Zakat is one of the pillars of Islam. It is not simply a recommended act of generosity, but a duty owed by eligible Muslims and a right due to those whom Allah has entitled to receive it.
For many Muslims, zakat is one of the most important acts of worship they perform each year. It is an act of obedience, purification, and solidarity. It reminds us that wealth is a trust from Allah, and that part of that trust belongs to others.
At Feed the World, we treat zakat with the seriousness it deserves. This guide explains what zakat is, who must pay it, who can receive it, and how Feed the World approaches the distribution of zakat in a careful, responsible, and Shariah-conscious way.
Zakat is a compulsory annual payment due on certain forms of wealth once they reach a minimum threshold and remain in a person’s possession for a lunar year.
In most common cases, zakat is paid at 2.5% of qualifying wealth.
Zakat is different from general charity. While sadaqah is voluntary and broad in scope, zakat is an obligation with clear rules. It can only be given to eligible recipients and must be handled with care.
Zakat also differs from zakat al-fitr. Zakat al-fitr is a separate obligation linked to the end of Ramadan and is not the same as annual zakat on wealth.
Zakat serves many purposes. It purifies wealth, disciplines the soul, supports those in hardship, and helps build a more just society. It is both spiritual and deeply practical.
Zakat is central to Islam because it joins worship with responsibility. It protects the heart from greed, reminds us that wealth is temporary, and ensures that the vulnerable are not forgotten.
For the recipient, zakat can mean food, dignity, relief, shelter, medicine, or simply the ability to get through a crisis. For the giver, it is an act of obedience and a means of drawing nearer to Allah.
In a world marked by poverty, displacement, debt, and instability, zakat remains one of the most powerful Islamic mechanisms for restoring dignity and meeting urgent need.
Zakat is due on a Muslim who:
In practical terms, many Muslims will need to consider zakat if they have accumulated savings, gold, business stock, investments, or other qualifying assets.
Zakat is not due on every possession a person owns. Everyday personal items such as the home you live in, your clothing, furniture, and car for personal use are generally not zakatable.
Because personal circumstances differ, there can be scholarly differences on some asset types. This guide provides general guidance, but if you have a complex personal situation, you should consult a trusted scholar.
The nisab is the minimum amount of wealth a Muslim must own before zakat becomes due.
Traditionally, the nisab is measured against the value of either:
87.48 grams of gold, or
612.36 grams of silver
Many contemporary scholars and charitable organisations use the silver nisab as a more precautionary threshold, because it captures more people whose surplus wealth may still be significant in relation to the needs of the poor.
Our zakat calculator offers the silver and gold nisab options, however we recommend using silver to help ensure that those with qualifying surplus wealth do not overlook their obligation.
Below is a simple guide.
| Asset type | Is zakat usually due? | Notes |
|---|---|---|
| Cash in bank accounts | Yes | Includes savings and accessible balances |
| Cash kept at home | Yes | Counted like other cash holdings |
| Gold and silver | Yes | Jewellery may differ by scholarly opinion |
| Business stock or inventory | Yes | Based on resale value |
| Shares and investments | Often yes | Depends on intention and structure |
| Money owed to you | Often yes | Depends on likelihood of repayment |
| Rental income saved over time | Yes | If still held at zakat date |
| Superannuation or retirement funds | Sometimes | Depends on access and control |
| Cryptocurrency | Often treated as zakatable | Depends on the asset and intention |
| Asset type | Is zakat usually due? | Notes |
|---|---|---|
| Family home | No | If used for living in |
| Personal car | No | If used for personal transport |
| Clothing and household items | No | For normal personal use |
| Tools used for work | No | In many common cases |
| Property held for personal use | No | Unless intended for resale |
If you run a business, zakat may be due on:
It is usually not due on core fixed assets such as office furniture, machinery, or equipment used to operate the business, unless those items are themselves being bought and sold as stock.
Many people ask whether debts reduce their zakat bill.
In many common approaches, immediate and due liabilities may be deducted from zakatable wealth before calculating zakat. Long-term obligations that are not immediately payable may be treated differently depending on the scholarly view followed.
For example, people may consider:
You may be able to deduct immediate liabilities before calculating zakat, but treatment of longer-term debts differs between scholars. If your situation is complex, seek personal advice.
For most people, calculating zakat can be broken into four simple steps.
Include the value of all qualifying assets you own on your zakat date, such as:
Deduct liabilities that are genuinely due and payable now, where this is part of the calculation method you follow.
If the amount remaining is below nisab, zakat is generally not due. If it is above nisab and you have held qualifying wealth for a lunar year, zakat is due.
Multiply your zakatable balance by 2.5%, or divide it by 40.
A donor has:
$10,000 in savings
no major immediate liabilities
If this amount is above nisab and has remained in their possession across the zakat year:
Zakat due = $10,000 × 2.5% = $250
A donor has:
$6,000 in savings
gold worth $4,000
Total zakatable wealth = $10,000
Zakat due = $250
Some of the most common errors include:
Allah has specified in the Qur’an those who are entitled to receive zakat. Zakat is not a general charity fund and cannot be spent wherever there is simply a good cause or a visible need.
The Qur’an mentions eight categories of zakat recipients. In practice, the categories most relevant to Feed the World’s work are typically:
Feed the World primarily applies zakat to eligible individuals and households who fall within clear zakat categories, especially:
This means that people affected by poverty, displacement, conflict, food insecurity, or medical hardship may be eligible for zakat where their circumstances place them within a recognised zakat category, not simply because they are part of a humanitarian crisis.
Not every vulnerable person is automatically eligible for zakat, and not every beneficial project can be funded by zakat. For this reason, Feed the World assesses both the recipient and the type of assistance before designating a case or programme as zakat-eligible.
Zakat is restricted. It cannot simply be spent on any good cause.
In general, zakat is not given to:
In a personal context, zakat is also not normally given to one’s direct ascendants or descendants, such as parents, grandparents, children, or grandchildren, because their support may already be a personal obligation. Spouses are also generally excluded in common zakat rulings.
This is one reason why charities must be careful not to treat zakat as a generic unrestricted fund.
In many real-world charitable settings, zakat may be used to meet the essential needs of eligible recipients, including:
What matters is not simply the item being delivered, but whether the recipient is zakat-eligible and whether the structure of the distribution is valid.
This is especially important for donor confidence. Rather than making broad claims, the guide should say something like:
Feed the World applies zakat to forms of relief and support where eligible recipients have been identified and the relevant assistance is assessed as zakat-compliant.
Zakat al-fitr is a separate obligation from annual zakat on wealth. It is due on behalf of each eligible member of a household before the Eid prayer at the end of Ramadan. It has its own rules, timing, and amount, and is intended to help those in need at the time of Eid.
Learn more here.
Not on salary merely because you earned it. But if income remains in your possession as savings and meets the conditions of zakat, then zakat may become due on it.
This depends on scholarly opinion. Some scholars treat personal gold jewellery as zakatable, while others exempt jewellery in normal personal use. If in doubt, consult a trusted scholar.
You may choose to pay in Ramadan due to its blessings, but zakat is due when your zakat anniversary arrives. It should not be delayed without reason.
Yes, provided the recipients and uses are zakat-eligible.
Some relatives may be eligible, but direct ascendants and descendants are generally excluded in common zakat rulings. Spouses are also generally not eligible to receive one another’s zakat.
Yes, where they meet zakat eligibility criteria such as poverty, need, or hardship.
It may, where the recipients are zakat-eligible and the structure of the assistance is valid.
In many cases, yes, where the recipient is eligible and the support meets a valid zakat basis.
No. Zakat is restricted and is only applied to uses assessed as zakat-compliant within our framework.
Use our calculator as a guide and seek personal scholarly advice if your situation is complex.
Fulfil your 2.5% obligation; distributed strictly to eligible recipients per 9:60.
