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:

  1. The poor
  2.  The needy
  3.  The collectors of zakat (The Islamic Society of Boston Cultural Center USA is an example)
  4.  Those who hearts are to be won over
  5.  Captives
  6.  Debtors
  7.  A mediator or someone who pays from personal monies to fix 
    or mediate problems among the people
  8.  In the cause of Allah (swt)
  9. 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 periodically consults with a council of imams who follow the Fiqh Council of North America for information about religious donations.  We have a Zakat allocation policy that aims to donate 90% to programs directly assisting local Muslims in the designated assistance categories, with 10% retained for category 3 (administrative expenses).
 
"Zakat is payable at 2.5% of the wealth one possesses above the Nisab.  Nisab was set by Prophet Muhammad (peace be upon him) at a rate equivalent to: 87.48 grams of gold or 612.36 grams of silver.
 

As we no longer use silver or gold as currency, you need to find out the equivalent monetary exchange value of the rates the Prophet Muhammad (SAW) set in your local currency. You can do this by checking the market rate of gold and silver.  For example in Ramadan 1446/March 2025, this amount is approximately $8430.

Zakat on gold, investments and other assets

Zakat is liable on gold, silver, cash, savings, investments, rent income, business merchandise and profits, shares, securities and bonds. Essentially any asset that has the potential for growth. Zakat is not paid on the home you live in or wealth used for debt repayment of living expenses such as clothing, food, housing, transportation, education, etc. The following two sources provide an excellent resource for more detailed questions on Zakat. Please also reach out to ISB at imams@isbcc.org for specific questions not answered here.

https://www.hidaya.org/publications/zakat-information/

https://www.hidaya.org/documents/mailers/HF_PracticalGuideforCalculatingZakat.pdf/

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Value in U.S. Dollars
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Using credit card to pay for zakat

Please consider adding 2% when using Visa and Mastercard, and 2.5% when using American Express to your total zakat donation—this will compensate for any transaction fees deducted from your donation by the credit card companies, and will ensure that your intended zakat amount is paid in full.