What You Need to Know About Zakat

"... and establish the prayer and give Zakat" Qur'an 2:43

Zakat is a religious duty bound on every Muslim, and literally refers to purifying or cleansing something. It is a fundamental obligation and forms one of the Five Pillars of Islam. Unlike charity, which is given voluntarily, Zakat must be paid. It is owed by any Muslim who has a minimum amount of wealth, and its purpose is to create a fairer society, redistributing to those in need and worthy causes, all for a higher, spiritual purpose.

By paying our Zakat each year, we fulfil a command that is repeated throughout the Qur’an and earn a bountiful reward. The act of giving purifies our wealth, cleanses us of sin and raises our rank.

How much Zakat should I give?

Typically, individuals must pay 2.5% of their wealteach year to those deserved of their Zakat. Some things that you own, like the house you live in, are exempt from paying Zakat, whereas Zakat on the value of a second home may or may not be due, depending on your short- and long-term financial plans.

Working out exactly how much Zakat you owe can be confusing. Luckily, we’ve put together this handy Zakat calculator that you can use to discover whether you need to pay Zakat, and how much you need to pay.

Where should my Zakat go?

The Holy Qur’an details eight categories of those who are considered the proper recipients of Zakat:

1. The poor (al-fuqarâ’)

2. The needy (al-masâkîn)

3. Zakat administrators

4. New converts to Islam

5. Those in bondage (slaves and captives)

6. Those in debt.

7. For the cause of Allah (SWT)

8. Those stranded or travelling with few resources

(Qur’an 9:60)

Penny Appeal’s 100% Zakat Applicable projects focus on categories 1, 2, 6, and 8 – and 100% of donations go to those who need it most.

Over the years, your Zakat donations have helped us to deliver life-changing aid in 56 countries worldwide, providing food, water, education, emergency aid, cash grants and so much more, Alhamdulillah.

Calculated your Zakat and wondering where to give this year? We’ve rounded up some of our best options below.

Go Traditional - Give Cash Directly to those in need with Penny Appeal

The Prophet (ﷺ) and his followers would give their Zakat funds directly to those in need. This can present logistical challenges for individuals today; however with Penny Appeal, you can follow in their footsteps by donating to our Zakat cash scheme to directly reach struggling individuals.

Giving casas recommendeithe Sunnais today hailed as one of the most effective methods for helping people, particularly those recovering from conflict and disaster. The High-Level Panel on Humanitarian Cash Transfers have said that one of the most important parts of humanitarian aid is “to give people affected by conflict and disaster cash transfers to buy what they need most.”

Giving cash empowers those in need to make their own financial decisions. People will go on to buy food, medicine, essentials and so on from their local community, meaning the money then circulates in their society, uplifting more than just the person who received the Zakat.

Penny Appeal is providing Zakat cash donations directly to refugee households in Amman, Jordan, to cancer patients in Huduyah governorate, in Yemen, to poor communities in Narowal and Nankana, and across Pakistan those whose livelihood have been hit by the pandemic.

Penny Appeal’s Cash Sponsorships directly support those from Zakat categories 1, 2, 6, and 8 of the list above, with 100% of your Zakat going to those in need.

Click here to donate your Zakat towards a Cash Sponsorship.

Give Hope - Give Shelter

Nearly 14 million people have lost their homes in Syria over the past decade of civil war, and there are approximately 6.9 million people still displaced today. Last year, it was reported that Syria’s economy has lost $1.2 trillion from the conflict, and that the life expectancy of Syrian children has been reduced by 13 years.

This Ramadan, you can help a displaced Syrian family to start rebuilding their lives by giving them a foundation to build a future with. A Penny Appeal £2,000 Syrian Home will provide shelter, warmth, and protection for a family who have lost everything.

Penny Appeal’s Rebuilding Syria project supports those from Zakat categories 1, 2, and 8 of the list above.

Click here to donate your Zakat towards a £2000 Syrian Home.

Give Water

Over 2 billion people – over a quarter of the world’s population – still lack access to safely managed drinking water services.

This is a shocking statistic, and solving this crisis often feels like an uphill battle.  But Penny Appeal have been working to solve thirst, first – one glass of water at a time. Over the past 13 years, Penny Appeal has built over 35,900 wells in 14 countries around the world, providing an estimated 6.6 trillion glasses of water. This Ramadan, you too can help to deliver round-the-year access to safe, clean water for homes, schools, community clinics and more, by donating your Zakat to give water –described by the Prophet (ﷺ) as the best form of charity.

Penny Appeal’s Thirst Relief project supports those from Zakat categories 1, 2, and 8 listed above.

Click here to use your Zakat to build a water well in a needy community and help quench thirst for a one-off payment of £300. You can also contribute your Zakat to larger water solutions for those in need, including our Rainwater Harvesting Systems and out Solar Panel Water and Power Centres that help thousands of people each.

Restore a Childhood – Invest in the Future of Humanity

Every parent would sacrifice all they had for their children, but what if you had nothing to leave behind? With your support, we can make sure that orphans in need and vulnerable children get all the opportunities and care you'd want for your own little ones.

Through Penny Appeal’s Orphan Kind Programme, you can offer a vulnerable child the opportunity for a life free from poverty. Your sponsorship will provide clothing, nutritious meals, family counselling, medical check-ups, health and hygiene training, educational assistance, spiritual guidance, access to special services like surgeries and disaster relief and much, much more.

Click here to use your Zakat to change an orphan child’s life forever, for only £15 a month or £180 per year, per child.