Charity in Islam: Importance, Types, Nisab, And More!

The religion of Islam highly urges acts of kindness and noble morals that help build a close-knit fraternal community. Prophet Mohammad (Peace Be Upon Him) highlighted that saying “I was sent to perfect good manners” (Bukhari). Therefore, Islam encourages its adherents to be charitable.

What is the concept of Charity in Islam?

Charity is an act of kindness and generosity that aims at helping others who are in need. It is done merely for the sake of Allah waiting for nothing in return except pleasing Allah, the Almighty. 

ِAllah says: “Charitable men and charitable women, who have loaned Allah a good loan—it will be multiplied for them, and for them is a generous reward.” ( Qur’an 57-18)

What are the different types of charity in Islam?

Generally, we can say there are two forms of charity:

1. Obligatory charity (Zakat) which is the third pillar of Islam. Obligatory charity can also include Al-Fitr charity (Zakat Al- Fitr).

2. Voluntary charity (Sadaqa). It also includes the ongoing charity (Sadaqa Jariyah).

What is the concept of Zakat in Islam?

Zakat is the third pillar of Islam; it is a certain proportion of money that the Muslim should pay for the poor and the needy to purify his wealth.

 Zakat is mandatory on every adult Muslim who has wealth (money, gold, silver, assets, livestock, etc) that meets or exceeds his Nisab threshold, and is left unused for a lunar year.

What is the Nisab Threshold?

Nisab is the minimum amount of an individual’s wealth at which he is eligible to pay Zakat; it is calculated on gold or silver.

Scholars have set the Nisab at the monetary value of:

1. 85 grams of gold 
2. 595 grams of silver 

How is the Amount of Zakat Calculated?

When the overall wealth meets or exceeds the nisab value (value of 85 grams of gold or 595 grams of silver), the Muslim will be eligible to pay Zakat.

 The eligible Muslim should calculate (2.5%) of the value of the total surplus wealth accumulated over the lunar year.

What is Al-Fitr Charity (Zakat Al-Fitr)?

It is a specific charity given at the end of Ramadan. It is limited by time from the sunset of the last day of Ramadan till before the Prayer of Eid al-Fitr. Zakat Al-Fitr is given at this time to ensure that the poor and the needy can also enjoy Eid celebrations.

It is given in the amount of 3 kilograms of typical food in the country where you live, such as wheat, rice, or the like. The zakat al-Fitr is an obligatory sunnah which the Messenger of Allah made compulsory for all Muslims, whether old or young, male or female, free or slave.

The concept of Voluntary Charity (Sadaqa) in Islam

Unlike Zakat, (Sadaqa) is an optional act of charity that is not limited to a specific time or a specific way (materialistic). Therefore, both the rich and the poor can contribute to acts of charity.

Examples of Voluntary Charity (Sadaqa)

There are countless ways to give Sadaqah; to name a few:

1. Making Du’aa for a brother in distress

2. Giving advice or guiding a misguided person.

3. Providing knowledge.

4. Smiling at others. 

5. Removing harmful things from the path of people.

The Prophet said: “Your smiling in the face of your brother is charity, commanding good and forbidding evil is charity, your giving directions to a man lost in the land is charity for you. Your seeing for a man with bad sight is a charity for you, your removal of a rock, a thorn or a bone from the road is charity for you. Your pouring what remains from your bucket into the bucket of your brother is charity for you.” ( Hasan -Good, At-Tirmidhi)

Charity in Islam Hadiths

There are numerous hadiths that show the virtue of charity and urge Muslims to do it. For instance, 

The Prophet (PBUH) said, ‘Shall I not tell you about the gates of goodness? Fasting is a shield, charity extinguishes sins as water extinguishes fire,…”  (Sahih – Authentic, ِAt-Tirmidhi)

The Prophet (PBUH) also said,” Everyday two angels descend down from Heaven. One says: O Allah, repays him for everything he spends. The other says: O Allah, destroy every miser” (Bukhari)

Who is Eligible for Charity in Islam

Zakat is mandatory for every adult Muslim who has surplus wealth left for a whole lunar year while Sadaqa is optional for every Muslim, young or adult, rich or poor, etc…

Who are the eligible recipients of charity in Islam?

ِAs for the eligible recipients of Zakat (obligatory charity), 

There are some specific people that Allah the Almighty asked us to pay Zakat for; they are mentioned in the Holy Qur’an as Allah the Almighty says:

“The obligatory charity shall be only for the poor and the needy, and for those who work to collect it, and to influence hearts (to belief), for ransoming captives, and debtors in the Way of Allah and the destitute traveller. It is an obligation from Allah. Allah is Knowing, Wise.” (Qur’an 9:60)

As for the eligible recipients of Sadaqa (Voluntary charity),

Sadaqa is a desirable and recommended act in Islam that can be performed by any Muslim, for anyone in need (including animals). In a Hadith, Prophet Muhammad (peace be upon him) said:

“If a Muslim plants a tree, or sows a field and men and beasts and birds eat from it, all of it is charity from him“.( Bukhari)

Unlike Zakat, there are no strict rules about who can receive voluntary charity in Islam. In general, it can be given to anyone in need whether Muslim or non-Muslim, including the poor, the needy, the sick, widows, orphans, immigrants, and others. However, one should prioritise those who are in greatest need.

Best Charity in Islam

As mentioned, there are numerous types of charity, some of them have a very high status to be considered the best in reward like: 

1. Feeding hungry people. A man asked the Messenger of Allah (ﷺ): “Which act in Islam is the best?” He (ﷺ) replied, “To give food, and to greet everyone, whether you know or you do not. (Bukhari)

2. Providing potable water for people who can hardly find some, for water is a necessity for life.

3. Giving a relative or a family member in need. 

It is reported that “The Prophet (ﷺ) said, Giving charity to a poor person is charity, and giving charity to a relative is two things: charity and upholding ties of kinship.” (Sahih – Authentic, ِAt-Tirmidhi)

4. Giving charity when you are in good health and have little money, for that assures sincerity. 

Abu Huraira reported: A man came to the Prophet, peace and blessings be upon him, and he said, “O Messenger of Allah, which charity has the greatest reward?” The Prophet said, “That you give charity while you are healthy, greedy, fearing poverty, and hoping to be rich. Do not delay giving until you are on your deathbed, then say it is for such a person. It already belongs to that person.” (Bukhari)

5. Ongoing charity (Sadaqah Jariyah). The ongoing charity is considered the best kind of charity for its benefit continues and lasts for a long time for both the giver and the taker. 

Prophet Muhammad (PBUH) said: “When a man dies, all his good deeds come to an end except three: ongoing charity (Sadaqah Jāriyah), beneficial knowledge, and a righteous son who prays for him.” (Muslim)

Sponsoring an orphan, digging a well, participating in building a school, mosque, or a hospital,…etc are kinds of Sadaqah Jariyah.

Best Etiquettes to Follow When Giving Charity

1. Giving a charity that is in a good condition and the best of what you can. One should not be selfish and just give out shabby or torn out stuff.

Allah says:  “By no means shall you attain righteousness, unless you give of that which you love.” (Qur’an 3:92)

2. Giving consistently, not just one off.

Prophet Muhammad (PBUH) said: “Take up good deeds only as much as you are able, for the best deeds are those done regularly even if they are few.” (Bukhari)

3. Being friendly and kind to the one you give the charity to.

Allah the Almighty says: “ A kind word and forbearance is better than that charity which is followed up by insult or injury. Allah is Self-Sufficient and Forbearing” (2:263)

4. Giving charity in secret not in public for the purpose of splurge or recognition

What is the significance of giving charity in secret in Islam?

  When giving your charity in secret, you save yourself from feeling any pride out of it. Your intention will be pure for the sake of Allah, and your charity remains a secret between you and Allah who will reward you.

Additionally, you will preserve the dignity of the beneficiaries who may feel shy as being the lower hand.

Hadith About Giving Charity in Secret

In a Hadith, Prophet (PBUH) told his companions:

“There are seven whom Allah (subḥānahu wa ta’āla) will shade on the Day of Judgment when there will be no shade except His … A man who gives in charity and hides it, such that his left hand does not know what his right hand gives in charity; and a man who remembered Allah in private and so his eyes shed tears.” (Bukhari)

Benefits of Giving Charity in Islam

There are boundless benefits of giving charity both in the lifetime and the hereafter. We will mention just a few of them.

As for the benefits in the hereafter:

1. It protects the Muslim from the burning sun on the Day of Resurrection. As the charitable Muslim is one of the seven whom Allah will shade on the Day of Judgement.

2. It is a reason for expiating sins.  Prophet Muhammad (PBUH) said, “… Sadaqah extinguishes sin as water extinguishes fire…” (Sahih (Authentic) ِAt-Tirmidhi)

3. It can be the reason for protecting the man from hellfire. Prophet Muhammad (PBUH) said, “Protect yourself from hell-fire even by giving a piece of date as charity…” (Bukhari)

ِAs for the benefits that occur to the man during his life:

1. It protects the Muslim from calamity. One of the Prophet (PBUH) companions said “Give charity without delay, for it stands in the way of calamity.” 

2. It is a cure for illness. Doing acts of charity to be closer to Allah and to be closer to His acceptance are really desirable. You can treat the unwell around you with Sadaqah (Charity).

3. It increases Allah’s grants on the giver. Prophet Muhammad (PBUH) said, “Allah, the Exalted, says, ‘Spend, O son of Adam, and I shall spend on you.’

How does charity purify wealth in Islam?

The literal meaning of the Arabic word “zakat” (obligatory charity) is cleanliness and purification. Muslims undoubtedly believe that paying Zakat and Sadaqa does not only purifies their wealth, it also increases and blesses it.

Allah the Almighty says: “Of their goods, take charity, so that you might purify and sanctify them.” (Qur’an 9:103)

What are the spiritual benefits of giving charity in Islam?”

Charity does not only purify the Muslim’s wealth, it also purifies his soul, as he detaches himself from the worldly materialistic stuff by giving a portion of his wealth to the poor and needy people. Furthermore, charity generates a sense of gratitude to Allah’s blessings when seeing the status of those in need. 

Giving charity helps break down feelings of selfishness and self-centeredness; it promotes a sense of benevolence, kindness, generosity, and humility. All these refined and noble feelings purify and elevate the soul.

How does charity contribute to social justice in Islam?

In fact, being unequal in the economic and social life is a part of Allah’s (The All-Knowing and The All-Wise) scheme whereby He tests and tries the people to know who are righteous and follow His commands and who are disobedient and corrupt. Allah says: “He it is who hath placed you as viceroys of the earth and hath exalted some of you in rank above others, that He may try you by (the test of) that which He hath given you…” (Qur’an 6 :165). So, indeed, having wealth can be a blessing or a curse!

 Islam puts several rules and obligations for the rich so as not to widen the gap between them and the poor. Islam strongly urges its followers to pay obligatory and voluntary charity (Zakat and Sadaqa) in order to ensure social security by providing the poor and the destitute with the basic necessities of life. The balanced distribution of wealth among the rich and poor uplifts the poor and needy and removes social evils.

What is the role of charity in the economic system of Islam?

Charity is one of the main financial tools that Islam uses in the economy to meet the requirements of the society and to bring it to financial stability. It aims to achieve economic power by achieving self-sufficiency, not being subject to others. 

Charity works to achieve economic efficiency and allocate society’s resources according to the real needs of its people. Therefore, the rich Muslims should realise that their wealth could strengthen whole communities.

Conclusion

Prophet Mohammad (PBUH) said “None of you [truly] believes until he loves for his brother that which he loves for himself”(Bukhari). The religion of Islam stresses on the significance of solidarity and fraternity among Muslims. If  Muslims fulfil their charitable duty correctly, they can eliminate poverty in their communities and become a strong Ummah (nation). Thus, never hesitate to help a brother in need.