Allah Most High Says:
“Spend (in charity) out of the sustenance that We have bestowed on you before that time when death will come to someone, and he shall say: “O my Lord! If only you would grant me reprieve for a little while, then I would give in charity, and be among the righteous.”
[The Glorious Qur’an – Surah 63, Ayat 10]
Zakat has two meanings: purification and growth.
The UMA’s ZakatFund helps you to purify your wealth, allowing you to fulfil your religious charity obligations for Zakat, whilst also benefiting the growth of your own community.
Why Give Zakat?
1. Gain the pleasure of Allah.
2. Increase in wealth, and protection from losses.
3. Earn Allah’s forgiveness and blessings.
4. Receive protection from Allah and from a bad death.
5. Have shelter on the Day of Judgement.
6. Grow the future of your community.
WHY Donate to UMA’s ZakatFund?
We take 0% Admin!
We're 100% TAX DEDUCTIBLE
We're an Officially Registered Charity with ACNC
Hear from Mufti Menk about the UMA
Without your generosity, many within our community would struggle to survive.
Hear from some of our ZakatFund beneficiaries
Your Zakat supports students of Islam to train as Imams (Muslim Scholars) and teach Islam in Australia.
“Without the UMA scholarship to study Islam, I would not have been able to afford to learn. I’m graduating soon and insha’Allah will come back to share the message of Islam and benefit my community.” – Student in the program.
You're sponsoring future Sheikhs, Imams and community leaders who will influence society.
For every bit of knowledge they learn, you earn.
For every person they teach, for every dollar they raise in charity - the rewards are infinite.
Your Zakat supports new Muslims when they first embrace Islam.
“Alhumdulilah Allah made me Muslim, but when I reverted, my family kicked me out of my house and I became homeless. Thanks to ZakatFund, I was able to get back up on my feet and find a home.” – Br Phillip
Helps them buy food, clothes and shelter so they can live in decency and dignity.
Nurtures them in their time of need in Islam, so they can become active community members.
By helping them learn and stay in Islam - every dua and ibadah they do is partly thanks to you.
Your Zakat supports poor Muslims, orphans and widows struggling to survive.
“Last year my husband passed away, Allah yerhamu. He was the sole income earner, while I raised our children. We couldn’t even buy food to eat till, Alhumdulilah, the ZakatFund found us.” – Sis Khadijah
Helps feed, clothe and shelter widows, orphans and families in their time of need.
Helps local members of your own community, so they can eventually help your community in turn.
Your generosity to them is really generosity to yourself, earning you the rewards of Allah.
Local giving is an investment in your community’s future
What do our donors think?
“It’s the best thing I’ve ever done for my community!”
IT Consultant & Donor to UMA
“Alhumdulilah Allah blessed me with enough wealth to be able to support worthy causes like the UMA. You really see the impact your donations have first-hand when you give Zakat locally.”
Marketer & Donor to UMA
“I always say that you should love for others what you love for yourself – and the best way to show this is to give! Our wealth is a test for us to see what we’ll do with it – I choose to give to UMA.”
Accountant & Donor to UMA
“Supporting the UMA’s ZakatFund is the best thing I’ve ever done for my community! I give to poor overseas as well, but our first responsibility is to our families here who need our help.”
The Prophet Muhammad ﷺ said: “The believer’s shade on the Day of Resurrection will be his charity.”
[Al-Tirmidhi and others]
Frequently Asked Questions
Here we go into a little more detail as to the main, important points around the rules of Zakat in Islam.
What is Zakat? And How Important is Zakat?
Zakat is one of the five pillars of Islam. It has been mentioned, along with daily Prayers (Salaat), over seventy times in the Quran. Allah’s word commanding “...and establish regular Salaat and give regular Zakat…” are referred to in many parts of the Quran. From this we can conclude that after Salaat, Zakat is the most important act in Islam.
Just as Salaat is the most important act of worship which has to be performed bodily, so is Zakat the main act of worship which has to be performed monetarily. Those who fulfil this duty have been promised abundant reward in this world and hereafter. Whoever evades Zakat has been sternly warned in the Qur’an and Hadith of the consequences.
Linguistically, Zakat has two meanings: purification and growth. Technically, it means to purify one’s possession of wealth by distributing a prescribed amount to the poor, the indigent, the slaves or captives, and the wayfarer.
What are the main benefits of Zakat?
- It reminds Muslims of the fact that whatever wealth they may possess is due to the blessings of Allah and as such it is to be spent according to the His commands.
- Zakat functions as a social security for all. Those who have enough money today pay for what they have. If they need money tomorrow they will get what is necessary to help them live decently.
- Zakat payer pays his dues to Allah as an act of worship, a token of submission and an acknowledgement of gratitude. The receiver of Zakat receives it as a grant from Allah out of His bounty, a favour for which he is thankful to Allah.
- Economically, Zakat is the best check against hoarding. Those who do not invest their wealth but prefer to save or hoard it would see their wealth dwindling year after year at the rate of the payable Zakat. This helps increase production and stimulates supply because it is a redistribution of income that enhances the demand by putting more real purchasing power in the hands of poor.
Who must pay Zakat? (fard / obligations)
- He or she is an adult, sane, free and Muslim.
- He or she must possess wealth in excess of specified minimum (Nisaab) excluding his or her personal needs (clothing, household furniture, utensils, cars etc. are termed article of personal needs).
- This wealth should be possessed for a complete lunar year (354 days).
- The amount of wealth which makes one liable for Zakat is called Nisaab. The Nisaab as fixed by Prophet Muhammad (P.B.U.H) is as follows: 85 Grams of Gold, or 595 Grams of Silver
(Check this website for the latest gold prices at http://goldprice.com.au)
- Nisaab of cash, stock or bonds, other cash assets is the equivalent amount of Gold or Silver. Nisaab is calculated by adding up the cash value of all the assets such as gold, silver, currency etc. and if it is equal to or in excess of the minimum Nisaab as specified in the above table, the Zakat is due at the rate of 2.5% by the end of the lunar year.
- The payment of Zakat is compulsory on the excess wealth or effects which is equal to or exceeds the value of Nisaab, and which is possessed for a full Islamic year (lunar year). If such wealth decreases during the course of the year and increases again to the value of Nisaab before the end of the year, the Zakat then must be calculated on the full amount that is possessed at the end of the year.
Virtues of Zakat
Allah the Most High says in the Quran:
“The parable of those who spend their wealth in the way of Allah is that of a grain of corn. It grows seven ears and each ear has hundred grains. Allah increases manifold to whom He pleases.”
It is stated in the Hadith that by giving Zakat, the following benefits are derived:
- Gain the pleasure of Allah.
- Increase in wealth and protection from losses.
- Allah’s forgiveness and blessings.
- Protection from the wrath of Allah and from a bad death.
- A shelter on the Day of Judgment.
- Security from seventy misfortunes.
Calculations of Zakat
If the Gold possessed is less than 85 grams or if silver possessed is less than 595 grams, but the value of both combined is equal to or exceeds the Nisaab of either Gold or Silver, the Zakat will be due.
In the event of an article not being of pure gold or pure silver, but containing a mixture of other metals and the gold or silver content is more than the other metal, it will be regarded as gold or silver and Zakat will be due. But in the case where other metal/s is of greater quantity than either gold or silver, Zakat will not be due on this article.
For stocks (shares held in a company), Zakat is calculated based upon the current market value. As machinery, land, fixtures and fittings, furniture, buildings etc. are exempt from Zakat, one is allowed to subtract these from the total asset. This could be obtained from annual reports.
Distribution of Zakat
- Zakat should be given as soon as possible after it becomes due.
- All of the Zakat can be given to one person or to several persons.
- A poor man cannot be paid for his work from Zakat nor can Zakat be given in payment of services, except to the people appointed by the Islamic government or organisation to collect Zakat.
- Zakat will only be valid if the recipient is made the owner of that amount. If, for example, a few needy persons are fed a meal from Zakat money, then Zakat will not be fulfilled as they were not made owners of the food.
- Zakat cannot be given for the construction of Masjid, Madrasah, Hospital, a well, a bridge or any other public amenity.
- Zakat can be paid in kind from the same merchandise on which it is due, or alternatively, it could be paid in cash.
Recipients of Zakat
The recipients of Zakat, according to Quran are as follows:
“Sadaqat are for the poor and the needy, and those employed to administer (the funds); for those whose hearts have been (recently) reconciled (to truth); for those in bondage and in debt; and for the wayfarer: (Thus is it) ordained by Allah, and Allah is full of Knowledge and Wisdom.”
The 8 Recipients of Zakat:
- FUQARA: people who are poor and who possess more than their basic needs but do not possess wealth equal to Nisaab.
- MASAKEEN: people who are destitute and extremely needy to the extent they are forced to beg for their daily food rations.
- AL-AMILEEN: people appointed by an Islamic Government to collect Zakat.
- MU-ALLAFATUL-QULUB: persons who have recently accepted Islam and are in need of basic necessities who would benefit from encouragement by Muslims which would help strengthen their faith.
- AR-RIQAAB: slaves who are permitted to work for remuneration and have an agreement from their masters to purchase their freedom on payment of fixed amounts.
- AL-GHAARIMEEN: persons who have a debt and do not possess any other wealth or goods with which they could repay that which they owe. It is conditional that this debt was not created for any un-Islamic purpose.
- FI-SABILILLAH: persons who have to carry out an obligatory deed which has become obligatory on them and subsequently (due to loss of wealth) are unable to complete that obligation.
- IBN-US-SABEEL: persons who are travellers and during the course of their journey do not possess basic necessities, though they are well to do at home. They could be given Zakat in order to fulfil travel needs to return home.
Types of Wealth on Which Zakat is Imposed
- Gold and silver, in any form.
- Cash, bank notes, stocks, bonds etc.
- Merchandise for business, equal to the value of Nisaab.
- Live stock.
- On income derived from rental business.
Types of Wealth on which Zakat is NOT imposed
- Personal use of gold or silver jewellery for a female, if she possesses an amount of gold or silver jewellery in accordance with the ordinary customs in her town. (this is the view of Imam Shafie only)
- On any metals other than gold or silver.
- Fixtures and fittings of a shop, car, trucks or any delivery vehicle etc, which is used in running business.
Diamonds, pearls, other precious or semi precious stones which are for personal use.
- There is no Zakat on personal residence, household furniture, pots and pan, personal clothing, personal use of cars and houses whether they are in use or not.
Persons who CANNOT be given Zakat
- Zakat cannot be given to the descendants of Muhammad (P.B.U.H)
- Zakat cannot be given to parents and grandparents. In the same manner one’s children and grandchildren cannot be given Zakat. A husband cannot give his Zakat to his wife, but the wife can give her Zakat to the husband if he is poor.
- Zakat contributions cannot be given to such institutions or organizations who do not give the rightful recipients possession of Zakat, but instead use Zakat funds for constructions, investment or salaries.
What is the Punishment for NOT giving Zakat?
Allah the Most High says in the Quran:
“And there are those who hoard gold and silver and do not spend it in the way of Allah, announce to them a most grievous penalty (when) on the Day of Judgment heat will be produced out of that wealth in the fire of Hell. Then with it they will be branded on their forehead and their flanks and backs. (It will be said to them) This is the treasure which you hoarded for yourselves, taste then the treasure that you have been hoarding.”
Informative Videos on Zakat from Sheikh Shady Alsuleiman
What Islam Says About Zakat - Part 1
What Islam Says About Zakat - Part 2