Charity in Islam: The Ultimate Guide (Plus Examples)

Charitable giving is a key part of Islamic faith and culture. With so many different forms of charity in Islam, this article provides a better understanding of each one. We also share more about its importance and how your Islamic organization can encourage giving.

8 minutes read
Charity in Islam: The Ultimate Guide (Plus Examples)

Did you know that 87% of Muslims planned to give to charity during Ramadan in 2022 alone? Charity is a way for Muslims to express kindness, seek forgiveness from Allah, and purify their souls.

There are many different types of charity in Islam. In this article, we share more information about each one, why they matter, and how they are given. Let’s dive in.


The Importance of Charity in Islam

Charity – also referred to as sadaqah – is a cornerstone of the Islamic faith. Charity comes in both voluntary and involuntary forms, but ultimately offers a wealth of benefits and is important for every Muslim.

There are various ahadith (sayings by the Prophet Muhammad) that highlight the importance of charitable giving. Muslims believe that one’s wealth is a gift from Allah and it should be shared generously with the less fortunate.


Benefits of Charitable Giving

Wondering why charity is so important in Islam? Acts of compassion and kindness are greatly rewarded by Allah.

Here are some of the benefits of giving charity in Islam:

  1. Reduce poverty and human suffering: By giving sadaqah to the poor and needy, Muslims can help alleviate suffering and hardship within the ummah (Muslim community). This helps ensure social justice.
  2. Cleanse the soul: One of the benefits of giving charity in Islam is the purification of wealth and the soul. By sharing one’s wealth with the less fortunate, one gains Allah’s favor for being selfless and not withholding blessings out of pride or arrogance.
  3. Spiritual rewards on the Day of Judgment: According to ahadith on charity in Islam, “The believer’s shade on the Day of Resurrection will be his charity.” Giving charity provides protection, blessings, and the ultimate reward of entering Jannah (Paradise).
  4. Sense of community: Through charity, Muslims can build stronger bonds and create a sense of unity among the ummah.

Different Forms of Charity in Islam

There are many different forms of charity that Muslims can give. Some are obligatory, while others are voluntary. Let’s take a look at some of the most notable types.


Sadaqah

Sadaqah is the general term used for giving charity in Islam. This form of charity encompasses all the good deeds a Muslim can do for the ummah, while growing closer to Allah in the process.

Therefore, sadaqah can be given in the following ways:

  • Donating money to the less fortunate
  • Sharing food
  • Spreading knowledge
  • General acts of kindness toward others

Bonus resource: Check out our blog post to learn everything there is to know about sadaqah.


Zakat

This form of almsgiving is compulsory for all qualifying Muslims and is one of the five pillars of Islam. As a Muslim, you must give away 2.5% of your excess in the form of zakat if your wealth exceeds the nisab threshold within one lunar year.

Zakat differs from zakat al-fitr, a special type of zakat given during the Ramadan season.

Islamic charities can make it easy for donors to calculate the value of their zakat by including a zakat calculator on their website or donation form.

See how this organization included it on their zakat donation page:

Screenshot of the Masjid Vaughan's Donorbox online donation form.

 


Sadaqah Jariyah

Translated to “ongoing charity,” sadaqah jariyah is a charitable act that continues to benefit others and earn rewards for the giver even after he or she dies. This form of continuous charity in Islam provides ongoing rewards.

Examples of sadaqah jariyah include:

  • Sponsoring an orphan or needy child with an education
  • Building a well or hand pump to provide access to safe drinking water
  • Spreading knowledge through teaching or donating religious materials
  • Planting trees
  • Contributing toward the construction of a masjid or Islamic school

Kaffarah

Kaffarah refers to an atonement for specific sins, including intentionally breaking a fast during Ramadan or breaking an oath.

It is given in different forms depending on the sin committed. For example, if a Muslim breaks their fast during Ramadan, they must fast for 60 consecutive days. If they are unable to do so, they must feed 60 needy people by providing food or donating money to an Islamic organization.


Hibah

As a voluntary form of charity in Islam, hibah is a gift of property or assets while the donor is still alive, and is donated without the expectation of anything in return.

An example of hibah is when a donor gives money or property to a charity. The organization does not have to be an Islamic organization.


Lillah

In Islam, lillah is a form of charity given to please Allah. In Arabic, lillah translates to “for Allah.”

Lillah can be given to individuals or groups of people, like families. It can also be donated to a Muslim charity or masjid. The reward for this form of charity is purification and growing closer to Allah.

This is one of the most sincere forms of sadaqah, and there is no set amount or limit on how much lillah to give.


Fidya

This is a charitable donation made to atone for missed fasts during Ramadan. Unlike kaffarah, fidya is a form of charity due to missing a fast for a valid reason, such as pregnancy, old age, or illness.

The compensation for fidya is equivalent to feeding one person for every day a fast was missed.


Qurbani

Qurbani translates to “sacrifice” and refers to the slaughtering of a livestock animal during Eid Al-Adha, which follows Dhul Hijjah. The qurbani meat is split equally into three portions between family, friends, and the less fortunate. Qurbani is obligatory for all those who can give it.

This type of charity can also be given in the form of money and donated to a trustworthy Islamic organization that will distribute qurbani amongst the poor.


When is Islamic Charitable Giving Most Prominent?

There are various months in the Islamic lunar calendar (called the Hijri calendar) that come with increased generosity. Charity is also prominent in times of hardship, abundance, and particular life events.

Here’s when charitable giving is most common for the ummah.


Ramadan

The Holy Month of Ramadan remains the peak season for charitable donations in Islam. Since this sacred month comes with greater mercy and forgiveness from Allah, the ummah gives more to receive multiplied blessings and spiritual rewards.

Eid Al-Fitr, the festival of breaking the fast, is also a significant day for charitable giving following the conclusion of Ramadan.


The First 10 Days of Dhul Hijjah

Dhul Hijjah – the month of the Hajj pilgrimage – is one of the four holy months in the Hijri calendar.

Increased charity during the first 10 days – which are the holiest and most virtuous days of the month – comes with multiplied rewards, forgiveness, and blessings from Allah. The period is also referred to as the 10 days of Arafah.


Eid Al-Adha

On the 10th day of Dhul Hijjah, Muslims celebrate Eid Al-Adha, the festival of sacrifice. On this day, the act of qurbani takes place. As we explained earlier, the meat of a livestock animal is split and a portion is donated to the poor so they can join the ummah in the festivities and blessings.

Muslims can also give their donation to the poor by donating money to an Islamic charity.


Muharram

Giving back to the underprivileged during the Islamic New Year (called Muharram) is the ideal way to set the right tone for the year ahead. Starting the new year with charity is a way to become closer to Allah and be kind to others.


Times of Hardship and Abundance

Giving sadaqah during difficult times shows deep faith that Allah will continue to provide. Similarly, donating to the less fortunate during times of increased wealth, health, or success enables a magnitude of blessings.


Life Events

Specific life events encourage giving charity in Islam. These include:

  • Marriage: Invite blessings into a new union by donating to the less fortunate.
  • Aqiqah (the birth of a child): Commemorate the gift of life by giving back to those in need.
  • Death: Honor a lost loved one by donating sadaqah jariyah that will bring ongoing rewards in the next life.
  • Illness: Treat the sick with kindness and compassion through charitable giving.

How Islamic Organizations Can Simplify Giving

When the ummah seeks ways to give, your Islamic charity or masjid can make the process easy. Here are some ways to amplify giving in peak times of the year and beyond.


Set Up an Online Donation Form

Use an intuitive fundraising platform to create a donation form that you can embed on your organization’s website or host for free on the respective platform.

Include different giving intervals, along with a custom amount option in case your donor is feeling extra generous during sacred times of year. And empower the ummah to indicate where their gifts should be allocated using donation designations – like sadaqah, zakat, and sadaqah jariyah.

You can also create a dedicated campaign for a specific time of charitable giving, such as a qurbani for Eid Al-Adha.

See how this organization did it using a Donorbox donation form:

International Aid Charity's Qurbani donation form.

 

Create a Donation Form on Donorbox


Collect Cashless, In-Person Gifts

Most people don’t carry cash on hand anymore, which is why it’s important to provide the ummah with a cashless donation alternative so they can give faithfully. Set up an in-person giving kiosk that enables the ummah to give cashless donations during Friday prayers, fundraising events, and more.

Accept donations via credit/debit cards, smartphones, and smartwatches using Donorbox Live™ Kiosk. Simply download the app to your tablet and pair it with a card reader to streamline giving during peak times of the year and beyond. Or, download the Donorbox Live™ Kiosk app on your Android smartphone to use our Tap to Pay feature – no card reader required (coming soon to iOS).

Check out this short video to learn how the Islamic Center of Passaic County raised more than $40,000 using Donorbox Live Kiosk:

Learn more about Donorbox Live™ Kiosk in this blog post.


Raise More with Events

Fundraising events during sacred months are a popular way to streamline charitable giving in Islam. Events are a way to build community, share Islamic teachings, and more.

For example, you could host a community iftar during Ramadan and collect cashless donations throughout your event using a donation kiosk.

Fundraising galas and summits are the ideal platform to attract major donors who want to learn more about and donate to your Islamic organization. Invite notable members of the ummah to give a speech or be an MC, like an Imam, scholar, celebrity, or even a prominent social media influencer.

Be sure to plan ahead – at least 12 months out – so you have enough time to invite noteworthy guests, send out invitations, and secure your venue, vendors, and catering.

Use a powerful event ticketing tool to promote and sell tickets to your event online. This simplifies the process for you and the ummah, while ensuring attendees have access to all the relevant information they need in advance.

See how this Islamic organization used Donorbox Events to promote its Annual Power Summit. Their event form includes multiple ticket tiers, ticket pricing and quantity options, and tax-deductible values:

Screenshot of Muslim Visionaries' use of Donorbox Events for their Annual Power Summit.

Promote Your Event with Donorbox


Host a Fast-a-Thon

Fast-a-thons are a creative way to encourage faithful restraint and gather the community during the Ramadan season.

Invite the ummah – along with non-Muslims – to fast with you for the day. Then, break your fast together as a community at the end by providing a banquet feast during which guests can also donate.

Ask volunteers to hand out pamphlets providing information about your organization while collecting donations on the go using their Android smartphones.

Or set up an autonomous giving kiosk at the entry and exit points of your venue so guests can give when they feel most inclined to.

Check out the Muslim Student Association’s Donorbox-hosted event form promoting their fast-a-thon during Ramadan:

Muslim Student Association's Donorbox event form, encouraging charity in Islam.


Interesting Statistics on Islamic Charity

Here are some interesting facts you may or may not know about Islamic charitable giving:

  1. 69% of Americans donate to charities during Ramadan.
  2. More than six million people have benefitted from zakat donations made to the UNHCR’s Zakat Refugee Fund.
  3. Muslim Americans give an estimated $1.8 billion in zakat every year.
  4. A whopping $46 million was raised through Islamic philanthropy in 2023 alone.
  5. U.K. Muslims give 4.3x more than the national British average.
  6. 3 out of 4 Muslim adults agree that charitable giving is fundamental to their religious and cultural identity.

Over to You

Charity is a fundamental aspect of the Islamic faith. The Quran emphasizes the importance of sadaqah and giving in the name of Allah to receive multiplied blessings and spiritual rewards.

Donorbox makes it easy for Islamic organizations to simplify charitable giving in the ummah. More than 100,000 organizations – including Muslim charities – have trusted us to help them raise a collective $3 billion and counting.

Explore all our features that help you elevate your impact so you can continue serving the ummah faithfully.

For more fundraising tips and ideas, head to our Nonprofit Blog. Subscribe to receive exclusive updates sent straight to your inbox every month.

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Jamy-Lee has over 7 years of experience in copywriting and content marketing. With a background in volunteering, she now uses her passion for writing to help accelerate the all-important missions of nonprofits worldwide.

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