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org

A Practical Guide for

Calculating Zakat
 In the name of Allah, the Entirely Merciful, the Especially Merciful.
And perform As­-Salat (Iqamat-­as-­Salat), and give Zakat and obey the
Messenger (Muhammad, peace be upon him) that you may receive Mercy
(from Allah). [Al-Qur’an 24:56]

Narrated by Ibn ‘Umar: Allah’s Apostle (Peace Be Upon him) said: Islam
is based on (the following) five (principles): To testify that none has the
right to be worshipped but Allah and Muhammad is Allah’s Apostle; to
offer the (compulsory congregational) prayers dutifully and perfectly; to
pay Zakat (i.e. obligatory charity); to perform Hajj. (i.e. Pilgrimage
to Makkah), and to observe fast during the month of Ramadan.
[Sahih Al-Bukhari, Vol.1, Book 2, No.7]

The Purpose of “A Practical Guide for Calculating Zakat”

Given the fact that worldwide poverty is rampant, combined with the
realization that the majority of Muslims today don’t properly know how
to calculate their Zakat (especially given the new forms of income that
were not prevalent in the past), Hidaya Foundation took the challenge
to consult with scholars and come up with this practical guide to help
Muslims fulfill this religious obligation and the rights of the poor.
With regards to calculations (and specific information throughout this
document), we have followed the Hanafi school of thought. Information
on other schools of thought may be found by researching Fiqh (Islamic
Jurisprudence) books, or consulting scholars.

© 2024 Hidaya Foundation - Significant time, effort, and consultation with scholars has been put into the preparation
of this document. Distribution of this guide in its entirety is permitted provided the source is attributed to Hidaya
Foundation and no changes are made to the original content, so as not to circulate incorrect information.
 T a ble o f C o n te n ts
1 - Basic Zakat Terminology
1.1 - What is Zakat?
1.2 - What are Zakatable Assets?
1.3 - What are Zakatable Liabilities?
1.4 - What are Non-Zakatable Assets?
1.5 - What are Non-Zakatable Liabilities?
1.6 - What is Hawl?
1.7 - What is Nisab?
2 - How to Determine Nisab
2.1 - Nisab for Gold and Silver
2.2 - Nisab for Cash
2.3 - Nisab for other Assets
3 - Practical Examples of How to Calculate Zakat
3.1 - Zakat Calculation for a Person Whose Assets Have
Just Reached Above Nisab
3.2 - Zakat Calculation for a Person Whose Assets
Increased Just Before Their Zakat was Due
3.3 - Zakat Calculation for a Person Whose Assets Have
Been Above Nisab for Several Years, but Has Not
Properly Given Zakat
4 - Frequently Asked Questions About Zakat
4.1 - How Should You Give Zakat?
4.2 - Who Should Receive Zakat?
4.3 - Which Relatives Can and Can Not Receive Zakat?
4.4 - What if Every Muslim Gave Zakat and it was
Distributed Properly?
5 - Hidaya Foundation and Zakat
5.1 - Hidaya Foundation’s Mission
5.2 - How Does Hidaya Distribute Zakat?
5.3 - Help the Poor By Educating Fellow Muslims About
Zakat, and Be Part of Sadaqah Jariah
6 - References
 1 - Basic Zakat Terminology
1.1 - What is Zakat? Assets on which Zakat is due today
The literal meaning of Zakat is “to which were not prevalent in the past
purify, to grow, and to increase.” It is include: cash, cryptocurrencies, stocks,
an obligatory act of charity ordained mutual funds, stock options, employee
by Allah, Subhanahu Wa Ta’ala (The stock purchase plan, private companies,
corporations and partnerships, retirement
Glorified and Exalted), to be performed
and education plans (401K, IRA, 529
by every Muslim who possesses a certain
etc.), real estate business investments in
minimum amount of wealth/assets property owning companies, trusts, lump
(called Nisab) for a complete Hijri lunar sum payments in terms of compulsory
year cycle (called Hawl). It is an act of pension and provident funds, severance
worship (ibadah) and not a tax. packages, income-tax refund.
Zakat is owed on specific assets only, 1.3 - What are Zakatable Liabilities?
identified by Islamic Law as assets Any liabilities on Zakatable Assets are
having the potential for growth, called called Zakatable Liabilities, and one
“Zakatable Assets.” should deduct their value from their
Zakat is the compulsory transfer of total Zakatable Assets. For example,
ownership of a portion of the wealth the amount owed for acquired gold or
of the giver, calculated at the rate of silver jewelry, or borrowed money which
2.5%, to poor and deserving Muslims you have to return are both examples of
who qualify to receive Zakat according Zakatable Liabilities.
to Islamic Law.
1.4 - What are Non-Zakatable Assets?
Zakat is calculated on the total market Any possessions that are not of
value of all Zakatable Assets after productive nature, even if they exceed
deducting all Zakatable Liabilities. one’s needs are Non-Zakatable -
1.2 - What are Zakatable Assets?1 provided they are not intended for
Assets which have the potential to grow business gain/profit. This can include
are Zakatable Assets. such assets as: cars, utensils, furniture,
Assets on which Zakat was due homes not used for business purposes
during the early Islamic Era and are (such as a house one lives in, etc).
still applicable include: gold, silver, Lastly, if one’s total Zakatable Assets
business merchandise inventory, livestock, are below the value of Nisab, all their
agricultural produce, buried precious metals assets will be Non-Zakatable.
or minerals (rikaz), profits from investments, 1.5 - What are Non-Zakatable Liabilities?
accounts receivable, real estate business Liabilities due on Non-Zakatable Assets
investment inventory (acquired for gain). are called Non-Zakatable Liabilities.
Non-Zakatable Liabilities can not be
1. Please keep in mind that any financial transaction that
involves interest is considered unlawful (haram) in Islam. deducted from Zakatable Assets.
Muslims must be very careful to avoid such financial Examples of Non-Zakatable Liabilities
dealings in order to please Allah (SWT) and to keep their
wealth purified and blessed. include: a loan on the house one
“Allah will destroy Riba (usury) and will give increase for lives in, a loan on a car one uses for
Sadaqat (deeds of charity, alms, etc.) And Allah likes not transportation, liabilities which one
the disbelievers, sinners.” [Al-Qur’an 2:276]
“O you who have believed, fear Allah and give up must pay back, etc. Because one does
what remains [due to you] of interest, if you should be not pay Zakat on the house they live in,
believers. And if you do not, then be informed of a war
[against you] from Allah and His Messenger. But if you or the car they drive - then they can not
repent, you may have your principal - [thus] you do no deduct the money owed on such things
wrong, nor are you wronged.” [Al-Qur’an 2:278-279]
from their total Zakatable Assets.
1
1.6 - What is Hawl? cycle (hawl) is obligated to pay Zakat.
The passing of one full lunar year cycle Similarly, if one does not have Nisab in
under the Hijri calendar is called Hawl. their possession for the entire Hijri lunar
1.7 - What is Nisab? year cycle, even if for just one day - they
The minimum amount of Zakatable Assets do not have to pay Zakat and are actually
which makes one liable to pay Zakat is eligible to receive Zakat.
called Nisab. In other words, any person Nisab is nothing but a yardstick to find out
who possesses this minimum amount of who should pay Zakat and who should not.
assets, or Nisab, for one Hijri lunar year It has no effect in calculating a person’s Zakat.

2 - How to Determine Nisab

2.1 - Nisab for Gold and Silver:
According to hadith, Nisab can be according to the value of 20 dinar/20 mithqal of
gold ~ (87.49 grams), or 200 dirhams/5 awaq of silver ~ (613.35 grams).2
Nisab Grams Ounce Troy oz.
Gold 20 dinar/20 mithqal 87.49 3.086 2.8125
Silver 200 dirham/5 awaq 613.35 21.635 19.6875

• To find out the value of 87.49 grams of gold or 613.35 grams of silver, one must
first find out the current value of gold or silver in the fluctuating international
market which can be found at www.goldprice.org. For example, on NY spot gold
and silver markets, on February 15, 2024:
• The price of gold was approximately $64.45/gram. Therefore, the Nisab
for gold was approximately $5,640 ($64.45/gram x 87.49 grams).
• The price of silver was approximately $0.74/gram. Therefore, the Nisab
for silver was approximately $455 ($0.74/gram x 613.35 grams).
If a person has wealth of nothing else but gold, then Nisab will be calculated
according to the Nisab of gold, similarly for silver. But if a person has wealth
comprising of gold, silver, cash, and other Zakatable Assets, in that case for
calculating one’s Nisab - scholars have different opinions on whether one should
use the price of gold or silver. The opinion of the majority of Hanafi scholars is that
Nisab should be according to the value of silver so more poor people may benefit.
2.2 - Nisab for Cash:
• The Nisab for cash is equivalent to the Nisab of gold or silver, whichever is less
(per scholars), in order to benefit more Zakat recipients. During the early Islamic
Era, the value of Nisab for 20 dinar/20 mithqal (87.49 grams) of gold was equal
to the Nisab for 200 dirhams/5 awaq (613.35 grams) of silver. Over the last 1400
plus years, there has become a big difference between the two.
• Presently, the Nisab of silver is less, so Zakat on cash can be calculated according
to the Nisab of silver, which on February 15, 2024, was approximately $455.
2.3 - Nisab for other Assets:
• Nisab for business merchandise should be converted into cash, and dealt with
similar to how cash is dealt with.
• Nisab for agriculture products including wheat, barley, dry dates, dry raisins, rice,
lentils, etc. is estimated at approximately 900 kg or 5 awsaq (1 wasq = 60 sa, 1
sa = 3 kg).
________________________
2. Sunan an-Nasa’i 2484 2 www.hidaya.org
 3 - Practical Examples of How to Calculate Zakat
3.1 - Zakat Calculation for a Person Whose Assets Have Just Reached Above Nisab:
$6,000 • A person who$6,000
has just started earning
$4,000
or has acquired some Zakatable Assets
$3,000 $3,000
as a gift should note down the date and
$0
Nisab month
$0 of the Islamic calendar year once
Nisab

Ramadan Ramadan their assets reach Nisab. This

Ramadan date will
Ramadan
Figure 1 be the starting point of the Hijri lunar
In this graph, $3,000 is the amount of year cycle, in which Zakat would be due
wealth owned in Ramadan. This amount
after the completion of one year from
exceeds Nisab (calculated according to
the Nisab of silver.) During the year it that date. (See Figures 1 and 2)
decreases but does not go below Nisab, • If this person’s Zakatable Assets stay
and then increases to $6,000. In this case,
Ramadan will be counted as the beginning
above Nisab for an entire Hijri lunar year,
of the relevant lunar year and Zakat will be then Zakat is due on $6,000
the total amount
due on the amount of wealth in possession that same Hijri date one lunar year later,
during next Ramadan,
$3,000 which is $6,000. regardless of any increase or decrease
Nisab
$6,000
during the year. The cash value of all
Zakatable Assets in Safar
their possession
00 Ramadan $4,000
Safar Ramadan

$3,000 at that time should be calculated, and

Nisab Nisab 2.5% of that value should be given as
$0
Ramadan Ramadan
Zakat.3 (See Figure 2)
dan
Figure 2
• If this person’s Zakatable Assets falls
In this graph, $3,000 is the amount of wealth below Nisab at any time during the
owned in Ramadan. This amount exceeds
Nisab (of silver). During the year the amount Hijri lunar year, then the year cycle
decreases, then increases to $6,000. Then, will restart only after their assets again
reach the value of Nisab. They should
$6,000 $4,000
$6,000

000
wealth decreases again before increasing
$3,000

to $4,000. Despite these fluctuations, the

Nisab Nisab again note down the date and month
amounts do not go below Nisab. Hence, the
$0

adan Ramadan Ramadan Ramadan of the Islamic calendar year which their
relevant Zakat year will begin
$6,000in Ramadan
assets reached Nisab, and this date will
and Zakat will be due on the amount of be the new starting point of the Hijri
wealth in the next Ramadan, which is $4,000.
Nisab calendar year in which Zakat will be due
Safar Ramadan Safar at the end. (See Figure 3)
Example 1:
$6,000

$3,000
Nisab
Abdullah is 18 years old and he has
Ramadan Safar Ramadan Safar
just recently started working at his first
Figure 3 job. On Feb 6, 2024 (Rajab 25, 1445)
In this graph, $3,000 is the amount after receiving his pay check, he has
of wealth owned in Ramadan, which accumulated $600, which is above the
exceeds Nisab (of silver). During the year Nisab (of silver of that day). Therefore,
it fluctuates, sometimes going below or he notes down the Islamic month and
above Nisab. The individual’s relevant date as per the Hijri calendar (Rajab
lunar year however only begins once the 25, 1445) to mark the starting date of
wealth goes above Nisab in the month ________________________
of Safar and remains above that for one 3. Narrated Anas: When Abu Bakr sent me to (collect the
Zakat from) Bahrain, he wrote to me the following . . .
complete year until next Safar. Hence, For silver the Zakat is one-fortieth of the lot (i.e. 2.5%),
Zakat will be due in Safar on the complete and if its value is less than two-hundred Dirhams, Zakat is
amount, which is $6,000. not required, but if the owner wants to pay he can. [Sahih
Al-Bukhari, Vol. 2, Book 24, Hadith 534]
3
the Hijri lunar year at which Zakat will a locket, all of which is worth about
be due at the end. If Abdullah’s total $300. On February 16, 2024 (Sha’ban
accumulated cash and other Zakatable 6, 1445), her parents gave her $200
Assets remain above the level of Nisab for acquiring good grades and her aunt
for the entire Hijri lunar year, he will also gave her $100 for completing some
owe Zakat on the total Zakatable Assets chores at her house. With this $300 in
in his possession on Rajab 25, 1446. cash, and $300 in gold, Aaminah now
Let’s suppose that on March 17, 2024 has Zakatable Assets worth $600, which
(Ramadan 7, 1445), Abdullah has is above Nisab (of silver). So she notes
accumulated $1500. In order to get down Sha’ban 6, 1445, knowing that if
to and from work more easily, he buys she stays above Nisab for a Hijri lunar
a car for $1300, leaving him with only year, she will owe Zakat on Sha’ban 6,
$200 in his possession. The car is a 1446.
Non-Zakatable Asset, because it has no Let’s suppose about a month and half
growth potential. Considering the $200 later, on April 6, 2024 (Ramadan 27,
cash (which is now below the level of 1445), Aaminah gives $350 in Sadaqah
Nisab) is his only Zakatable Asset, he (non-obligatory charity) to Hidaya
no longer has to pay Zakat on Rajab Foundation to help orphan children.
25, 1446. Instead, once Abdullah again This leaves her with total Zakatable
accumulates cash at or above Nisab, he Assets of $250, which is less than the
should again note that date to pay Zakat Nisab (of that day), hence she will no
on his total Zakatable Assets one Hijri longer have to pay Zakat on Sha’ban
lunar year from that date. In the mean 6, 1446. Instead, once Aaminah again
time, until that year is over, Abdullah accumulates Zakatable Assets at or
is not liable to pay Zakat (obligatory above the level of Nisab, she should
charity) but he can pay Sadaqah (non- again note that date as the beginning
obligatory charity) as much as he likes. of the Hijri lunar year before Zakat is
Example 2: due on her total Zakatable Assets a
Aaminah is 16 years old. She has two year from that date (so long as her total
gold earrings and a gold necklace with Zakatable Assets stay above Nisab).

3.2 - Zakat Calculation for a Person Whose Assets Increased Just Before
Their Zakat was Due:
Example 3: job for $50,000 on Ramadan 10th,
Ali is 35 years old and a successful bringing his total Zakatable Assets from
salesman for a tech-company in Silicon $100,000 to $150,000 just before the
Valley. Allah (SWT) has blessed him in time he is supposed to pay his Zakat.
his income and his assets have been Even though he has only had that
above Nisab since he started working $50,000 for a short time, it still falls
out of college more than 10 years ago. within the period of the last Hijri lunar
Ali likes to pay his Zakat every year on year. Therefore, Ali should pay Zakat
the 27th of Ramadan. on the full $150,000, and in shaa Allah,
This year, ma shaa Allah, Ali was Allah would purify his assets and bless
awarded a comission check from his them for him.

4 www.hidaya.org
3.3 - Zakat Calculation for a Person Whose Assets Have Been Above
Nisab for Several Years, but Has Not Properly Given Zakat:

• A well-off person whose Zakatable has always possessed far more than the
Assets are consistently above the Nisab Nisab all those years. He is very kind
does not have to note down the date and has always given Sadaqah (non-
and month of their assets reaching the obligatory charity), but never really
Nisab level, as Allah (SWT) has Blessed had a clear understanding about Zakat
them with plentiful wealth. Instead, (obligatory charity) and that it has to
they should immediately pay for the last be calculated properly and given first
year, and remember that date on the before any other kind of charity. While
Hijri calendar, and pay Zakat on their he was giving charity, he never made
total Zakatable Assets on that same the intention for giving Zakat, and
date each Hijri calendar year. therefore never calculated to make sure
• If for whatever reason, a person owes that he was paying the proper 2.5% of
Zakat from the past several years due to his total Zakatable Assets.
not paying it properly or not paying it at Recently Ahmad received “A Practical
all, scholars of Hanafi school of thought Guide for Calculating Zakat” from
say that such people should put their Hidaya Foundation and it encouraged
best effort to calculate all Zakat from him to sit and calculate his Zakatable
previous years that they owe and pay Assets. When doing so, he found
it off as soon as possible to complete that his Zakatable Assets are worth
their obligation towards Allah (SWT) $200,000, which is far above Nisab,
and the rights of the poor.4 In case it and for the last 23 years his Zakatable
is difficult to pay off the past years of Assets have always been above Nisab.
Zakat due to whatever reason and the First of all, Ahmad should repent for
person can not do so in their lifetime - it his past wrong actions (make tawbah),
is necessary (wajib) to add what they then he should immediately pay Zakat
owe of Zakat to their will, and it should of 2.5% on his current $200,000 of
be paid to the deserving from their Zakatable Assets, which equals $5000,
estate before distribution among heirs. and continue paying his Zakat every
There is another more lenient opinion lunar year on that Hijri date henceforth.
by other scholars in which such people If he follows the opinion mentioned
should repent and regret their actions above of scholars from Hanafi school
of not paying Zakat in the past and of thought, he would additionally do his
only pay Zakat that year, and each year best to calculate how much he had to
thereafter (on that same Hijri date). pay for the past 23 years which he did
However, this person should give as not pay, and make a plan to pay it off
much sadaqah as they can. during his life time in shaa Allah. If for
some reason he is in a bind and can not
Example 4: do so, then he should add the amount
Ahmad is 45 years old and has a wife of owed Zakat to his will, and that
and three children. With the Blessings unpaid amount should be taken from
of Allah (SWT), he has been steadily his estate and given to the deserving
employed for 23 years in a good job and before distribution among his heirs.
________________________
4. Ibn ‘Abbas reported: A woman came to the Messenger of Allah (PBUH) and said: My mother has died, and fasts
of a month are due from her. Thereupon he (PBUH) said: Don’t you see that if debt was due from her, would you not
pay it? She said: Yes (I would pay on her behalf.) Therupon he said: The debt of Allah deserves its payment more
than (the payment of anyone else). [Sahih Muslim, Book 6, No. 2554]

5
 Table A: Zakatable Assets Calculation
Table A: Zakatable Assets Calculation
Assets subject to Assets exempt
Assets Total ($)
Zakat ($) from Zakat ($)

Gold and Silver (metal, excluding jewels)

Cash on hand and at bank
Stocks and Mutual Funds (at market value)
Stock Options
Business Merchandise Inventory
Private Companies, Corporations and Partnerships
Retirement plans, 401K/IRA/etc.
Real Estate Investment (as business
merchandise inventory, e.g. 2 houses)
Immovable property acquired for investment (and not X
N/A
N/A
to resell), whether company owned or privately owned
Accounts Receivable
Profits from Investment
Trusts (yearly amount)
Severance Package
Loan account in companies - amount of income credited
To loan account (excluding capital introduced)
House (which you live in) N/A
N/A X
Furniture and household effects N/A
N/A X
Motor vehicles N/A
N/A X
Diamonds and precious stones (not for business) N/A
N/A X
Plant, machinery and fixtures and fittings N/A
N/A X
Trade debtors
Stamp collection N/A
N/A X
Paintings N/A
N/A X
Loan debtors
Pledges, Deposits N/A
N/A X
TOTAL ASSETS
TOTAL ASSETS
Table
Table B:
B:Zakatable
ZakatableLiabilities
LiabilitiesCalculation
Calculation
Liabilities Total ($) Deductible ($) Non-Deductible ($)

Home Loan Payment N/A

N/A X
Bank overdraft (to fund stocks & trade debtors only)
Trade creditors
Installment sale and lease creditors to fund motor
N/A
N/A X
vehicles/plant and equipment
Any other liabilities incurred in respect of an asset on N/A
N/A
X
which Zakat is not payable
Loans to finance business merchandise and/or trade debtors
TOTALLIABILITIES
TOTAL LIABILITIES

Table C:
Table C: Final
Final Computation
ComputationTable
Tablefor
forCalculation
CalculationofofZakat
Zakat
Summary USD ($)
Total value of assets subject to Zakat (Table A)
Deduct liabilities relating only to assets subject to Zakat (Table B)
NET AMOUNT subject to Zakat (Table A -- Table B)
Zakat = $=NET
Zakat $ NETAMOUNT
AMOUNTxx0.025 (2.5%)
0.025 (2.5%)

For help with calculating your Zakat or any other Zakat related questions, email us at [email protected]
6
 4 - Frequently Asked Questions About Zakat
4.1 - How Should You Give Zakat? necessary that this be a needy person
It is obligatory to make an intention 4. Muallafatul Quloob: Those persons
(niyyah) for the fulfillment of Zakat, who are given Zakat with the intention of
similar to how we make intention for our solidifying their hearts because they may
5 daily prayers (salah), fasting (sawm), be recently converted to Islam or to help
and pilgrimage to Makkah (hajj). If the bring them closer to Islam
intention is not made, the Zakat will not 5. Ar-Riqaab: Those in bondage or captives
be valid. While giving, the intention - This can be extended (Allah knows best)
should simply be that “I am giving this as to those in modern forms of slavery, such
Zakat.” It is not necessary to reveal to the as human trafficking, debt bondage, and
deserving person whom the Zakat is being contract slavery - Zakat may be used to
given to that it is Zakat. purchase their freedom
It is better for an individual to pay his/ 6. Al-Ghaarimeen: A person whose debts
her Zakat directly to deserving people, if exceed his assets and his net assets (after
possible. However, if that is difficult for them, deducting his liabilities) are below the Nisab
then they may assign the responsibility to 7. Fi Sabeelillah: Those striving for the
a trustworthy individual or organization. sake of Allah
It is the individual’s responsibility to ask 8. Ibnus-Sabeel: A traveler who is stranded
questions from whoever is distributing their and in need of financial assistance
Zakat regarding what kind of people their 4.3 - Which Relatives Can and Can
Zakat is being distributed to, how and why Not Receive Zakat?
they are selected, etc. Remember, Zakat Zakat can be given to one’s brother, sister,
is obligatory on every Muslim and if it is nephew, niece, paternal or maternal
given to person(s) not deserving of it, the uncle, paternal or maternal aunt, father-
obligation may not be fulfilled. in-law, mother-in-law, step-grandfather,
4.2 - Who Should Receive Zakat? or step-grandmother provided they do not
There are eight groups of people on whom have Nisab. According to some narrations,
Zakat should be spent, as mentioned in Al- relatives and neighbors have more rights
Qur’an: “The alms are only for the Fuqaraa on you to receive your Zakat.
(the poor), and the Masakeen (the needy) Zakat can not be given to one’s parents,
and those employed to collect (the funds); grandparents, children, grandchildren, wife,
and to attract the hearts of those who have husband, or family descendants of the
been inclined (towards Islam); and to free Prophet Muhammad (pbuh). Zakat is only
the captives; and for those in debt; and given by Muslims to Muslims.
for Allah’s Cause, and for the wayfarer (a 4.4 - What if Every Muslim Gave Zakat
traveler who is cut off from everything); and it was Distributed Properly?
a duty imposed by Allah. And Allah is All- On the authority of ‘Ali (may Allah be
Knower, All-Wise.” [Al-Qur’an 9:60] pleased with him), the Prophet (peace be
The verse above describes the following upon him) said: “Allah has enjoined upon
eight groups of people: rich Muslims a due to be taken from their
1. Fuqaraa: Those who own property in properties corresponding to the needs of
excess of basic necessities but below the the poor among them. The poor will
value of Nisab never suffer from starvation or lack
2. Masakeen: Persons of extreme poverty of clothes unless the rich neglect
who possess no wealth whatsoever their due. If they do, Allah will surely
3. Aamileen: Employees appointed by Islamic hold them accountable and punish them
Governments or Islamic Organizations severely.” [Related by At-Tabarani in Al-
to collect and distribute Zakat - It is not ‘Aswat and As-Saghir]
7
If the institution of Zakat was properly practiced golden period that at one point, during the
and implemented by those who should give it time of Zakat distribution for the poor, Zakat
and those who distribute it, poverty could be distributors couldn’t even find a single poor
eliminated from the face of the earth. person in need to accept it. Thus the money
An example from history which demonstrates was used for helping neighboring societies,
how implementation of justice in the collection building roads, and the overall well being of
and distribution of Zakat can benefit all of society the community at large.
is from the Caliphate of Umar ibn Abdul Aziz. The abundant wealth of Muslims and their
During his Caliphate which amazingly was devotion to properly give their Zakat,
only for a duration of 2 years and 5 months combined with the justice in distribution of it,
(717 - 720 CE), he made great efforts to is an excellent example of how positive social
organize the government and ensure justice change is possible even in such a short period
to the point that his society enjoyed such a of time.

5 - Hidaya Foundation and Zakat

5.1 - Hidaya Foundation’s Mission: Education, Clean Drinking Water, Medical
To implement educational, environmental, Assistance, Animal Farming, Farmer
social welfare, and health care programs in Assistance, Small Businesses for the Poor,
economically depressed areas of Asia, Africa Disaster Relief, Marriage Support, Widow/
and North America, with focus on projects Orphan Support, One Million Meals, and
which promote self-employment. Zakat Distribution.
5.2 - How Does Hidaya Distribute 5.3 - Help the Poor By Educating
Zakat? Fellow Muslims About Zakat, and Be
Hidaya Foundation collects and distributes Part of Sadaqah Jariah
Zakat donations for various projects Hidaya Foundation would like to invite
according to Al-Qur’an (9:60) and as you to be a part of this effort of helping
instructed by donors. Muslims understand the concept of Zakat
Zakat funds are used to support orphans, and how to properly calculate it. This will
widows, poor elderly, families in extreme not only fulfill the religious obligations of
poverty, poor young women for marriage, the giver, but also will fulfill the rights of
deserving students, poor medical patients, the poor and you will be rewarded for your
and people affected by disasters. effort in shaa Allah. If you have found this
The projects where Zakat donations are material to be benefitial, please pass it
utilized are: No Orphan without Education, on to others so they may benefit as well,
Support Hidaya Schools, Support Poor and may Allah Subhanahu Wa Ta’ala (The
Students, Hidaya Institute of Farming and Glorified and Exalted) reward you. If you
Agriculture, Hidaya Institute of Science should be interested in receiving more
and Technology, Job Skills Training, Adult copies, please contact us.

6 - References:
1. The Holy Qur’an
2. Hadith (Bukhari, Muslim, Abu Dawud, Baihaqi, At-Tabarani, Sunan an-Nasa’i, etc.)
3. M. S. Omar (1991): How to Calculate your Zakah. Durban: AlBaraka Bank
4. Taleemul-Haq, An Authentic compilation of the Five Fundamentals of Islam, Karachi:
Darul Ishat
5. Research Division, Darussalam (2001): Zakah and Fasting, Riyadh: Darussalam
6. Shaykh Abdur Rahman ibn Yusuf (2005): Zakat Workshop, San Jose: South Bay
Islamic Association
7. Shaykh Yusuf Talal DeLorenzo: www.muslim-investor.com
8 www.hidaya.org
 Share the Knowledge - Be a Part of Sadaqah Jariah!
Hidaya Foundation would like to invite you to be a part of
this effort of helping to understand the concept of Zakat.
Help us educate the givers of Zakat on how to properly
calculate it so the rights of the poor can be fulfilled. May it
be a sadaqah jariah (continuous charity) for us all!
Read the material and pass it on and/or scan the QR code
to the right to access a soft copy of this material and more!

For more in depth information, including frequently

asked questions, additional topics and videos about
Zakat, and a functional Zakat Calculator, please visit:
www.hidaya.org/zakat

Hidaya Foundation
1765 Scott Blvd, Suite 115
Santa Clara, CA 95050
1.866.2HIDAYA | [email protected] | www.hidaya.org

A US based 501(C)(3) Non-Profit Organization, Tax ID #77-0502583