Our main aim is to guarantee that every pound of zakat paid by Canadian Muslims is paid appropriately. We also strive to ensure that those who are eligible to receive zakat in our own communities get the care and support they need. We are proud to be able to say that 100% of our zakat funds are distributed in line with Sunnah and the Holy Qur’an. In addition, our zakat practices are fully authenticated and audited by the Al-Qalam Shari’ah Panel.
Zakat
Whilst Zakat is an obligatory religious duty, it is also a meaningful reminder that everything we have been given in this life is worldly, material goods and is not ours. Anything that is given to us belongs to Allah (SWT) and it is seen as our duty to share it amongst His creation.
To calculate the exact amount of Zakat you need to pay, you can use our handy Zakat calculator.
Zakat, an essential aspect of Islam, represents both charity and wealth purification, fostering social balance within the Muslim community. It's obligatory for financially stable adult Muslims, serving as a cornerstone of Islamic faith.
Zakat is an annual obligation, following the lunar calendar in Islam. When an individual's wealth surpasses the nisab threshold for a full lunar year, they must pay 2.5% of the surplus wealth beyond the nisab, ensuring wealth circulation and societal welfare. Exemptions apply if wealth falls below the nisab within the lunar cycle.
You can use our handy online tool to calculate your zakat quickly and easily.
Alternatively, you can then work out your total wealth using the following calculation:
Personal and business assets – short-term liability = your total wealth
If this figure is above the nisab value, you are eligible to pay Zakat.
When calculating the total amount of personal and business assets, you will also need to include the following assets:
Cash in savings, at home or in bank accounts
Money raised and set aside for property, weddings, hajj etc
The total value of owned gold and silver
The full value of any held shares at market value
If applicable, the complete value of all business stock you own
Rental income from any properties you own
Any lent money in debt to you that you expect to see returned
Your personal finances and assets contribute to your total wealth, however, essential items that are necessary for comfortable day-to-day living are exempt from the Zakat total. This includes the home you live in and the primary car you drive, but it’s worth noting that Zakat is due on any additional vehicles and second properties you may own.
The following items - your liabilities - should be exempt from your Zakat calculation:
Personal items such as clothing and appliances
Any money you owe to others, including mortgages, personal loans and card debts
Bills and the rent or mortgage payment for the month in which your Zakat payment is due
Any short-term business loans or overdrafts, if applicable
Business expenditures including salaries, bills and building rent
Zakat rules define those eligible to pay as being:
Of Muslim faith
Sane and in good health
Free and not in slavery
Past the age of puberty
With wealth greater than the nisab value
With a positive goods or cash flow
To summarise, those eligible to give Zakat are adult Muslims, working or earning more than the nisab value and able to meet their and their family’s daily needs without struggling.
The nisab value, based on the current worth of gold and silver, determines Zakat eligibility. Zakat is due annually if one's wealth exceeds this threshold for a full Islamic lunar year. Adjustments are necessary if wealth fluctuates, and Zakat is not applicable if wealth falls below the nisab value.
Your zakat payment period for the year will start on the date when your wealth first equalled or exceeded the nisab. After this, zakat must be calculated and paid once each lunar year has passed, and it will then fall every year thereafter on that date. If you are not able to remember this date, then you should make an estimate. If this is not possible, you should select a specific Islamic date to adhere to, instead. It is not obligatory to pay zakat during Ramadan, but many Muslims prefer to give charity during Ramadan.
The recipient of Zakat must not belong to your immediate family such as your spouse, children, parents and grandparents. They are not eligible to get zakat. However, you can give your zakat to other relatives and family members except your immediate family.
If zakat has not been paid in previous years, an honest attempt must be made to calculate the outstanding amount of money owed. You must then ensure that this is paid as a matter of urgency.
If possible, it is better to give zakat in your local community. This is due to the instruction that the Messenger of Allah (PBUH) gave to his companion, Mu’adh, who was sent to Yemen to spread the message of Islam.
“O Mu’adh! Inform them that Allah (SWT) makes zakat obligatory for them. (It is) to be taken from their rich and given to their poor.” [Bukhari]
However, we must also distribute our zakat to people who are in great need across the world. We must learn to balance the giving of our zakat between local, national and international aims, without overlooking the importance of supporting those in need here in our own communities. After all, the number of eligible zakat recipients here in the UK is increasing – these people are entitled to the support of zakat payers in their own country.
Your zakat payment period for the year will start on the date when your wealth first equalled or exceeded the nisab. After this, zakat must be calculated and paid once each lunar year has passed, and it will then fall every year thereafter on that date. If you are not able to remember this date, then you should make an estimate. If this is not possible, you should select a specific Islamic date to adhere to, instead. It is not obligatory to pay zakat during Ramadan, but many Muslims prefer to as giving to charity during this time guarantees greater rewards.
You can set up a regular monthly payment like a direct debit if you wish to pay your zakat in smaller instalments. If you choose to pay your zakat with Al Mustafa Canada, certain campaigns and sponsorships are zakat-eligible so you can spread the rewards of your generosity throughout the year.
Applicable assets to include in your zakat calculation are as follows: cash, shares, pensions, gold, silver, business goods, crops and cattle. Personal items like your home, furniture, cars, food and clothing do not count towards your total, although zakat is due on any investment properties.
Tola is a unit of weight used in the Asian subcontinent which equals the weight of a silver rupee. It is also known as bhori or yori. One tola equals 11.66 grams, meaning that 87.48 grams of gold equals 7.5 tola.
The Quran does not specify a fixed percentage for Zakat. However, scholars generally agree on a rate of 2.5% for most forms of wealth, such as business profits, savings, and investments.
