Zakat is one of the five pillars of Islam — an annual act of worship and a duty of the wealthy towards those in need. It is not a donation in the ordinary sense; it is an obligation, with its own rules about who pays, how much, and who may receive it. Here is a clear, practical overview.
What is Zakat?
Zakat is a compulsory annual charity of 2.5% of a Muslim's qualifying wealth, once that wealth has been held above a minimum threshold for a full lunar year. Its purpose is to purify wealth and to redistribute it to those who are entitled to it.
The nisab threshold
You only pay Zakat if your net qualifying wealth is above the nisab — a minimum threshold based on the value of gold or silver. Qualifying wealth typically includes cash and savings, gold and silver, money owed to you, and business assets, after deducting certain immediate debts. If your wealth stays above the nisab for a lunar year, Zakat becomes due.
How much do you give?
The rate is 2.5% of your total qualifying wealth on your Zakat due date — not only on your income for the year. For example, on £10,000 of qualifying wealth, Zakat would be £250.
Who can receive Zakat?
The Qur'an specifies eight categories of people who are eligible to receive Zakat, including the poor and the needy. Because Zakat may only be given to eligible recipients, charities that handle it keep it separate and distribute it accordingly.
A note on getting it right
Zakat can be straightforward, but individual circumstances vary — particularly around business assets, pensions and debts. For anything you are unsure about, it is always best to confirm with a qualified scholar. When giving opens, The Abdul Majid Foundation will ensure Zakat is distributed only to those eligible to receive it. In the meantime, you can ask our charity companion to help you understand the principles or estimate what may be due.
Support education-led charity
Pledge today — no payment is taken yet — and be part of this from the very beginning.