Zakat
It is often compared to the system of tithing and alms, but it serves principally as the welfare contribution to poor and deprived Muslims, although others may have a rightful share. It is the duty of an Islamic community not just to collect zakat but to distribute it fairly as well.
Every year they give 2.5 percent of their wealth away to the poor.
Zakāt is sometimes referred to as sadaqah and its plural, sadaqat. Generally the sharing of wealth is called zakat, whereas the sadqat could mean the sharing of wealth as well sharing of happiness among God's creation, such as saying kind words, smiling at someone, taking care of animals or environments, etc.
Zakat or sadqah is worship as means of spiritual purification.
It is the only tax sanctioned to the state according to Islamic law or sharia.
Muslim jurists agree that zakat is obligatory on the Muslim who has reached puberty, who is sane, who is free, and who owns the minimum assigned, nisab throughout Islamic history; denying Zakat equals denying the Islamic faith. However, Muslim jurists differ on the details of zakat, which may include rate, the exemptions, the kinds of wealth that are zakatable.
Zakatable refers to assets subject to zakat according to Islamic examples and directives. The same kind of differences also exist about the disbursement of zakat.
The Qur'an does not provide the definition of zakatable wealth nor does it provide the required percentages in zakat.
It is left to Sunnah to give, by example or by directives. It must be realized, however, that the Qur'an mentions a few kinds of zakatable possessions, such as gold and silver, crops and fruits, earnings of trade and other business enterprises and what is drawn from beneath the earth (natural resources).
Muslims fulfil this religious obligation by giving a fixed percentage of their surplus wealth.
Zakat has been paired with such a high sense of righteousness that it is often placed on the same level of importance as offering Salat. Muslims see this process also as a way of purifying themselves from their greed and selfishness and also safeguarding future business. In addition, Zakat purifies the person who receives it because it saves him from the humiliation of begging and prevents him from envying the rich. Its importance and centrality to Islam results in the "punishment" for not paying when able being very severe. In the 2nd edition of the Encyclopaedia of Islam it states, "...the prayers of those who do not pay zakat will not be accepted".
Categories
There are two categories of charities in Islam - obligatory and voluntary
Obligatory
Zakat on gold, silver currency and jewellery
Zakat on cash or its equivalent such as bonds, shares of joint companies etc.
Zakat on rented buildings, plants (factory), and fixed capital
Zakat on commercial assets such as inventories, work in process etc.
Zakat on livestock
Zakat on agriculture 'Ushr
Zakat on honey and animal products
Zakat on mining and fishing
Almsgiving on self, Zakat al-fitr (fast-breaking zakah)
Voluntary
Donation to build mosques and Schools
Helping non-Muslim
Minimums and amounts
It is not written anywhere in the Qur'an that the faithful must give a specific amount, in fact it goes so far to say that there is no specific amount or rate.
This is because a traditional Sufi will own no property and therefore they will pay no Zakat. This is due to the fact that without Zakat a tremendous hardship is placed on the poor which otherwise would not be there.
Chapter 9 verse 11 states, "if they repent, establish regular prayers and pay zakah, they are your brethren of faith", and in chapter 2 verse 155, "be sure we shall test you with something of fear and hunger, some loss on goods, lives, and fruits.