Zakat is an essential pillar of Islam after Salah. The impact of Zakat funds, Zakat Donation on Society, is so urgent that it can change a whole society. It refers to allocating a substantial portion of total wealth to the poor as their right. Its message to the owners is the master of all wealth is Almighty. Allah takes a test of an owner with this. It also has some groundbreaking utility. 

This article is all about Zakat Donation, Zakat practices, the Impact of Zakat, Zakat calculation, and the zakat donation system in different countries.

What Is Zakat?

The terminology zakat refers to purify or increase. In the language of Zakat, there is obligatory to hand over a fixed asset to its rightful claimant on an actual condition. 

In a broader sense, if a Muslim owns the measured amount of wealth (Nisab) and remains in his possession for one year, then delivering the prescribed amount to its worthy owner is called Zakat. 

If the specified portion doesn’t pay under the Shariah, then the entire wealth becomes haram. It’s not everything; there are some Nuts And Bolts you have the urgency to know.

Don’t miss out consumer-based stories like this, read:  Bamboo Milk: A Sustainable Dairy Alternative to Feed the World

What’s Shariah?

Shariah is the Islamic Code of life according to Quran and Hadith. It means to abide by what Allah said in the Quran, which explained and instructed prophet Mohammad (P.B.H.) in Hadith.

Zakat Contribution Rules:

There are many Conditions for making Zakat obligatory. And after qualifying one as zakat giver, there are also some other rules to follow. So here are the conditions for Zakat mandatory.

Firstly, the person should be independent and become a Muslim. It is something mandatory for Zakat obligatory because Zakat is not required on slaves or non-Muslims.

Secondly, one must have a particular amount of wealth [that is marked as Nisab]. Nisab, determine as a minimum amount to qualify for Zakat obligatory. 

The amount can be the minimum or more.

A person doesn’t need to have full conscience and adult for Zakat obligatory. 

It is the pure opinion of the scholars. Therefore, Zakat is required on the property of infants and lunatics. Guardians will pay Zakat from their wealth.

Essential to keep in view at the time of zakat allocation

You can’t give Zakat to your family members or relatives whose maintenance depends upon you. Most Islamic scholars agree on this point. It means Zakat is not applicable in family members like dad and son or inheritances.

• A person who can afford his meal two times a day/shouldn’t take Zakat.
• Zakat collection and allocation should be in an area-based process. Its opinion of some scholars like Imam
• Abu Hanifa, Imam Abu Yusuf, Imam Mohammad, etc. Authorities should collect Zakat from a particular area and utilize these in that area. If that specific area doesn’t find more people to take Zakat, then they can send others.

 Types of Zakat:

There are different types of Zakat. These include Zakat on valuable items like gold and platinum ornaments, accumulated wealth, business inventory, prize bonds, share certificates, and provident funds, among others

Crops and animals in the context of goats or sheep, the determined amount is 40 or above. In the case of cow types animals, it will be 30 or above.

Impact of Zakat Endowment on Society

In a society of Islamic value, Zakat is considered a whole social order. Therefore, implementing it strictly in a community can experience its revolutionary impact on the total environment. 

Moreover, the Islamic view of Zakat is never like getting help from wealthy ones. It’s eligible people’s right to contact. Means poor people also have the right to moneybags. 

So, there is no way to feel hesitant to take Zakat. This philosophy is the impacting change-maker here. We can overlook some sectors where Zakat can impact pretty good.

Refugee:

In the section below, I’ll explain who can take Zakat? Then, in part 8 of that section, the wayfarer as zakat receiver will be described. But in the present condition, the refugee crisis appears as an international emergency for Ummah. 

Zakat can make a practical impact here. For example, Islamic Philanthropy Report shows that they saw a significant increase in zakat donations in 2020 compared to previous years. 

Its total amount boosted to $61.5 million and reached more than 2 million displaced people worldwide.

Education:

It is possible to facilitate many educational and training programs with the money earned through Zakat. 

We have to count every effort to stand on the verge of the 4th industrial revolution and information technology. 

Yet, every year, thousands of Muslim youths face challenges in their research activities. 

Zakat funds can accelerate progress in education, research, technology field.

In the short term, providing computer training can turn unprivileged human resources into more productive. In addition, we can sponsor Dawah programs with zakat funds that can spread Islamic education. For this purpose, we can finance providing books, clothes, and accommodation facilities for poor students.

Poverty:

Zakat can be a fruitful institutional measure to alleviate poverty in a society. Forming a regulatory framework for it to abolish the inequality between the rich and the poor. If it continues with liability, it can provide complete economic security, Sustainability to a society.

Health:

In a country with a poor health care system, people hardly have access to advanced treatment. But, with a sick body, getting access to proper treatment is never be a luxury. 

Even, it’s a fundamental right of a human being. This health care inequality can consequently worsen their life. 

In many cases, they cannot afford medicine or treatment, lack money. These people can get help from Zakat Fund.

Zakat Donation in the USA

In the U.S.A., there are several Zakat accepting organizations. For example, the Zakat Foundation of America collects and distributes zakat donations in the U.S.A. and abroad. 

In addition, the organization works consistently in orphan care, refugee empowerment, health care, and emergency relief worldwide.

Another Institution, Islamic relief U.S.A., consults a council of Imams who follow the Fiqh Council of North America for information about religious donations. One can use a USA-based Zakat calculator to know how much to give. Here is a list of the top 5 Zakat accepting Organizations in the U.S.A.

1. Zakat Foundation of America.
2. Islamic Relief U.S.A.
3. Transparent Hands.
4. Muslim Aid U.S.A.
5. ICNA Relief U.S.A.

Zakat Donation in Pakistan:

Pakistan’s national zakat system got maturity enough with experience of more than three decades. It’s a welfare system based on fundamental Islamic law. 

It provides minimal benefits to its eligible. In 1980 Pakistan made the collection and distribution of Zakat obligatory and formed an independent body for it. 

Zakat Council is the body responsible for this. However, some criticism and shortcomings appear at the provincial level of Pakistan; introduced raised Religious antagonism between Sunnis and Shias on the zakat collection system. 

But still, it is in operation to help widows, orphans, indigents, and the disabled.

Moreover, it facilitates for the victims of climate change. Some organizations take Zakat for their humanitarian charity purpose. Here are some of them.

Shaukat Khanum Cancer Hospital, Edhi Foundation, Chhipa Welfare Association, Aurat Foundation, EHSAS, The Rising Sun, The Citizen Foundation, Care Pakistan are the top 10 Zakat accepting organizations in Pakistan.

Who is eligible for Zakat Donation?

Everyone can’t consume Zakat. Islam has specified several areas in this regard. So, the question may be raised in you, who is eligible for it? 

In the Holy Quran, the constitution of Islam, the all mighty Allah says, “Alms-tax is only for the poor and the needy, for those employed to administer it, for those whose hearts attracted to the faith, for freeing slaves, for those in debt, for Allah’s cause, and needy travelers. 

It is an obligation from Allah. And Allah is All-Knowing, All-Wise. [Surah At-Tawbah, 60]

An analysis of this verse, we can define eight types of people who are eligible for Zakat. Here are they.

A Beggar:

A person who can’t afford what he needs at all. To satisfy, he gets compelled in begging is the priority to be eligible for this.

A Poor person:

Who is better than a beggar. Despite his indigence, he can’t quest anything from others due to shame.

Zakat collectors:

The administration of a country appoints all the people for zakat-related activities. It enlists hoarders, wardens, clerks, accountants, guards, transporters, and distributors. 

They can take zakat goods. If a rich person voluntarily engages in this work and has other means of livelihood, they can freely (if they wish) take some remuneration as salary, but they don’t need to give or take Zakat.

Someone’s hearts attracted to the faith:

Can give Zakat to all the poor non-Muslim who want to convert to Islam or protect the Muslims from the enemy’s hands. If Islam has to win the mind of non-Muslims, Zakat can be utilized here.

To free slaves:

Zakat can be used to free slaves in slavery or prison, help those who write about liberation, alleviate those who are captive in the hands of the enemy, etc.

Debtors:

Those who have taken loans and cannot afford to repay them can also be helped with zakat money.

Those who are in the way of Allah:

Those who have devoted themselves to the propagation of the religion. For instance: Someone who collects teachings of Quran and Hadith and distributes them. Orphanage to teach any poor children in madrasa etc. can pay Zakat.

Wayfarer:

A traveler who has gone from one place to another and falls in deficiency. And can’t go home. Can also be given that amount of Zakat so that he can return to his home. One may be wealthy at home but can fall in indigence in wayfaring conditions.

Zakat on Money in Bank:

To pay Zakat on money kept in a bank, it will be about 2.5%. For the amount owed on a bank for one year. Deposited money or cryptocurrency can be cash and bank balances, savings, current, or F.D. accounts.

How to calculate salary on Zakat

In the context of Zakat on salary, you need to count apart from debts. So means will deduct your debts from your pay. 

Then, check that if the balance is above the Nisab amount. If okay, work out 2.5% of that amount, which is the amount of Zakat donation you need to pay across the year.

Zakat Calculator:

Zakat calculator will help you determine how much Zakat you need to pay this year. Eligible Muslims are bound to pay Zakat based on their current Nisab values. 

Therefore, you can calculate your Zakat on the Zakat calculator. But, first, you need to know the systems of the zakat calculator.

First, know the Nisab values for your specific year, like 2021. Then enter your values into the calculator to determine your zakat contribution.

There are many zakat calculators. For example, online zakat calculator, zakat calculator in the U.S.A., zakat calculator in Pakistan, Gold Zakat Calculator, Zakat calculator excel, Zakat calculator for gold. 

Zakat calculator in Bangladeshi Taka, Zakat calculator in USD, Zakat calculator INDIAN puppies, zakat calculator excels, etc.

But our recommendation is for you is to use the online Zakat Calculator provided by Islamic relief. You may use it FREE.

I need Zakat Offering Help:

If you need zakat donation help, you must be eligible for Zakat. The recipient must be poor or needy. A person who can’t afford his basic needs does not reach the Nisab threshold can take Zakat. If you would like to receive Zakat, please reach out to your country’s Islamic Foundation Zakat Committee. You can also send applications for Zakat Requests from those organizations. Or you can contact the organization directly to get. Here are some links to online sites where you can apply for Zakat if you fulfill their requirements.

How Zakat Charity Funds Impact on Education in Malaysia?

Malaysian Gov’t Use zakat donation or funds for Skills Development Program to build up the industrial workforce; 

For this purpose, they founded PSDC as Penang Skills Development Center in 1989.

It is the first-ever industry-based skills development training and education center in Malaysia. 

In more than 29 years of journey, they have trained more than 200,000 participants with 10,000 courses. That helped the Malay govt. To achieve a human resource development plan. And accelerating workforce supply uninterrupted.

Zakat Funds in Bangladesh:

In Bangladesh, there is a government Zakat fund operated by a board under the Islamic Foundation. 

Bangladesh Govt. collecting zakat grants from 64 districts since 1982. They allocate about 70% of collected Zakat in that particular district. During 1982 and 2014, the Zakat board spent TK 132.25 million, with Zakat beneficiaries reaching 718,806. Besides, several private entities are now working on Zakat management across the country.

Center for Zakat Management (C.Z.M.) is one of the leading organizations that have been organizing the annual Zakat fair. 

Quantum Foundation is another voluntary organization that mobilizes Zakat and distributes the same among those eligible to receive Zakat. Ahsanullah Mission is also managing a Zakat fund. Several other charitable organizations are also in operation to mobilize and distribute Zakat.

Zakat aims to two goals — self-discipline and alleviation of poverty from Society. Thus, the role of Zakat is significant in building bridging between rich and poor. 

The practice of Zakat creates a balanced coexistence between the rich and the poor in Society. As Zakat refers to

‘To purify’ so, it purifies the wealth of the owner and his heart. Until the owner doesn’t pay Zakat, his heart and wealth both remain impure. And Allah takes owners to test whether they are grateful to his Almighty for that wealth. 

So, if Zakat gets obligatory to anyone, it’s their mandatory duty to perform regularly and adequately. 

This article is all about Zakat. But, as a writer and human beings, we are not above WRONG.

We’ve written it from my study and research on it. You may have a different view regarding Zakat, zakat donation, zakat rules, etc. So please don’t hesitate to know and discuss us. 

The comment box is always open for you.