Muslim Bridges - All about Zakah

All about Zakah

Literally Zakah means
Blessing, purification, increase and goodness. It is so called as it blesses the wealth from which it is taken and protects it from misfortunes. Ibn Taimiah said, "The soul of one who gives Zakah is blessed and so is his wealth."

Technically Zakah is defined as
"A determined portion taken from wealth and allocated to those deserving it, by a Qur'anic injunction." Sometimes Zakah is referred to in the Holy Qur'an as Sadaqah (alms). The Qur'an says, "Of their goods take alms, that so thou mightest purify and sanctify them; and pray on their behalf, verily thy prayers are a source of security for them." (Surah Al-Taubah, No.9, Verse: 103). In an authentic hadith, the Prophet (peace be upon him) said to his Companion Mu`adh, when he was sent to Yemen as governor, "Tell them that Allah has made Zakah obligatory for them, that it should be collected from the rich and distributed among the poor."

Judgment of Zakah

Zakah is the third of the Five Pillars of Islam. Denying it leads to disbelief and Muslims are commanded to fight those who abstain from paying it. Its legality dates back to the second year after Hijrah. It is mentioned in the Qur'an more than once. The Qur'an says, "And be steadfast in prayer; practice regular charity; and bow down your heads with those who bow down (in worship)". (Surah Al-Baqarah 2:43). The Qur'an also says, "And those in whose wealth is a recognized right for the (needy) who asks and him who is prevented (for some reason from asking)". (Surah Al-Ma`arij 70:24-25.

Wisdom of its Legality

Zakah is indispensable for the Muslim community as it achieves reform, both financially and spiritually. It eliminates misery and greed from hearts and consolidates the Islamic economy, leading to its stability and prosperity. Besides, the Qur'an pictures Zakah as:
* The means of attaining Allah's mercy, "But My Mercy extendeth to all things. That (Mercy) I shall ordain for those who do right, and practice regular charity". (Surah Al-A`raf 7:165).
* A precondition to achieve victory, "Allah will certainly aid those who aid His (cause); for verily Allah is Full of Strength, Exalted in Might, (able to enforce His Will). (They are) those who, if We establish them in the land, establish regular prayer and give regular charity." (Surah Al-Hajj 22:40-41).
* A sign of brotherhood in religion, "But (even so), if they repent, establish regular prayers, and practice regular charity, they are your brethren in Faith." (Surah Al-Taubah 9:11).
* A distinctive feature of the faithful community, "The Believers, men and women, are protectors, one of another: they enjoin what is just, and forbid what is evil: they observe regular prayers, practice regular charity, and obey Allah and His Messenger. On them will Allah pour His Mercy: for Allah is Exalted in power, Wise." (Surah Al-Taubah 9:71).
* A distinctive quality of the believers who frequently go to mosques and maintain them. "The mosques of Allah shall be visited and maintained by such as believe in Allah and the Last Day, establish regular prayers, and practice regular charity, and fear none (at all) except Allah." (Surah Al-Taubah 9:18).
* A distinctive quality of the true believers who will abide in Paradise, "Who are active in deeds of charity." (Surah Al-Mu'minun 23:4).
* Also the Sunnah equally stresses the importance of Zakah. Ibn `Umar (may Allah be pleased with him and his father) reported Allah's Messenger (peace be upon him) as saying, "I have been commanded to fight against people till they testify that there is no god but Allah, and that Muhammad is the Messenger of Allah, perform Prayer, and pay Zakah."
* It is reported on the authority of Jarir (may Allah be pleased with him) that he observed, "I gave pledge of allegiance to Allah's Messenger (peace be upon him) on the observance of Prayer, payment of Zakah, and sincerity and well-wishing for every Muslim."
* Ibn `Umar (may Allah be pleased with them) reported that the Holy Prophet (peace be upon him) said, "(The superstructure of) Islam is raised on five (pillars): Bearing testimony that there is no god but Allah and that Muhammad is the Messenger of Allah, performance of Prayer, payment of Zakah, Pilgrimage (to Mecca) and Fast of Ramadan."
(All the above hadiths are included in Sahih Al-Bukhari and Sahih Muslim)

Conditions of Zakah

Islamic Shari`ah laid down some conditions that must be realized to make Zakah due. These conditions were identified with the aim of granting some facilities to the owner, so that he might give Zakah willingly. Thus, Zakah achieves the noble aims for which it has been ordained. These conditions are:

Full Possession
Real or Assumed Growth
Fulfilling the Nisab (Minimum Amount Liable to Zakah)
Fulfilling One's Basic Needs
The Lapse of a Full Year
Forbidding Twice Payment of Zakah at the Same Year

Full Ownership

Full possession implies that the owner should be fully capable of disposing the property without being an object of contest by others. As Zakah is considered a kind of ownership as regards the receiver, the giver must purely own it. Thus, no Zakah is due on the property which is Dimar (that is not fully possessed, due to ignorance of its location or incapability to reach it). Some Companions are reported to have said, "Zakah is not due on a Dimar property, nor on the deferred amount of dower (as a woman cannot dispose of it) nor on the debt owed by an insolvent person." However, in case such kind of property becomes fully possessed, Zakah becomes obligatory on it for one year only, no matter how many years it remained out of reach.

Growth of Wealth, Whether Real or Assumed

Real growth of wealth is that caused by its producing offspring, or by gain realized from trade. Assumed growth implies the liability of property, such as gold, silver and currencies to increase when exploited in trade. However, no Zakah is due on properties that are not liable to real or assumed growth.

Reaching Nisab (Minimum Amount Liable to Zakah)

The method of estimating the Nisab (minimum amount liable to Zakah) is applicable to cash money, gold, silver, commercial commodities and cattle. According to a prophetic hadith, "Gold is not liable to Zakah unless it reaches twenty dinars (85 grams). Once it reaches this amount, half a dinar must be paid as Zakah on it. Likewise, silver is not counted for Zakah unless it reaches two hundred dirhams. Once it reaches this value, an amount of five dirhams must be paid as Zakah on it." Based on this hadith the Nisab of gold counted for Zakah is twenty dinars (85 grams) of fine gold, while the Nisab of silver is two hundred dirhams (595 grams) of fine silver. The Nisab of merchandise is an amount whose value equals eighty-five grams of gold. No Zakah is due upon other kinds of property unless they reach their Nisab, which will be specified later on. Zakah becomes due upon reaching the Nisab or more than it. According to the Hanafi and Maliki juristic schools, the Nisab is calculated at the beginning and end of the year. Any decrease or insufficiency in between is overlooked. Any increase of property after reaching the Nisab during the year is to be included in the total sum counted for Zakah. This is considered the easiest and most applicable among the other juristic views, which has made the majority of scholars adopt it.

Khultah [Co-possession]

Khultah implies treating the property owned by two or more persons as that owned by only one person. This may result from the unity of type and conditions, such as the unity of pasture, watering place and enclosure if the property is sheep, or the unity of responsibilities, procedures and disposition in case of partnership. Though the concept of Khultah is often applied to Zakah on cattle, some juristic schools also applied it to other kinds of property such as crops, fruits and cash money. Thus co-properties are to be treated as a single unity making up the total sum on which Zakah is payable. For example, a flock of 45 sheep that is owned by three persons, 15 sheep each, is counted for Zakah, and one sheep is due, though treating each of the three persons individually would not reach the Nisab of 40 sheep.

Exceeding One's Basic Needs

Properties owned to meet one's basic requirements such as houses, work tools, machines for industry, means of transport, and furniture are excluded from Zakah. The same applies to the money dedicated to the repayment of debts, since the debtor is in need of this money to relieve himself from imprisonment and humiliation. This leads to a conclusion that the money kept to meet the basic requirements is exempted from Zakah.

The lapse of a full year

A property is not counted for Zakah unless after the lapse of a full lunar year right from the day it reaches the Nisab. In case the budget is linked to the solar year, the solar calendar can be applied provided that the percentage of Zakah is raised up to 2.577% instead of 2.5% so as to make up for the difference between the two calendars.

However, this condition does not apply to fruits and other crops. The criterion for giving Zakah on these two specific kinds of property is mentioned in the Holy Qur'an, "Render the dues that are proper on the day that the harvest is gathered." (Surah Al-An`am 6:141). In the same line the majority of scholars agreed that the lapse of a full year is not a necessity to pay Zakah on minerals and extracted treasures.

Forbidding Twice Payment of Zakah at the Same Year

Once Zakah is paid on a property, it absolves the owner, even though the property is then transferred to a type different from that on which Zakah had been paid. For example, when the crops or cattle are sold, thus transferred to cash money, this new type of property is not liable to Zakah in the same year in which Zakah is paid on the former type. This in fact leads to the repetition of paying Zakah, which is contradicted by the Prophet's hadith in which he observed, "There is no repetition of Zakah."

Public wealth, endowments and charitable properties

Zakah is not due on public wealth, since it is a common property owned by all individuals of the community, including the poor. Likewise, Zakah in not due on endowments and money dedicated to charitable purposes, such as charitable associations and funds, so long as they do not belong to a specific owner.

Time of Giving Zakah

a) Paying Zakah on its due time is obligatory. When Zakah falls due and the giver of Zakah is ready and able to pay it, it is not permissible to delay the payment. But if the money to be paid is not in hand, one may be granted respite until he gets the money. The prohibition to delay Zakah payment is also applicable to those charged to collect Zakah money and distribute it among the recipients. If they know the recipients and are able to distribute Zakah among them but do not pay it until it is ruined, they will be held responsible for affording it on their account.

b) One's death does not exempt one's property from paying Zakah. Zakah must be paid whether the deceased made will to that effect or not.

c) Time prescription does not affect the obligation to pay Zakah. If the property owner delays the Zakah payment until the advent of the following year, when he comes to pay Zakah for that second year, he has to deduct the value of Zakah for the previous year and pay Zakah for the remaining portion of his property. He still has to pay Zakah for the previous month, which is considered as a payable debt on the property.
If the property is ruined before Zakah falls due it will be exempted from Zakah if the following two conditions are fulfilled:
- Property ruin should have taken place before one gains ability to pay the Zakah.
- Ruin should not result from the property owner's negligence in keeping money.

d) If crops and fruits were plighted before the day of harvesting, they will be exempted from Zakah unless the remaining portion reaches the Nisab or more. Hence Zakah would be due on what remained.

e) Those employed to collect the Zakah money and distribute it among its recipients are responsible for guarding the money. But if it was affected for no negligence on their side, they would not be required to afford for it.

The Manner of Distributing Zakah

a) The Zakah giver is freed from its burden as soon as he grants its ownership to any of the first four categories of Zakah recipients: the poor, the needy, those employed to administer the Zakah, and those whose hearts are to be reconciled. Making either of these categories in full possession of Zakah is a condition for the verification of the payment of Zakah. Granting full possession implies giving the recipient a certain amount of money, or buying a means of production or craft tools and granting their ownership to the recipient who has the capability to work. As for those in bondage, those in debt, fighters in the cause of Allah, and the wayfarers, it is sufficient to deliver Zakah to them through any means.

b) Concerning the poor, the needy, those employed to administer Zakah, and those whose hearts are to be reconciled, it is enough to have them meeting the conditions of receiving Zakah at the due time of the Zakah payment. If their state changed after Zakah had been paid to them, they are not required to pay it back.

c) As for those who are in debt, wayfarers, and fighters in the cause of Allah who receive Zakah, if their state changes or if they did not use the money to meet the necessity for which they deserved it, Zakah should be taken back from them.

d) Relief from debts due on Zakah recipient. If an insolvent borrower fails to settle up his debts to his lender who later acquitted him from paying them back, such debts will not be regarded as Zakah even if the borrower is a Zakah recipient. This is the opinion held by most scholars.

This rule applies to the following cases as well:

- If the lender pays Zakah to the borrower who returns it as settlement of his debts without a prior consent, Zakah is valid.

- If the lender pays Zakah to the borrower provided that the latter will pay it back instead of his debts or if both agree on this matter, Zakah is not valid. This is the opinion held by the majority of scholars.

- If the borrower asks his lender to give him Zakah so that he could settle up his debt, and the borrower did so, Zakah is valid. Yet, the borrower is not obliged to pay back the very same amount as settlement of his debt.

- If the lender said to the borrower: "Settle up your debt and I will give you Zakah." and the borrower did, Zakah is valid and the lender is not obliged to pay back the very same amount (of the debt) to the borrower.

Those Who Do Not Deserve Zakah

a) Whoever belongs to the household of Prophet (peace be upon him) out of honoring them. According to Islamic Shari`ah, the Prophet's household have right to take one-fifth of the booty as their share in public wealth.

b) Dependants of the person giving Zakah

c) Non-Muslims except for those whose hearts are to be reconciled

Transferring Zakah from the Place in Which it is Levied

Zakah is a basis for achieving social solidarity in the Islamic countries. Such fact should be used when displaying the facts and fundamentals of this true religion. Zakah money should be used in liberating any Islamic occupied territories. Zakah should originally, as confirmed by the Prophet's Sunnah and behavior of his Companions, be distributed among the poor living in the region from which Zakah money is collected. Extra funds can be transferred to another town. This excludes the conditions of famine, disasters, and worse living conditions, where it is a must to transfer the Zakah money to those who need it most whether groups or individuals.

Rules Governing the Transference of Zakah

Originally, Zakah money should be distributed among the poor living in the region from which the money is collected, not in the region where the Zakah payer lives. But it is permissible to transfer the Zakah money for another location if there is any clearly justified reason.

Following are possible cases:

a) Transferring it to the places of Jihad (Fighting for the cause of Allah).
b) Transferring it to institutions caring for Calling for Islam, education, healthcare which deserve a share of the Zakah amounts as one of the eighth channels of Zakah
c) Transferring it to Muslim regions afflicted by famine and disasters.
d) Transferring it to one's relatives who deserve Zakah.

Second: Transferring Zakah to places other than the above mentioned ones does not invalidate its payment, but it is detestable, provided that the recipient is one of the eight channels of Zakah.

Third: The region of Zakah extends to include the town and the adjacent villages and areas less than 82 kilometers away.

Forth: Acts permissible during the transference process
a) In case Zakah conditions are fulfilled, it is permissible to pay the Zakah amounts a period before its due time and send it to its recipients so that it may reach them perfectly on time.
b) There is no blame on the person giving Zakah if he paid it on its due time and it reached the recipients after the due time has passed, as it was on the way to them.

Zakah and Tax

a) Paying the tax levied by the state does not suffice for paying Zakah due to the different nature of Zakah and taxes as regards the source and aim of levying, the wealth upon which each of them is due, the due payment amount, and the channels.

b) Tax amounts are not to be deducted from the due amounts of Zakah. Rather, the already paid taxes can be deducted from the wealth upon which Zakah is due.

c) Taxes levied by the state to be paid before the time of Zakah payment are to be deducted from the wealth upon which Zakah is due, even if it was not yet paid.

d) To make it easy for those who pay Zakah, current taxation laws should be adjusted to allow deducting the value of the Zakah amounts from the tax amounts on condition that authentic legal proofs be submitted.

e) A tax for social solidarity that matches Zakah amounts should be levied upon all non-Muslim citizens under a Muslim state. Such taxes would serve as revenues to achieve social solidarity among all citizens living under Muslim rule.

	Channels of Distributing Zakah
	The Eight Channels of Distributing Zakah

	The Poor
	The Needy
	Those Employed to Administer Zakah
	Those Whose Hearts are Made to Embrace Islam
	To Emancipate Slaves
	The Debtors
	In the Cause of Allah
	The Wayfarer

The Poor

The poor are those in need and cannot afford their basic needs.
According to the majority of jurists, the poor are those who do not have any assets and have no means through which they can earn their living. However, the Hanafi juristic school defined the poor as those who have money lesser than the amount on which Zakah is payable . The poor are worse than the needy as regards satisfying their basic needs. However, some scholars held the opposite view.
Actually, this dispute in categorization has no effect, since both the poor and the needy are among the categories entitled to receive Zakah.

b. The amount of Zakah given to the poor should be sufficient for covering their basic needs, including eating, clothing and housing for one year. The basic needs are to be determined according to the prevalent customs in the time and place in which Zakah is paid.

c. Among the categories appended to the poor deserving Zakah, after ascertaining that they have no sustainer, determined either by legislation or by a juridical verdict, are orphans, foundlings, widows, divorced women, the aged and decrepit people, the sick, the crippled, those receiving low incomes, the students, the unemployed and the families of the jailed, and prisoners of war, as stipulated in the regulations of Zakah distribution channels of Kuwaiti Zakah House (article 4).

The Needy

According to the majority of jurists, the needy are the people whose earnings do not cover their basic needs. However, Abu Hanifah defined them as 'those who have no earnings at all.' They assume the same status of the poor as regards Zakah. The Hanafi and Maliki jurists consider them as deserving Zakah more than the poor. However, the Hanbali and Shafi`i jurists put forward the poor as more deserving Zakah.

Those Employed to Administer Zakah

This term stands for all those serving in the field of collecting, storing, guarding, registering and distributing Zakah. They are appointed by the official bodies or Islamic societies. They shoulder all Zakah related activities including introducing the regulations of Zakah as stipulated in the third recommendation of the symposium held under the auspices of the Kuwaiti Zakah House.
The existing societies and commissions responsible for collecting Zakah represent the old charity houses known in early Islamic era. Therefore, such societies should meet the conditions required for those commissioned to administer Zakah.

a. The tasks entitled on the administrators of Zakah may be authorized to them by the State. The administrators of Zakah should be male Muslims, honest, and familiar with the juristic rulings pertaining to Zakah. Other subsidiary tasks may be performed by other persons such as computer works, stores, maintenance of fixed assets ... etc .

b. The administrators of Zakah are to be paid from the portion of Zakah dedicated to this purpose even though they were not poor, keeping in mind that all salaries and managerial costs should not exceed one-eighth (12%) of the whole collected amount of Zakah.

c. There should be no tendency to increase employment, unless it is necessary. It is preferable that the employees in the field of administering Zakah are paid by the state, so that the other channels of Zakah may benefit from the funds of Zakah.

d. Administrators of Zakah are not allowed to receive presents or gifts (given to them because of their post), whether in kind or in cash.

e. The headquarters of the Zakah institutions and administrations should be equipped with all necessary tools, equipment and furniture, which will be financed from the funds of Zakah, unless these are financed from sources such as the public treasury, gifts or donations. Also, they may be financed from the portion dedicated to the administrators of Zakah, provided that this equipment is necessary for the process of collecting and distributing Zakah, or leading to increase in the resources of Zakah.

f. The committees of Zakah should be monitored by the bodies that appointed or licensed them, in a way which follows the example of the Prophet (peace be upon him). An administrator of Zakah is regarded as a trustee over Zakah and, thus, is held accountable for any damage or loss that may result from misuse or negligence.

g. The workers in the field of administering Zakah should foster the good manners encouraged by Islam when dealing with the payers and recipients of Zakah, propagate the noble aims of Zakah, and hasten to distribute it.

Those Employed to Administer Zakah

d. Administrators of Zakah are not allowed to receive presents or gifts (given to them because of their post), whether in kind or in cash.

Those Whose Hearts are Made to Embrace Islam

a. This is one of the eight channels of distributing Zakah, which finds a solid proof to support it in Islamic legislation. The majority of jurists held that this category has the right to receive Zakah, even though they are not in need.

b. Among the most important fields to which this portion of Zakah is dedicated are the following:
- People expected to be Muslims who adopt the Islamic moralities, but they are not yet Muslims, or those who have the ability to convince other people to embrace Islam.
- The influential bodies or individuals such as leaders or presidents who can contribute to improving the conditions of Muslim communities and minorities abroad and support their claims, or who can urge the intellectuals to defend their cause. The same applies to funds dedicated to improving the image of Islam and Muslims through assisting the afflicted non-Muslim areas.
- Those who have been Muslims for a period less than a year and are in need of support, not only financially but also morally, to cope with their new conditions of life. This can be realized through establishing social and scientific institutions to provide them with the appropriate climate.

c. There are some key points that regulate spending from this portion of Zakah, which must be taken into consideration:
- The spending in this channel should be concomitant with and leading to the aims for which Zakah is ordained.
- The spending in this channel should not affect spending in the other channels of distribution.
- Spending in this channel of distribution should be undertaken cautiously to avoid the negative aspects that may be disadvantageous to the cause of Islam or badly affect the emotions of the people who have recently embraced Islam.

d) Effective modern technologies and methods should be applied in collecting and distributing Zakah in a way to guarantee achieving the aims of Shari`ah in the best way possible.

To Emancipate Slaves

Since there are no slaves any more, the portion of Zakah dedicated to setting slaves free is to be shifted to the other channels of distribution. However, some jurists maintained that such funds should be allocated for the Muslim prisoners of war.

The Debtors

This channel of distributing Zakah includes the following:

a) A debt incurred to bring an indispensable requirement, provided that:
1. The debt is not incurred to be spent in committing sins.
2. The debtor is liable to imprisonment in case he does not repay his debt.
3. The inability of the debtor to repay.
4. The debt falls due or is payable at the time of receiving Zakah.

b). A debt incurred to achieve social reform, such as the amounts paid as blood money or compensation for damages shouldered by a person to bring about reconciliation between two or more contesting parties. Such debtors would receive Zakah, even though they are not in need.

c) A debt incurred as a result of guaranteeing the repayment of a debt owed by others, in case both the guarantor and the debtor are incapable to repay.
The indemnity incurred as a result of manslaughter, provided that neither the family of the accused nor the public treasury is able to afford it.
However, no Zakah is paid for indemnity incurred as a result of premeditated murder. It is recommended to establish special funds other than Zakah that aid those required to pay indemnities resulting from traffic accidents.

In the Cause of Allah

In the wider sense, this channel of distribution covers all methods of promoting the Islamic faith, whether through Jihad, propagating the enactment of the Islamic legislation or defending Islam through the intellectual confrontation against its opposing hostile trends.

This channel of distribution includes the following:

a. Financing Jihad activities to spread Islam and repel enemies attacks against Muslim countries.

b. Supporting fruitful individual and collective efforts aiming at spreading Islamic rule, establishing Islamic law, and resisting plans to marginalize Islam and its law.

Source: Saudi Arabia ministry of Islamic Affairs

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