Zakaat – SS1 Islamic Studies Lesson Note (Third Term)

Zakaat is the compulsory yearly charity that a Muslim with wealth above the nisab pays to eligible people, and it is the third pillar of Islam.

• Meaning of the word: “Zakaat” is Arabic and means “to purify” or “to grow”.
• Purpose: Muslims believe Zakaat purifies their wealth and brings blessings.
• Status: it is a duty made compulsory by Allah, not a favour.
• In the Quran: prayer (Salaat) and Zakaat are often mentioned together, which shows how important both are.

Behavioural objectives

By the end of the lesson, students should be able to:

1. explain the meaning of Zakaat and give reasons why it is important;
2. state the conditions a Muslim must meet before paying Zakaat and explain what nisab is;
3. list the types of wealth on which Zakaat is paid and is not paid;
4. calculate Zakaat on money using the rate of 2.5%;
5. name the eight categories of people who can receive Zakaat;
6. state the difference between Zakaat and Sadaqah.

Why is Zakaat important?

Zakaat is important because it obeys Allah’s command and meets the needs of the poor.

1. Obeying Allah: Allah commands Zakaat in the Quran.
2. Helping the poor: it supports people who lack money for basic needs.
3. Reducing inequality: money moves from the rich to the poor, so society becomes more equal.
4. Purifying wealth: it cleans the remaining wealth and the giver’s heart from greed and selfishness.
5. Testing generosity: it shows whether a person loves money more than Allah.
6. Building community: it creates a bond between the rich and the poor.
7. Personal growth: it makes a Muslim less attached to material things.

Who must pay Zakaat?

What are the conditions for paying Zakaat?

Zakaat is compulsory only on a Muslim who meets nine conditions.

1. Muslim: the person must be a Muslim.
2. Adult: the person must have reached puberty.
3. Sane: the person must be of sound mind.
4. Free: the person must not be a slave (slavery is no longer practised).
5. Nisab: the person must own wealth above the nisab.
6. One lunar year: the wealth must have been owned for a full lunar year (about 354 days).
7. Growth: the wealth must be growing or able to grow.
8. Full ownership: the wealth must truly belong to the person.
9. No heavy debt: debts must not reduce the wealth below the nisab.

What is nisab?

Nisab is the minimum amount of wealth a Muslim must own before Zakaat becomes compulsory.

• Gold standard: the value of 87.48 grams of gold.
• Silver standard: the value of 612.36 grams of silver.
• Which to use: scholars differ, and many today use the silver value because it is lower, so more poor people benefit.
• Current value: check the day’s local price of gold or silver in naira before calculating.

What types of wealth is Zakaat paid on?

Zakaat is paid on seven main types of wealth that exceed the nisab.

1. Money: cash, bank deposits, savings and similar cash-like assets.
2. Gold and silver: jewellery, coins and bars.
3. Business assets: goods bought to sell for profit, such as shop stock.
4. Livestock: camels, cattle, sheep and goats that graze freely, not pets or work animals.
5. Agricultural produce: crops that can be stored, such as wheat, barley, dates and raisins.
6. Minerals and treasures: resources taken from the earth and buried treasure that is found.
7. Stocks and investments: company shares, mutual funds and similar investments.

What types of wealth is Zakaat not paid on?

Zakaat is not paid on items a person needs for daily living and work.

• Personal items: clothes, furniture and a car used by the family.
• Residence: the house the family lives in.
• Work tools: tools used to earn a living.
• Study books: books used for study.
• Food: food kept for personal use.

• Debts you owe: these are not taxed, but they are subtracted before you calculate Zakaat.

How much Zakaat is paid, and when?

How much Zakaat must be paid?

The rate of Zakaat depends on the type of wealth.

How do you calculate Zakaat on money?

To calculate Zakaat on money, add your eligible assets, subtract your debts and take 2.5% of what remains.

1. Add up all your Zakaat-eligible assets:
   • cash at home and in bank accounts
   • gold and silver jewellery
   • stocks and investments
   • business stock
   • money owed to you that you expect to receive
2. Subtract the money you owe to others.
3. Check that the remaining amount is above the nisab.
4. Multiply the remaining amount by 2.5% (0.025).

Worked example:

• Total assets: ₦2,000,000
• Total debts: ₦500,000
• Net wealth: ₦1,500,000
• Zakaat payable: ₦1,500,000 × 0.025 = ₦37,500

When is Zakaat paid?

Zakaat is paid once every lunar (Hijri) year.

1. Set your “Zakaat date”, the day your wealth first reached the nisab.
2. When a full lunar year (about 354 days) passes, calculate your Zakaat again.
3. Pay Zakaat if your wealth is still above the nisab.

• Ramadan: many Muslims pay in Ramadan because good deeds earn more reward in that month.

Who can receive Zakaat?

Who are the eight categories of receivers?

Quran 9:60 names eight categories of people who can receive Zakaat.

1. The poor (Al-Fuqara): people who have almost nothing.
2. The needy (Al-Masakin): people who have some money but not enough for basic needs.
3. Zakaat workers (Al-Amilina Alayha): people appointed to collect and share out Zakaat.
4. Those whose hearts are to be reconciled (Al-Mu’allafati Qulubuhum): new Muslims or people who may be drawn to Islam.
5. Freeing slaves (Fir-Riqab): money used to free people from slavery or captivity.
6. Those in debt (Al-Gharimin): people with debts they cannot pay.
7. In the cause of Allah (Fi Sabilillah): people striving in Allah’s cause; scholars differ on what else this covers.
8. Travellers in need (Ibn as-Sabil): travellers far from home who need help.

Who cannot receive Zakaat?

Zakaat cannot be given to six groups of people.

• Rich people: those with wealth above the nisab.
• Non-Muslims: according to most scholars.
• Your dependants and parents: your parents, grandparents, children and grandchildren.
• The Prophet’s family: the family of Prophet Muhammad (peace be upon him).
• Your spouse: according to most scholars.
• Wrongdoers: people who will use it for harmful or forbidden things.

What is the difference between Zakaat and Sadaqah?

• Zakaat: compulsory charity with fixed rules on who gives, how much and who receives.
• Sadaqah: voluntary charity with no fixed rules, and it can be money, help, a smile or a kind word.

What is Zakaat Al-Fitr?

Zakaat Al-Fitr (Fitrana) is the special charity given at the end of Ramadan so the poor can enjoy Eid.

• Time: given before the Eid prayer.
• Who pays: every Muslim who has food beyond their needs for the day of Eid, even if not rich.
• On whose behalf: the head of the family pays for each dependant, including babies.
• What is given: about one saa’ (roughly 2.5 to 3 kg) of the local staple food per person, such as rice, beans or garri.
• Cash value: where scholars allow cash, local Islamic bodies announce the amount each year.
• Purpose: to help the poor join the Eid celebration.

How can Zakaat be paid today?

What are the modern ways to pay Zakaat?

Muslims today can pay Zakaat directly or through trusted organisations.

• Directly: to eligible people they know.
• Mosques: through local mosques and Islamic centres.
• Charities: through Islamic charities and Zakaat funds.
• Online: through certified Zakaat collection organisations.
• Calculators: Zakaat calculators on websites and apps help work out the amount.

What are common questions about Zakaat?

Can I give Zakaat to my poor relatives?

Yes, to relatives such as cousins, aunts and uncles, but not to those you must support (parents, children, grandparents).

Should I tell people that I am giving them Zakaat?

It is better to give discreetly, but tell an organisation that the money is Zakaat so it is shared correctly.

Can I give Zakaat to build a mosque?

Most scholars say Zakaat should go directly to people in need, not to building mosques.

What if I missed paying Zakaat for several years?

Work out what you owed for each year and pay it as soon as possible.

Can I pay my Zakaat in advance?

Yes, especially to trusted organisations that share it out through the year.

What are the blessings of Zakaat?

Zakaat brings spiritual reward and benefits to the giver and to society.

• Increase: Allah promises to replace what is given.
• Protection: it protects wealth from harm and loss.
• Reward: it earns Allah’s pleasure and reward in the afterlife.
• Pure heart: it frees the heart from greed and attachment to money.
• Better society: it helps others and improves the community.
• Humility: it reminds Muslims that all wealth ultimately belongs to Allah.

Prophet Muhammad (peace be upon him) said: “The upper hand (the one that gives) is better than the lower hand (the one that receives).”

What is the history of Zakaat?

Zakaat has been part of Islamic life since the early years in Madinah.

• Establishment: it was formally established in the second year after Hijrah (migration to Madinah).
• Abu Bakr: the first Caliph fought those who refused to pay Zakaat.
• Umar ibn Abdul Aziz: it is reported that so many people paid in his time that few poor people were left to receive it.

Evaluation

1. State four conditions that a Muslim must meet before paying Zakaat.
2. What is nisab, and how is it set?
3. A Muslim has Zakaat-eligible assets of ₦8,000,000 and debts of ₦2,000,000. Assuming the remainder is above the nisab, how much Zakaat must he pay?
4. List the eight categories of people who can receive Zakaat.
5. State three differences between Zakaat and Sadaqah.

Assignment

Write a short note on Zakaat Al-Fitr. State what it is, who pays it, when it is given and what is given in your community.