Alhamdulillah, Manzil recently hosted a powerful and educational webinar on Zakat with Mufti Mirza-Zain, Internal Shariah Auditor at Manzil and Co-Founder of the Canadian Centre for Islamic Research & Iftaa. With Ramadan’s final 10 nights upon us, the importance of giving Zakat has never been greater.

In case you missed it—or need a refresher—here’s a comprehensive recap of the key insights covered.

🕋 What Is Zakat?

Zakat literally means “to purify” and “to grow.” It’s not just a charitable donation, but an obligatory act of worship that purifies one’s wealth and soul. It is the third pillar of Islam, mentioned 32 times in the Qur’an, often alongside Salah.

💸 Defining Zakat in Practice

Zakat is:

• The unconditional transfer of ownership

• A prescribed amount (2.5%) of specific wealth

• Given to eligible recipients as outlined in the Qur’an

• Done with intentionality

🎯 Objectives of Zakat

1. Obeying Allah’s Command – the act itself is a direct submission to Allah (SWT).

2. Redistribution of Wealth – ensures wealth doesn’t concentrate among the wealthy.

3. Purification from Greed – it helps cleanse the heart of attachment to wealth.

4. Supporting the Needy – it uplifts those struggling financially.

5. Circulation of Wealth – fuels community and economic balance.

💼 Who Pays Zakat?

Zakat is obligatory on:

• Adult Muslims (Baaligh & Sane)

• Those who possess the Nisab threshold (minimum wealth) for one lunar year

The Nisab today is commonly calculated using either:

• 612.36g of Silver – preferred for maximizing beneficiaries

• 87.48g of Gold

📊 Zakat on Different Assets

Zakatable Assets:

• Cash, gold/silver (including jewelry)

• Business inventory

• Investments (stocks, crypto, funds)

• Real estate (if purchased for resale)

Non-Zakatable Assets:

• Personal use property

• Electronics, vehicles, and home furniture

Investments:

• Traders pay Zakat on full market value

• Long-term investors use a 25% proxy rule of the portfolio value, based on studies by Mufti Faraz Adam.

Manzil Investments:

• Zakat applies based on the type of holding (e.g. mortgage fund units, ETFs, REITs, etc.) and whether it's a long-term or short-term investment

• Zakat is not paid on CPP or funds you cannot access

🧮 How to Calculate Zakat

1. Total your Zakatable assets

2. Subtract eligible liabilities

3. Multiply the net amount by 2.5%

Use Manzil's Zakat calculator

Zakat becomes obligatory annually from the date you first meet the Nisab threshold. It is important to:

• Set a specific date (e.g. 1st of Sha’ban)

• Pay within a year to avoid sin

• Make niyyah (intention) at the time of giving

👫 Who Can Receive Zakat?

To ensure it’s valid, give Zakat to:

• The poor (fuqara) and needy (masakeen)

• Debtors who can’t repay what they owe

⚠️ You cannot give Zakat to:

• Masjid building projects

• Your spouse, parents, children

• Non-Muslims

• Sayyids (descendants of the Prophet ﷺ)

Mufti Mirza-Zain emphasized giving to those closest to you, starting with local family and community members.

💬 Final Takeaway

Zakat is more than a number—it's a spiritual responsibility with real-world impact. The best way to fulfill it is by:

• Calculating carefully

• Intending sincerely

• Giving responsibly

May Allah accept our Zakat this Ramadan and purify our wealth. Ameen.

Need help calculating your Zakat? Visit manzil.ca/zakat