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Zakat Guidelines

A comprehensive Islamic guide to Zakat — collection, eligibility, and disbursement

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What is Zakat?

Zakat (زكاة) is the third Pillar of Islam — an obligatory annual charity that every eligible Muslim must pay. The word Zakat means "purification" and "growth" in Arabic. It purifies one's wealth and soul while helping those in need.

Quranic Reference

"Take from their wealth a charity by which you purify them and cause them increase, and invoke [Allah's blessings] upon them." — Quran 9:103

Zakat is fundamentally different from Sadaqah (voluntary charity). Zakat is obligatory, has specific rules about who must pay it, how much must be paid, and who can receive it. These rules cannot be changed or relaxed.

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Who Must Pay Zakat?

Zakat is obligatory on every Muslim who meets ALL of the following conditions:

Muslim

The person must be Muslim.

Adult (Baligh)

The person must have reached the age of puberty.

Sane (Aaqil)

The person must be of sound mind.

Free

The person must not be a slave (historical condition).

Owns Nisab

The person must own wealth equal to or above the Nisab threshold.

One Lunar Year (Hawl)

The wealth must have been owned for a complete Islamic lunar year.

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Nisab & How to Calculate Zakat

What is Nisab?

Nisab is the minimum amount of wealth a Muslim must possess before Zakat becomes obligatory. It is based on the value of gold or silver:

Gold Nisab

87.48g

of pure gold (24 carat)

Silver Nisab

612.36g

of pure silver

Zakat Rate

2.5%

of total zakatable wealth, paid once per lunar year

What Wealth is Zakatable?

  • Cash and bank savings
  • Gold and silver jewellery (above personal use)
  • Business inventory and trade goods
  • Shares and investments
  • Money owed to you (receivables)
  • Agricultural produce (different rates apply)
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The Eight Eligible Recipients (Asnaf)

Quranic Authority

"Zakah expenditures are only for the poor and for the needy and for those employed to collect [zakah] and for bringing hearts together [for Islam] and for freeing captives [or slaves] and for those in debt and for the cause of Allah and for the [stranded] traveler — an obligation [imposed] by Allah." — Quran 9:60

الفقراء

1. Al-Fuqara (The Poor)

Those who have very little wealth and cannot meet their basic needs.

المساكين

2. Al-Masakin (The Needy)

Those who have some income but it is insufficient for their basic needs.

العاملين عليها

3. Zakat Collectors

Those employed to collect and distribute Zakat (administrative costs).

المؤلفة قلوبهم

4. New Muslims & Friends of Islam

Those whose hearts are to be reconciled to Islam.

في الرقاب

5. Freeing Captives

Historically for freeing slaves; today applied to those in modern forms of bondage.

الغارمين

6. Al-Gharimin (The Indebted)

Those who are in debt and cannot repay it, provided the debt was not for sinful purposes.

في سبيل الله

7. Fi Sabilillah (In the Way of Allah)

Those striving in the cause of Allah. Scholars differ on the scope — consult a scholar.

ابن السبيل

8. Ibn Al-Sabil (The Traveller)

A traveller who is stranded and in need, even if they are wealthy at home.

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What is NOT Zakat Eligible

The following causes cannot receive Zakat funds. Donating Zakat to these causes is not valid and the obligation is not fulfilled:

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Building Mosques (Masjid)

Zakat cannot be used to build, renovate, or maintain mosques. Use Sadaqah Jariyah for this.

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Water Wells & Infrastructure

Building water wells, water infrastructure, or sanitation projects are not valid Zakat recipients.

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Construction Projects

Any construction — schools, hospitals, community centres — cannot be funded by Zakat.

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Educational Institutions

Building or maintaining schools and educational institutions is not a valid Zakat use (though paying for a poor student's fees may be).

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Funeral & Burial Costs

Zakat cannot be used to pay for funeral expenses or burial costs.

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Da'wah & Propagation (generally)

General dawah activities are debated. Consult a qualified scholar for your specific situation.

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Dependants You Must Support

You cannot pay Zakat to your own parents, children, spouse, or anyone you are obligated to financially support.

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Non-Muslim Recipients

Zakat cannot be given to non-Muslims (except in the category of "those whose hearts are to be reconciled").

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How to Collect Zakat

⚠️ Critical Requirement

Zakat funds must be kept completely separate from all other donations (Sadaqah, Lillah, Waqf, etc.). Mixing Zakat with other funds invalidates the Zakat.

1

Separate Bank Account

Maintain a dedicated bank account exclusively for Zakat funds. Never mix with Sadaqah or general funds.

2

Clear Labelling

Every Zakat donation must be clearly labelled as Zakat in your records. Birahma records the donation type for you.

3

Donor Confirmation

Donors must explicitly state their donation is Zakat. You cannot assume a donation is Zakat without the donor confirming it.

4

Transparent Records

Keep detailed records of all Zakat received: donor name (or anonymous), amount, date, and how it was disbursed.

5

Timely Distribution

Zakat should be distributed promptly. It is not permissible to hold Zakat funds indefinitely without distributing them.

6

Scholarly Oversight

Ideally, have a qualified Islamic scholar or Zakat committee oversee your collection and distribution.

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How to Disburse Zakat

Verify Eligibility First

Before distributing, verify that recipients genuinely fall into one of the eight Quranic categories. Do not distribute to ineligible recipients.

Direct Transfer Preferred

The best method is to give Zakat directly to the recipient. If using an intermediary, ensure they are trustworthy and will distribute correctly.

No Administrative Deductions (unless authorised)

Administrative costs can only be deducted if you are an authorised Zakat collector (amil). Otherwise, 100% must reach recipients.

Ownership Must Transfer

Zakat is only valid when full ownership transfers to the recipient. You cannot give Zakat as a loan or conditional gift.

Distribute Locally First

Scholars generally recommend distributing Zakat locally first, then to other regions if local needs are met.

Document Everything

Keep receipts, records, and evidence of distribution. This protects you and ensures accountability.

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For Campaign Creators on Birahma

Eligible Campaign Categories for Zakat

✅ Sadaqah
✅ Sadaqah Jariyah (if for eligible recipients)
✅ Emergency Relief
✅ Healthcare / Medical
✅ Orphan Support
✅ Education (for poor students)
❌ Masjid / Mosque
❌ Water Wells
❌ Construction
❌ Zakat (category itself)

Your Responsibilities as a Zakat Campaign Creator

1.You must consult a qualified Islamic scholar to confirm your campaign is genuinely Zakat eligible before enabling this feature.
2.You must maintain completely separate accounts for Zakat and non-Zakat donations.
3.You must distribute Zakat funds only to eligible recipients as defined in Quran 9:60.
4.You must keep detailed records and be prepared to provide a full accounting of Zakat received and distributed.
5.You must not use Zakat funds for administrative costs, salaries, or overheads (unless you are an authorised amil).
6.Birahma provides the platform and records donation types, but you bear full Islamic and legal responsibility for correct Zakat handling.

⚠️ Serious Warning

Misappropriating Zakat — collecting it for ineligible causes or misusing the funds — is a grave sin in Islam. It also exposes you to potential legal liability. If you are unsure whether your campaign qualifies, do not enable Zakat eligibility. Consult a qualified Islamic scholar first.

Disclaimer

This guide is provided for general information purposes only and is based on mainstream Sunni Islamic scholarship. Islamic jurisprudence (fiqh) can vary between madhabs (schools of thought). Birahma strongly recommends consulting a qualified Islamic scholar or your local mosque for rulings specific to your situation. Birahma is a technology platform and does not provide Islamic legal advice. Campaign creators bear full responsibility for the correct collection and disbursement of Zakat funds.