Zakat and Waqf both promote giving. However, Zakat is something that is compulsory for Muslims; Waqf is a voluntary action. Waqf is a special way of giving which the gift will continuously benefit the community.
What is Zakat?
Allah says, “—and perform al-salat and give zakat, and lend to Allah a goodly loan, and whatever good you send before you for yourselves, you will certainly find it with Allah, better and greater in reward.” (Surah Muzzammil, Verse: 20).
Zakat is a compulsory procedure for Muslims who earn over a certain threshold. It is one of the five pillars of Islam including, declaration of faith, prayer, fasting during Ramadan, and Hajj pilgrimage. Zakat is unlike Sadaqah, which is a voluntary charitable gift rather than a mandatory donation.
Zakat is based on income and the value of possessions. The minimum amount for those who qualify is 2.5% for total savings and wealth.
What is Waqf?
Waqf is derived from an Arabic word which is an endowment. Waqf means to stop or contain. In Islam, waqf is a religious endowment. An individual can voluntarily donate money or an asset that will continuously benefit a community. For example, building a hospital or a school is waqf.
After the waqf is donated, one does not own it, and consequently, it isn’t something that someone could sell. The benefits of a waqf will serve generations.
Zakat and Waqf are both important concepts in Islam, they both promote giving and helping the community.
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