As promised in the January issue, I return to the topic of Zakat—the obligatory practice of wealth-based giving for the common good—especially as Ramadhan approaches. With the blessed month expected to begin on February 18th, many of us are beginning to assess, allocate, and fulfill this foundational obligation—one of the five pillars of our faith. My goal in revisiting this subject is to share our collective understanding and my own sense of what Zakat means and to what purpose Zakat could and should be used before Ramadan.
Zakat in Scripture and Tradition
Zakat is mentioned repeatedly alongside Salat (prayer) in the Qur’an, emphasizing its essential role in a Muslim’s life. It is also affirmed in the teachings of earlier prophets such as in Surah Maryam (19:30–34), Jesus said, “I am a servant of God. God has given me the scripture and made me a prophet. God has blessed me wherever I may be. God has prescribed for me to worship (Salat), to share my wealth (Zakat), and to be kind to my mother. God has made me neither rebellious nor without grace! Peace be on me the day I was born, the day I die, and the day I will be raised to life! Such was Jesus, the son of Mary – a true narrative that they dispute about!” This connection reveals that the principle of sharing one’s wealth is not unique to Islam, though Muslims have preserved it as a formal institution through Zakat.
While Sadaqah—voluntary charity—is universal across faiths and cultures, Zakat is distinctive because it is not a choice. It is a religious obligation. Prior religious groups may have had similar traditions, but none have retained them except Muslims. Unlike a government-imposed wealth tax, Zakat constitutes a moral and religious duty incumbent upon all who possess sufficient means—not only the affluent but also those of moderate wealth. It acknowledges that one’s capacity to acquire and preserve wealth has been made possible, in part, by God and the social and economic benefits fostered through the practice of Zakat in previous generations. Accordingly, a share of that wealth is owed and should be returned to the broader society. It reflects our recognition that wealth is both a blessing and a trust from God, enabled by society’s structures and opportunities. Historically, when individuals failed to fulfill this duty, Islamic governance at the time had the authority to collect and distribute the Zakat.
Individual Giving vs. Collective Responsibility
Prophet Muhammad (peace be upon him) appointed Zakat collectors, establishing an institutional framework for its collection and distribution. This shows that while Zakat originates as an individual obligation, its proper implementation depends on collective organization. Sadaqah, by contrast, is a purely personal act of generosity. Sadaqah should come on top of Zakat, and not in lieu of or part of Zakat, as the Prophet had said, "Indeed there is a duty on wealth aside from Zakat". The Prophet clarified the distinction, saying, “When you pay the Zakat, you have fulfilled what is required of you.” In other words, voluntary charity should enhance, not replace, our obligatory giving.
Modern Context: From Agriculture to Knowledge Economies
At the Prophet’s time, Zakat often involved agricultural produce—grains, dates, and fruits. The Zakat rate for these harvests depended on whether the harvest was from personal effort or naturally sustained land, with the latter requiring a higher proportion in Zakat. Today, however, most income and wealth stem from knowledge-based and industrial economies rather than farming. This shift raises important questions: should we consider modern monthly incomes as analogous to harvest cycles, making them subject to regular Zakat? How do we adopt traditional principles for new forms of wealth in our contemporary financial systems, yet stay within the moral and religious framework as laid out by the Prophet? These are issues our community must study and clarify. (MyLlife has a research team exploring this and will be publishing their findings in the coming months.)
Building Institutional Capacity in Muslim Communities
Over the past forty years, American Muslims have invested heavily in building mosques and community centers—over 3,000 nationwide, representing about $6 billion in total investments, with roughly $150 million annually spent on operations. These are remarkable achievements that reflect generosity and devotion. Yet, if we fully account for annual Zakat due, the potential pool of funds within the U.S. Muslim community could approach $750 million to $1 billion every year. Imagine what could be accomplished if these resources were organized and directed toward community uplift: education, housing, health care, economic empowerment, and more.
The Path Forward
In Muslim-majority countries, Zakat institutions are often well-established. In the West, however, such frameworks are still in their infancy. As minorities, it falls upon us to build an accountable system for collective Zakat collection and distribution—guided by faith, informed by scholarship, and responsive to local needs.
As we prepare for Ramadhan, let us reflect on the deeper purpose of Zakat: to purify our wealth, support the vulnerable, and strengthen the bonds of community. May we give thoughtfully, distinguish clearly between Zakat and Sadaqah, and work together to make this sacred obligation a source of renewal and justice for all.
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