Islam teaches us to help and honor not only ourselves but other Muslims too. Verily, it is our foundation. Our fundamental values stand on the 5 pillars of Islam. The third mandatory pillar being zakat. 

The concept of zakat is simple: to share one’s wealth with the less fortunate, needy, or poor. The minimum amount of zakat one must give is 2.5% but there is no upper limit. Zakat has been prescribed by Allah and is the right of the poor. 

4 Ways Zakat Helps Purify Your Rizq

1. It purifies your material and spiritual wealth. 
2. It instills the value of sharing and uplifting other Muslim brothers and sisters in society.
3. Those who truthfully fulfill paying their zakat gain closeness to Allah and attain His mercy.
4. Charity helps overcome a calamity before it comes to you.

Now that we have understood the importance of giving zakat, let us pledge to be prompt in performing our Islamic duty.

How shall one pledge their zakat?

The easiest way to offer zakat is by giving cash to your local zakat office or community.

Paying Zakat Through Digital Help

Paying physical zakat can be a hassle as countries adapt different payment modes. Digital payment options have made it easy to share your wealth efficiently without losing your money. And that is the last thing you want- to lose the money you have kept aside for the sake of Allah, for those in need!

Zakat offices are going digital and local Islamic banks are helping users create bank accounts based on the Shariah concept of Tawarruq*. You can make a bank transfer to a specific account with your name and identification number so that your zakat is acknowledged and a confirmation slip comes back digitally in the form of an email.

Additionally, you may be entitled to earn profit rates and bonus points for greater convenience and returns from digital services. In fact, in Malaysia, zakat payers are entitled to a tax rebate from the Inland Revenue Board (Lembaga Hasil Dalam Negeri). Isn’t that amazing?

Apart from a bank transfer, an unconventional way to pledge your zakat can also be a great option. You can now pledge your zakat with the swipe of a card, or a click of your finger!

Tawarruq*: Bank Negara Malaysia (BNM) Policy Document on Tawarruq defines- A tawarruq consists of two sale and purchase contracts. The first involves the sale of an asset by a seller to a purchaser on a deferred basis. Subsequently, the purchaser of the first sale will sell the same asset to a third party on a cash and spot basis. Murabahah is a sale and purchase of an asset where the acquisition cost and the mark-up are disclosed to the purchaser. 

Shariah Compliant Credit Cards

Islamic credit cards are usually Shariah-compliant and free from any type of activity considered unlawful in Islam. The main difference between Islamic and traditional credit cards is the prohibition of riba (interest) and gharar (extra charges). 

God forbid if you ever fall victim to a Zakat-related scam, you shall have the paperwork and proof to track your digital footprints and lodge a police report.  

Furthermore, paying with Shariah-compliant credit cards can be beneficial. For example, with the CIMB Islamic Bank  Preferred Visa-Infinite-I card, you can get up to 8X bonus points when you perform Zakat or Sadaqah/charity payments.

The card provides distinct benefits aligned to positive Islamic values like Badal Haji and Qurban benefits, 8X bonus points can be redeemed when the card is used for dining or shopping overseas in addition to automatic Takaful coverage*.

Takaful coverage*
Definition as per Islamic Financial Services Act (IFSA) 2013: “takaful” means an arrangement based on mutual assistance under which takaful participants agree to contribute to a common fund providing for mutual financial benefits payable to the takaful participants or their beneficiaries on the occurrence of pre-agreed events.

So dear readers paying Zakat is as old as Islam, and you can be as be technologically savvy while being true to your Islamic values!

This article has been created in partnership with CIMB Islamic Bank.