training, and long-term development programs that help refugees rebuild their lives and communities.
We uphold a transparent and accountable zakat distribution system that ensures that your zakat donation goes directly to those in need.
By donating your zakat to Bonyan, you can significantly impact the lives of refugees struggling to survive under challenging conditions.
We work with local partners and communities to identify worthy recipients of zakat and support the most vulnerable refugees, including widows, orphans, and those with disabilities.
We understand the importance of zakat in Islam and the responsibility that comes with delivering it.
That is why we are committed to ensuring that your zakat donations are used effectively and distributed evenly among those who need them the most.
With your support, we can continue to provide critical aid and assistance to refugees worldwide.
Together, we can make a significant difference in the lives of refugees and fulfill our religious obligation of zakat.
How do I start giving zakat?
To start giving zakat, you should have a certain amount of wealth and assets held for 1 lunar year. Also, you have to calculate and distribute zakat to eligible recipients.
What is the process of zakat?
The process of zakat involves 5 main steps.
– Understand the eligibility criteria for zakat recipients.
– Calculate your zakatable assets.
– Determine the zakat rate of 2.5% of your Zakatable assets.
– Calculate your zakat amount.
– Distribute zakat to eligible recipients.
How to calculate 2.5 percent zakat?
To calculate 2.5% zakat, you must determine the total value of your zakatable assets that you have held for 1 lunar year, then multiply that amount by 2.5%.
For example, if your total zakatable assets equal $10,000, your zakat amount would be $250 (10,000 x 0.025).
What are the 4 conditions of zakat?
The 4 conditions of zakat must be met for it to be valid.
1- The giver must be a sane, adult Muslim.
2- It must be given from a wealth that reached the minimum threshold or nisab.
3- The wealth must be held for a full lunar year.
4- As outlined in Islamic law, it must be given to eligible zakat recipients.