Charity is central to the Islamic faith. The Qur’an and the Hadith encourage Muslims to be charitable and generous. There are two forms of charities in Islam. While Zakat is mandatory for eligible Muslims, Sadaqah is a voluntary charity that promises many rewards in the afterlife.

The major difference between the two is that Zakat is a mandatory annual donation for eligible Muslims, whereas Sadaqah is non-obligatory but strongly encouraged. While Zakat is fixed at 2.5% on qualifying wealth, any amount of Sadaqah can be given.

Another important difference is that Zakat can be given only to specified categories of people, while Sadaqah may be given to anyone in need, including non-Muslims. Moreover, Zakat is purely monetary, while Sadaqah also has a non-monetary form that encourages Muslims to improve the behavioral aspects of their lives. Despite their differences, both forms of charity are integral to the Islamic way of life, as they promote the worship of Allah (SWT) and guide believers in building community. 

What is Zakat & Why is it Mandatory?

Zakat is widely recognized as the third pillar of Islam and one of the most important ways of worshipping Allah (SWT). It is widely practised in the Muslim world, and according to a UNDP study, the potential contribution of Zakat may range from US$200 billion to US$1 trillion. If collected, managed, and spent in an organized manner, this amount could change the lives of numerous families around the world.

Zakat is declared mandatory for eligible Muslims who own wealth equal to or greater than the nisab value. The nisab value is equal to 612.36 grams of silver or 87.48 grams of Gold. Most Islamic scholars recommend calculating nisab equal to its silver equivalent. 

Hence, Muslims who have possessions equal to or greater than the nisab value of 612.36 grams of silver must pay 2.5% of their wealth as Zakat. Zakat must be given each year. When calculating your Zakat obligations, remember to use the Islamic lunar calendar.

The Qur’an clearly states that giving Zakat is obligatory:

“And establish prayer and give zakah, and whatever good you put forward for yourselves – you will find it with Allah. Indeed, Allah of what you do, is Seeing.” (Surat Al-Baqarah, 2:110)

Zakat Purifies Wealth

Islam has a great focus on purification, both of the body and the soul. Purifying our wealth is equally important. Zakat purifies wealth, according to the following Qur’anic verses:

“Take, [O, Muhammad], from their wealth a charity by which you purify them and cause them increase, and invoke [ Allah ‘s blessings] upon them. Indeed, your invocations are reassurance for them. And Allah is Hearing and Knowing.” (Surat At-Tawbah, 9:103)

The following Hadith further explains how Zakat helps purify wealth:

Narrated Khalid bin Aslam: We went out with ‘Abdullah bin ‘Umar and a bedouin said (to ‘Abdullah), “Tell me about Allah’s saying: “And those who hoard up gold and silver (Al-Kanz – money, gold, silver etc., the Zakat of which has not been paid) and spend it not in the Way of Allah (V.9: 34).” Ibn ‘Umar said, “Whoever hoarded them and did not pay the Zakat thereof, then woe to him. But these holy Verses were revealed before the Verses of Zakat. So when the Verses of Zakat were revealed, Allah made Zakat a purifier of the property.” (Sahih al-Bukhari, 1404)

Zakat Only Purifies Wealth Earned Through Rightful Means

According to the following Hadith, one of the first questions asked of us will be regarding how we earned our wealth:

Abu Barzah Al-Aslami narrated that the Messenger of Allah (s.a.w) said: “The feet of the slave of Allah shall not move [on the Day of Judgement] until he is asked about five things: about his life and what he did with it, about his knowledge and what he did with it, about his wealth and how he earned it and where he spent it on, about his body and for what did he wear it out.” (Jami` at-Tirmidhi,  2417)

There, we must be mindful that Islam strictly forbids believers to adopt Haraam or illegal means of earning wealth. Wealth earned through such means doesn’t get purified, no matter how much of it is spent on helping others.

Zakat Mitigates Greed

For believers, the ultimate goal is to succeed in the afterlife. Wealth and power can corrupt anyone. The Qur’an says:

“And you love wealth with immense love.” (Surat Al-Fajr , 89:20)

Similarly, Hadiths also warn us about the dangers of greed:

The Messenger of Allah (ﷺ) said: “Two wolves free among sheep are no more destructive to them than a man’s desire for wealth and honor is to his religion.” (Jami` at-Tirmidhi, 2376)

That is why it is important to keep a distance from the allure of money and power and learn to share our good fortune with others. The Qur’an tells us:

“Never will you attain the good [reward] until you spend [in the way of Allah ] from that which you love. And whatever you spend – indeed, Allah is Knowing of it.” (Surat ‘Āli `Imrān, 3:93)

What is Sadaqah & Why is It Important?

Unlike Zakat, Sadaqah is voluntary giving. Believers are encouraged to give Sadaqah, as it represents a charitable way of life recommended by Islam. Following the Sunnah of the Prophet (ﷺ) is every Muslim’s duty. The Prophet’s (ﷺ) compassion and kindness knew no bounds. He was very charitable. Therefore, by regularly giving Sadaqah, we follow the Sunnah and please Allah (SWT). 

Rewards in the Afterlife

Sadaqah holds great significance and offers many spiritual benefits. It is a great investment for the afterlife. The Qur’an tells us:

“Indeed, the men who practice charity and the women who practice charity and [they who] have loaned Allah a goodly loan – it will be multiplied for them, and they will have a noble reward.” (Surat Al-Ĥadīd, 57: 18)

In another place, the Qur’an further elaborates the power of charity:

“The example of those who spend their wealth in the way of Allah is like a seed [of grain] which grows seven spikes; in each spike is a hundred grains. And Allah multiplies [His reward] for whom He wills. And Allah is all-Encompassing and Knowing.” (Surat Al-Baqarah, 2:261)

How Sadaqah Increases Wealth

Instead of decreasing wealth, Sadaqah’s spiritual blessings only increase the giver’s honor, spiritual ranks, and wealth: The following Hadith assures the Sadaqah-givers:

Abu Huraira reported Allah’s Messenger (ﷺ) as saying: Charity does not decrease wealth, no one forgives another except that Allah increases his honor, and no one humbles himself for the sake of Allah except that Allah raises his status. (Sahih Muslim, 2588)

Sadaqah Protects Against Calamities

Human lives are full of challenges. Allah (SWT) loves those who take on those challenges with patience, bravery, and determination. Sadaqah can help believers overcome extreme challenges, according to the following Hadith:

“‘Ali reported God’s messenger as saying, “Give the sadaqa without delay, for it stands in the way of calamity.”*

Razln transmitted it.

* The idea is that it acts as a barrier beyond which calamity cannot pass.” (Mishkat al-Masabih,  1887)

Non-monetary Form of Sadaqah

This is one of the major differences between Zakat and Sadaqah. The latter is not always monetary. Smiling, keeping a calm countenance, giving useful advice, sharing knowledge, helping people, visiting and asking after the ill, reconciling between parties, and even removing a harmful object from a path are all forms of Sadaqah.

The Power of Sadaqah Jariya 

When a believer’s time in this life is over, most of their deeds end, and so does their opportunity to earn spiritual rewards. However, Sadaqa Jariya allows them to keep earning spiritual rewards, even after their death. While we are alive and in good health, we must spend our time and wealth building ways that yield continuous spiritual rewards, even after our departure. Sadaqah Jairyah allows us to do that.

 The Prophet (ﷺ) said: “When a man dies, all his good deeds come to an end except three: Ongoing charity (Sadaqah Jariyah), beneficial knowledge, and a righteous son who prays for him.” (Sunan an-Nasa’I, 3651)

Some of the ways of giving Sadaqah Jariya are as follows:

• Building Mosques
• Facilitate people with copies of the Qur’an
• Giving access to clean water sources to the public
• Supporting orphans
• Planting trees 
• Transforming knowledge

Differences Between Zakat & Sadaqah

The following are some of the differences between Zakat and Sadaqah

• Zakat is an annual obligation that must be fulfilled by Muslims having wealth equal to or greater than the nisab value. Sadaqa is completely voluntary. 
• Zakat is given annually, while Sadaqah can be given at any time.
• Zakat is exactly equal to 2.5% of the qualified wealth, while Sadaqah isn’t fixed.
• Zakat can be given only to the eight categories defined in the Qur’an, whereas Sadaqah has a much broader scope.
• Zakat is purely monetary, while Sadaqah has a non-monetary form.

A Note on Other Forms of Islamic Donations

Besides Zakat and Sadaqah, Islam also recognizes other forms of charitable giving for different purposes. Fidya, Kaffarah, and Qurbani contributions are given at different times and have different eligibility criteria. However, they are all based on the Islamic values of compassion, social responsibility, and social harmony.

Support Transparent Hands with Your Zakat, Sadaqah, and Other Donations

The Qur’an clearly states that saving one life is equivalent to saving the entire humanity. With Zakat, Sadaqah, and other donations, you can not only save lives but also uplift the communities that need your assistance to live healthy lives.

Healthcare is a pressing issue in Pakistan. Transparent Hands is one of Pakistan’s top crowdfunding platforms, having helped over 270,000 patients since 2014. We run a robust maternal and child health program that has assisted thousands of young women and their children. We also support a range of surgeries and medical procedures for deserving patients. One of our hallmark features is organizing medical camps in low-income areas, where our expert doctors and paramedics provide free medical checkups, medicines, and diagnostic tests.

With your Zakat, Sadaqah, and other donations, we will be able to reach many more needy patients and share your message of hope. We are Shariah-compliant; therefore, you can donate your Zakat, Sadaqah, and other donations to us without hesitation.

Donate to Transparent Hands now!