Zakat
What is zakat?
Offering zakat is a religious obligation for Muslims, and is the third of the five pillars of Islam (right after prayer). In Arabic, zakat means purification, growth and blessing. Paying zakat is meant to remind Muslims to be appreciative of the blessings that Allah (Subhana Wa Ta’ala) has bestowed upon them, and to help empower those who have less.
Who is eligible for zakat?
The Islamic Society of Boston Cultural Center collects and distributes zakat to those who are most in need, in accordance with Islamic guidelines. Giving your Zakat through The Islamic Society of Boston Cultural Center means you can provide Food, Job Training, Clean Water, Eye Care, Orphan/Children Welfare, Health Care and so much more.
According to the Holy Qur’an (9:60), there are eight categories of people who qualify to be beneficiaries of zakat:
- The poor
- The needy
- The collectors of zakat (The Islamic Society of Boston Cultural Center USA is an example)
- Those who hearts are to be won over
- Captives
- Debtors
- A mediator or someone who pays from personal monies to fix
or mediate problems among the people - In the cause of Allah (swt)
- Travelers
Most scholars agree that the poor and needy are the most important categories of people to receive zakat. Given that, it is acceptable to give your entire zakat allotment to individuals who are in those groups.
The Islamic Society of Boston Cultural Center USA consults with a council of imams who follow the Fiqh Council of North America for information about religious donations. It is advised that you consult with your local imam or scholar for more detailed inquiries.
Zakat on gold
Zakat is payable at 2.5% of the wealth one possesses above the Nisab, which is equal to 3 ounces of gold. Nisab is the minimum amount of wealth one must have before they are liable to pay zakat.
*As of April 8, 2021, Nisab is estimated to be $5,232.20.
If your Zakat-Eligible Total is less than $5,232.20, you are not required to pay Zakat.
Zakat is liable on gold, silver, cash, savings, investments, rent income, business merchandise and profits, shares, securities and bonds. Zakat is not paid on wealth used for debt repayment of living expenses such as clothing, food, housing, transportation, education, etc.