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Understanding the concepts of Zakat and Sadaqah is essential for every Muslim striving to align their financial and spiritual responsibilities with Islamic teachings. Both these forms of charity reflect the values of compassion and generosity, forming an essential part of a Muslim’s faith. However, their obligations, recipients, and methods of giving vary significantly. This blog will provide a detailed exploration of their meanings, purposes, and modern ways such as Donation kiosks to give while answering common questions surrounding these concepts.

What is Zakat?

Zakat is one of Islam’s five pillars. It is an obligatory form of charity that every eligible Muslim who meets certain financial criteria must give annually. Derived from the Arabic word “zaka,” meaning to purify, it serves to cleanse wealth and provide social equity by redistributing wealth to those in need.

The term “Zakat” signifies growth, purification, and blessing. Paying Zakat is a way to purify wealth from impurities by allocating a portion to those in need, ensuring the remainder is blessed and beneficial. It ensures economic justice and fosters a sense of unity within the Muslim community.

Purpose of Zakat

Zakat ensures wealth distribution among those who need it most, reducing economic disparities in society. It instils discipline in Muslims, reminding them of their duty to Allah and humanity.

Who Must Pay Zakat?

Zakat is typically 2.5% of a person’s wealth, including savings, investments, and business profits. Muslims who possess wealth exceeding the Nisab threshold and must have held the wealth for a full lunar year equivalent to the value of 87.48 grams of gold (7.5 tola) or 612.36 grams of silver (52.5 tola) are obligated to pay Zakat.

How Zakat is Used

Zakat is strictly allocated to eight categories outlined in the Quran, including the poor, needy, new Muslims, people in debt, stranded travellers, zakat administrators, and for the cause of Allah. This ensures that contributions directly benefit those most in need.

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What is Sadaqah?

Unlike Zakat, Sadaqah is a voluntary act of charity. It has no fixed amount or specific criteria and can be given at any time and in any form. It reflects sincerity in faith and a desire to seek Allah’s blessings through acts of kindness, encompassing both monetary and non-monetary acts.

“Sadaqah” derives from the root word “sidq,” meaning truth. It signifies the truthfulness of a believer’s faith and their willingness to help others for the sake of Allah. It represents a voluntary expression of kindness and generosity.

Broad Scope of Sadaqah

There is no compulsion to give Sadaqah, and it is not tied to wealth thresholds. It can include non-material gestures like a smile, a kind word, helping someone in need, or contributing money to a charitable cause.

Why Give Sadaqah?

Sadaqah protects against calamities, brings life blessings, and strengthens community bonds.

It’s a way for Muslims to express gratitude for Allah’s blessings and purify their souls.

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How to Calculate Zakat?

Calculating Zakat involves assessing your total assets, subtracting liabilities, and ensuring the remaining wealth exceeds the Nisab threshold.

Steps to Calculate Zakat

  1. List Eligible Assets: Include cash, gold, silver, investments, and business
  2. Deduct Liabilities: Subtract debts and
  3. Check Nisab: Confirm that your remaining wealth exceeds the
  4. Calculate Zakat: Multiply by 5% to determine the Zakat amount.

Types of Zakat

1.     Zakat al-Mal:

This annual charity is 2.5% of wealth, including savings and investments.

2.     Zakat al-Fitr:

A small amount is given before Eid al-Fitr to purify fasting efforts during Ramadan and to ensure that everyone can celebrate Eid al-Fitr without financial hardship.

Types of Sadaqah

1.     Monetary Sadaqah:

This includes financial donations to individuals or organizations working for societal betterment and to support charitable causes.

2.     Non-Monetary Sadaqah:

Simple acts like feeding the hungry, helping the elderly, planting a tree, or even a smile qualify as Sadaqah.

Modern Ways to Give Zakat and Sadaqah

The integration of technology into Islamic giving has made fulfilling charitable duties more convenient.

1.  Donation Kiosks

These are user-friendly, secure systems set up in Mosques and community centres. They enable instant contributions with quick and secure Google Pay and Apple Pay.

2.  Mobile Apps

Apps provide a hassle-free platform for tracking and managing donations, ensuring Zakat is calculated and distributed correctly.

3.  Online Platforms

Dedicated websites allow donors to contribute to verified causes, ensuring transparency and accountability.

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Key Differences Between Zakat and Sadaqah

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While both Zakat and Sadaqah symbolize the spirit of generosity and compassion, they serve distinct purposes within Islamic teachings. Zakat is an obligatory act of worship that requires eligible Muslims to share a fixed portion of their wealth annually to benefit specific recipients. On the other hand, Sadaqah is voluntary, offering believers the freedom to contribute in various forms, be it monetary, non-monetary, or even through simple acts of kindness. These differences highlight how Islam provides structured and flexible ways to fulfill one’s social and spiritual duties, ensuring that giving remains accessible and impactful.

Why Ramadan is the Best Time for Charity

Ramadan is a month of spiritual reflection, and acts of charity are highly encouraged during this time. This holy month amplifies the rewards for good deeds, making it a prime time for fundraising campaigns. Both Zakat and Sadaqah hold special rewards when given during Ramadan, making it the perfect opportunity to maximize blessings.

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Best Practices for Maximizing Zakat and Sadaqah Contributions

  1. Set Clear Goals: Define how much you aim to give and track your
  2. Use Technology: Leverage platforms like MOHID for hassle-free
  3. Educate the Community: Organize workshops to explain the significance of Zakat and

How to Keep Track of Zakat Contributions

Keeping a record of your Zakat payments is essential for compliance and accountability. Use tools like MOHID’s Zakat Management system to monitor contributions, generate reports, and ensure you’re fulfilling your obligations accurately.

Frequently Asked Questions

1.  What is Zakat?

Zakat is an obligatory form of charity, constituting 2.5% of eligible Muslims’ wealth, aimed at helping specific categories of recipients. It is an annual charity that Muslims give to purify their wealth and help specific categories of recipients.

2.  What is Sadaqah?

Sadaqah is a voluntary act of kindness or charity, which can include monetary donations or non-monetary actions like helping others.

3.  How to Calculate Zakat?

Assess your total assets, deduct liabilities, ensure your wealth exceeds the Nisab threshold, and calculate 2.5% of the total.

4.  Can Sadaqah Be Given Anytime?

Yes, Sadaqah can be given at any time and in any amount or form to seek Allah’s blessings.

5.  How to Keep Track of Your Zakat Contributions?

Use tools like MOHID’s Zakat Management system to track and manage your contributions effectively.

Conclusion

Zakat and Sadaqah are integral parts of Islamic teachings, fostering spiritual growth and societal harmony. It helps Muslims fulfill their duties effectively while earning Allah’s pleasure. While Zakat is a mandatory duty, Sadaqah allows Muslims to extend their generosity beyond obligations. With modern tools like MOHID’s Donation System and Zakat Management system, Muslims can fulfill their charitable obligations with ease and efficiency.