Categories of Zakat Recipients in Our Times

All of the world's major religions contain some form of almsgiving, but Zakat has a special significance for Muslims. It is mandatory for all Muslims who are financially able to give a minimum of 2.5% of their accumulated wealth for the benefit of the poor. The word Zakat means 'purification' or 'growth'.

According to a report by Global Humanitarian Assistance: Indonesia, Malaysia, Qatar, Saudi Arabia and Yemen, which is about 17% of the world's estimated Muslim population, indicates that in these countries alone at least US$5.7 billion is currently collected in Zakat each year.

It is estimated that the global volume of Zakat collected each year through formal channels is, at the very least, in the tens of billions of dollars. If we also consider Zakat paid through informal channels, the actual amount could be in the hundreds of billions of dollars (i).

Let's look at the Quranic verse that regulates Zakat. Sura Tawba (6) in aya 60 identifies the categories of recipients of Zakat.

"The offerings given for the sake of God are meant only for [i] the poor and [ii] the needy, and [iii] those who are in charge thereof, [iv] and those whose hearts are to be won over, [v] and for the freeing of human beings from bondage, [vi] and for those who are overburdened with debts, [vii] and for every struggle in God's cause, and [viii] for the wayfarer: this is an ordinance from God - and God is all-knowing, wise."

The poor,

The needy,

Those who are in charge thereof,

Those whose hearts have to be won over,

For freeing of human beings from bondage,

And [for] those who are overburdened with debts,

And [for every struggle] in God's cause,

And [for] the wayfarer.

The distribution is not confined to Muslims only. It is not limited to non-relatives as relatives as well as family members who are in this situation may also be the recipient.

How should zakat be distributed?

It can be done individually or it can be done through organizations and Masajid who have expertise in this area.

The ideal situation would be to have a central body in every state or city to collect zakat funds in a transparent manner. The collection groups and individuals should educate the community about centralizing the resources and then through consultation with the trusted people of the community distribute to the recipients in each category.

What is important to realize is that if the zakat is distributed through agencies and masajid and institutions, then the community must be informed about its distribution. In other words, there must be absolute transparency in zakat collection and distribution.

(i) Reference: 1/4 of the world's people already subject to large annual wealth tax to tackle poverty.