Ramadan is a time of spiritual renewal and charitable giving for Muslims around the world. One of the fundamental pillars of Islam is Zakat, an obligatory form of aiding those who most need it. Muslims are required to donate a portion of their wealth.
In this post, we will navigate what zakat is and the different tools you can use to calculate your zakat.
The importance of zakat
Zakat is more than just a charitable donation. It is a fundamental principle of social justice of Islam. The word zakat means purification and growth. This shows the dual purpose of purifying one’s wealth and fostering growth and prosperity within the community.
According to Islamic teachings, Zakat is obligatory for all Muslims who possess wealth past a certain threshold and is typically calculated as 2.5% of one’s total assets.
This wealth redistribution system aims to alleviate poverty, support those in need, and foster a sense of solidarity and compassion within the community.
Which tools can I use to calculate my Zakat?
- Zakat calculators: Some fintech platforms offer zakat calculators that help people determine their zakat obligations accurately based on their assets, income, and liabilities. These calculators consider various factors, such as gold, silver, cash, investments, and debt, ensuring the precise zakat calculation according to Islamic principles.
- Digital zakat payments: With the rise of digital payment solutions, Muslims can now fulfill their zakat obligations conveniently and securely through online banking, mobile apps, and electronic transfers.
- Zakat distribution platforms: Utilizing different Zakat distribution platforms ensures that your money goes to a variety of different charities and those in need.
Conclusion
As we observe the spirit of generosity and compassion during Ramadan, let us embrace the principles of zakat and explore how modern innovations can enhance the impact of our charitable giving. By leveraging technology to streamline zakat management and distribution, we can fulfill our religious obligations more effectively and make a meaningful difference in the lives of those less fortunate. This Ramadan, let us embrace the transformative power of fintech to uphold the principles of social justice and solidarity embodied in the practice of Zakat.
In the Kingdom of Saudi Arabia, official channels such as KSRelief and Sahem are available to those who wish to donate to charitable causes.