Zakat (Charity, Alms) or Zakah

Zakat (alms) is the name of what a believer returns out of his or her
wealth to the neediest of Muslims for the sake of the Almighty Allah.
It is calledZakatbecause the word Zakat is fromZakaawhich means,to
increase, purify and bless.
Who Should Give Zakat
The obligation of Zakat is mandatory on every Muslim who possesses the
minimumNisaab, whether the person is man, woman, young, old sane or
insane. Because the proof of Zakat in Al-Qur'an and Sunnah is general
and does not exclude young or insane. Allah (SWT) stated that:
"Of their goods take alms so that thou mightiest purify and sanctify
them..." ( Surah 9: Verse 103)
Imam Ibn Hazim said that every Muslim young or old sane or insane
needs to cleanse his or her wealth with Zakat because of generality of
the evidence. Anas bin Malik reported that the Messenger of Allah
(saws) said:
"Trade with the money of the orphan, lest it is eaten up by Zakat."
(At-Tabraani)
In another Hadith `Amru bin Shuaib related from his grandfather that
the Messenger of Allah said:
"Whoever is entrusted with money of an orphan should trade with it and
should not leave it sitting to be used up by charity." (Tirmidhi)
The point of reference in these reports is that the Messenger (saws)
urged the trustee on the estate of people who due to age or other
reasonscannot manage their own financial affairs, to invest it in a
business that will yield a return and make it grow until they are in a
position to do so themselves. For, if proper investment is not made
with an ophan's inheritance, it will be depleted by charity, thus
leaving the orphan with little or nothing.
The Nisaab
The Lawgiver, Allah has prescribed theminimum amount that is
obligatoryfor Zakat in different ranges of properties, and that
minimum amount is known as nisaab. The reason for nisaab is to ensure
that no one is forced to give Zakat out of what he or she does not
have, and that no wealth goes without Zakat.
Nisaab is also an insurance against the tyranny of the state to tax
the poor and or the neediest as is the case in many countries. Nisaab
is areference pointfor the average Muslim who is not sure whether he
possesses the minimum wealth on which Zakat is obligatory. The wealthy
need not worry about the Nisaab. Zakat is obligatory on theirentire
wealthand must be paid out at the end of financial yearthat they set
for their Zakat.
Conditions for Nisaab
1.The amount that has reached Nisaab must be the excess or surplus
known as "faadil" from one's essential needs such as food, clothing,
housing, vehicles, tools and machinery that is used in business. The
essentials for living are exempted from Zakat.
Although what constitutes nisaab may change from one country to
another, the amount that is needed for the basic needs of living in
different countries is very similar, because the market place
determines the prices, whether it is an official market or a
non-official market. In the poorest countries people do without or
live below the poverty standard, and that is why many go hungry or
without basic essentials.
However, we must realize thatZakat is an act of worship(ebadah) like
Salaat. Theelement of intention (niyyah) is necessary, and we should
not overly rely on state agencies to determine for us the requirements
of our religious duty.
Nisaab eliminates the possibility of injustice or unfair treatment of
the Zakat payer. To suggest that if we do not follow the rules of
International Monetary Fund or the arbitrary figures of social
security administration or department of agriculture we will be doing
injustice to the Zakat payer is ludicrous.
2.Nisaab must mature, that is the money is not liable for Zakat unless
it has remained a full year in the possession of a person. This is the
understanding of the majority of the scholars. Imam Abu Hanifah (raa)
said: "What should be considered is the existence of nisaab at the
beginning and the end of the Zakat year set by the payer". It does not
matter if the nisaab money increases or decreases during the calendar
year.
How To Give Zakat
Zakat may be assessed and returned in two ways:
1.Make a record of all money earned, either daily or monthly, which
has reached the nisaab and remains in the treasury. The Zakat of that
money would be due one year later on the same day the money was earned
and reached nisaab. This means every month's income must be set aside
and assessed for Zakat and so will be the case for the rest of the
months.
2.The best way is to set a day or a month, preferably Ramadan, for
your annual Zakat return calendar, say Ramadan 1st. One year later on
the same day of Ramadan, your Zakat is due and payable. Whatever is in
the savings is due for Zakat, regardless of whether all the amount in
the savings reaches a year or not. This method is the best because it
is easy to assess, meets one's obligation and relieve one's
conscience.
The Recipient Of Zakat
Knowing who qualifies as recipient of Zakat is an important aspect of
Zakat collection in Islam. Fortunately, Allah (SWT) has been merciful
to us in that He Himself spelled out the people eligible to receive
Zakat. In Surah Tawbah He stated:
"Alms 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; in the cause of Allah;
and for the wayfarer: (thus is it) ordained by Allah, and Allah is
full of knowledge and wisdom." ( Surah 9: Verse 60)
In this verse Allah enumerated the people who deserve this divine
welfare, and they are as follows:
*.The poor and the needy:These are individuals, and those under their
care, to live on. By the poor and needy is meant the people whose
income or salaries, or whatever material goods they have, fall short
of the cost of living in a given environment and economy.
*.Those who administer the Zakat department:Assigning people for
collecting, bookkeeping, making lists of people eligible for Zakat,
and a financial calendar.
*.The new converts to Islam:Whose hearts we want to harmonize into the
fold of Islam, either because their faith is weak or we are afraid of
their being harmed, should be given Zakat to strengthen their Iman or
until we no longer fear their harm.
*.The bonds personwho has contracted with his master to buy himself
out of bondage deserve Zakat and should be given enough to pay off
their debt to the master and be freed themselves; similarly, Muslim
prisoners of war if their freedom is tied to monetary payment, deserve
Zakat sufficient enough to secure their release.
*.The people in debt
*.Zakat can be given in the path of Allah.
*.The wayfarer.This is the traveller who in a strange land runs out of money.
It is, however, permissible to give Zakat to a wife or family member,
provided it is not part of their daily living expense money, but is
needed to pay off a debt for one's wife if she can not pay it. So is
the case for one's parents if they can not pay their debt.
Zakat moneymay be given to members of the familyfor their expenses if
one is not obligated to take care of them financially. The wife can
pay off a debt of her husband with Zakat money, because he may be
among the eight eligible recipients and she is not obligated to spend
on him as he is on her.
The eligible recipients of Zakat can be denied theirright to Zakat
without prooffrom Al-Qur`an or Sunnah. In a hadith reported by Ibn
Masud, his wife Zaynab heard the Messenger of Allah order women to
give Zakat, so she asked the Messenger (saws):
"O Messenger of Allah, you commanded us to give Zakat, and I have
jewellery that I wanted to assess for Zakat, but my husband Abdullah
bin Masud claimed that his son deserves it more than anyone." The
Messenger replied: Your husband Ibn Masud is right. Your son deserves
your charity more than anyone."
In another hadith reported by Salman bin Aamir, he said the Messenger
of Allah said:
"Charity to the poor is only charity, but charity to the rest of kind
is charity and maintenance of relations (sillah)." (Nisaee)