Praise be to Allah, the Lord of creations, and peace and blessings be upon our Prophet Muhammad, the faithful and the honest.

The Guidance of Muhammad PBUH in Zakat:

 His guidance is the most perfect guidance in all aspects of Zakat concerning its timing, its amount and its Nisab (the minimum limit of wealth which attracts liability of Zakat.). His guidance also contained how Zakat should be spent and the people who are obliged to pay it. Moreover, the Prophet, may Allah have peace and blessings upon him, took into consideration the interests of both the wealthy and the needy. Allah the Almighty has made Zakat a purification of the wealth and its owner; whoever pays Zakat, Almighty Allah blesses, increases, and saves his wealth. Almighty Allah makes the Zakat a safeguard that will protect the wealth of whoever pays it from being ruined.

The Types of Wealth which are Taxable under Zakat:

 Prophet Muhammad, may Allah have peace and blessings upon him, made Zakat payable on four types of wealth which are mostly used by people due to its necessity in their lives: livestock (cattle, camels and sheep), agricultural produce, precious metals( gold and silver) which are regarded as business basics of the world and the various capital assets of business.

 The Prophet, may Allah have peace and blessings upon him, made Muslims pay Zakat once a year, but as for the Hawl of the agricultural produce, it was made when they were ripe. You see how fair this ruling is; if Zakat were paid every month or every week, wealthy people would be affected negatively. Also if it were paid once in lifetime, the poor and needy would be affected negatively. Making it once a year benefits both sides.

The Nisab of Zakat:

 As being the one who was granted Hikmah (wisdom,) the Prophet, may Allah have peace and blessings upon him, differentiated between the amounts of Zakat according to the efforts the wealthy did to gain their wealth (whether it was difficult or easy for them to gather that wealth.)He enjoined us to pay Khums (one-fifth) when man discovers or finds a treasure (i.e a ready wealth,) because he neither makes efforts nor works hard to gain it. . This type of wealth has no Hawl, so we should pay one-fifth (it is also called Rikas) of it whenever we find it. As for the agricultural produce which needs ploughing, sowing the seeds and irrigating them, the Prophet, may Allah have peace and blessings upon him, referred to more than one rule based on the type of irrigation:

 - If the land is irrigated naturally by rain water or the like, Ushr (one-tenth) of the produce is due.
 - If it is irrigated by human or mechanical watering, then one-twentieth of the produce is due

 Concerning business and trading, where the growth of wealth is fluctuated and unstable, the Prophet, may Allah have peace and blessings upon him, clarified that quarter of one-tenth is due, i.e. 2.5%.. I would like you to pay attention to how the Prophet, may Allah have peace and blessings upon him, categorized the Nisab of Zakat:

 - If the wealth is acquired with no effort, then one-fifth of the wealth is due.
 - On a land irrigated by rain water or by natural water channels or if the land is wet due to a nearby water channel, one-tenth is compulsory.
 - On the land irrigated by the well, half of one-tenth (i.e. one-twentieth) is compulsory.
 - Business merchandise, which includes everything that is prepared for business purposes, such as real estate property, automobiles, livestock, household goods and other types of wealth. It is obligatory to pay a quarter of a tenth (i.e. 2.5%) on these items.
 Thus, wisely the prophet, may Allah have peace and blessings upon him, showed that the growth of agricultural produce is more apparent and abundant than the growth of trading. Let me elaborate more; people sometimes sow 5grams of tomato seeds to harvest 5tons. 1ton equals 1000kg, and 1000kg equals 1000x1000g. Each gram gives 1ton,i.e. thousand fold. Since the growth of agriculture is more apparent and abundant, the Zakat amount of agricultural produce is higher, provided that the land is watered by rain or rivers. However, if the land is irrigated mechanically, which is very costly, half of one-tenth is due.

Allah Has Undertaken to Distribute the Wealth of Zakat:

 The Hikmah of the Prophet, may Allah have peace and blessings upon him, required of him to take from people's wealth an amount of money that would be enough for the poor; the amount of payment would satisfy their needs. However, the injustice exercised by both sides; the rich refused to give what was obliged on them and those who took Zakat did not deserve it. As a result, destitution occurred, and the needy were oppressed and impoverished. Thus, Almighty Allah has undertaken to distribute the wealth of Zakat to any of the eight eligible beneficiaries (asnaf) that are mentioned in the Noble Qur'an: These beneficiaries are divided into two groups: The first one consists people who take Zakat to satisfy their needs. They take Zakat according to how much they are in deed of (dire or mild need,) and according to how much the amount they need is (big or little.) People who belong to such group are:
1. The poor (Faqir/Fuqara): Those without any means of livelihood and material possessions.
2. The needy (Miskeen): Those without sufficient means of livelihood to meet their basic necessities.
3. Travelers who are cut off from everything during a journey (Ibnus Sabil.)
4. (Riqab.): They are slaves and captives. Zakat helps to set them free.

 The second group includes people who take Zakat to benefit themselves, these are:
1. Zakat collectors (Amileen)
2. The Attracting hearts: Those who have been inclined towards Islam (Mualafatu kulobohom)
3. Those who are in debt (Gharimin): Zakat enables them to pay their debts and reform their relationship with people.
4. The Conquerors for Allah's cause (Fisabillillah)

 Zakat should not be paid to people who do not need it or those who do not benefit Muslims.

Giving Zakat to the People who Live in the Country Where it is Accumulated:

 Out of his guidance, the Prophet, may Allah have peace and blessings upon him, used to give Zakat to whoever was impoverished. If he, may Allah have peace and blessings upon him, knew that someone was entitled to Zakat, he would give him, and if he did not know his condition he only gave him after informing him that the rich and those able to earn their livelihood were not entitled to Zakat. In the following sound Hadith the Prophet, may Allah have peace and blessings upon him said:

((Charity is not permissible for a rich person or for one who is strong and healthy.))

(Narrated by Abu Hurayra)

 The Prophet, may Allah have peace and blessings upon him, used to take Zakat from those who are obliged to pay it and give it to those who really deserved it. Also he distributed Zakat to people entitled to it who lived in the country where Zakat was accumulated. In other words, the wealth which is taken from the wealthy of a country should be given to the poor who live in that same country. If Zakat is accumulated in a village, the poor who live there should be favored to take it over the poor of other villages. This way of distributing Zakat to the poor who live in the same village where the rich give it, enables the poor to buy whatever they need from the rich. Such a process increases the profits of the rich.

 Regarding the surplus of Zakat, it can be taken to another village or country. The Prophet, may Allah have peace and blessings upon him, used to send the surplus to the Badiyah rather than sending them to villages, because people in villages help each other to suffice their needs, while in Badiyah people there have no one around them. The Prophet, may Allah have peace and blessings upon him, commanded Muaz Ben Jabel, may Allah be pleased with him, to take Sadaqah (charity) from the people of Yemen and distributed it to the poor who lived there, instead of bringing it to him.
 It was never part of his guidance to take Zakat on slaves, horses, mules and donkeys. He, may Allah have peace and blessings upon him, also did not take Zakat on vegetables or fruits that could not be measured or stored, except for grapes and dates. When the Prophet, may Allah have peace and blessings upon him, used to take Zakat on grapes and dates, he, may Allah have peace and blessings upon him, did not differentiate between fresh or dry dates.

The Prophet's Supplication for the Zakat's Collector:

 It was part of the Prophet's guidance to supplicate for whoever used to collect Zakat saying:

((O Allah bless him and his camels.))

(Narrated by Nisa'i from Wa'el Ibn Hajjar)

 Sometimes he used to say:

((O Allah send Your Blessings on him.))

(Agreed on, from Abu Awfa)

 This saying of the Prophet, may Allah have peace and blessings upon him, meant to be a supplication for the Zakat's collector.

 The Prophet never took the best of people's property for Zakat, rather he took from the average quality. He, may Allah have peace and blessings upon him, prohibited Muaz from taking the best of peoples' property. For example, if someone has a very good she-camel, you should leave it to its owner and look for the one of an average quality and take it. Listen what the Prophet, may Allah have peace and blessings upon him, told Muaz:

((Avoid people's most prized property.))

( Narrated by Ibn Khazimah Abdullah Ben Abbas)

Sadaqah Spending:

 The Prophet, may Allah have peace and blessings upon him, prohibited a giver of charity from buying back the charity he had given. However, it is permissible for him to eat from it. The situation will be embarrassing if the rich buys back the Sadaqah he has given from the poor, because he may buy it at a lower price. Thus, he, may Allah have peace and blessings upon him, did not allow the rich person to buy his Sadaqah from the poor, but he allowed him to eat from it. For instance, if a rich man gives Sadaqah to a poor man, and then it happens that the rich person visits the poor one, the rich, is allowed to eat whatever the poor one offered him even if it is originated from the Sadaqah he gives him. In such a case the Sadaqah turns into a gift. The Prophet, may Allah have peace and blessings upon him, allowed the rich to eat from their Sadaqah, so that he would be more affectionate to the poor. The Prophet, may Allah have peace and blessings upon him, ate from meat given as Sadaqah to Barira, and he said:

((This meat is a thing of charity for Barira but it's a gift for us.))

(Narated by Anas Bin Malik and reported by Bukhari, Mouslim, Abu Dawud and Nisa'i)

 The wealth in this case is no more Sadaqah; it is a gift for the visitor.

 The Prophet, may Allah have peace and blessings upon him sometimes used to borrow from Sadaqah to serve the interests of Muslims. He once was preparing the army, and when he noticed that the number of camels was not enough, he commanded Abdullah Ben Umar to take from charity funds. Whenever there was a dire need of money, the Prophet, may Allah have peace and blessings upon him, borrowed Sadaqah from the owners. He borrowed Sadaqah of two years from Al-Abbas, may Allah be pleased with him. It is allowed according to his guidance to pay Zakat in advance, if we need it badly.

His Guidance in Zakat ul-Fitr:

 The Prophet, may Allah have peace and blessings upon him, stipulated that Zakat ul-Fitr should be a saa'(an old measurement) of dates, a saa' of barley, a saa' of cheese or a saa' of raisin. He, my Allah have peace and blessings be upon him, enjoined that Zakat ul-Fitr is obligatory on every Muslim; slave or free, male or female and young or old. It is narrated that the Prophet, may Allah have peace and blessings upon him, said:

((…or one saa' of flour, or half saa' of wheat.))

(Reported by Nisa'i from Abu Sa'id Al-Khudari)

 Our master Umar, may Allah be pleased with him, estimated that a saa' of the above mentioned food is equivalent in value to half saa' of wheat. In both Sahih of Muslim and Bukhari, it is mentioned that Mu'awiya prescribed that half saa' of wheat is equivalent in value to a saa' of dates, a saa' of raisin…etc. There were some sound traditions of the Prophet, may Allah have peace and blessings upon him, indicated that he evaluated things, and then he gave an amount of money instead of it. In spite of those traditions, the scholars still confirm that donating things is better than donating their prices. The scholars want to make sure that hungry children will be fed from Zakat ul-Fitr which is given to them. Let us say that you give a poor who is in debt five thousand liras, he will pay his debts and leave his children starving, but when you give him food, he will absolutely feed his children. He, may Allah have peace and blessings upon him, used to exclusively dedicate Zakat ul-Fitr to the poor and the needy rather than all eight categories entitled to Zakat. It means that Zakat ul-Fitr is not for Zakat collectors or those who have been inclined towards Islam, rather it is for the poor and the needy.
 The Prophet, may Allah have peace and blessings upon him, made Zakat ul-Fitr obligatory on all Muslims even the poor, so that they feel how sweet it is to spend once a year.

His Guidance in Voluntary Sadaqah:

 The Prophet, may Allah have peace and blessings upon him, was the most generous person with regard to giving Sadaqah from what was in his possession. He never considered anything bestowed by Allah too much. Sometimes a person has to pay a big amount as Zakat, but he thinks that it is too much for a poor one to take it all, and that half of it is enough for him to satisfy his needs. Some wealthy people who should pay big amounts of money are miserly. They think that the poor do not deserve to be given all these amounts. The Prophet, may Allah have peace and blessings upon him, never regarded anything given for the sake of Allah the Almighty too much or too little. If someone asked anything in his possession he, may Allah have peace and blessings upon him, would readily give it to him, whether little or much. His donation was a donation of a man who would never be afraid of poverty. Sadaqah was preferable to him, and when he, may Allah have peace and blessings upon him, used to give Sadaqah to someone, he was happier than the receiver himself.
 His generosity knew no limits; whenever he, may Allah have peace and blessings upon him, met a needy person he would give him priority over himself, sometimes with his food and sometimes with his clothing. The Sadaqah that the Prophet, may Allah have peace and blessings upon him, used to give was of various kinds; sometimes it was a gift, a grant and Sadaqah. Also he sometimes bought an item and gave it back to the seller along with its price. That was what he did with Jaber's camels.
 When the Prophet, may Allah have peace and blessings upon him, used to borrow something, he would return something better and more valuable than what he took, and when he, may Allah have peace and blessing upon him, used to buy something, he would pay more than what it cost. . You may buy a commodity and pay more than what it costs by three times as Sadaqah, but the seller gets angry with you, because he does not know that you intend to help him by giving him more than the price of the commodity. Sometimes we see a child selling simple goods. He preferred selling to stealing and begging. If you want to buy something from that child, you should not bargain with him and get the price down. Some people consider themselves smart when they do that with sellers. You should be generous with that child, not miserly.

Zakat Purifies the Soul of the Poor from Animosity and the one of the Wealthy from Stinginess:

 The Prophet, may Allah have peace and blessings upon him, used to accept the gift, and he would reward people for it with more valuable gifts. He intended by that to be more affectionate to people. Besides, he, may Allah have peace and blessings upon him, wanted to give Sadaqah in various ways. His Sadaqah was manifested in properties, manners and deeds. The Prophet, may Allah have peace and blessings upon him, said in the following Hadith:

((You will not be able to suffice people with your wealth, so suffice them instead with cheerful face and good character.))

(Narrated by Abu Yaala from Abu Hurayra)

 He, may Allah have peace and blessings upon him, gave what he held, and he commanded and urged people to give Sadaqah through his words or deeds. When any stingy and avaricious person saw him, he would urge himself to give Sadaqah to the poor. Moreover, whoever dealt with him and saw his guidance would be overwhelmed by his generosity.
 His guidance, may Allah have peace and blessings upon him, was implied in calling for Sadaqah and Maarouf (doing what is good.) Those things made him the man of the most relieved breast, the sweetest breath and the kindest heart. Giving Sadaqah and doing Maarouf have great influence on relieving the breast. Furthermore, people who give money to the poor and do good deeds have good morals, radiant faces and confident hearts. Literally, Zakat means to "purify". It refers to the purification of a Muslim's wealth and soul. Wealth purification denotes the mobilization of assets for the purpose of financial growth and justified distribution. Purification of the soul implies removing the grudges and ill feelings found in the hearts of the poor, and removing greed and stinginess found in the hearts of the rich.
 Zakat develops the soul of both the poor so they feel that they are significant in society and the rich so they reap the outcomes of their good deeds. Giving Zakat boosts one's wealth and increases its blessedness. Even though Zakat takes away from one's wealth numerically, it indeed never takes away from its blessedness or its increasing in the future. Rather, Almighty Allah will replace what someone gave away and bless his wealth.