Zakat is one of the Five Pillars of Islam and one of the most powerful mechanisms of wealth redistribution in the world. Unlike voluntary charity, Zakat is an obligation — a duty prescribed by Allah (SWT) on every Muslim who meets the Nisab threshold. Yet despite its centrality to Islamic practice, many Muslims are unsure exactly how to calculate it, who qualifies to receive it, and whether online platforms can be trusted with its distribution.
This guide answers those questions clearly and practically.
What Is Zakat?
Zakat (زكاة) means “purification” and “growth” in Arabic. It is the mandatory annual charitable contribution that Muslims who possess wealth above a minimum threshold (Nisab) must give. The Quran mentions Zakat 32 times — always alongside Salah — underscoring its equal importance to prayer.
“Take from their wealth a charity by which you purify them and cause them increase.” — Quran 9:103
Who Must Pay Zakat?
Zakat is obligatory upon every Muslim adult who has possessed wealth above the Nisab threshold for a full lunar year (Hawl). This includes savings, gold, silver, business inventory, and certain investments. It does not apply to primary residence, personal vehicle, or clothing.
What Is the Nisab Threshold?
The Nisab is calculated based on either gold (87.48 grams) or silver (612.36 grams). Most scholars recommend using the silver standard as it brings more people within the scope of Zakat, ensuring broader wealth distribution. Once your total zakatable assets exceed this threshold and one lunar year has passed, you owe 2.5% of the total as Zakat.
Who Are the Eight Recipients?
The Quran (9:60) specifies eight categories of Zakat recipients: the poor (Al-Fuqara), the needy (Al-Masakin), Zakat administrators, those whose hearts are to be reconciled, those in bondage, debtors, those in the way of Allah, and stranded travellers. Compassion Fund channels Zakat funds exclusively to verified individuals in these categories across 38 countries.
How Compassion Fund Distributes Your Zakat
We work with a network of vetted local partners who identify and verify eligible recipients. Every Zakat distribution is documented, reported, and available to donors. Our Shariah board reviews and approves all allocation decisions quarterly. You can give with confidence that your obligatory Zakat reaches those who truly need it.
