Zakat Appeal
Zakat is the third pillar of Islam. It is an obligatory act of charity of 2.5% on zakatable wealth held above the nisab for a lunar year. 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 five pillars of Islam. It is obligatory for every sane, adult Muslim whose zakatable wealth reaches the minimum amount, known as the nisab.
In the Hanafi school, your Zakat year starts on the date your wealth first reaches the nisab. If you still have at least the nisab on the same date one lunar year later, Zakat is due on all the zakatable wealth you own that day, including money that came in during the year. Dips below the nisab in between do not matter, unless your wealth falls to nothing. Zakat should be paid promptly once it is due. Our Zakat calculator can help you work it out.
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, including jewellery
- Cash held at home or in bank accounts
- Shares and investment funds
- Money lent to others that you expect to be repaid
- Business stock in trade and merchandise
- Agricultural produce (this has its own rules, called Ê¿ushr)
- Livestock that grazes freely for most of the year, such as cows, goats and sheep
- Pensions (this depends on the type of pension, so please ask a scholar)
- Property bought to sell on (not your home, and not a rental property you keep)