Knowledge Center

Deepen your understanding of Zakat and Islamic finance.

Zakat Recipients & Charity

Understanding the prescribed categories for Zakat distribution and the different forms of Islamic charity.

Al-Fuqara

The Poor

Those who have no wealth or property and whose needs are far greater than their means.

Al-Masakin

The Needy

Those who have some wealth but not enough to cover their basic needs.

Al-Amiluna 'Alayha

Zakat Administrators

Those appointed to collect and distribute Zakat (even if they are wealthy).

Al-Mu'allafatu Qulubuhum

Reconciling Hearts

New Muslims or those inclined towards Islam, to soften their hearts.

Fir-Riqab

Those in Bondage

To free captives or slaves (historical context, but still applicable in freeing from debt bondage).

Al-Gharimun

Those in Debt

Those burdened by debt and unable to pay it off (provided the debt was not incurred for sinful purposes).

Fi Sabilillah

In the Cause of Allah

Those striving in the path of Allah (including students of knowledge, defenders of faith, etc.).

Ibn As-Sabil

The Wayfarer

Travelers who are stranded and cut off from their wealth, even if they are wealthy at home.

Zakat Al-Fitr

Fast-Breaking Charity

A mandatory small charity given at the end of Ramadan to ensure everyone can celebrate Eid ul-Fitr with dignity.

Sadaqah Jariyah

Continuous Charity

Ongoing charity that continues to benefit others and earn rewards for the donor long after they have passed away.

Islamic Finance Glossary

Nisab (Threshold)

The minimum amount of wealth a Muslim must possess for a full lunar year before they become liable to pay Zakat. There are two standards: Gold (87.48g) and Silver (612.36g).

Hawl (Lunar Year)

The period of one full lunar year (approximately 354 days) that wealth must be held above the Nisab threshold before Zakat becomes due.

Zakat al-Fitr

A separate mandatory charity given at the end of Ramadan before the Eid prayer. It is distinct from Zakat al-Mal (wealth tax) and is usually a small amount of food or its monetary equivalent.

Sadaqah Jariyah

Ongoing charity (e.g., building a well, planting a tree, knowledge) that continues to benefit others and earn rewards for the donor even after death.

Riba (Interest/Usury)

Interest charged on loans or deposits. It is strictly prohibited (Haram) in Islam as it is seen as exploitative and unjust.

Tazkiyah (Purification)

Literally means "purification". In this context, it refers to both the purification of property through Zakat and the purification of the soul through obedience to Allah.

Common Misconceptions

"I can give Zakat to my immediate family."

Zakat cannot be given to parents, grandparents, children, or grandchildren, or one's spouse. You are already obligated to support them if needed. However, it can be given to other relatives like siblings, cousins, or aunts/uncles if they qualify.

"Income tax counts as Zakat."

No. Taxes paid to the government are a civic duty, but Zakat is a religious obligation with specific recipients defined by Allah. They are separate entities.

"Jewelry used for adornment is exempt."

There is a difference of opinion among scholars. The Hanafi school considers all gold/silver jewelry zakatable regardless of use. The Shafi'i, Maliki, and Hanbali schools generally exempt permissible jewelry used for personal adornment. It is safer to pay.

"Zakat can be used for building Mosques."

Most scholars agree that Zakat should be given directly to individuals in the 8 prescribed categories. Construction of Mosques (Masajid) or cleaning services comes under 'general' charity (Sadaqah Nafilah), not obligatory Zakat.

"Zakat purifies Haram wealth."

Zakat is only payable on lawful (Halal) wealth. Wealth earned through impermissible means (Riba, theft, gambling) cannot be purified by paying Zakat; the entire amount must be given away without expectation of reward.

"I only pay Zakat on my savings."

Zakat is due on all zakatable assets, including gold, silver, business merchandise, and investments, not just cash savings. Calculations should include the total value of these assets.