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Is your Zakat Charity Compliant? Here’s How To Check

For many Muslims, Zakat often linked to Ramadan, with obligatory contributions timed alongside the spiritual significance of the month. However, it is important to understand that Zakat is its own pillar in Islam and a separate obligation for Muslims to fulfil regardless of the time of year. … Read More

For many Muslims, Zakat often linked to Ramadan, with obligatory contributions timed alongside the spiritual significance of the month. However, it is important to understand that Zakat is its own pillar in Islam and a separate obligation for Muslims to fulfil regardless of the time of year. 

“When you pay Zakat on your wealth, then you have done what is required of you” (Sunan Ibn Majah)

This highlights the necessity of fulfilling Zakat as a separate duty, which is just as significant as fasting in Ramadan. As part of The #GiveSmartGiveSafe Series, this article will help clarify the obligations for zakat-paying Muslims, common misconceptions around the topic and how to pay using zakat compliant charities.  

Zakat vs Sadaqah: Key differences 

A common misconception is the blurring of lines between Zakat and Sadaqah. Whilst both are types of charitable giving, they are fundamental differences.  

Zakat is an obligatory charity that Muslims who are eligible, must pay. These payments have to be within rules of Zakat compliance and the amount is determined based on you total assets and wealth. There are many different Zakat calculators available online, here is a link to the National Zakat Foundation’s (NZF) calculator- https://nzf.org.uk/zakat-calculator/   

Sadaqah on the other hand is a voluntary payment and can be made freely at any time, in any amount. Most donations in Ramadan are Sadaqah, unless specifically intended as Zakat.   

Understanding these differences helps in budgeting your donations accordingly, whilst ensuring your Zakat is prioritised and fulfilled correctly. 

How to identify a Zakat-Compliant Charity 

So you’ve used the Zakat calculator and found out you need to pay zakat. Who do you pay it to? Zakat payments must be given to charities that adhere to Zakat compliance.

Here’s how to verify whether a charity meets the required criteria: 

Clear Zakat Policy – Does the charity have a clear zakat policy? A compliant charity should have a transparent Zakat policy outlining how funds are collected and distributed, ensuring they reach eligible recipients. 

Academic Endorsement -The second point is academic endorsement. Are there reputable scholars and boards who are endorsing this Zakat process? 

Zakat Fund Management -The final element that should be clear is how the Zakat funds are distributed. Are Zakat funds mixed in with general donations? Are they specifically targeted to eligible recipients?  

By ensuring these steps are met, you can have confidence that your Zakat is being distributed correctly and in line with Islamic principles. 

Timing Zakat payments 

Some individuals delay their Zakat payments to align with Ramadan, believing that the spiritual benefits of the month will enhance the reward. However, Zakat is a mandatory obligation that must be paid on time, when it is due. Think of it as taxes, you don’t delay your tax payments to the government so why delay with Allah (swt). If you wish to make additional donations during Ramadan, these can be given as Sadaqah, which will still reward you without neglecting your obligations.   

By understanding the importance of Zakat as an obligation, distinguishing it from Sadaqah, and ensuring it is given to a compliant and trustworthy charity, you can fulfil this pillar of Islam with clarity and confidence. This article has provided guidance on how to calculate, verify, and distribute your Zakat in a responsible and Islamically sound manner. May your generosity be accepted and rewarded abundantly, Insha’Allah. 

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