Due from eligible wealth when the Nisab threshold is met.
Zakat
This is the compulsory alms-giving which Allah has given the order for in the Qur’an. Its status is Fardh. Zakah is only eligible upon mature, sane men and women who meet Nisab threshold. 2.5% of their wealth must then be given. Zakah must only be given to the specific eight categories mentioned in the Qur’an. If it is not given to any of them, then it will be void and necessary to re-pay. So donate to charity Zakat and fulfil the right of your wealth that Allah has bestowed upon you.
Sadaqah
Sadaqah is the general term used for giving charity in Islam. All acts of worship through financial expenditure are, by broader definition, classified as Sadaqah.
Due to there being many types, Sadaqah has been divided into two main categories, both of which have separate rulings.
Sadaqah Wajibah
Sadaqah Nafilah
Main categories of Sadaqah, each with separate rulings.
Sadaqah Wajibah
This is charity which is binding in nature. This includes Sadaqah al-Fitr, etc. This form of Sadaqah is similar to Zakah in that it must be spent on the same categories as defined by the Qur’an, except that it is not a condition for the beneficiary to be Muslim.
This type of Sadaqah includes the following:
01 Sadaqatul Fitr
This is a charity which is a duty upon every sane Muslim, who possesses the value of Nisab beyond the basic necessities. Fathers are instructed to give Sadaqah al-Fitr on behalf of those children who have not reached of age.
The amount that must be given is equal to 1.75 kg of wheat or 3.5 kg of barley or its like. This does not mean that a person must distribute wheat or barley; one may give its equivalent value.
02 Nadhr
This is an action which becomes necessary due to one imposing it upon oneself. If a person makes an oath of giving charity, that then becomes Sadaqah Wajibah.
03 Fidyah
This is compensation for missing Salah or Sawm for a person who cannot perform them due to terminal illness, being deceased, or in the event of a person making a minor mistake in Hajj.
04 Kaffarah
This is major compensation and, like Fidyah, it is also Sadaqah Wajibah. It applies in various situations such as if a person breaks a fast intentionally, breaks an oath, or kills someone.
Greater Kaffarah
- Intentionally breaking Sawm.
- Breaking Zihar.
- Being the direct cause of someone’s death.
Lesser Kaffarah
- Breaking or violating Yamin.
- Breaking Ila’.
05 Udhiyyah
This is also known as Qurbani or sacrifice. It is Wajib upon all mature Muslims who, on the day of Eid al-Adha, possess Nisab.
Whoever qualifies for this is required to purchase a sheep or goat and slaughter it in the name of Allah after the Eid prayer, preferably on the same day.
Sadaqah Nafilah
This is charity which is not binding in nature but is optional. This type includes alms given for the removal of difficulties, philanthropic giving out of mercy to the less fortunate, and the general giving of any Halal item to anyone.
This type does not need to be spent on the specified categories to be rewarding, nor does it have to be spent on Muslims, although if spent on poor Muslims it would be more rewarding. It can also be bequeathed in one’s will, up to a third of the deceased person’s estate.
The following are types of Sadaqah Nafilah:
01 Lillah
This is Sadaqah Nafilah but is a type that does not have the condition of having to be passed into the possession of a person, as it can be given to institutes such as Masajid, hospitals, schools, orphanages, etc.
02 Waqf
This is to allot something as a trust for a certain cause. This can be during one’s lifetime or bequeathed in one’s will, up to the value of a third of one’s estate.
When executed, the donation becomes the property of Allah, and its beneficiaries remain those named as the cause, such as the poor, orphans, students, or the people of a certain locality. Like today’s trusts, Waqf also requires the care of trustees over it.
03 Aqeeqah
This is the sacrifice of an animal or two as thanks to Allah for the birth of a child. With this too, members of the locality can be fed, with preference again for the poor and close family members.
04 Sadaqah for Removing Difficulties
One, at the time of donating, should ask Allah to make easy one’s deliverance. This can be understood from the Hadith:
Sadaqah soothes the Lord’s anger and protects against a bad death. al-Tirmidhi, al-Bayhaqi
This type of Sadaqah can also be given as Lillah.
05 Sadaqah for Expiating Sins
One, at the time of donating, should ask Allah to forgive one’s shortcomings. This can be understood from the verse:
Indeed good deeds take away bad deeds. Qur’an, 11:114
This type of Sadaqah can also be given as Lillah.
06 Charity above Zakat and Sadaqah Wajibah
This type of Sadaqah is the essence of Lillah. Although not categorised as necessary, this type of charity, as long as it is from pure means and with pure intentions, is always accepted by Allah.
Who is he that will loan to Allah a beautiful loan? For Allah will increase it manifold to his credit, and he will have besides a liberal reward. Qur’an, al-Hadid, 57:11
Other Types of Charity
These terms are connected to Islamic giving, loans, long-term charity, and the disposal of impermissible income. They should be understood carefully, as some are forms of rewardable charity while others relate to religious responsibility and disposal guidance.
01 Sadaqah Jaariyah
This Sadaqah is not a separate category but it is really any Sadaqah Nafilah which is spent on a cause of long term benefit, such as wells, and in essence is very similar to Waqf.
02 Qardh Hasan
This literally means to give a good loan. In the language of the Qur’an, this term is used for Sadaqah Nafilah. The rewards of Qardh Hasan are thus exclusive to Sadaqah.
Loans given to Islamic institutes and then forgiven become this type of Sadaqah. Presently, this term is often used to denote Qardh.
03 Qardh
This means an Islamic loan. Islamic here means that two things must be upheld from the side of the creditor: neither interest can be charged nor any other benefit taken in lieu of the loan, and the creditor must not show signs of self-glory or remind the debtor of the favour given.
This type of loan may be given to either an individual or an institute, and if the conditions are upheld, it is immensely rewarding for the creditor.
04 Interest
In Islam the taking and giving of interest have been expressly forbidden. This presents problems in secular countries, where loans and mortgages commonly involve interest.
Interest accumulated in one’s own bank account is not permissible for personal use. The established method is to give the accumulated interest money to charity as a means of disposal.
This is not positively rewardable charity, but it is beneficial in that it disposes of the money in accordance with Allah’s Will and saves one from further sin.
05 Haram Income
Included under this broad heading are earnings generated by the sale of Haram items, as well as Halal items acquired through Haram methods, such as lying to get benefits or lying to increase the sale price of items.
The method of disposal is to return items to the rightful owners. If this is not possible because the owner is not known or due to another legitimate reason, then the method of disposal is the same as that of interest money.
If a person has spent a great portion of life in Haram earnings, they should take account of how much wealth is of ill earning, turn to a Halal means of income, dispose of what they can immediately in charity, and then try to pay off this debt to Allah over as short a period as possible.
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