Manzil x UNHCR Canada

Manzil has officially partnered with UNHCR's Refugee Zakat Fund for Zakat Donations.

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إِنَّمَا الصَّدَقَاتُ لِلْفُقَرَاءِ وَالْمَسَاكِينِ وَالْعَامِلِينَ عَلَيْهَا وَالْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِي الرِّقَابِ وَالْغَارِمِينَ وَفِي سَبِيلِ اللَّهِ وَابْنِ السَّبِيلِ فَرِيضَةً مِّنَ اللَّهِ وَاللَّهُ عَلِيمٌ حَكِيمٌ

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. The Holy Qur’an 9:60

UNHCR Refugee Zakat Fund
is Fully Endorsed by CCI.

CCI (Canadian Council of Imams) has affirmed and endorsed the view of the UNHCR as being an eligible organization for receiving Zakat funds from Muslims in Canada and distributing it to refugees.

100% of Zakat contributions is delivered directly to the most vulnerable refugees. All Donations are Tax-deductible.

View CCI Endorsement

What is Zakat and Who Owes It?

Zakat is the amount of money that every adult, mentally stable, free, and financially able Muslim, male and female, has to pay to support specific categories of people. To learn more, scroll down to Zakat 101 below.

Mufti Faraz Adam

Manzil's Zakat Advisor

Mufti Faraz Adam is a globally recognized expert in Islamic Finance, Islamic Social Finance & Islamic FinTech. He is the advisor to several Zakat institutions across the globe. He is also an active Shariah advisor for Islamic financial institutions. He is on several global Shariah boards in countries such as Switzerland, Bahrain, Singapore, Dubai, Saudi Arabia, United Kingdom and the United States. He has published over a dozen research papers in contemporary Islamic Finance matters and has published many chapters in Islamic FinTech.

Mufti Faraz completed a six-year Alimiyyah program in the UK & qualified as a Mufti in South Africa under Mufti Ebrahim Desai. He completed a Masters degree in Islamic Finance, Banking and Management from Newman University, UK And completed an MBA specializing in Fintech from the University of Michigan, US. Additionally, he has attained various finance-industry qualifications such as the IFQ, CIFE and is a Certified Shariah Advisor and Auditor (CSAA). He is currently an ACCA candidate and is studying to become a qualified Independent Financial Advisor with the CISI.

Zakat Calculator

Your Zakat has the power to transform lives and empower communities in Canada and abroad. To make the process easier for you, use our online Zakat calculator to enter your assets and liabilities, and easily find your Zakat contribution below.

Live, up-to-date Nisab values are provided for your convenience.

Calculations Based on Silver Nisab of Grams

Assets

$

Cash and liquid investments are subject to Zakat.

You should include cash in all your bank accounts, in your wallet and under your mattress!

If interest has been earned on your liquid investments, then all of it should be given to charity and only the principal invested amount should be noted for Zakat purposes.

$

Gold and silver, in whichever form (jewellery, coin, ingots etc.) are subject to Zakat.

However, there is a difference of opinion about Jewelry that is worn and if its Zakatable or not.

If you own personal use items made from a mixture of metals, these are only liable to zakat if half or more of the metal is gold or silver, although some scholars hold that the proportion of gold or silver in any owned asset is Zakatable.

Gold and silver can be valued at its resale value by a jeweler or you can multiply the amount of grams (of gold or silver) you own by the current market value.

NZF takes the opinion that Zakat should be paid on Gold and Silver regardless of whether it is used or not.

$

Gold and silver, in whichever form (jewellery, coin, ingots etc.) are subject to Zakat.

However, there is a difference of opinion about Jewelry that is worn and if its Zakatable or not.

If you own personal use items made from a mixture of metals, these are only liable to zakat if half or more of the metal is gold or silver, although some scholars hold that the proportion of gold or silver in any owned asset is Zakatable.

Gold and silver can be valued at its resale value by a jeweler or you can multiply the amount of grams (of gold or silver) you own by the current market value.

NZF takes the opinion that Zakat should be paid on Gold and Silver regardless of whether it is used or not.

$

In relation to your business, you should include the following as Zakatable assets below where relevant.

  • Cash
  • Goods for Sale* (Wholesale Price or Retail Price)
  • Inventory* (Wholesale Price or Retail Price)
  • Work in progress (at cost)
  • Raw materials (at cost)

*We follow the opinion that Zakat is due upon the wholesale price of your inventory or goods for sale.

What do we mean by Wholesale price? If someone wanted to buy this inventory or your goods in bulk what price would you sell it to them for. This would be liable portion of your Zakat and if you pay lower than this that you are underpaying your Zakat.

If however you decide to pay on the Retail price then you are going above the requirement of whats liable and doing ihsaan as many scholars have stated as your Zakat will benefit more people as you are paying more.

If you have business liabilities to offset against these assets, then you will be able to enter these in the next section.

Important: If you find that your business liabilities payable between now and your Zakat due date exceed your business assets, then please omit all business details from your Zakat calculation since this will affect the Zakat that you may owe in a personal capacity.

Please only include business assets in line with your % ownership of the business.

$

Scenario 1: Day trading/short-term trading (Less than one lunar year)

Include entire value of your portfolio and pay Zakat on it.

Scenario 2: Long term investments (one lunar year or more)

From the balance sheet of the company (in which you hold shares), use the following formula:

  1. Amount Y = (Cash + Cash Equivalent + Accounts Receivables + Inventory) / Total Number of Shares Issued by Company
  2. Your Zakatable Amount = [(Amount Y) x (Number of shares you own)]

Please note: if you are receiving dividends, please add them to your Zakatable assets.

Scenario 3: Cashing out

Upon cashing out, the amount remaining after taxes and fees is added to your Zakatable assets.

$

First assess which scenario your asset falls under. Scenario 2 is very specific to some pension funds otherwise most fall under Scenario 1.

Scenario 1: Have access to fund withdrawal. Total RRSP/RESP value (your contribution + other contributions) minus the Penalties and Taxes you will pay for early withdrawal and pay Zakat on that.

Scenario 2: No access to withdraw funds. If long term and no control/ access over assets then you treat it as passive investment and only pay zakat when you have access to your investment.

Please Note: upon maturity of the fund, you have to pay Zakat on the entire value of the fund regardless if you withdraw in increments or the entire amount. You can deduct any fees or taxes if applicable upon withdrawal if necessary.

$

The house in which you live is not subject to Zakat.

If a property or other fixed asset is purchased with the express intent to resell, then the entire sale value of the property is subject to Zakat.

Remember this rule does not apply to the house you live in yourself. This is for additional properties you may own or possess.

If you don’t have enough cashflow to pay the Zakat due if marked for sale then you should pay Zakat on the property once you have the funds available and Allah knows best.

If it is a rental property then you only have to pay Zakat on the rental income minus the expenses related to the rental income. Remember, you will only pay Zakat on what you currently possess in cash or liquid assets. Whatever has already been spent has no Zakat on it.

If you have no intention with a property or fixed asset then there is no Zakat on it until it falls into one of the other options mentioned above.

$

Cash investments such as bonds or savings products offered by your bank, which offer an interest-based return are prohibited in Islam. Although there is no Zakat due on forbidden wealth, Zakat is still due on the proportion of the investment that is halal.

For example, if Ali invested $10,000 in a savings product that has been yielding 7% return based on interest, then Zakat is due only on the original investment (or the principal value), subtracting any interest received.

If you own an interest-bearing asset, then you are advised to sell the asset, give away the interest money received in charity and use the remaining money in a halal manner.

$

Zakat is payable on strong debts, i.e. money owed to you that you are confident will be returned back to you.

This may include personal loans to friends and family.

This does not include outstanding wages, dowry, inheritance or assets held in trust.

$

If you possess any other cash equivalent or liquid assets that are not mentioned above, please add the dollar value of these here. This could include (but not limited to)

  • the face value of your cryptocurrency holdings
  • other currencies held in offshore accounts which you did not include above
  • assets belonging to a family member on whose behalf you are paying Zakat

Liabilities

$

Certain liabilities can be deducted from your Zakatable assets.

These include outstanding or overdue living expenses such as rent payments, utility bills and debts.

For long-term debt, such as mortgages or student loans, only the non-interest or principal portion of the upcoming lunar year’s worth of payments can be deducted for Zakat calculation purposes.

If payments are not being paid on the long-term debt, then it should not be deducted from your zakatable assets.

$

Please include the value of any of the following outstanding/unpaid liabilities that are either due between now and your Zakat due date or overdue payments:

  • Commercial loans that have been used to finance Zakatable assets
  • Rent
  • Utility bills
  • Salary
  • Other bills

Do not include any liabilities that are due to be paid beyond your Zakat date.

Important: If you find that your business liabilities payable between now and your Zakat due date exceed your business assets, then please omit all business details from your Zakat calculation since this will affect the Zakat that you may owe in a personal capacity.

Please only include business liabilities in line with your % ownership of the business.

Zakat Due : $0


Nisab

Silver ( g)
Price/g: $ Nisab:
Gold ( g)
Price/g: $ Nisab:

Your Zakat Summary

Total Assets:
$0
Less Total Liabilities:
$0
Equals Total Zakatable:
$0

Zakat Due:

$0

Zakat 101

The basics of Zakat. When, how, and who is eligible for zakat al-maal.

  • 1.

    Passage of One Lunar Year

    Zakat is obligatory after a time span of one lunar year passes with the money in the control of it’s owner. Then the owner needs to pay 2.5% (or 1/40) of the money as Zakat. (A lunar year is approximately 355 days).

  • 2.

    Deduction of Debts

    The owner should deduct any amount of money he or she borrowed from others; then check if the rest reaches the necessary nisab then pays Zakat for it.

    If the owner had enough money to satisfy the nisab at the beginning of the year, then the money increased (in profits, salaries, inheritance, grants…etc.), the owner needs to add the increase to the nisab amount owned at the beginning of the year; then pay Zakat, 2.5%, of the total at the end of the lunar year. (there are small differences in the fiqh schools here)

    Each Muslim calculates his or her own Zakat individually. For most purposes this involves the payment each year of two and a half percent of one’s capital.

    A pious person may also give as much as he or she pleases as sadaqa, and does so preferably in secret. Although this word can be translated as ‘voluntary charity’ it has a wider meaning. The Prophet said ‘even meeting your brother with a cheerful face is charity.’

8 categories of people eligible for Zakat

  • Fakir:

    One who has neither material possessions nor means of livelihood.

  • Riqab:

    One who wants to free himself from bondage or the shackles of slavery.

  • Miskin:

    One with insufficient means of livelihood to meet basic needs.

  • Gharmin:

    One who is in debt (money borrowed to meet basic, halal expenditure).

  • Amil:

    One who is appointed to collect zakat.

  • Fisabillillah:

    One who fights for the cause of Allah.

  • Muallaf:

    One who converts to Islam.

  • Ibn Sabil:

    One who is stranded in journey.

Zakat News

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