Understanding Wealth Purification

The five essential pillars of Islam, as laid out in the Qu’ran and the traditions of the Prophet (hadith) are: declaration of belief in one God and Mohammed as his prophet, daily prayer, fasting during the month of Ramadan, the pilgrimage to Mecca, and the sharing of wealth with the less fortunate. Philanthropy is thus one of the five essential pillars of Islam. Philanthropy in the Quran is treated as

1. A Religious Obligation
2. Religious Morality
3. A means towards achieving social justice.

According to the Qur’an and hadith, philanthropy is necessary for purification of one’s wealth and heart, as a sign of piety and evidence of faith, and as a right of the poor and destitute.

There are 2 kinds of Islamic philanthropy instruments which are obligatory and voluntary.

OBLIGATORY: These includes Philanthropic acts and deed that Muslims are obligated and compulsory to observe, that is Zakat/Fitrana.

VOLUNTARY: This includes acts and deeds that are recommended that Muslims should observe. Failure to observe them does not carry any consequences but observance of these acts is highly rewarded. This includes Sadaqah and Waqf.

Zakat: The Pillar of Wealth Purification

Zakat is not just an obligation; it is a means to purify our wealth and souls. The Prophet Muhammad (peace be upon him) said, “The upper hand is better than the lower hand; the upper hand is the one that gives, and the lower hand is the one that receives.” By fulfilling Zakat obligations, one can contribute to the well-being of one’s community, ensuring that the less fortunate receive their due share.

Sadaqah: Elevating the Spirit of Giving

While Zakat is a mandatory form of wealth purification, Sadaqah offers an opportunity to go above and beyond, providing additional support to those in need. Acts of Sadaqah can take various forms, including helping the needy, supporting education, and contributing to community development projects.

Investing with a Purpose

In Islamic finance, the concept of wealth purification extends to investments. Engaging in halal investments that align with Islamic principles ensures that our wealth grows ethically and responsibly. Avoiding investments in industries such as gambling, alcohol, and interest-based transactions is crucial to maintaining the purity of wealth.

Wealth Purification in Practice

To practically implement wealth purification, consider the following steps:

1. Regularly assess your financial situation to determine your Zakat obligations.
2. Seek out halal investment opportunities that align with Islamic principles. You can check out our article on Shariah compliant options when investing in the Nigerian market here.
3. While alive, set up a Waqf as part of your Estate Plan. You can also write your Wasiyah. See our newsletter on Waqf here and Wasiyah here.
4. Embrace the spirit of voluntary charity through regular acts of Sadaqah. We would always advise Our clients to have structured philanthropic initiatives in place and not leave same to the vagaries of changing times and circumstances.
5. Educate yourself on Islamic finance principles to make informed financial decisions. You can check out our other Malaadhu Thar’wah newsletters here.
   

Conclusion

Incorporating wealth purification into financial practices as Islamic faithfuls not only fulfills our religious obligations but also fosters a more just and equitable society. As we strive for financial success, let us remember the profound impact our wealth can have on the well-being of others.