A beginner's guide to Zakat

What is Zakat?

What is Zakat? 
Zakat is a charitable donation made by Muslims, calculated as 2.5% of their surplus wealth.

What is Nisab? How do I know how much it is?
Nisab is the minimum amount of wealth (3 ounces of gold or 21 ounces of silver, or its equivalent in cash). If what you own is more than Nisab, then it means you are eligible to pay Zakat that year.

Who receives your Zakat?
Zakat is meant to ensure that collective wealth finds a way to those who need it the most.

“The prescribed alms are meant only for the poor, the needy, those employed to administer the funds, those whose hearts are reconciled to the faith, for freeing slaves and helping those in debt, for God’s cause, and for travellers in need.” (Quran 9:60)

How do I know if I need to pay Zakat?
Zakat is mandatory for Muslim adults, of sound mind, who own the minimum amount of Zakatable wealth, or Nisab, for at least one lunar year.