1. Zakat (The Obligatory Alms)

Zakat is one of the five pillars of Islam. It is a mandatory annual payment made by adult Muslims whose wealth exceeds a certain threshold (Nisab) for a full lunar year.

• Rate: Generally 2.5% of your surplus wealth.

• Purpose: To purify your wealth and provide for the eight categories of people mentioned in the Qur’an, primarily the poor and needy.

2. Nisab (The Threshold)

Nisab is the minimum amount of wealth a Muslim must possess before they are obligated to pay Zakat. If your wealth is below this amount, you are not required to pay Zakat for that year.

• Gold Standard: The equivalent of 87.48 grams of gold.

• Silver Standard: The equivalent of 612.36 grams of silver.

• Note: Most charities recommend using the Silver standard to determine Nisab so that more people qualify to help the poor.

3. Sadaqah (Voluntary Charity)

Unlike Zakat, Sadaqah is not mandatory. It is a voluntary act of giving out of compassion, love, or faith.

• Forms: It is not limited to money; a smile, helping a neighbor, or removing an obstacle from the road is considered Sadaqah.

• Timing: There are no limits on how much or when you can give.

4. Sadaqatul Fitr (Zakat al-Fitr)

This is a specific form of charity given by every head of household at the end of Ramadan, before the Eid-ul-Fitr prayer.

• Purpose: To ensure that those in need can celebrate Eid like everyone else and to purify the giver from any shortcomings during their fast.

• Amount: Usually a fixed, small amount (the price of one meal) per family member.

Penalties and Compensation

5. Fidya (Compensation for Missed Fasts)

Fidya is a mandatory payment for those who cannot fast due to valid, long-term reasons, such as old age or chronic illness.

• Requirement: For every day of Ramadan missed, the person must provide one needy person with two meals.

6. Kaffarah (Expiation for Broken Oaths or Fasts)

Kaffarah is a penalty paid when a religious obligation is deliberately broken without a valid excuse.

• Common Scenario: Intentionally breaking a fast in Ramadan or breaking a solemn oath.

• Payment: This is significantly higher than Fidya (e.g., feeding 60 poor people for one deliberately broken fast).

Community Support

7. Lillah (For the Sake of Allah)

Lillah refers to any charity given solely for the pleasure of Allah. While Zakat has strict rules on who can receive it (individuals), Lillah is more flexible.

• Usage: It is commonly used for public benefit projects that do not qualify for Zakat funds, such as:

  • Building or maintaining Mosques.

  • Building schools or hospitals.

  • General community infrastructure.