Zakat



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Zakat



What is Zakat?

Obligatory Charity

The third pillar of Islam and a means of purifying one’s assets through offering charity is called Zakat. The Prophet Muhammad (PBUH) said, “Giving Zakat wipes away sins just as water extinguishes fire.” Allah has made giving charity an obligation for the believers to protect the vulnerable and needy in our society as well as rewarding the one paying Zakat. This act of selflessly spending in the way of Allah is one of His most loved gestures and brings a person closer to his Creator.

An Act of Giving

Offer Your Zakat Today

Millions of people around the world count on us to help sustain life. HHRD’s commitment to serving humanity needs your support to help orphans, provide young adults and children with quality education, brace widows, supply clean water, help build shelters for refugees, and much more. Zakat given to Helping Hand USA is distributed to those who need it most, in accordance with Islamic guidelines, and funds to support numerous projects worldwide. Your Zakat has the power to transform futures! Help save a life and strengthen your imaan.

 

Your Zakat payments allow Helping Hand USA to help those who need it the most. These funds go towards supporting HHRD’s various programs such as:

Skills Development & Livelihood Program
Orphan Development Program
 
Education Support Program
Water for Life
 
In-Kind Gifts
Children with Disabilities Program
 

Helping Hand USA utilizes minimal percentage of donations for administrative and operational purposes.

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Frequently Asked Questions

01. Who is obligated to pay Zakat, and how is it calculated?

Every Muslim adult who possesses wealth above the Nisab threshold (85 grams of gold or 595 grams of silver) for one full lunar year is required to pay Zakat. The standard rate is 2.5% of total Zakatable assets, which include cash, gold, silver, stocks, and business inventory.

02. Can Zakat funds cover administrative expenses?

Yes, but only within Islamic guidelines. The Quran states:
“Zakat is for the poor, the needy, those who work to administer it...” (Surah At-Tawbah 9:60)
At HHRD, we ensure that
• Only essential costs (such as processing, audits, and distribution) are covered.
• Expenses remain minimal to maximize aid for beneficiaries.
• Transparency is maintained through detailed reports for donors.

03. Can Zakat be used for Disaster Relief & Emergency Programs?

Yes, but only for Muslims. Zakat can be used to provide food, water, shelter, and medical aid for Muslim refugees and
disaster victims. General Sadaqah is recommended for non-Muslim beneficiaries, with Zakat used only when
alternative funds are unavailable.

04. Is the Orphan Support Program (OSP) Zakat eligible?

Yes, Zakat can be used to support orphans by covering their education, healthcare, food, and basic living expenses. Funds should be directed toward essential services rather than given as cash payments. If an orphan has a non-Muslim guardian, measures should be taken to ensure
the funds are used appropriately.

05. Can Zakat be used for the Education Support Program (ESP)?

Yes, but only for Muslim students. Zakat can fund tuition, school supplies, and scholarships for students in need.
Payments should go directly to educational institutions to ensure proper use. Sadaqah is recommended for supporting non-Muslim students.

06. Can Zakat be used for Livelihood and Skills Development Programs?

Yes, Zakat can support financially struggling individuals by providing vocational training and small business assistance. These programs empower widows, orphans, and unemployed individuals to become self-sufficient.

07. Can Zakat be used for Healthcare and Medical Assistance?

Yes, Zakat funds can cover medical expenses, surgeries, rehabilitation, prosthetics, and medicines for those who cannot afford healthcare. This support ensures access to essential treatment and improves the well-being of recipients.

08. Can Zakat be used for Water and Sanitation (WASH) Projects?

Yes, if the project directly benefits Zakat-eligible individuals. Water wells, sanitation facilities, and hygiene programs are considered essential services, especially in impoverished communities. Public infrastructure must prioritize the needs of the poor.

09. Is the Youth Empowerment Program (YEP) eligible for Zakat?

Yes, if the youth being supported are financially in need. Zakat can fund leadership training, mentorship, and internship programs for underprivileged Muslim youth. Payments should be structured as sponsorships rather than salaries.

10. Can Zakat be used for Public Advocacy & Social Justice Programs?

Yes, if the advocacy efforts directly benefit Zakat-eligible recipients. Legal aid, policy advocacy, and public awareness campaigns supporting the rights of disadvantaged Muslims can be funded through Zakat.

11.
Can Zakat be used for Seasonal Programs like Ramadan food, Eid, and winter relief?

Yes, Zakat can be allocated for Ramadan food packages, Eid-ul-Fitr meals, and winter provisions for the poor. However, it cannot be used for Qurbani (Eid-ul-Adha sacrifice), which should be funded through general donations.

12. Can Zakat be used for Shelter Relief Program?

Yes, if the project provides direct relief to Zakat-eligible individuals. Building homes and shelters for displaced or impoverished Muslims qualifies for Zakat, while general public infrastructure projects must prioritize the poor to remain eligible.

13.
How do I calculate Zakat on my 401(k), IRA, and retirement accounts?

Zakat on retirement accounts depends on accessibility:
Traditional 401(k)/IRA: Since funds are not immediately accessible without penalty before retirement age, Zakat is due only on the portion you can withdraw penalty-free. Some scholars recommend paying Zakat yearly on the full amount, deducting penalties and taxes.
Roth 401(k)/IRA: Since taxes are already paid, the entire amount is Zakatable if it exceeds the Nisab threshold.
A general approach is to calculate 2.5% on the accessible portion or pay in full if you prefer to fulfill your obligation annually.

14. Do I have to pay Zakat on stocks and investments?

Yes, if stocks are purchased for investment purposes, they are Zakatable. Here’s how to calculate: For long-term stocks: Pay 2.5% of the market value of the stocks held at your Zakat due date. For short-term trading stocks: Pay 2.5% on the full value, as they are considered similar to business inventory.
For dividends received: These are added to your cash holdings, and Zakat is paid on them if they remain in your possession for a year.

15.
Is Zakat due on real estate and rental properties?

Primary residence: No Zakat is required on the house you live in. Rental properties: Zakat is due on rental income (after deducting necessary expenses), but not on the property itself unless it is purchased for resale. Investment properties for resale: Zakat is due on the market value of the property.

16. Can I pay Zakat in installments?

Yes. While Zakat is due once a year, you can pre-pay in monthly or quarterly installments to make it more manageable. Many people automate their Zakat payments through HHRD’s online donation platform.

17.
Can I use Zakat to pay off someone’s student loans or medical bills?

Yes, if the recipient qualifies as a debtor (Gharimeen) under Zakat eligibility. The person must be struggling financially, meaning they do not have wealth above the Nisab threshold after covering their basic living expenses.

18. Can I give Zakat to family members?

Yes, but with conditions: Allowed: Siblings, uncles, aunts, cousins, distant relatives, in-laws, etc. Not Allowed: Parents, grandparents, children, and grandchildren (since you are financially responsible for them). Spouses: A husband cannot give Zakat to his wife, but a wife can give Zakat to her husband if he qualifies as financially needy.

19.
Can I give Zakat to someone in debt even if they are not “poor” by traditional standards?

Zakat should only be given to those genuinely struggling financially. If debt prevents someone from meeting their basic needs, they may qualify for Zakat. If someone owns significant assets or wealth but took loans for business expansion, they do not qualify. Zakat is meant for those who cannot make ends meet and have debts they truly cannot repay. This ensures that wealthy individuals do not manipulate the system while maintaining a high standard of living.

20.
How does Zakat apply to cryptocurrency like Bitcoin and Ethereum?

Cryptocurrency is treated like cash or stocks for Zakat purposes: If held for one full lunar year and above Nisab, 2.5% of the market value is due. For active traders: Zakat is due on the entire portfolio. For long-term holders: Zakat is due on the total current value at the time of calculation.

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