Zakat in Practice (part 3)

[Introduction: This series is a sharing on zakat from the perspective of a financial planner. It is hoped to be educational, informative as well as practical to help readers better understand Zakat, especially Zakat on Wealth, as a Muslim in Singapore.

Topics to include: Zakat on Investment, Zakat on Savings, and Zakat on Estate.]

[Previously: Zakat in Practice (part 2) ]

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Do you know that in many instances in the Quran, zakat is referred by Allah as sadaqat?

إِنَّمَا الصَّدَقٰتُ لِلفُقَراءِ وَالمَسٰكينِ وَالعٰمِلينَ عَلَيها وَالمُؤَلَّفَةِ قُلوبُهُم وَفِى الرِّقابِ وَالغٰرِمينَ وَفى سَبيلِ اللَّهِ وَابنِ السَّبيلِ ۖ فَريضَةً مِنَ اللَّهِ ۗ وَاللَّهُ عَليمٌ حَكيمٌ

The alms are only for the poor and the needy, and those who collect them, and those whose hearts are to be reconciled, and to free the captives and the debtors, and for the cause of Allah, and (for) the wayfarers; a duty imposed by Allah. Allah is knower, Wise.

Quran 9: 60

Although sadaqat is used, it’s not referring to charity in general but zakat specifically.

Hence, sometimes it is said:

“Zakat is compulsory charity, Sadaqah is voluntary zakat.”

(To be continued)