Understanding the different forms of giving in Islam and how each serves a unique purpose in helping those in need and fulfilling our religious obligations.
The compulsory alms-giving which Allah has given the order for in the Qur'an
Zakah is only eligible upon mature, sane men and women who meet Nisab threshold. 2.5% of their wealth must then be given. Zakah must only be given to the specific eight categories mentioned in the Qur'an. If it is not given to any of them, then it will be void and necessary to re-pay.
So donate to charity Zakat and fulfill the right of your wealth that Allah has bestowed upon you.
The general term used for giving charity in Islam
All acts of worship through financial expenditure are, by broader definition, classified as Sadaqah. Due to there being many types, they have been divided into the following two categories both of which have separate rulings:
This is charity which is binding in nature. It includes Sadaqah al-Fitr, etc. This form of Sadaqah is similar to Zakah in that it must be spent on the same categories as defined by the Qur'an, except that it is not a condition for the beneficiary to be Muslim.
This is a charity which is a duty upon every sane Muslim, who possesses the value of Nisab beyond the basic necessities. Fathers are instructed to give Sadaqah al-Fitr on behalf of those children who have not reached of age.
The amount that must be given is equal to 1.75 kg of wheat or 3.5 kg of barley or its like. This does not mean that a person must distribute wheat or barley, one may give its equivalent value.
Sadaqah al-Fitr is a very emphasized Sunnah (which according to many is the status of Wajib) which becomes due before 'Eid Salah, although it is preferable to give it a few days before 'Eid so that the poor actually receive it and are able to spend it on `Eid day.
This is an action which becomes necessary due to one imposing it upon oneself. This can be done if one wishes to express gratitude, and the action can take on a number of forms, including Sadaqah.
If a person makes such an oath of giving charity, that then becomes Sadaqah Wajibah. If they are unable to uphold the oath, they will have to give Kaffarah, and may be sinful.
This is compensation for missing Salah or Sawm for a person who cannot perform them due to being in terminal illness or being deceased or in the event of a person making a minor mistake in Hajj.
The amount for each missed Salah or Sawm, or each minor mistake in Hajj is to give 1.6kg of wheat or its value (i.e. the same amount given for Sadaqah al-Fitr) to the poor.
This is major compensation and like Fidyah it is also Sadaqah Wajibah. It applies in various situations such as if a person breaks a fast intentionally, breaks an oath, or kills someone.
Greater Kaffarah: For redemption of this a person may free a slave (if feasible) or fast for sixty consecutive days, or feed sixty poor people for a day.
Lesser Kaffarah: For redemption of this a person may free a slave, feed ten poor people for two meals in one day, or fast for three consecutive days.
This is also known as Qurbani or sacrifice. It is Wajib upon all mature Muslims who, on the day of `Eid al-Azha, possess Nisab.
Whoever qualifies for this is required to purchase a sheep or goat of more than one year in age, and slaughter that in the name of Allah after the 'Eid prayer preferably on the same day.
From the meat he may eat himself and feed his family and also distribute meat amongst the poor Muslims.
This is charity which is not binding in nature but is optional. This type includes alms given for the removal of difficulties, philanthropic giving, and the general giving of any Halal item to anyone.
This is Sadaqah Nafilah but is a type that does not have the condition of having to be passed into the possession of a person, as it can be given to institutes (e.g. Masajid, hospitals, schools, orphanages, etc).
This is to allot something as a trust for a certain cause. This can be during one's lifetime or bequeathed in one's will (up to the value of a third of one's estate).
When executed, the donation becomes the property of Allah and its beneficiaries are to remain those named as the cause (e.g. the poor, orphans, students, etc.)
This is the sacrifice of an animal or two as thanks to Allah for the birth of a child. With this too can members of the locality be fed, preference again is for the poor and close family members.
One, at the time of donating, should ask Allah to make easy one's deliverance. This can be understood from the Hadith:
"Sadaqah soothes the Lord's anger and protects against a bad death."
One, at the time of donating, should ask Allah to forgive one's shortcomings. This can be understood from the verse:
"Indeed good deeds take away bad deeds."
This type of Sadaqah is the essence of Lillah. Although not categorised as necessary, this type of charity, as long as from pure means and with pure intentions, is always accepted by Allah.
"Who is he that will loan to Allah a beautiful loan? For (Allah) will increase it manifold to his credit, and he will have (besides) a liberal reward."
Additional forms of giving that serve important purposes in Islamic charity
This Sadaqah is not a separate category but it is really any Sadaqah Nafilah which is spent on a cause of long term benefit (e.g. wells), and in essence is very similar to Waqf.
This literally means to give a good loan. In the language of the Qur'an this term is used for Sadaqah Nafilah. The rewards of Qardh Hasan are thus exclusive to Sadaqah.
This means an Islamic loan. Islamic here means that two things must be upheld from the side of the creditor: the first that neither interest can be charged nor any other benefit be taken in lieu of the loan; the second is that at no time can the creditor show any signs of self-glory.
In Islam the taking and also giving of interest have been expressly forbidden. This presents problems in secular countries, wherein no loan or mortgage is ever done without it.
In so far as taking loans which charge interest are concerned, it can only be said that unless it is a life-or-death situation one must stay away from such loans, to avoid the Wrath of Allah.
Included under this broad heading are earnings generated by not only the sales of Haram items, but also Halal items acquired though Haram methods (e.g. lying to get benefits, lying to increase the price of selling items etc).
Here the method of disposal is to return items to the rightful owners. If this is not possible because the owner is not known or any other legitimate reason, then the method of disposal is the same as that of interest money.
Understanding the types of charity is the first step. Now take action and help those in need.