Answers
Zakat FAQs: the questions people ask most
Short, direct answers to the questions we are asked every Ramadan.
In short
Zakat is 2.5 per cent of the wealth a Muslim has held for one lunar year above the nisab threshold. It must reach one of eight categories of recipient named in the Quran, and it cannot be given to your parents, children or spouse, or used for buildings and running costs.
- Rate: 2.5 per cent of net zakatable wealth
- Frequency: once per lunar year
- Recipients: the eight categories in Surah At-Tawbah 9:60
- UNH policy: 100 per cent of zakat goes to eligible recipients
The basics
Zakat is the third pillar of Islam and a right the poor hold over the wealth of those who have enough. It is not optional generosity, and it is not the same as Sadaqah, which is voluntary and unrestricted.
How UNH handles your zakat
Zakat you give is held in a restricted fund and spent only on people who fall inside the eight categories. Our running costs are covered by Sadaqah and unrestricted gifts, which is what allows a full 100 per cent zakat policy.
Frequently asked questions
Can I give zakat to my family?
Not to parents, grandparents, children, grandchildren or a spouse, because supporting them is already your duty. Siblings, cousins, aunts and uncles in genuine need can receive it, and giving to relatives carries extra reward.
Can zakat build a mosque or a school?
The majority position is no, because zakat must be handed into the ownership of an eligible person. Sadaqah is the right vehicle for buildings.
Can zakat pay a charity's salaries?
Only for those directly employed to administer and distribute zakat, which is one of the eight categories. General overheads must come from other funds.
What if I have not paid zakat for past years?
Missed years remain owed. Estimate your wealth for each year as best you can, calculate 2.5 per cent for each, and pay them off as soon as you are able.
Do I pay zakat on a student loan?
A student loan is a debt repaid from future income, so it is not deducted in full. Only instalments currently due reduce your zakatable wealth.
Is crypto zakatable?
Yes. Treat it as a liquid asset and pay 2.5 per cent of its market value on your zakat date.
Can I give zakat before it is due?
Yes. Paying in advance is permitted and is a good way to spread the cost over the year.
Does zakat have to go to Muslims?
Zakat is restricted to Muslim recipients within the eight categories. Sadaqah can be given to anyone in need.