The role of Islamic social finance assumes great significance, especially in countries with high poverty levels among Muslims. The main objective of Islamic philanthropy such as Zakat (compulsory tax on wealth), Sadaqat (charitable acts), Waqf (endowment), etc, is to meet the needs of the poor and to curb ever-rising levels of relative poverty. To fulfill
Prophet Muhammed (Peace Be Upon Him) was sent as an example for mankind. Throughout his life he showed us the importance of Sadaqah by giving whatever he had as charity and saving very little of what he owned for himself. We Muslims are also encouraged and ordered in the Quran to involve in giving charity
What is Zakat and Who are the Recipients? Zakat is one of the five fundamental concepts (also known as the 5 pillars) in Islam. This makes it a compulsory act, and therefore, all Muslims must give Zakat, provided they meet certain conditions. The concept of Zakat is to purify one’s wealth and soul. Calculation of
What is Sadaqah and How Different it is from Zakat? The word Sadaqah is derived from the Arabic word Sadq (truth). All actions of righteousness in Islam is considered as Sadaqah. The literal meaning of Sadaqah is to spend from his/her possessions and abilities in the way of Allah s.w.t. Sadaqah is the necessary part