Zakat Donation

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The literal meaning of Zakat is to grow (in goodness) or increase, purify, or make pure. So the act of giving Zakat means purifying one’s wealth to gain Allah’s blessings.
Zakat is an Arabic word which means alms-giving, which is treated in Islam as a religious obligation or tax.

By Quranic ranking, Zakat is next after prayer in importance. It is a charitable obligation often considered as a tax which is obligatory for all those Muslims who meet the necessary criteria of wealth.
One of the essential principles of Islam is that all things belong to God, and human beings in trust, therefore, hold that wealth.

The word Zakat means both ‘purification’ and ‘growth.’ Our possessions are purified by setting aside a proportion for those in need, and, like the pruning of plants, this cutting back balances and encourages new growth. Zakat, the giving of alms to the poor and needy, is one of the five pillars of Islam (the others are a declaration of faith, prayer, fasting in Ramadan and Hajj). It is obligatory upon every adult Muslim of sound mind and means.
The individual must own a specific amount of wealth or savings (after living costs, expenses, etc.). This is referred to as Nisaab and is the threshold at which Zakat becomes payable. The amount of Zakat to be paid is 2.5% of Nisaab.
“Take from their wealth a portion for charity, to clean them thereby, and sanctify them.”
The Zakat is a form of giving to those who are less fortunate. It is obligatory upon all Muslims to give 2.5 % of wealth and assets each year (more than what is required) to the poor. Giving the Zakat is considered an act of worship because it is a form of offering thanks to God for the means of material well-being one has acquired.
Zakat has extensive uses. Uncountable and uncontrollable number of benefits that the society and individual can gain. On the individual level, the main advantage is that this is a system set by Almighty and His happiness his earned by following His commands. Therefore when a person obeys the commands of Almighty, through the system of Zakat, the wealth of the individual is purified. It’s a circulation of money that happens in the community, and Zakat is a fixed charitable act that helps underprivileged people and supports their households. When one’s wealth is purified, the next step is the purification of the heart which happens automatically. A person as a whole becomes a better version of what he was as he gains the happiness of Almighty and follows His and His Prophet’s saw commands.
Similarly, Zakat payment helps the community in numerous ways. The communities that have a financial and emotional connection between the upper and lower classes without differentiating each other on bases of color, creed, and nationality are always thriving. Zakat goes from rich to the poor. This way, inside out the circulation of finances keeps happening. It keeps the communities intact. The Muslim ummah lives and feels like each other’s family. It creates harmony and peace.
Pay your Zakat on Seed Out to make the lives of thousands of Pakistanis better. Seed Out is a not for profit organization, which helps to alleviate poverty in Pakistan by setting up a small business for people living below the poverty line. Seed Out’s crowdfunding platform allows you to calculate your Zakat Online and pay immediately to the neediest people in Pakistan.

Calculate Zakat on your Salary

Zakat is a compulsory act of worship in Islam. Being the third pillar of Islam, Zakat is given high importance. Great emphasis is placed on paying Zakat in Islam as the word Zakat has been mentioned 32 times in the Holy Quran.

Muslims are obliged to give 2.5% of their wealth in Zakat only if the value of their assets is above Nisaab, a minimum threshold. If a person holds assets and savings more than the Nisaab value, then he or she should immediately calculate their Zakat. However, Zakat is to be paid after the completion of one whole lunar year. Several organizations give the facility to calculate Zakat Online. The Zakat calculator is an easy way to calculate your one year’s Zakat. It allows you to put in the total value of your wealth in monetary terms and multiple it by 0.025.

Moreover, there are different assets on which paying Zakat is compulsory.

Gold, silver, precious metal, including ornaments/jewelry containing gold/silver
Stocks and shares
The money you have lent to others
Cash in bank accounts, committees or at home
Any business stock
Pensions
The property you own for investment purposes

Calculate Zakat on Salary

To pay Zakat as a salaried person, you have to calculate the total amount you have saved in one whole lunar year. However, if you are a salaried person who earns and all the money is spent on fulfilling the basic needs of the household, and at the end of the lunar year you have no savings then you are not obliged to pay Zakat.

There is another condition in which you earn in surplus and the money left after spending is going in your savings then you have to calculate if you are eligible to pay Zakat or not. This only works if your savings in the form of any assets is more than Nisaab, Zakat will be an obligation on you.

Seed Out is an organization that provides a simple Zakat calculator on its crowdfunding platform. The Zakat Calculator is a convenient way to calculate your Zakat and pay it on time. Seed Out also accepts Zakat and ensures that your Zakat reaches the right people. Seed Out is a not for profit organization which sets up businesses for underprivileged people. People having previous business experience can apply for small loans to set up their small businesses. This allows them to earn a sustainable income and pull themselves out of poverty. If you are Zakat eligible and want to calculate your Zakat Online, Seed Out is the right place.

Calculate Zakat on Gold

Zakat is a compulsory act of worship. It is mandatory for all adult and sane Muslims to pay their Zakat. The word, Zakat, means to purify. Muslims give Zakat to purify their wealth and soul. Each year after the completion of one lunar year, Muslims give 2.5% of their wealth to the needy and underprivileged. By paying Zakat, Muslims not only benefit themselves but care for society as a whole.

It is essential to know that our wealth belongs to Allah, and by paying Zakat, we benefit the unfortunate and free ourselves from the love and greed of worldly possessions.

Calculate Zakat on Gold

Giving Zakat in Islam is linked to the minimum threshold value of your wealth called Nisaab. So if your wealth is below the Nisaab value, you are not obliged to pay wealth. However, if your total wealth is above the Nisaab value, you should calculate your Zakat and pay it timely. To calculate Nisaab on your Gold, you should know the current market value of one gram of Gold.

Nisaab value of Gold is the amount of cash on 3 ounces or87.48 grams of Gold

For instance, currently, if the value of Gold per ounce in monetary terms is $50, then the Nisaab using the gold calculation is:

$50 x 3 ounces =$150

Therefore, if your wealth is above $150, you need to pay Zakat.

Challenges faced while calculating Zakat on Gold

It is important to note that your Zakat applies to Gold only. Most people face challenges in calculating Zakat on Gold Jewelry. Zakat is not to be paid on stones such as diamonds, pearls, sapphires or rubies which are present in the jewelry. You should get the exact weight of your Gold and pay Zakat only for it.

However, goldsmiths or experts in jewelry making can help you get the weight of the stones on your gold jewelry. Use this value to calculate the difference in weight. For instance

Weight of the whole jewelry – the weight of stones = weight of the Gold

Formula to Calculate Zakat on Gold

To calculate your Zakat on Gold, use the following method:

Weight of the gold x monetary value of Gold per ounce = total value of your Gold in cash

Now multiply this answer with 2.5% as mentioned below

The total value of your Gold in cash x 0.025 = Zakat due on your Gold

Therefore, it is crucial to follow the necessary steps to calculate your Zakat on Gold. The steps will guide you to carry out the following method in the right way.

Seed Out Zakat Calculator

On Seed Out’s crowdfunding platform, you can calculate your Zakat in the most convenient method. Add weight in grams of the Gold you possess and then add the current market price of the Gold. You will be automatically shown the estimated value and Zakat payable. Zakat payable is the amount that is due on your Gold, and you can pay it online on Seed Out. Seed Out’s donation appeal and campaigns are directed towards collecting Zakat for the underprivileged people of Pakistan.

How does Zakat make your life easier ?

The literal meaning of Zakat is to grow (in goodness) or increase, purify, or make pure. So the act of giving Zakat means purifying one’s wealth to gain Allah’s blessings.

Zakat is an Arabic word which means alms-giving, which is treated in Islam as a religious obligation or tax. By Quranic ranking, Zakat is next after prayer in importance. It is a charitable obligation often considered as a tax which is obligatory for all those Muslims who meet the necessary criteria of wealth.

One of the most important principles of Islam is that all things belong to God, and human beings in trust, therefore, hold that wealth. The word Zakat means both ‘purification’ and ‘growth.’ Our possessions are purified by setting aside a proportion for those in need, and, like the pruning of plants, this cutting back balances and encourages new growth. Zakat, the giving of alms to the poor and needy, is one of the five pillars of Islam (the others are a declaration of faith, prayer, fasting in Ramadan and Hajj). It is obligatory upon every adult Muslim of sound mind and means.

Zakat makes life easier as it affects a man in uncountable ways. It benefits the zakat payer and society both so it’s a double way goodness that occurs in our surroundings.

GENEROUS:

The human nature and thought process of a man is such that he the most he cares about is his physical wellbeing. A man usually is eager, and his hunger for an ever-increasing number of material gains never fulfills. He figures out how to turn out of the race of individual interests and think for other people. Zakat helps in making people humble and generous and think about the people around them in need.

WELLSPRING OF MORE INCOME:

Zakat implies development and increment fundamentally. An individual who pays Zakat legitimately and reliably is expanded in more riches and sustenance by Allah SWT, which results in one’s success in your business, salary, or any legitimate income.

WEALTH PURIFICATION:

It feels after paying Zakat that it is a loss of income, but Zakat goes about as a wellspring of purging of one’s riches. The person who pays Zakat is expanded in Barakah (favoring) by Allah SWT. His wealth will be acknowledged by Allah and will go about as a wellspring of gift in this world and salvation in the great beyond. As quoted by many prestigious Ulma that Zakat is the purification of your wealth.

Increasingly more riches, while the poor continue getting less fortunate. With Zakat, the abundance of the rich is coursed among poor people.

PREVENTS RECESSION:

Monetary retreat drives society towards dreary lawlessness. Poor people individuals swing to burglary, theft, and so forth to satisfy their financial need. Paying out Zakat is a specific method to stop subsidence in an economy. Zakat is an intrigue free framework and in this manner goes about as a support for monetary variances which generally leads to subsidence. With a system such as Zakat, recession can be eradicated from society, and hence life will treat everyone better.

Change Lives with Seed Out

Your donation at Seed Out reaches the right people. Seed Out is a not for profit organization which lifts people out of poverty by setting up small businesses for them. The underprivileged beneficiaries are provided with micro-loans to operate their business and earn a sustainable income. This allows them to escape the shackles of poverty and improve their livelihoods.

Calculate your Zakat

At Seed Out, we want to provide you with the most viable ways to calculate your Zakat. Seed Out’s Zakat Calculator helps to calculate your Zakat in the most Islamic way. Utilize our calculator to determine the exact amount of Zakat you will need to pay this lunar year.

Being the fundamental pillar of Islam, Zakat is compulsory on all adult and sane Muslims. Seed Out has provided the facility of calculating your Zakat easily through its Zakat calculator. But since calculating your Zakat and Nisaab threshold can be a challenge to understand; we have mentioned the necessary details below.

Understanding Nisaab

Nisaab value is the minimum threshold on your wealth for a Muslim to become eligible to pay Zakat in a specific lunar year. After the completion of one lunar year, if your total wealth is above the current Nisaab value, Zakat is obligatory. Zakat is calculated on your overall wealth.

The Nisaab value is directly related to the current values of Gold and Silver. As mentioned in the Holy Qu’ran, the Nisaab value is described as 612.36g of Silver or 87.48g of Gold. In the beginning, their value was equal, but in the current scenario, the amount of Gold is more than that of Silver; hence, the Nisaab value is lower than Gold. Nisaab can be calculated by converting the weight of Gold and Silver into your local currency.

Zakat Percentage

Now we would discuss what percentage of your total wealth is dedicated to Zakat. Your Zakat donation should be 2.5% of your total wealth accumulated over the lunar year. For instance, if your total wealth amounts to $50,000 in one year, you will multiply this amount with 0.025.

50,000 x 0.025 = 1,250

Therefore, the Zakat you have to pay is $1250.

On what items is Zakat compulsory?

There is a number of assets on which Zakat is compulsory, following are mentioned below:

The value of gold and silver items owned
Money in your bank accounts or cash at home
Loans that you have given out
Pensions, stocks, shares, and investments
Property owned as an investment (excluding the property you live in)
Farm and agricultural produce

Now you can get the monetary value of your possessions and calculate your Zakat using Seed Out’s Zakat Calculator.

Seed Out and Zakat

Now that you know the amount that should be dedicated to Zakat; you can make your payment. You should also ensure that your Zakat reaches the only Zakat-eligible people. Seed Out is a nonprofit organization with vast experience of providing financial assistance to some of the most marginalized and vulnerable people in Pakistan. Seed Out’s donation appeals and campaigns are Zakat-eligible. Seed Out sets up small businesses for the underprivileged people by providing interest-free loans. This allows them to earn a sustainable income and lead a poverty-free life. At Seed Out, your donation has the power to make a difference.

Zakat in Quran

According to Mufti Faraz Azam, The word Zakat is mentioned thirty-two times in the Quran; thirty from the thirty-two are in the technical meaning of Zakat while two are in the linguistic meaning of Zakat. The two places are:

1) Sūrah al-Kahf (The Chapter of The Cave), verse 81

2) Sūrah Maryam (The Chapter of Mary), verse 13

Muslims are ordered to pay Zakat; this is mentioned in the Quran. As for the percentage, it was set according to the Hadiths we learned from Prophet Mohamed PBUH. Most of the cases, it is 2.5% of your savings, including money or (gold and silver acquired for investment purpose) according to the below rules:

Should be your own money
These savings have exceeded the worth of 86 grams of gold for one complete continuous year.

The percentage is different on assets like corps and animals. As for how the Zakat should be spent, there are defined eight categories on which Zakat has to be spent.

The eight categories are:

1. The poor, those who are in greater need.

2. The needy.

3. Those employed to collect or administer the Zakat.

4. To attract the hearts of those who have been inclined.

5. Setting Slaves free “No longer valid nowadays think thankfully we have no slaves in the modern world.”

6. Those who are in debt.

7. For Allah’s Cause.

8. Travelers who are cut off from everything and have no money.

“The alms are only for the Fuqara’ (the poor), and Al-Masakin (the needy) and those employed to collect (the funds); and to attract the hearts of those who have been inclined (towards Islam); and to free the captives; and for those in debt; and for Allah’s Cause, and for the wayfarer (a traveler who is cut off from everything); a duty imposed by Allah. And Allah is All-Knower, All-Wise.” [Al-Quran 9:60]

The literal meaning of Zakat is to grow (in goodness) or increase, purify, or make pure. So the act of giving Zakat means purifying one’s wealth to gain Allah’s blessings. The individual must own a specific amount of wealth or savings (after living costs, expenses, etc.). This is referred to as Nisaab and is the threshold at which Zakat becomes payable. The amount of Zakat to be paid is 2.5% of Nisaab.

When we go back to the way, Zakat was at the time of the Prophet (peace be upon him), in essence, we are studying Zakat from its source – from its beginnings. In Makkah, the verses on Zakat generally pertained to voluntary payments, and it was left to the individual’s faith and own conscience to decide how much to give and whom to give it to.

Surah Al-Ma’arij (70:24-25) advises: “And in whose wealth there is a right acknowledged. For the beggar and the destitute.”

After migration to Madina, around eighteen months after the arrival of the Prophet (peace be upon him) to Madina, Zakat became a Fard or an obligation on Muslims. Madina verses gave clear directives, ordering the payment of Zakat and since that time the Prophet (peace be upon him) used to send out Zakat workers to collect and distribute the due Zakat. Zakat became an obligatory charity on Muslims in the 2nd Hijri of Islam.

Seed Out is a not for profit organization that collects Zakat for setting businesses for the underprivileged Pakistanis. Seed Out lets you calculate your Zakat on their crowdfunding platform and donate directly to its beneficiaries.

Importance of Zakat

The literal meaning of Zakat is to grow (in goodness) or increase, purify, or make pure. So the act of giving Zakat means purifying one’s wealth to gain Allah’s blessings.

Zakat word is using very frequently in the Islamic religion. It is also the term of pillars in Islam. If a Muslim has the financial means and stability to pay Zakat, it is obligatory for him or her to do so.

People often mishear Zakat and its importance. Zakat is defined as a real act of worship. This task must be performed as a beautiful means of helping our less privileged Muslim brothers. ALLAH has used the term Zakat several times in the Quran. It is depicting how significant of a place this act holds in the Islamic religion.

Zakat holds immense importance when it comes to some core principles and benefits.

Circulation of wealth

By offering Zakat. The wealth of society and economy circulates healthily. The wealth of the rich gets distributed amongst the poor so that society as a whole can benefit.

Helping others at large

The most significant benefit of Zakat is related to society’s development. With Zakat, individuals understand and indulge in the act of sharing and helping those in need.

Understanding the act of sacrificing

The sacrificing of one’s wealth for the sake of ALLAH is an immensely bountiful benefit to attain from Zakat. It makes an individual humble and grounded. It also reminds believers to stay on the righteous path and continue to strive for ALLAH’s bounty and divine guidance.

“Take from their wealth a portion for charity, to clean them thereby, and sanctify them.”

Seed Out is a non-profit organization that sets up small businesses for Pakistanis living in poverty. Seed Out allows you to calculate and donate your Zakat directly to its beneficiaries.

History of Zakat

When we go back to the way, Zakat was at the time of the Prophet (peace be upon him), in essence, we are studying Zakat from its source – from its beginnings. In Makkah, the verses on Zakat generally pertained to voluntary payments, and it was left to the individuals’ faith and own conscience to decide how much to give and whom to give it to.

Surah Al-Ma’arij (70:24-25) advises: “And in whose wealth there is a right acknowledged. For the beggar and the destitute.”

Zakat became an obligatory charity on Muslims in the 2nd Hijri of Islam.

The Qur’an does not give the definition of Zakatable wealth, except in a few cases, only the general principles are given without the details, e.g.:

1) Gold and Silver: “And there are those who hoard gold and silver and spend it not in the way of Allah. Announce unto them a most grievous penalty.” (Surah Al-Taubah 9:34)

2) Crops and Fruits: “Eat of their fruit in their season, but render the dues that are proper on the day that the harvest is gathered.” (Surah al-An’am 6:141)

3) Earnings of Trade: “O ye who believe, give of the good things which ye have earned.”(Surah Al-Baqarah 2:267)

4) Wealth from beneath the earth: “And of that which we have produced for you from the earth.”(Surah Al-Baqarah 2:267) 

Furthermore, the Qur’an mentions Zakat in general and the word amwal (i.e., property or wealth or earning) is used as in verse, “Out of their wealth take Sadaqah thereby purifying and sanctifying them.” (Surah Al-Taubah 9:103) and, “In their wealth and properties is the right of the poor, the beggar and he who is in deprivation.” (Surah Al-Dhariyat 51:19)

It is the Sunnah of the Prophet (peace be upon him) that gives us, by example and by directives, details of the general Qur’anic command and converts the theoretical axioms of the Qur’an into a living reality. The Prophet (peace be upon him) is the one who knows most about what Allah ordained and as such the Sunnah gives us detailed specifications of the kinds of Zakatable wealth, the minimum exempt of each of them and the applicable rates. The Sunnah also provides the details of the categories of people that should receive Zakat.

Muslims must pay Zakat. If you wish to calculate your Zakat and donate to the right organization, then Seed Out is a great way to give your Zakat. You can help eradicate poverty in Pakistan by donating at Seed Out. To know more about Seed Out, visit http://www.seedout.org.

Who is eligible for Zakat?

Zakat is an Arabic word which means alms-giving which is treated in Islam as a religious obligation or tax. By Quranic ranking Zakat is next after prayer in importance. It is a charitable obligation often considered as a tax which is obligatory for all those Muslims who meet the necessary criteria of wealth.

One of the most important principles of Islam is that all things belong to God, and that wealth is therefore held by human beings in trust. The word zakat means both ‘purification’ and ‘growth’. Our possessions are purified by setting aside a proportion for those in need, and, like the pruning of plants, this cutting back balances and encourages new growth. Zakat, the giving of alms to the poor and needy, is one of the five pillars of Islam (the others are declaration of faith, prayer, fasting in Ramadan and Hajj). It is obligatory upon every adult Muslim of sound mind and means.

The individual must own a specific amount of wealth or savings (after living costs, expenses etc). This is referred to as Nisaab and is the threshold at which Zakat becomes payable. The amount of Zakat to be paid is 2.5% of Nisaab.

“Take from their wealth a portion for charity, in order to clean them thereby, and sanctify them.”

There is a specific group of people who are eligible for Zakat and to whom we must give it. There are eight categories mentioned very clearly and vividly in Quran and Hadith.

“Alms are for the poor, the needy, the employees who administer the funds, those whose hearts have been recently reconciled to the Truth, those in bondage, those in debt, in the cause of Allah, and the wayfarer, (thus it is) ordained by Allah, and Allah is most knowledgeable, most wise.” [Surah At-Tawbah (9:60)]

Based on this verse, the ways of spending Zakat funds can be classified as follows:

Fuqara– For the poor who do not have enough to take care of their basic needs.
Maskeen– For the needy whose basic needs are met but their income does not take care of other important needs.
Amil– For those whose sole job is to collect and distribute the Zakat funds.
Muallaf– For those who are close to accepting Islam as a religion, and those non-Muslims whose evil can be avoided if they receive money.
Riqab– For freeing a Muslim person from bondage (whether a slave in the old times, or a prisoner of war in our times)
Gharmeen– For those who are indebted and cannot pay their debts.
Fi Sabil lillah– In the cause of Allah (SWT): the scholars have said that what is meant here is that Zakat can be given to those who volunteer to fight in the cause of Allah (SWT) and do not receive a fixed salary from the government.
Ibnus Sabeel– For the wayfarer who is stranded in a foreign land and cannot get enough money to go back to his homeland, even though he might be rich otherwise. He should be given enough money to allow him to return to his homeland.

If you wish to give Zakat, Seed Out is a non-profit organization that helps poor lift out of poverty by establishing small business for them. You can calculate your exact Zakat and donate on its crowdfunding platform.

What is Zakat?

The literal meaning of Zakat is to grow (in goodness) or increase, purify or make pure. So the act of giving zakat means purifying one’s wealth to gain Allah’s blessings.

The Zakat is a form of giving to those who are less fortunate. It is obligatory upon all Muslims to give 2.5 % of wealth and assets each year (in excess of what is required) to the poor. Giving the Zakat is considered an act of worship because it is a form of offering thanks to God for the means of material well-being one has acquired. “They ask you as to what they should spend. Say: Whatever wealth you spend, it is for the parents and the near of kin and the orphans and the needy and the wayfarer, and whatever good you do, Allah surely knows it.” [Al-Quran 2:215]

Paying zakat is compulsory. The Qur’an says that only those who pay zakat are in the “brotherhood of faith.” The Holy Qur’an also says that Zakat purifies assets and creates virtue (SU:9 103 ). Zakat is a 2.5% levy on most valuables and savings held for a full year if their total value is more than a basic minimum known as nisab. Cash in your bank and building society accounts and the release value of bonds, securities, and shares in any form are zakat-able if they are purchased as an investment. There is no Zakat on family, home or household furniture, carpets, car, etc.

If you wish to donate your Zakat to help raise the poor out of poverty, then Seed Out is an organization which is working to alleviate poverty in Pakistan. Seed Out’s crowdfunding platform allows you to donate your Zakat online and also gives you an option to calculate your Zakat. This helps you to donate the right amount to the right people.