How Zakat Works:

Muslims eligible to pay zakat must contribute a fixed portion—2.5%—of their total wealth and savings annually. Zakat is not just a charity; it is an obligation for all Muslims whose wealth exceeds a certain threshold, known as the nisab, which varies based on the value of gold or silver in different regions.

Recipients of Zakat:

Islam identifies eight categories of people who can receive zakat, as outlined in the Quran (9:60):

1. The Poor (Al-Fuqara): Those with little or no income.
2. The Needy (Al-Masakin): Those who lack basic necessities, even if they have some income.
3. Zakat Administrators: Those appointed to collect and distribute zakat.
4. New Muslims or Those to Be Reconciled: People who have recently embraced Islam or are inclined toward it.
5. Freeing Slaves or Captives: Historically used to help free enslaved individuals; today, it can be used for causes that alleviate such constraints.
6. Those in Debt: People who are overwhelmed with legitimate debts.
7. In the Path of Allah: Used for various charitable causes, including education, healthcare, and community welfare.
8. Travelers in Need: People who are stranded or in need while traveling.

Benefits of Zakat:

1. Supports the Less Fortunate: Zakat provides financial assistance to those in need, helping to reduce poverty and meet basic needs.
2. Promotes Wealth Distribution: It reduces wealth disparity in society, encouraging economic balance.
3. Purifies Wealth: By giving a portion of one’s earnings, Muslims purify their wealth, making the remaining wealth spiritually blessed.
4. Strengthens Community Bonds: Zakat promotes a sense of unity and responsibility, as the wealthy actively support the less fortunate.