By:By:ZAKAT AND SADAQAT FOUNDATIONZAKAT AND SADAQAT FOUNDATION

Suit 10, Tafawa BalewaSuit 10, Tafawa Balewa Square, Lagos.Square, Lagos.wwwwww.zakatandsadaqat.org.ngE-mail: E-mail: info@zakatandsadaqat.org.ng

Telephone 234-1-2702204-5Telephone 234-1-2702204-50803 538 2911, 0805 580 48990803 538 2911, 0805 580 4899

(1431 AH RAMADAN) (2010 FASTING)(1431 AH RAMADAN) (2010 FASTING)

AGENDAAGENDA PreamblePreamble Maximizing your Ramadan RewardMaximizing your Ramadan Reward Suggested Activities in RamadanSuggested Activities in Ramadan What is Zakat?What is Zakat? Type of ZakatType of Zakat Condition Governing Payment of ZakatCondition Governing Payment of Zakat Rate of ZakatRate of Zakat AssessmentAssessment CollectionCollection DistributionDistribution Challenges in Collection and DistributionChallenges in Collection and Distribution Benefits of ZakatBenefits of Zakat Questions and AnswerQuestions and Answer

PREAMBLEPREAMBLE All praise is due to Al-mighty Allah, the All praise is due to Al-mighty Allah, the

tireless giver, the provider for all and sundry. tireless giver, the provider for all and sundry. His bounty is infinite. His treasure is His bounty is infinite. His treasure is inexhaustible. The only one, unto whom inexhaustible. The only one, unto whom none is comparable. We beseech his none is comparable. We beseech his blessings upon the noblest creature; the blessings upon the noblest creature; the most generous among the offspring of most generous among the offspring of Adam, Muhammad (S.AW) whose Adam, Muhammad (S.AW) whose charitable act is greater than the wind that charitable act is greater than the wind that distributes rain across the globe. May our distributes rain across the globe. May our lord’s peace, mercy and blessings be upon lord’s peace, mercy and blessings be upon him, his household, companions, and those him, his household, companions, and those who rightly follow him till the Day of who rightly follow him till the Day of ReckoningReckoning..

Maximization of RewardMaximization of Reward

The condition governing maximization of The condition governing maximization of reward in Islam are three:reward in Islam are three:

11 Place at which the act is performedPlace at which the act is performed

22 The virtue of the Performer(Q33v30-32)The virtue of the Performer(Q33v30-32)

33 The time at which the work is The time at which the work is performed(Hadith Ibn Khuzaymah performed(Hadith Ibn Khuzaymah

and Q97)and Q97)

Suggested ActivitiesSuggested Activities Moon sittingMoon sitting TaraweehTaraweeh Qiyam RamadanQiyam Ramadan SaurSaur Five Daily prayers in congregationFive Daily prayers in congregation Special nawafil(Duha,Taobah,Tesbeeh,…and Rawatib)Special nawafil(Duha,Taobah,Tesbeeh,…and Rawatib) Siyam(Fasting)Siyam(Fasting) Quran(Reading, Memorisation,Studying, Reflection)Quran(Reading, Memorisation,Studying, Reflection) Zakat and sadaqatZakat and sadaqat UmrahUmrah Iftarus-Sa’im(Feeding of Fasting Muslim)Iftarus-Sa’im(Feeding of Fasting Muslim) Visitations and exchange of giftVisitations and exchange of gift Duau(Supplications)Duau(Supplications) I’itkaaf(Seclusion)I’itkaaf(Seclusion) Lailatul Quadr(Searching for the Night of Majesty)Lailatul Quadr(Searching for the Night of Majesty) Zakatul FitrZakatul Fitr Salatul eidSalatul eid

ZAKAT DEFINITIONZAKAT DEFINITION

Zakat, Literally, means to purify, to Zakat, Literally, means to purify, to develop, and cause to grow; but develop, and cause to grow; but technically, it is an act of worship technically, it is an act of worship according to which every well to do Muslim according to which every well to do Muslim who posses equal to or exceeding a laid who posses equal to or exceeding a laid down minimum(down minimum(NisabNisab), has to give away, ), has to give away, at the prescribed rate, a portion of it to the at the prescribed rate, a portion of it to the deserving poor and the needy. It is usually deserving poor and the needy. It is usually an annual event and un-debatable third an annual event and un-debatable third pillar of Islam.pillar of Islam.

TYPES OF ZAKATTYPES OF ZAKAT

1 1 ObligatoryObligatoryZakat of Gold and Silver(Money)Zakat of Gold and Silver(Money)Zakat of TradeZakat of TradeLivestockLivestockFarm ProduceFarm Produce

22 Non ObligatoryNon ObligatoryCharitable actsCharitable acts

NB:NB: Zakatul fitrZakatul fitr

Conditions Governing Payment of Conditions Governing Payment of ZakatZakat

Must be MuslimMust be Muslim He must not be a slaveHe must not be a slave Must be matured and sane Must be matured and sane The wealth must be ZakatableThe wealth must be Zakatable Income must be Halal Income must be Halal Must be free of debtMust be free of debt Must be an excess after satisfying the Must be an excess after satisfying the

personal need of the payerpersonal need of the payer Possession of Nisab(Required Minimum Amount = 20 Possession of Nisab(Required Minimum Amount = 20

Dinar=85g of gold= (N278,250) )Dinar=85g of gold= (N278,250) ) The wealth must be invest-ableThe wealth must be invest-able Full control over the wealthFull control over the wealth Duration of a yearDuration of a year

Rates of ZakatRates of ZakatWealth or asset on

which Zakat is payable or on which Zakat will

be determinedMinimum

Possession Rate of Zakat

Gold, Silver or ornaments

85 grams of gold or 595 grams of silver 2.5% of the Value

Cash in hand, Stocks, bonds, trading goods or any other liquid asset

Amount equivalent to 595 grams of silver 2.5% of the amount

Agricultural Produce

5 Wasaqs. (1,200mudds of grains) 653kg per harvest

5% of the produce of irrigated land, 10% in the farm of non-irrigated land7.5% partially irrigated land

Product of mines any amount 20% of the value

Camels 5 camels 1 sheep or goat

Cow 30 cows/40 cows 1 year 0ld cow/A 2 yr old cow

Goats 40 goats 1 goat

Zakat on GoldZakat on Gold

The Gold for occasional use or for rent or The Gold for occasional use or for rent or any commercial use would be Zakatable any commercial use would be Zakatable as long as it is up to 85gm of gold. Though as long as it is up to 85gm of gold. Though some scholars said even those for regular some scholars said even those for regular use are Zakatable as long as they are up use are Zakatable as long as they are up to 85gm of gold, however emphasis to 85gm of gold, however emphasis should be on those kept for occasional use should be on those kept for occasional use and for commercial purposeand for commercial purpose

Zakat on Farm ProduceZakat on Farm Produce Farm Produce are generally Zakatable, particularly those Farm Produce are generally Zakatable, particularly those

in the family of grains;in the family of grains;a.a. All family of maizeAll family of maize b. b. CocoaCocoac.c. Cashew nutCashew nut d.d. Ground nutGround nute.e. Kola nutKola nut f. f. Palm kernelPalm kernelg.g. All types of beansAll types of beans h.h. All types of riceAll types of ricei.i. Guinea cornGuinea corn j.j. MilletMillet

On these grains there are difference of opinion on On these grains there are difference of opinion on weather the curbs or pod be removed before Zakat is weather the curbs or pod be removed before Zakat is calculated or not, however which ever is applied it will be calculated or not, however which ever is applied it will be acceptable. Nisab is 5 Wasaqs.acceptable. Nisab is 5 Wasaqs.

The farmer shall remove 1/3 of his total yield and base The farmer shall remove 1/3 of his total yield and base his Zakat on 2/3 of the remaining his Zakat on 2/3 of the remaining

Zakat on FruitsZakat on Fruits

Fruits includesFruits includesi)i) TomatoesTomatoes ii)ii) PineapplePineapple iii)iii) BananaBananaiv)iv) PawpawPawpaw v)v) Spinach (Efo)Spinach (Efo)vi)vi) Okra (Ila)Okra (Ila) vii) Oranges and the likesvii) Oranges and the likes

Though all of the above were not Zakatable before Though all of the above were not Zakatable before but due to their commercial value now, they were but due to their commercial value now, they were considered to be Zakatable. considered to be Zakatable.

The whole products will be valued and if up to The whole products will be valued and if up to 85gm worth of gold then 2.5% will be paid as Zakat85gm worth of gold then 2.5% will be paid as Zakat

The same ruling goes for poultry farming, snail The same ruling goes for poultry farming, snail

rearing, fishery and rabbit keeping rearing, fishery and rabbit keeping

Zakat on Palm Oil, Honey and MilkZakat on Palm Oil, Honey and Milk

Some scholars agreed that Nisab of honey, groundnut oil Some scholars agreed that Nisab of honey, groundnut oil and palm oil are the same and this is the popular and palm oil are the same and this is the popular opinion. Nisab is 160Ltrs or 653kgopinion. Nisab is 160Ltrs or 653kg

Zakat is 1/10 if on plain ground but 1/20 if on a hill top or Zakat is 1/10 if on plain ground but 1/20 if on a hill top or mountain.mountain.

On milk the source of production of the milk will not be On milk the source of production of the milk will not be Zakatable, but the milk will be Zakatable. Supposing the Zakatable, but the milk will be Zakatable. Supposing the cattle were being reared for sale and at the same time cattle were being reared for sale and at the same time used for milk production then the Nisab will be 85gm of used for milk production then the Nisab will be 85gm of gold of worth of the cattle and the Zakat is 2.5%. But if gold of worth of the cattle and the Zakat is 2.5%. But if the animals are being used for milk production alone the animals are being used for milk production alone then the judgment of honey holds, that is 160Ltrs or then the judgment of honey holds, that is 160Ltrs or 653kg of the milk 653kg of the milk

Zakat on Land and Landed propertyZakat on Land and Landed property

The intention of acquiring a landed property or land is The intention of acquiring a landed property or land is very important and must be verified for Zakat purposevery important and must be verified for Zakat purpose

If the intention for purchase is for private use then Zakat If the intention for purchase is for private use then Zakat will not be paid on it, but if it is for business or will not be paid on it, but if it is for business or commercial purpose then Zakat will be paid. commercial purpose then Zakat will be paid.

However if the intention is not clear or not yet decided by However if the intention is not clear or not yet decided by the owner as to what use the land will be put then no the owner as to what use the land will be put then no Zakat will be paid. Same judgment will hold for Zakat will be paid. Same judgment will hold for equipment.equipment.

The Nisab is 85gm of gold at 2.5%.The Nisab is 85gm of gold at 2.5%.

Zakat on Company, Transportation business Zakat on Company, Transportation business (vehicles, ships and aero-planes) and Artisans(vehicles, ships and aero-planes) and Artisans

Net profit of the company is recommended;Net profit of the company is recommended;if Net profit is up to Nisab, 10% or 5% of the if Net profit is up to Nisab, 10% or 5% of the profit will be taken as Zakat.profit will be taken as Zakat.

There is another opinion that says that the gross There is another opinion that says that the gross assets less total liabilities can also be used;assets less total liabilities can also be used;

if the balance is up to Nisab then 2.5% will be if the balance is up to Nisab then 2.5% will be paid as Zakat. (Fiqh Islamy wa adilatuhu by Dr paid as Zakat. (Fiqh Islamy wa adilatuhu by Dr Wahaba Zuhayli & Fiqh Zakat 2nd Edition pg Wahaba Zuhayli & Fiqh Zakat 2nd Edition pg 479)479)

School (Private)School (Private) Schools are categories into two;Schools are categories into two;

1)1) School for social services (Not Zakatable)School for social services (Not Zakatable)2)2) School for business services (Zakatable)School for business services (Zakatable)

There are schools established for waqf (endowment) which can be There are schools established for waqf (endowment) which can be classified into three types;classified into three types;1)1) Waqf khayr: Here all proceed from the school will be Waqf khayr: Here all proceed from the school will be used used for the work of Allah and other social services and not for for the work of Allah and other social services and not for any any personal benefit, the management of the school must be personal benefit, the management of the school must be

handed over to a Foundation or an organization.handed over to a Foundation or an organization.2)2) Waqf A’ali: The school will be handed over to a particular Waqf A’ali: The school will be handed over to a particular family family for management and for benefit of the family. This may be for management and for benefit of the family. This may be for a for a particular period of time or for ever.particular period of time or for ever.3)3) Waqf khayr & A’ali: This is the combination of the two Waqf khayr & A’ali: This is the combination of the two above.above.

The first type is not Zakatable but the other two are Zakatable. In The first type is not Zakatable but the other two are Zakatable. In waqf A’ali all the profit will be subjected to Zakat while for waqf waqf A’ali all the profit will be subjected to Zakat while for waqf khayr & A’ali the profit element that relates to waqf A’ali alone will be khayr & A’ali the profit element that relates to waqf A’ali alone will be subjected to Zakat and Nisab is 85gm of gold at 2.5%.subjected to Zakat and Nisab is 85gm of gold at 2.5%.

Salary earnerSalary earner Zakat Zakat Any salary earner that will be Zakatable must Any salary earner that will be Zakatable must

have excess of income over his expenditure have excess of income over his expenditure after satisfying his immediate personal needs after satisfying his immediate personal needs also to be considered is cash or its equivalent also to be considered is cash or its equivalent (Share or investment and other related income) (Share or investment and other related income) the left over must be up to Nisab.the left over must be up to Nisab.

If a person gets a very big salary such that what If a person gets a very big salary such that what is left unspent every month is always up to is left unspent every month is always up to Nisab, such a person can choose to pay his Nisab, such a person can choose to pay his Zakat monthly or accumulate it till the end of the Zakat monthly or accumulate it till the end of the year before payment. year before payment.

Also if a person is getting an average salary (say Also if a person is getting an average salary (say N200, 000) and wants to sacrifice some of his N200, 000) and wants to sacrifice some of his needs so as to make him have up to Nisab and needs so as to make him have up to Nisab and make him qualified to pay Zakat the person can make him qualified to pay Zakat the person can be encouraged to do so.be encouraged to do so.

Professional FeeProfessional Fee

If the fee collected is up to Nisab Zakat will If the fee collected is up to Nisab Zakat will be paid on 85gm of gold at 2.5%be paid on 85gm of gold at 2.5%

Zakat on Contract and Gift Zakat on Contract and Gift

On contract Zakat should be paid as soon On contract Zakat should be paid as soon as the money comes in after netting off the as the money comes in after netting off the expenses if up to Nisab then Zakat will be expenses if up to Nisab then Zakat will be paid on 85gm of gold at 2.5%paid on 85gm of gold at 2.5%

Any gift(s) up to Nisab of 85gm of gold and Any gift(s) up to Nisab of 85gm of gold and no debt on the beneficiary then Zakat to be no debt on the beneficiary then Zakat to be paid immediately at 2.5%paid immediately at 2.5%

The same goes for arrears of salary, ester-The same goes for arrears of salary, ester-code, bonuses, and allowances and so on.code, bonuses, and allowances and so on.

Zakat on Rental BusinessZakat on Rental Business

If the income from the rent or any rental If the income from the rent or any rental business is up to Nisab then Zakat will be business is up to Nisab then Zakat will be paid on it at 2.5%paid on it at 2.5%

Zakat on Stocks(Shares)Zakat on Stocks(Shares)

It was agreed that the dividend on the It was agreed that the dividend on the shares and the shares value should be shares and the shares value should be added together and if up to Nisab of 85gm added together and if up to Nisab of 85gm of gold Zakat will be paid at 2.5%. But if of gold Zakat will be paid at 2.5%. But if not, it may be added to other income for not, it may be added to other income for Zakat. If the share is the only means of Zakat. If the share is the only means of livelihood then his expenses must be livelihood then his expenses must be deducted before Zakat will be due on such deducted before Zakat will be due on such a person.a person.

LIMITATION ON ZAKAT ITEMSLIMITATION ON ZAKAT ITEMS

According to Imam Ibn Hazm in his book Al-According to Imam Ibn Hazm in his book Al-Mahalla;Mahalla;

Zakat items are limited to eight items;Zakat items are limited to eight items; Camel, Cow, Sheep/Goat, Wheat, Grains, Camel, Cow, Sheep/Goat, Wheat, Grains,

dates, Gold and Silver.dates, Gold and Silver.

Also Imam Shaokani , Sadie Hassan Khan Also Imam Shaokani , Sadie Hassan Khan sahare same. This opinion is however sahare same. This opinion is however myopic, however Imam Abu Hanifah myopic, however Imam Abu Hanifah expanded this scope via these principles. expanded this scope via these principles.

CONTINUATION CONTINUATION Zakat is collectible from all legitimate growing Zakat is collectible from all legitimate growing

earning irrespective of time and place, he proved earning irrespective of time and place, he proved this by saying;this by saying;

Umar included Zakat collection on horse.Umar included Zakat collection on horse. Imam Ahmad Ibn Ambali collected Zakat on Imam Ahmad Ibn Ambali collected Zakat on

honey and minerals.honey and minerals. Imam Zuhri, Hasan Al-Basri and Abu Yusuf, Imam Zuhri, Hasan Al-Basri and Abu Yusuf,

obliged Zakat on sea minerals such as jewelries obliged Zakat on sea minerals such as jewelries e.t.c.e.t.c.

Imam Shafi’i added to Zakatul Fitr “Most Imam Shafi’i added to Zakatul Fitr “Most common food in an area”. common food in an area”.

CollectionCollection Khudh min Amwalihim Sodaqah…(Q9v103)Khudh min Amwalihim Sodaqah…(Q9v103) Prophet appointed Collectors (Maud bin Jabal, Prophet appointed Collectors (Maud bin Jabal,

Abu Hurayra,…)Abu Hurayra,…) The Qualities of a Zakat workers (Collectors):-The Qualities of a Zakat workers (Collectors):-

1.                  Knowledgeable 1.                  Knowledgeable 2.                  Trustworthiness / piety.2.                  Trustworthiness / piety.3.                  Humility3.                  Humility4.                  kindness / subtleness4.                  kindness / subtleness5.                  Truthfulness5.                  Truthfulness6.                  Good human relation6.                  Good human relation7.                  Self confidence7.                  Self confidence8.                  Dynamism8.                  Dynamism9.                  Innovation9.                  Innovation10.10. Contentment Contentment

Set up Baitul mal (Treasury)Set up Baitul mal (Treasury) Keeping proper records(Accountability)Keeping proper records(Accountability)

DistributionDistribution

Innama sodaqaatu lilifuqaraa…(Q9v60)Innama sodaqaatu lilifuqaraa…(Q9v60)11 The poorThe poor22 NeedyNeedy33 Zakat workersZakat workers44 Converts in the makingConverts in the making55 DebtorsDebtors66 Those in slaveryThose in slavery77 WayfarersWayfarers88 FiseebililahFiseebililah

Zakat Challenges Zakat Challenges Payers AttitudesPayers Attitudes

ConfidentialityConfidentialityEvaders of Zakat Evaders of Zakat No record keepingNo record keepingMisunderstandingMisunderstanding

Procrastination etcProcrastination etc Beneficiary AttitudesBeneficiary Attitudes

ConfidentialityConfidentialityNot ready to be identified as recipientsNot ready to be identified as recipientsNot having a grantorNot having a grantorNot ready to comply with proceduresNot ready to comply with proceduresNo identity cardNo identity card

ADVISEADVISE

Let us revive the Islamic era of Abubakri, Let us revive the Islamic era of Abubakri, Umar (I) and Umar (II).Umar (I) and Umar (II).

Do not exhibit the behaviour Qaroon and Do not exhibit the behaviour Qaroon and the Owners of the garden. (Q28 VS 76-83) the Owners of the garden. (Q28 VS 76-83) and (Q68 VS 17-33) and (Q68 VS 17-33)

BENEFITS OF ZAKATBENEFITS OF ZAKAT It cleanses off your sinsIt cleanses off your sins It’s a means of economic empowermentIt’s a means of economic empowerment It’s a means of keeping the family ties togetherIt’s a means of keeping the family ties together Increase in WealthIncrease in Wealth BroadcastingBroadcasting of of ALLAH’s loveALLAH’s love Relief for the poor and NeedyRelief for the poor and Needy Provision of InfrastructuresProvision of Infrastructures Protection against disastersProtection against disasters It sanitizes the society from immoralities and vicesIt sanitizes the society from immoralities and vices Facilitate smooth spread of IslamFacilitate smooth spread of Islam Divine assistance from ALLAHDivine assistance from ALLAH Safety from hellfireSafety from hellfire Assurance of entering paradiseAssurance of entering paradise

ConclusionConclusion

Prophetic prayers for Zakat Payers:Prophetic prayers for Zakat Payers:

Baaraka Llahu Feema A’atoetumBaaraka Llahu Feema A’atoetum

Wabaraka Llahu Feema Abqaetum.Wabaraka Llahu Feema Abqaetum.

(May Allah bless what you have given out (May Allah bless what you have given out and may He bless what remains)and may He bless what remains)

Thanks for your rapt attention. May God Thanks for your rapt attention. May God bless you All.bless you All.

Alhamdu Lillahi Rabbil Aalamin.Alhamdu Lillahi Rabbil Aalamin.

Bank AccountsBank AccountsAccount name: Zakat and Sadaqat FoundationAccount name: Zakat and Sadaqat Foundation

Zakat Account Zakat Account

Intercontinental Bank Plc. Jibowu, Lagos.Intercontinental Bank Plc. Jibowu, Lagos.

A/c No.: 0095 00100 0000 903A/c No.: 0095 00100 0000 903

Sadaqat AccountSadaqat Account

GTBank Plc, Onipanu, LagosGTBank Plc, Onipanu, Lagos

A/c No.: 235 222 428 110A/c No.: 235 222 428 110