Quran:
“O you who believe! Spend of the good things which you (legally) earned, and of that which We have produced from the earth for you…” (Al-Baqarah: Verse 267).
Hadith:
“(The superstructure of) Islam is raised on five (pillars): to utter an attestation of faith, performance of prayer, payment of Zakat, fast of Ramadan and pilgrimage (to Makkah).” (Narrated by Ibnu Umar R.A.).
Beneficiaries Of Zakat (ASNAF)
Unlike normal charity (sadaqah), the recipients of Zakat have been specified by Allah (S.W.T) in the Holy Al-Quran, Surah Al-Taubah, verse 60.
“Zakat is for the poor and the needy, and amil (those employed to administer the funds), for the muallaf (those who have embraced Islam), for those in bondage and in debt, those who strive in the cause of Allah and for the wayfarer; (thus it is) ordained by Allah and Allah is full of knowledge and wisdom.”
Fakir
One who has neither material possession nor means of livelihood; one who suffers, and has no means to sustain his/her daily needs.
Miskin
One who has insufficient means of livelihood to meet his/her basic needs.
Zakat disbursement to the poor & needy includes:
- Monthly financial assistance (FA)
- Muis empowerment programmes
- Special assistance during Ramadan for Muslim residents community homes/public assistance recipients
- Supportive programme grants to organisations
Applications are open to poor and needy Muslims who are Singapore Citizens or Permanent Residents who fall within the following categories:
- Single parent: widow or divorcee in need
- Breadwinner in prison or DRC
- Breadwinner or family members incurring high medical bills due to: (a) chronic illness e.g. kidney failure, cancer. (b) mental/physical disability
- Insufficient household income due to large number of dependants
Amil
One who is appointed to collect Zakat and the expenses incurred in the administration of Zakat. Disbursement to Amil includes:
- Administration cost
- Training cost
Muallaf
One who recently embraced Islam. Disbursement to Muallaf includes:
- Grant to Darul Arqam to administer the affairs of new Muslim converts
Riqab
One who is freeing himself/herself from the bondage or shackles of slavery. In Singapore, this category refers to those who need some assistance to pursue their education, usually children of zakat recipients. Disbursement for Riqab includes:
- Education grants for needy families
Gharimin
One who is in debt and needs assistance to meet his/her basic needs. Disbursement for Gharimin includes:
- Assistance for outstanding basic necessities bills e.g. utilities bills and service and conservancy charges
Fisabilillah
One who strives in the cause of Allah for the betterment of the community. Disbursement to Fisabilillah includes:
- Religious programmes
- Mosque leadership and management
- Madrasah development and assistance
- Youth development and engagement
- Dakwah and public education
- Islamic education
- Asatizah development
- Community development
Ibnussabil
Stranded travellers on a permissible journey. Disbursement to Ibnussabil includes:
- Financial assistance
- Food assistance
- Return air ticket to home country
Why Pay To NSWCWMA
Responsibility of Zakat
The distribution of zakat is not the responsibility of the individual, but it falls upon the authority that is tasked with the matters of Islam in a Muslim community. This was a practice by Rasulullah s.a.w and subsequently khalifahs, who appointed zakat officers to administer and manage the zakat system during their respective eras.
In Dubbo, NSWCWMA is the organization which is established for the welfare of the Islamic community around Central West of NSW, including the administration and management of the zakat system.
The NSWCWMA elected committee will take the responsibility of collecting the Zakakat from the community from who is happy to hand his/her Zakat and will distribute them for the eligible who are in needy to it and will provide guidance and feedback on it.
Transparency
Transparency is an important component in the administration of Zakat by NSWCWMA. Zakat collection and disbursement reports will be audited by qualified auditors and are made known annually to the Community at the Annual General Meeting. This report is available for the public and can be found in NSWCWMA Annual Report at www.nswcwma.com.au.
Assured and Objective Disbursement
Zakat should be disbursed to the eight eligible type of people which are entitled to receive Zakat. This is in accordance with the Syari’ah law in Surah At-Taubah verse 60. InsyaAllah, NSWCWMA is capable of disbursing your Zakat to all eight eligible types so that those who receive your Zakat contribution are the rightful recipients.
Easy Payment Methods
There are three main ways for you to fulfil your Zakat contribution through NSWCWMA as follows:
- Paying in person in cash and have your receipt to acknowledge your payment at Dubbo Mosque.
- Paying online to NSWCWMA Bank account.
- 24 hours through the internet via eNets Debit once a time or through monthly installments.
Reduction of Income Tax with Zakat
NSWCWMA will apply with NSW/Commonwealth government to allow for who are paying any donation to be tax deductible against the contributor’s and will inform community at the outcomes when approval is confirmed.
Top 5 Most Popular FAQs
Zakat Matters
1. Who is eligible to pay zakat?
The conditions to be eligible for fulfilment of Zakat are:
- Muslim.
- Full ownership of the wealth.
- Nisab is reached: Nisab is the market value of 86 grams of gold.
- Haul is reached: Possession of the assets for one Hijrah year or 355 days.
2. Which day of the month should I take to calculate my Zakat on Savings? Every end of the month? During payday? Every start of Islamic month?
Zakat on Savings is based on 2.5% of the lowest savings balance in a haul which is 355 Gregorian calendar days. This period of 355 days is different for each individual and does not have to be from pay day to pay day, Ramadan to Ramadan, or Jan to Dec. If for example your haul is from Feb to Jan the following year, the Zakat will be based on 2.5% of the lowest balance that you have from Feb to Jan. The haul is determined by the nisab value. If in one year, your savings balance does not fall below the nisab value, then you have the haul in existence. If at any point in time your savings balance drops below the nisab, there is no haul. So for some people, they do not have to pay Zakat as their haul is always broken and never completes a full Hijrah year. The nisab value, which is used to determine if there is a haul, is the nisab value at the end of the 355 days period.
3. I am enquiring on Zakat on Income. Do we have to pay Zakat on our monthly salary?
Zakat on Salary or Income is not obligatory as currently, there is not a fatwa on such an obligation. It is on saving that reaches the Nisab and you have that value of Nisab for one haul.
4. Can one pay zakat using interest monies?
Interest monies are considered syubhah (doubtfu) and cannot be used for personal expenses. Therefore, it is not permissible to be used to pay one’s zakat obligation.
5. I have a life insurance, health insurance and home protection insurance. Do I have to pay Zakat for all these insurance or only on the life insurance?
Currently, Zakat on Insurance is only applicable for Insurance in the form of savings endowment – where the intention is to grow the wealth in savings. Hence for your situation, there is no Zakat for all 3 of your insurance plans.
Calculate Your Zakat
(Each of the following should have its own window for calculation and payment). I will provide the mathematical format for each page later when the website is under construction.