All things belong to God, and wealth is therefore held by human
beings in trust. The original meaning of the word
zakat is both ‘purification’ and ‘growth.’ Giving zakat means
‘giving a specified
percentage on certain properties to certain classes of needy people.’ The
percentage which is due on gold, silver, and cash funds that have reached the
amount of about 85 grams of gold and held in possession for one lunar year is
two and a half percent. Our possessions are purified by setting aside a small
portion for those in need, and, like the pruning of plants, this cutting back
balances and encourages new growth.




A person may also give as much as he or she pleases as voluntary alms or
charity.

Zakat means grow (in goodness) or 'increase',
'purifying' or 'making pure'. So the act of giving zakat means
purifying one's wealth to
gain Allah's blessing to make it grow in goodness.


--Source: Definition from the Zakat Collection Center in Kuala Lumpur.





One of the most important principles of Islam is that all things belong
to God, and that wealth is therefore held by human beings in trust. The
word zakat means both 'purification' and 'growth'. Our possessions
are purified by setting aside a proportion for those in need, and, like
the pruning of plants, this cutting back balances and encourages new growth.



Zakah not only purifies the property of the
contributor but also purifies his heart from selfishness and greed. It
also purifies the heart of the recipient from envy and jealousy, from
hatred and uneasiness and it fosters instead good-will and warm wishes
for the contributors.





ZAKAT: (Alms) The Zakat is a form of giving to those who are less

fortunate. It is obligatory upon all Muslims to give 2.5 % of wealth and
assets each year (in excess of what is required) to the poor. This is
done before the beginning of the month of Muharram, the first of new
year. Giving the Zakat is considered an act of worship because it is a
form of offering thanks to God for the means of material well-being one
has acquired.
--An introduction to Islam


Zakât: A certain fixed proportion of the wealth and of the each

and every kind of the property liable to Zakât of a Muslim to be
paid yearly for the benefit of the poor in the Muslim community. The payment
of Zakât is obligatory as it is one of the five pillars of Islam.
Zakât is the major economic means for establishing social justice
and leading the Muslim society to prosperity and security. [See Sahih Al-Bukhari, Vol. 2, Book of Zakât (24)].
--Glossary




Paying zakat is Fard (compulsory). The Qur'an says
that only those who pay zakat are in the "brotherhood of faith". The
Holy Qur'an
also says that Zakat purifies assets and creates virtue ( SU:9 103 ).
Zakat is a 2.5% levy on most valuables and savings held for a full year
if their total value is more than a basic minimum known as
nisab. At present nisab is $1,050or an equivalent amount of any other
currency. Cash money in your bank and building society accounts, and
the release value of bonds, securities and shares in any form are
zakatable if they are purchased as an investment. There is no Zakat on
family home or household furniture, carpets, car, etc. But if a
property ...




Zakat is distributed among 8 asnaf (categories) of people, namely:

1. Fakir - One who has neither material possessions NOR means of livelihood.
   
2. Miskin - One with insufficient means of livelihood to meet basic needs.
   
3. Amil - One who is appointed to collect zakat.
   
4. Muallaf - One who converts to Islam.
   
5. Riqab - One who wants to free himself from bondage
   or the shackles of slavery. (In Singapore, zakat due to this category
   of recipients is spent on those who need help to pursue education or to
   improve their standard of living).
   
6. Gharmin - One who is in debt (money borrowed to meet basic, halal expenditure).
   
7. Fisabillillah - One who fights for the cause of Allah.
   
8. Ibnus Sabil - One who is stranded in journey.
   

The Holy Qur'an (Sura Al-Tauba: 60) classifies the due recipients




of zakat under the following eight categories.


"Zakat is for the poor, and the needy and those


who are employed to administer and collect it,


and the new converts, and for those who are in


bondage, and in debt and service of the cause


of Allah, and for the wayfarers, a duty ordained


by Allah, and Allah is the All-Knowing, the


Wise".