How to Calculate Your Zakat in Canada_ A Simple Guide for 2025.docx

1. How to Calculate Your Zakat in Canada: A Simple Guide for 2025 Zakat is more than just a charitable act—it is a religious obligation and one of the Five Pillars of Islam. Each year, Canadian Muslims contribute millions of dollars in Zakat to support vulnerable communities around the world. Yet, understanding how to accurately calculate and distribute Zakat can be challenging. At Penny Appeal Canada, we are committed to simplifying the process for you. With our 100% Zakat Policy and dedicated support, you can fulfill your obligation with confidence and clarity. This guide offers a step-by-step overview on how to calculate your Zakat in 2025. What is Zakat? Zakat is an annual payment made by eligible Muslims to assist those in need. It represents 2.5% of one’s qualifying wealth and must be paid once a full lunar year has passed since the wealth exceeded a certain threshold, known as the Nisab. As a form of purification, Zakat cleanses wealth and fosters social equity by uplifting impoverished individuals and communities. Understanding the Nisab Threshold for 2025 Nisab is the minimum amount of wealth a Muslim must possess before they are obligated to pay Zakat. The threshold is based on the current value of: - 87.48 grams of gold, or - 612.36 grams of silver In most cases, the silver value is lower, making it the more widely recommended benchmark to ensure more people are contributing and more people are helped. How to Calculate Your Zakat in Canada: Step-by-Step Step 1: Determine Your Zakatable Assets Include all applicable assets held for one full lunar year: - Cash on hand or in bank accounts - Gold, silver, and precious metals - Pensions and savings - Stocks, shares, and investment portfolios - Business inventory - Rental income (excluding your primary residence) Step 2: Deduct Your Immediate Liabilities You may subtract short-term debts and obligations, such as: - Outstanding utility bills - Due rent or mortgage payments (within the current month) - Credit card balances - Business-related debts

2. Step 3: Calculate 2.5% of the Net Total If your net assets exceed the Nisab, multiply the remaining total by 2.5%. This is your Zakat amount due for the year. Use Our Online Zakat Calculator We understand that calculating your Zakat can be complex. That’s why we offer a Zakat Calculator to guide you through the process in minutes. It is Shariah-compliant and tailored for Canadian Muslims. Need personal support? Call us toll-free at 1-855-880-4141 Or email info@pennyappeal.ca to speak with an Islamic scholar. Why Choose Penny Appeal Canada for Your Zakat? 100% Zakat Policy Penny Appeal Canada is proud to operate a 100% Zakat Policy, ensuring your full contribution reaches those in need without any administrative deductions. Dedicated Interest-Free Zakat Account Zakat donationsare held in a dedicated, interest-free account and disbursed only to eligible beneficiaries, following thorough due diligence. 0% Admin Fees We do not deduct any administrative fees in Canada from your Zakat contribution. Eligibility Verified Our team conducts rigorous checks to ensure every recipient is Zakat-eligible as per Islamic guidelines. Maximum 10% to Field Partners A maximum of 10% of your Zakat may be allocated to our trusted field partners, in accordance with the Qur’anic allowance for Zakat collectors (Al-‘Amilina ‘Alayha). Annual Impact Reporting We provide transparent annual reports on how your Zakat has been used, so you can see the direct impact of your contribution. Zakat-Eligible Programs You Can Support When you donate Zakat through Penny Appeal Canada, you are directly helping to transform lives through impactful projects: Feed Our World Provides nutritious meals to families suffering from hunger across Asia, Africa, and the Middle East. - Feed a Family: $120

3. OrphanKind Supports orphans with food, shelter, education, and healthcare for approximately $2 per day. - Monthly orphan sponsorship: $60 Emergency Response Delivers urgent aid, including hygiene kits, to families affected by conflict, displacement, and natural disasters. - Hygiene Kit: $150 You can also choose a custom donation amount or make your Zakat a monthly contribution for lasting impact. When Should You Pay Your Zakat? Zakat is due once every lunar year on the wealth that has remained above the Nisab threshold. While you may choose any time of year, many Muslims prefer paying during Ramadan for increased blessings. Zakat can also be paid in installments, but it is recommended to complete payment within the same lunar year. Is Zakat Tax-Deductible in Canada? Yes. Zakat donations made to registered Canadian charities like Penny Appeal Canada are generally tax-deductible. Ensure you obtain a valid tax receipt for your records. Fulfill Your Obligation Today Fulfilling your Zakat is an act of devotion and a powerful means of uplifting communities in need. With Penny Appeal Canada, your contribution is secure, impactful, and handled with integrity. Use Our Zakat Calculator and Donate Today Have Questions? We’re Here to Help. 1-855-880-4141 info@pennyappeal.ca Let your Zakat be the reason someone smiles today. Give generously. Give with confidence.