Quranic Reflection Message Board › Presentation on Zakah
We would lke to thanks Br. Muhammad on presenting on the topic of Zakah and details surrounding it.
I would like to share his power point presentation with you. Please click on the link below to access power point presentation complied by Br. Muhammad:
At the end of the presentation you will find several links to Zakah Calculators that can be used to calculate your Zakah every year.
I was surprised to find out how relaxed Islam is on Zakah as compared to Christianity. In Christianity, the followers are required to pay 10% of charity every month on their Income and not wealth. Whereas, in Islam the followers are required to pay only 2.5% every year on their Wealth not Income. This leaves us no excuse to not pay Zakah.
Some pointers that I would like to share:
1) Select a date every year when you calculate your Zakah.
For Example, pick the time when it is easier to remember to calculate your Zakah which could be at the beginning of the calendar year, or right after taxes or during ramadan.
2) Zakah Calculation and Distribution does not have to be at the same time.
For Example, you can calculate your zakah in the beginning of the year, set aside zakah money and distribute it during Ramadan or you can also invest that money and distribute the gains as well.
3) Not every one is required to pay Zakah only those who have wealth (not Income) greater than Nisab which is equivalent to value of 3 ounces of gold which is currently $4,800.
4) Zakah does not apply to the residential property but only on investment property.
5) To pay Zakah on your 401K you can take out the penalty and taxes.
6) It is a good idea to diversify where you pay your Zakah rather than giving it to one source. You could divide it among: Islamic Relief, Feed the Children, Local Mosque, Homeless, Distant relatives in need.
7) Zakah should be paid first to people where you live. The idea is that Rich of the land helping poor of the same land.
8) Zakah is not only confined to muslims. It can be given to non-muslims that are in need but of course muslim brother and sister in need take precedence.
May Allah Guide us all to the straight path.