Description of Challenge
Collecting money for the less fortunate and creating a project with it so that it is income generating to sustain a good livelihood for them.In some communities there are some people who are less fortunate financially and socially than others. Zakat is a form of giving based on spiritual ethical principles of Islam that provides for support of those less fortunate.
Solution
Zakat means in Arabic ‘that which purifies’ and it is basically the giving of a fixed portion of one’s wealth as a tax to the administration or government. This is one pillar of Islam.
Zakat is a way to redistribute the wealth, thus increasing the flow of cash in the economy with a particular interest in the poor and the dispossessed Muslim. Non Muslims are not required to pay Zakat, but give a tax by a different name called Jizyah tax.
The giving of the Zakat is considered a means of purifying one’s wealth and soul. In some countries Zakat is collected by the state. In some other countries like Egypt, Zakat is collected by the people and is given to charitable organizations.
The amount of Zakat to be paid by an individual depends on the amount of wealth and the type of assets the individual possesses. The amount of Zakat to be paid on capital assets (e.g. money) is 2.5% (1/40). Zakat is additionally payable on agricultural goods, precious metals, minerals, and livestock at a rate varying between 2.5 (1/40) and 20 percent, depending on the type of goods. Zakat is separate from the practice khums, where Shi’ites are expected to pay one fifth of their income.
There are eight categories of people (asnaf) who qualify to receive Zakat funds
1. Those living in absolute poverty (Al-Fuqarā’).
2. Those restrained because they cannot meet their basic needs (Al-Masākīn).
3. The zakat collectors themselves (Al-Āmilīna ‘Alaihā).
4. Non-Muslims who are sympathetic to Islam or wish to convert to Islam (Al-Mu’allafatu Qulūbuhum).
5. People whom one is attempting to free from slavery or bondage. Also includes paying ransom or blood money (Diyya). (Fir-Riqāb)
6. Those who have incurred overwhelming debts while attempting to satisfy their basic needs (Al-Ghārimīn).
7. Those working in God’s way (Fī Sabīlillāh).
8. Children of the street / Travellers (Ibnus-Sabīl).
This concept encompasses any act of giving out of compassion, love, friendship (fraternity) or generosity.
