Zakat Appeal
Zakat is the third pillar of Islam. It is an obligatory act of charity amounting to 2.5% of a Muslim’s annual savings. Zakat is intended to purify our wealth, not only physically, but also spiritually. It purifies our heart against selfishness as well as ensuring that society’s poorest are protected against hunger and destitution.
You shall observe the Salah and give the obligatory charity (Zakat), and bow down with those who bow down.’ (Qur’an 2:43)
Who has to pay Zakat?
Zakat is one of the 5 pillars of Islam and is an obligatory act of charity for every adult Muslim if you possess the minimum amount of wealth (known as Nisab) for one lunar year.
Nisab must be maintained for one lunar year for Zakat to be required and must be paid as soon as it is due. Your Zakat year, therefore, starts on the date your wealth first equaled or exceeded the Nisab and should be calculated on that date for each subsequent year.
Zakat is not just paid on the savings in your bank account. You need to pay Zakat on other types of wealth, such as:
- Gold and silver
- Cash held at home or in bank accounts
- Stocks and shares owned either directly or through investment funds
- Money lent to others
- Business stock in trade and merchandise
- Agricultural produce
- Livestock animals such as cows, goats and sheep
- Pensions
- Property owned for investment purposes