Zakat & Charity Organizations

54 years on planet earth & I still have a bunch of questions to ask. These are questions that have been floating around in my brain. Today's topic is about Zakat & Charity Organizations. I have always asked myself where does our money go? How much of our money reached the poor, less privileged, less fortunate, the deprived the diseased, the hungry, the homeless, the unemployed, the refugees and the needy? Where are the yearly statistics country wise and performance and action wise? How much of our money is reduced as administration and management fees? I believe that time has come to offer proper accountability and statistics and this to show the world that we the people have cared, have donated, have done good deeds and have done what almighty Allah (God) has ordered us to do. Let there be more light on the positive actions and on our contributions to humanity. Book-keeping, accountability, traceability, openness, statistics, honesty, competing for goodness, awareness and enlightenment are key factors that could encourage human beings to do much more. Let there be absolutely no doubt. Let us see the results of our donations and contributions. We are talking in the hundreds of billions of USD per year. (Quoted from M.A.S Author of "Bread without Butter" comments)

Zakat (Arabic: ????? zakāh [za?ka?], "that which purifies", also Zakat al-mal [za?ka?t al?ma?l] ???? ?????, "zakat on wealth", or Zakah) is a form of alms-giving treated in Islam as a religious obligation or tax, which, by Quranic ranking, is next after prayer (salat) in importance.

As one of the Five Pillars of Islam, zakat is a religious obligation for all Muslims who meet the necessary criteria of wealth. It is not a charitable contribution, and is considered to be a tax, or obligatory alms.

Zakat is based on income and the value of all of one's possessions. It is customarily 2.5% (or 1/40th) of a Muslim's total savings and wealth above a minimum amount known as nisab. The collected amount is paid first to zakat collectors, and then to poor Muslims, to new converts to Islam, people living in poverty, those who are disabled or elderly and those who are incapable of supporting themselves, and others.

Zakat in Islam

"Surely they who believe and do good deeds and keep up prayer and pay the poor-rate (Zakat) they shall have their reward from their Lord, and they shall have no fear, nor shall they grieve." [Al-Quran 2:277]

In Islam, Zakat is an obligatory act ordained by Allah (swt) to be performed by every Muslim who is able to. It is an important pillar of Islam; one that carries immense significance. For those who are unfamiliar with the concept, Zakat is the act of giving a part one’s wealth and property to help the poor of the community. Through this, the Muslim community is able to look out for it’s poorest and neediest.

The Meaning of Zakat

Liguistically, Zakat in the Arabic Language means growth; one says Zaka az-Zar meaning the plant grew. It can also mean purification, as Allah (swt) said:

"Take Sadaqah (alms) from their wealth in order to purify them and sanctify them with it..." (7:103)

This word (Zakat) is mentioned in many instances in the Qur’an alongside Salaat (prayer).

How Much Zakat

Zakat is levied at 2.5% of all Zakat-able assets after deducting specific liabilities for the year. The annual payment of Zakat is done according to the lunar calendar. Items like jewellery and gold are Zakat-able items and their worth should be factored in when calculating totals.

The amount of zakat to be paid by an individual depends on the amount of money and the type of assets the individual possesses. The Quran does not provide specific guidelines on which types of wealth are taxable under the zakat, nor does it specify percentages to be given. But the customary practice is that the amount of zakat paid on capital assets (e.g. money) is 2.5% (1/40). Zakat is additionally payable on agricultural goods, precious metals, minerals, and livestock at a rate varying between 2.5% and 20% (1/5), depending on the type of goods.

Zakat is usually payable on assets continuously owned over one lunar year that are in excess of the nisab, a minimum monetary value.[

Who to Give Zakat

The Qur’an is very specific about who should benefit from Zakat donations. The main purpose is to help only those who cannot help themselves; people living in poverty, those who are disabled or elderly and those who are incapable of supporting themselves. Consider this verse from Surah At- Tauba:

“Zakat is for the poor, and the needy and those who are employed to administer and collect it, and the new converts, and for those who are in bondage, and in debt and service of the cause of God, and for the wayfarers, a duty ordained by God, and God is the All-Knowing, the Wise.”

Zakat entails giving 2.5% of total savings in a lunar year. These savings include cash in hand, income earned on investments, funds currently in bank accounts and precious metal objects such as gold, silver and jewellery. Gold and silver are, as far as Zakat is concerned, considered an investment for the future and as such, they need to be taken into account when working out your annual Zakat. Jewellery is somewhat tricky to calculate because it falls under two categories.

• Gold/silver jewellery kept for storage only
• Gold/silver jewellery kept for personal use

Any jewellery kept for storage or investment purposes is Zakat-able. The reason being because it falls under the category of an investment. However, if the jewellery is kept for personal use then it depends on which school of thought you follow. If you follow the Hanafi Madhhab, you have to pay Zakat just as you would if you were using jewellery for storage and investment purposes. Other schools in Islam regulate the any gold and silver used for personal purposes as exempt from Zakat.

“Al Ihsan” (is a complete way of life): “Al Ihsan” as good behavior, i.e. a social behavior of kindness, “kindness to parents, helping relatives, helping neighbors, orphans, helping or assisting the poorest, helping or assisting the deprived etc.”

The principles of Zakat and Al Ihsan are what all of humanity should want to strive for, regardless of religion, creed or colour. However, the overriding human characteristics of ego, narcissism, power, greed, selfishness and 'bragging rights' of such a large proportion of the world's population make this a pipe dream and these type of humans are the controllers of both political and religious systems which give control of the masses.

54 years on planet earth & I still have a bunch of questions to ask. These are questions that have been floating around in my brain. Today's topic is about Zakat & Charity Organizations. I have always asked myself where does our money go? How much of our money reached the poor, less privileged, less fortunate, the deprived the diseased, the hungry, the homeless, the unemployed, the refugees and the needy? Where are the yearly statistics country wise and performance and action wise? How much of our money is reduced as administration and management fees? I believe that time has come to offer proper accountability and statistics and this to show the world that we the people have cared, have donated, have done good deeds and have done what almighty Allah (God) has ordered us to do. Let there be more light on the positive actions and on our contributions to humanity. Book-keeping, accountability, traceability, openness, statistics, honesty, competing for goodness, awareness and enlightenment are key factors that could encourage human beings to do much more. Let there be absolutely no doubt. Let us see the results of our donations and contributions. We are talking in the hundreds of billions of USD per year. (Quoted from M.A.S Author of "Bread without Butter" comments)