The Meaning and Practice of Zakat

Zakat, often translated as 'obligatory charity,' is better understood as a claim that the poor have on the wealth of those who have more than they need. It is the third pillar of Islam and is calculated, not merely offered — a fixed proportion of savings, gold, silver, business inventory, and certain other assets held for a full lunar year above a minimum threshold (nisab). The standard rate on qualifying wealth is 2.5%, paid annually. The Quran specifies eight categories of recipients, including the poor, the needy, those in debt, and travelers in need, among others — zakat is directed, not discretionary. Zakat is distinct from sadaqah, voluntary charity given at any time in any amount. Where sadaqah reflects generosity, zakat reflects a structural mechanism the tradition treats as central to purifying wealth and reducing inequality within the community.