Zakat (Alms)
Ramadan is the month of giving and benevolence,
the Messenger was more benevolent than a falling rain. Muslims are encouraged to emulate
the Messenger of Allah (saws),
to assess and pay their Zakat during the month of Ramadan, thus combining the two pillars of Islam at the same time.
Zakat (alms) is the name of what a believer returns
out of his or her wealth to the neediest of Muslims
for the sake of the Almighty Allah. It is called Zakat because the word Zakat is from Zakaa which means, to increase, purify and bless.
Who Should Give Zakat
The obligation of Zakat is mandatory on every Muslim
who possesses the minimum Nisaab,
whether the person is man, woman, young,
old sane or insane.
Because the proof of Zakat in Al-Qur'an and Sunnah
is general and does not exclude young or insane.
Allah (SWT) stated that: "Of their goods take alms
so that thou mightiest purify and sanctify them..."
(Al-Qur'an, 9: 103)
Imam Ibn Hazim said that every Muslim young or
old sane or insane needs to cleanse his or her wealth
with Zakat because of generality of the evidence.
Anas bin Malik reported that the Messenger of Allah
(saws) said: "Trade with the money of the orphan,
lest it is eaten up by Zakat." (At-Tabraani)
In another Hadith `Amru bin Shuaib related from his grandfather that the Messenger of Allah said:
"Whoever is entrusted with money of an orphan
should trade with it and should not leave it sitting to
be used up by charity." (Tirmidhi)
The point of reference in these reports is that the Messenger (saws) urged the trustee on the estate
of people who due to age or other reasons cannot
manage their own financial affairs,
to invest it in a business that will yield a return
and make it grow until they are in a position to do so themselves. For, if proper investment is not made with
an ophan's inheritance, it will be depleted by charity,
thus leaving the orphan with little or nothing.
The Nisaab
The Lawgiver, Allah has prescribed the minimum amount
that is obligatory for Zakat in different ranges of properties, and that minimum amount is known as nisaab.
The reason for nisaab is to ensure that no one is
forced to give Zakat out of what he or she does not have, and that no wealth goes without Zakat.
Nisaab is also an insurance against the tyranny of
the state to tax the poor and or the neediest as is
the case in many countries.
Nisaab is a reference point for the average Muslim
who is not sure whether he possesses the minimum
wealth on which Zakat is obligatory.
The wealthy need not worry about the Nisaab.
Zakat is obligatory on their entire wealth and must be
paid out at the end of financial year that they set
for their Zakat.
The Nisaab will not be valid unless it fulfills two conditions:
1) The amount that has reached Nisaab must be
the excess or surplus known as "faadil" from one's
essential needs such as food, clothing, housing,
vehicles, tools and machinery that is used in business.
The essentials for living are exempted from Zakat.
Although what constitutes nisaab may change from one country to another, the amount that is needed for the
basic needs of living in different countries is very similar, because the market place determines the prices,
whether it is an official market or a non-official market.
In the poorest countries people do without or live below
the poverty standard, and that is why many go
hungry or without basic essentials.
However, we must realize that Zakat is an act of
worship (ebadah) like Salaat.
The element of intention (niyyah) is necessary,
and we should not overly rely on state agencies to determine for us the requirements of our religious duty.
The so called the "consumption basket"
(that is poverty level as determined the social security administration which are updated every fiscal year)
may not be the same as what Islam considers
minimum Nisaab.
In the industrialized countries, the consumption
basket may include items that are not
necessarily essential,
such as entertainment, extra clothing, variety of food,
eating in restaurant or eating at home,
owning more than one car as opposed to having
three cars in the driveway, drinking water
as opposed to juices, eating regular food or special
"health" food. This is why I believe it is essential
that we do not lose site of the fact that Zakat
is ebadah of wealth, like salaat and fasting.
Non Muslims may consider all the things mentioned above
as essentials while Muslims will not. Indeed,
no Muslims in good standing will attempt to hide behind
the label of consumption basket so as to evade Zakat.
Nisaab eliminates the possibility of injustice or unfair treatment of the Zakat payer.
To suggest that if we do not follow the rules of International Monetary Fund or the arbitrary figures
of social security administration or department of agriculture we will be doing injustice to the Zakat
payer is ludicrous.
2) Nisaab must mature, that is the money is not liable
for Zakat unless it has remained a full year in the
possession of a person. This is the understanding of the majority of the scholars. Imam Abu Hanifah (raa) said: "What should be considered is the existence of nisaab
at the beginning and the end of the Zakat
year set by the payer".
It does not matter if the nisaab money increases or decreases during the calendar year, as we will explain later.
This condition does not include farm produce,
for it is due on the day it is harvested.
Allah (SWT) stated: "... But render the dues
that are proper on the day that the harvest is gathered..." (Al-Qur'an, 6: 141)
According to Imam Al-`Abadi, (raa)
Zakat money is of two kinds: one that by its nature
can not be invested and Zakat of this category is
due on the day of harvest. This includes all the
farm produce that is liable for Zakat.
The other is wealth that can be invested in the
hope of a good return, like cash, gold or silver,
because the opportunity is there that cash in one's hand
can be invested for a good return. This includes currency investment, merchandise and livestock.
Their Zakat is not due until they have matured
in one full year.
The proof of this condition is the Hadith related by
Ibn `Umar that the Messenger of Allah (saws) said:
"He who acquires property is not liable for Zakat
on it till a year passes." According to Ibn Rushd (raa)
this is the understanding of the majority of scholars, including the four rightly guided Khalifahs