Charitable Obligations FAQ — Al-Ihsan Foundation Australia

Q: What is Ṣadaqah?

Ṣadaqah is voluntary charity . It: Can be given at any time Has no minimum amount Has no eligibility threshold Can be given to anyone in need Includes both financial giving and non-financial acts of kindness Ṣadaqah is given out of generosity, compassion, and sincerity.

Q: Are agricultural products zakatable?

Yes. 10% if naturally irrigated 5% if irrigation involves cost

Q: Does Zakat reduce wealth?

No. Zakat brings barakah and protection.

Question 1

Where does my zakat go with Al-Ihsan Foundation?

Accepted Answer

Al‑Ihsan Foundation distributes Zakat in accordance with the categories mentioned in the Qur’an - Surah At‑Tawbah 9:60, with a primary focus on supporting the poor and the needy. Your Zakat al‑Maal is directed to those who are eligible and most in need, ensuring it reaches families facing hardship, orphans, widows, and vulnerable communities.

Question 2

Can Zakat be given as Ṣadaqah?

Accepted Answer

No.

Zakat must be given with the intention of Zakat
It cannot be counted as Ṣadaqah once due

However:

Ṣadaqah can be given in addition to Zakāt
Ṣadaqah does not replace Zakat if Zakat is due

Question 3

What is Ṣadaqah?

Accepted Answer

Ṣadaqah is voluntary charity.

It:

Can be given at any time
Has no minimum amount
Has no eligibility threshold
Can be given to anyone in need
Includes both financial giving and non-financial acts of kindness

Ṣadaqah is given out of generosity, compassion, and sincerity.

Question 4

What is Zakat?

Accepted Answer

Zakat is a mandatory obligation for eligible Muslims.

It is:

One of the five pillars of Islam
Required when a person’s wealth reaches a minimum threshold (nisab)
Calculated at a fixed rate (usually 2.5% on qualifying wealth)
Given only to eight specific categories of people defined in the Qur’an

Zakat is not optional. If it is due, it must be paid.

Question 5

What is the difference between Ṣadaqah and Zakat?

Accepted Answer

Both Ṣadaqah and Zakat are forms of charity in Islam, but they are not the same. The key difference lies in obligation, rules, and purpose.

Question 6

Why is Zakat so central in Islam?

Accepted Answer

Zakat:

Purifies your wealth
Protects you from greed
Supports the vulnerable
Creates social balance

Take, (O, Muhammad), from their wealth a charity by which you purify them and cause them increase, and invoke [Allah ‘s blessings] upon them. Indeed, your invocations are reassurance for them. And Allah is Hearing and Knowing. - Surah At-Taubah 9:103 Quran

Question 7

What if I missed Zakat from previous years?

Accepted Answer

Missed Zakat remains owed and must be repaid once remembered or realised. Rights owed to Allah are not waived by time.

Question 8

Are agricultural products zakatable?

Accepted Answer

Yes.

10% if naturally irrigated
5% if irrigation involves cost

Question 9

Does Zakat reduce wealth?

Accepted Answer

No. Zakat brings barakah and protection.

Question 10

What happens if someone refuses to pay Zakat?

Accepted Answer

Deliberately refusing Zakat while believing it is obligatory is a major sin.

Question 11

Can Zakat be delayed once it is due?

Accepted Answer

No. Zakat should be paid promptly once due. Delaying without a valid reason is sinful.

Question 12

Where does my zakat go with Al-Ihsan?

Accepted Answer

Your zakat is distributed to those eligible under Qur’an 9:60, including the poor, the needy, orphans, widows, displaced families, and others in hardship.

Question 13

Who can receive Zakat?

Accepted Answer

Allah has specified eight categories of recipients.

Qur’an: “Zakah expenditures are only for the poor and the needy…” - Qur’an 9:60

Question 14

What if my wealth fluctuates during the year?

Accepted Answer

As long as wealth does not fall below nisab, Zakat remains due at the end of the lunar year.

Question 15

Can debts I owe reduce my Zakat?

Accepted Answer

Yes. Immediate and payable debts may be deducted before calculating Zakat.

Question 16

Is money owed to me zakatable?

Accepted Answer

If repayment is likely → Zakat is due
If repayment is uncertain → Zakat is paid when money is received

Question 17

Is Zakat due on superannuation or retirement funds?

Accepted Answer

Zakat is due only when funds are accessible. If funds cannot be withdrawn, Zakat is not required until access is possible.

Question 18

Is Zakat due on rental property?

Accepted Answer

The property itself is not zakatable, but saved rental income is.

Question 19

Are shares and investments zakatable?

Accepted Answer

Yes, depending on intention:

Trading shares → Zakat on full value
Long-term investments → Zakat on saved dividends

Question 20

Is Zakat due on business assets?

Accepted Answer

Yes. Zakat is due on business inventory, trade goods, and business cash, calculated at market value.

Question 21

Which opinion is stronger?

Accepted Answer

Many scholars concluded that the stronger opinion is that Zakah is obligatory on gold and silver jewellery, whether worn or stored, if:

It reaches the nisab, and
One lunar year has passed

Question 22

Why is there a difference of opinion?

Accepted Answer

All scholars agree that Zakah is obligatory on:

Gold and silver prepared for trading
Gold or silver used in impermissible ways

The difference of opinion arises only with permissible jewellery, such as women’s gold jewellery worn for adornment, or silver rings.

Some scholars compared worn jewellery to clothing and personal items, and therefore said no Zakah is due.

Other scholars held that gold and silver remain wealth, regardless of use, and therefore Zakah is still obligatory if the nisab is reached.

Question 23

Is Zakah applicable on gold and silver jewellery that is worn?

Accepted Answer

There is a difference of scholarly opinion, but the stronger and safer view is that Zakah is due on gold and silver jewellery if it reaches the nisab, even if it is worn and not intended for trade.

Question 24

Do children have to pay Zakat?

Accepted Answer

Scholars differ. Many scholars hold that if a child owns zakatable wealth (cash, gold, etc.), Zakat should still be paid on it by their guardian, especially if it is significant and above nisab.

Question 25

Do husband and wife calculate Zakat together?

Accepted Answer

Zakat is individual. Husband and wife should calculate separately based on what each person owns.

Question 26

What assets are NOT included in Zakat?

Accepted Answer

You don’t pay Zakat on personal necessities, such as:

Your home you live in
Your car for personal use
Furniture, clothing, everyday items

Question 27

What assets are included in Zakat?

Accepted Answer

Zakat typically includes:

Cash and savings
Gold and silver (including jewellery)
Shares (depending on intention)
Business stock/trade goods
Saved rental income
Money owed to you (if likely to be repaid)

Question 28

How much Zakat must be paid?

Accepted Answer

For most assets, Zakat is 2.5% (1/40).

Question 29

Is Zakat calculated on income, or on what I have?

Accepted Answer

Zakat is not a tax on your salary. It’s calculated on what you still own (your zakatable wealth) when your Zakat date arrives - as long as it stayed above nisab for a lunar year.

Zakat is attached to ownership, not income history.

Question 30

Can I choose a fixed date each year for my Zakat?

Accepted Answer

Yes. Many people choose a meaningful Islamic date (like Ramadan or Muharram) as their annual reminder, as long as you’re still accounting correctly for your Zakat year.

Question 31

Do all Muslims pay Zakat on the same date?

Accepted Answer

No, Zakat isn’t like Ramadan where everyone starts together. Your Zakat date is personal. It’s based on the day your wealth first reached the nisab, and then one lunar year passes.

Question 32

What does hawl (one lunar year) mean?

Accepted Answer

Ḥawl means zakatable wealth must remain above the nisab for one full Islamic (lunar) year. If wealth falls below nisab, the year resets.

Question 33

Should Nisab be calculated using gold or silver?

Accepted Answer

Both are valid. Many scholars recommend using silver today, as it benefits the poor and aligns with the purpose of Zakat. Zakat is meant to circulate wealth, not restrict obligation.

Question 34

What is Nisab?

Accepted Answer

Nisab is the minimum amount of wealth a person must own before Zakat becomes obligatory. It was set by the Prophet ﷺ.

Gold: 85g
Silver: 595g

Question 35

Who is required to pay Zakat al-Maal?

Accepted Answer

Zakat is obligatory upon a Muslim who:

Owns wealth above the nisab
Has owned it for one lunar year (ḥawl)
Has full ownership and access

Hadith: “No Zakat is due on wealth until one year has passed.”

- Sunan Abu Dawud

Question 36

Is Zakat al-Maal compulsory in Islam?

Accepted Answer

Yes. Zakat is one of the Five Pillars of Islam and is obligatory upon every Muslim who meets its conditions.

Question 37

What is Zakat al-Maal?

Accepted Answer

Zakat al-Maal is an obligatory act of worship. It’s the part of our wealth Allah has assigned to those eligible to receive it. It purifies wealth and fulfils a right owed to others.

“Take from their wealth charity by which you purify them and cause them increase.”

- Qur’an 9:103

When you give Zakat, you are fulfilling a duty, purifying your wealth, and honouring a right owed to others.

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