Sadaqah

Understanding Islamic Guidelines

In our journey as Muslims striving to adhere to Islamic principles, questions often arise about the permissibility of certain actions, especially concerning financial matters. One such question is: Can haram (forbidden) money be given to charity? Let’s explore this topic together to understand the guidance provided by Sharia law.

Understanding Haram Wealth in Islam

Haram wealth refers to earnings acquired through means explicitly prohibited in Islam. This includes income from activities such as selling alcohol, gambling, dealing with interest (riba), or any form of dishonesty and exploitation. As Muslims, we are encouraged to seek halal (lawful) sustenance and avoid haram sources of income.

Is Investing in Cryptocurrency Halal?

Yes, investing in cryptocurrency can be halal—but only if you choose digital assets that comply with Islamic principles. In Islam, financial transactions must be free from riba (interest), gharar (excessive uncertainty), and haram activities.

At Our Islamic Charity, we only accept Sharia-compliant cryptocurrencies, carefully reviewed by Islamic scholars and imams. The digital currencies we use for donations and charity projects meet Islamic financial guidelines and are considered halal for investment and transactions. Click here to see the list of halal cryptocurrencies we accept for donations!

The Impermissibility of Using Haram Money for Zakat and Other Obligatory Payments

It’s essential to recognize that zakat, kaffarah, and other forms of Sharia obligations giving are acts of worship intended to purify our wealth and souls. However, using haram money for these purposes contradicts the very essence of purification. Ultimately, it means that paying Sharia obligations(Wajib) through haram money is not permissible.

The Prophet Muhammad (peace be upon him) emphasized that Allah is pure and accepts only that which is pure. Therefore, attempting to fulfill our religious obligations with impure earnings is not acceptable in Islam.

Guidance from the Quran and Hadith

“O you who have believed, spend from the good things which you have earned and from that which We have produced for you from the earth. And do not aim toward the defective therefrom, spending [from that] while you would not take it [yourself] except with closed eyes. And know that Allah is Free of need and Praiseworthy.” Surah Al-Baqarah (2:267)

Islamic teachings provide clear directives on handling haram wealth:

Quranic Guidance: Allah commands us not to consume one another’s wealth unjustly. This directive underscores the importance of ensuring our earnings are lawful and just.

Prophetic Teachings: The Prophet Muhammad (peace be upon him) highlighted the significance of halal earnings, stating that Allah does not accept zakat from haram sources. This hadith serves as a stern reminder that the purity of our income directly impacts the acceptance of our charitable deeds.

Scenarios Involving Haram Money and the Recommended Actions

Life can present complex situations where one might come into possession of haram money. Let’s consider some scenarios and the appropriate Islamic responses:

  • Earnings from Prohibited Businesses: If you’ve earned money through selling prohibited items or services, it’s imperative to cease such activities immediately. The wealth accumulated from these ventures should be disposed of by giving it away without the intention of seeking reward, as it’s not considered rightful earnings.
  • Interest (Riba) Accumulation: Money gained from interest should not be utilized for personal benefit. Instead, it should be disposed of in a manner that does not perpetuate the sin, such as donating it without the intention of reward.
  • Inheritance of Haram Wealth: If you inherit wealth that includes haram earnings, it’s crucial to separate the lawful from the unlawful. The haram portion should be disposed of appropriately, ensuring that your own wealth remains pure.

The Correct Course of Action: Disposing of Haram Wealth

When faced with haram money, the primary objective is to cleanse oneself from its impurity. The recommended course of action includes:

  • Returning to the Rightful Owner: If the source from whom the money was wrongfully taken is known, efforts should be made to return it.
  • Disposing Through Charity: If returning the money isn’t feasible, it should be given away in charity, not with the intention of earning reward, but as a means of purifying one’s remaining wealth.

For whatever reason, you have haram money. The question is:

  1. Can I convert haram money into halal money? Yes.
  2. How can I make my haram money halal? You should give the amount that is haram as Sadaqah(charity) and the rest of your money will become halal. 
  3. I don’t know exactly how much of my money is haram? You should give the amount of khums of your entire money to Sadaqah. (One-fifth of the total wealth that is mixed with haram)

Click to give Sadaqah or for more information about Sadaqah.

As members of “Our Islamic Charity,” we understand the importance of upholding the principles of Sharia in all aspects of our lives, including our financial dealings. While the temptation might exist to use haram money for charitable purposes, Islamic teachings guide us to maintain the purity of our wealth by disposing of such earnings appropriately. By adhering to these principles, we not only purify our own wealth but also ensure that our charitable actions are accepted and pleasing to Allah.

Let’s continue to support each other in seeking halal sustenance and engaging in charitable acts that truly reflect the purity and integrity of our faith.

Ibadah / Acts of WorshipReligionSadaqah

Best Charity is That Given in Ramadan

Ramadan is a sacred month in which fasting is prescribed for all Muslims who are able to observe it. It is not just a time of abstaining from food and drink but a period of spiritual purification, heightened devotion, and acts of generosity. One of the most rewarding acts in this blessed month is giving Zakat, which helps support those in need and strengthens the bonds of the Muslim Ummah.

Allah says in the Quran: “And establish prayer and give Zakat, and whatever good you put forward for yourselves—you will find it with Allah. Indeed, Allah is All-Seeing of what you do.” (Surah Al-Baqarah 2:110)

As an Islamic obligation, Zakat is a pillar of Islam, and its significance is even greater in Ramadan. The Prophet Muhammad (peace be upon him) emphasized the importance of giving during this month:

“The best charity is that given in Ramadan.” (Tirmidhi)

The Importance of Zakat in Ramadan 2025

Zakat during Ramadan holds immense spiritual rewards, as deeds performed in this blessed month are multiplied many times over. By donating, we not only purify our wealth but also ensure that our fellow Muslims have enough to eat for Suhoor and Iftar. The Prophet (peace be upon him) said:

“Whoever gives food for a fasting person to break his fast, he will have a reward like theirs, without that detracting from their reward in the slightest.” (Tirmidhi)

At Our Islamic Charity, we believe in fulfilling this obligation in the best possible way. In Ramadan 2025, we plan to cook 40,000 Suhoor and Iftar meals and distribute dry food packages to needy families, allowing them to observe fasting with dignity and ease. See the programs of Ramadan Al-Karim 2025.

How Your Zakat Helps the Needy in Ramadan 2025

With just a few days of Ramadan passed(Report March 6, 2025), we present a detailed report of how the Zakat we received has already been distributed:

  • Cooking 4,800 Iftar and Suhoor meals for the needy in the Middle East and Mediterranean regions, including Palestine, Lebanon, Pakistan, and Afghanistan.
  • Preparing 2,200 dry food packages, including essential items like oil, grains, wheat flour, rice, sugar, dates, and tea, ensuring that fasting Muslims have the necessary sustenance.
  • Paying off debts for families struggling financially by covering essential household expenses such as water, electricity, gas, and medical bills.

The impact of these efforts is profound, and with your continued support, we aim to reach even more families before the month ends.

Crypto Zakat: Donating to Charity Wallets Directly

With advancements in technology, donating Zakat has become easier and more efficient. Many Muslims now choose to send Crypto Zakat directly to charity wallets, ensuring instant transactions without intermediaries. This method allows for greater transparency, security, and direct impact, making it a viable way to fulfill your Islamic obligation while supporting those in need.

Allah commands us:

“Take, [O, Muhammad], from their wealth a charity by which you purify them and cause them increase, and invoke [ Allah ‘s blessings] upon them. Indeed, your invocations are reassurance for them. And Allah is Hearing and Knowing.” (Surah At-Tawbah 9:103)

The Blessings of Giving in Ramadan

Ramadan is a time of blessings, mercy, and forgiveness. It is an opportunity to share our wealth with those less fortunate and earn Allah’s favor. The Prophet (peace be upon him) reminded us:

“Wealth is not diminished by giving in charity. Rather, it is increased, and Allah raises the humble.” (Muslim)

By contributing your Zakat to Our Islamic Charity, you ensure that struggling Muslim families have food on their table for Suhoor and Iftar. This not only relieves their hardship but also strengthens the spirit of unity in our Ummah.

See the Impact of Your Donations

We invite you to witness how your Zakat is making a difference. We have captured moments of Iftar distributions, food package preparations, and heartfelt gratitude from those receiving your support.

Join us in making Ramadan 2025 a month of blessings for everyone. Your Zakat is more than just a donation—it is a means of fulfilling a sacred duty, uplifting the less fortunate, and securing eternal rewards from Allah.

May Allah accept our fasts, prayers, and Zakat, and may He grant ease to all those in need. Ameen.

 

Economic EmpowermentFood and NutritionIbadah / Acts of WorshipProjectsReportSadaqahWhat We DoZakat

The Roots of Sadaqah in Islam

Giving sadaqah, or voluntary charity, is deeply rooted in Islamic teachings and is a powerful act of worship. As Muslims, we understand that sadaqah not only benefits the receiver but also enriches the giver’s soul, bringing them closer to Allah and earning immense rewards. Let’s explore why this noble act is so cherished and what intentions drive us to give.

The Divine Command for Charity

Sadaqah holds a special place in Islam as a demonstration of faith and gratitude. The Quran emphasizes the significance of charity multiple times:

“The example of those who spend their wealth in the way of Allah is like a seed [of grain], which grows seven spikes; in every spike is a hundred grains. And Allah multiplies [His reward] for whom He wills.” (Surah Al-Baqarah, 2:261)

“مَّثَلُ الَّذِينَ يُنفِقُونَ أَمْوَالَهُمْ فِي سَبِيلِ اللَّهِ كَمَثَلِ حَبَّةٍ أَنبَتَتْ سَبْعَ سَنَابِلَ فِي كُلِّ سُنبُلَةٍ مِّائَةُ حَبَّةٍ ۗ وَاللَّهُ يُضَاعِفُ لِمَن يَشَاءُ ۗ وَاللَّهُ وَاسِعٌ عَلِيمٌ” (Surah Al-Baqarah, 2:261)

Through this verse, we see how Allah magnifies the reward for those who give with sincerity. Beyond the rewards, sadaqah cleanses our wealth and purifies our hearts.

The Prophet Muhammad ﷺ also said, “Charity extinguishes sins just as water extinguishes fire.”

This profound statement reminds us that sadaqah has the power to cleanse us spiritually while easing the burdens of others.

Intentions Behind Giving Sadaqah

Many Muslims give sadaqah daily to invite barakah into their lives. By giving, they aim to ensure their wealth grows in unseen ways and their lives are filled with peace and prosperity.
The act of giving is not merely transactional; it is deeply spiritual. Our intentions are what elevate the act of sadaqah into an act of ibadah (worship): (Definition of Ibadah in Islam)

  • Seeking Barakah (Blessings): Many Muslims give sadaqah with the hope of increasing their sustenance, health, and overall blessings in life. Allah promises barakah for those who are generous, even when they have little.
  • Compensating for Sins: Aware of our human imperfections, we give charity as an expiation for mistakes, seeking forgiveness from Allah. The Prophet ﷺ said, “Charity does not decrease wealth.” Instead, it protects us from harm and shields us from misfortune.
  • Gaining Closeness to Allah: Sadaqah is an act of love and devotion. By giving, we fulfill the divine command and strengthen our connection with the Creator.
  • Helping Those in Need: At its heart, sadaqah is about alleviating the pain and suffering of others. By sharing our blessings, we remind ourselves of the collective responsibility we have as an ummah (community).

How Is Charity Spent?

As an Islamic charity institution, we ensure that every satoshi of sadaqah is utilized according to Islamic principles. Here’s how your contributions make a difference:

  • Feeding the Hungry: Daily meals are distributed to families and individuals struggling with poverty.
  • Supporting Orphans and Widows: We provide care, education, and essentials to vulnerable groups.
  • Planting Olive and Fig Trees: This sustainable initiative benefits communities for generations.
  • Building Schools and Clinics: Education and healthcare are critical to breaking the cycle of poverty.
  • Emergency Aid: During crises, such as natural disasters or conflicts, your sadaqah delivers immediate relief.

The Modern Way to Give Sadaqah

In today’s world, technology offers new ways to fulfill this timeless obligation. You can now pay sadaqah on the blockchain through our Islamic charity institution. Simply copy our wallet address and donate using Bitcoin, Ethereum, or stablecoins(USDT, USDC, DAI,…) of your choice. This secure and transparent method ensures your contribution reaches those in need efficiently and effectively.

The Eternal Rewards of Sadaqah

By giving sadaqah, we not only bring ease to others but also prepare for our eternal home in the Hereafter. Let us remember the words of the Prophet ﷺ: “The believer’s shade on the Day of Resurrection will be their charity.”

No amount is too small in the eyes of Allah. Every act of charity, no matter how humble, carries immense value when done sincerely. Prophet Muhammad (peace be upon him): “Protect yourself from Hellfire, even by giving a piece of a date as charity.” (Bukhari)

At Our Islamic Charity, we invite you to join us in spreading goodness and earning immense rewards. Together, we can create a world where no one is left hungry, forgotten, or alone. May Allah accept our efforts and grant us barakah in this life and the next.

Ameen.

Food and NutritionIbadah / Acts of WorshipReligionSadaqahWhat We Do

How to Pay Zakat on Crypto Trading Profits: A Guide for Muslim Investors

As a Muslim active in the crypto market, you may wonder how best to fulfill your zakat obligation on trading profits. Crypto markets can be volatile and fast-paced, making it challenging to determine when and how much zakat to pay on your crypto holdings and trading gains. In this article, we’ll guide you through an effective, clear process to calculate and pay your crypto zakat, ensuring your investments align with Islamic values.

Understanding Zakat in the Crypto Market

Zakat is one of Islam’s essential pillars, a form of charity that purifies wealth. It applies to various types of assets, including gold, silver, business profits, and now, even cryptocurrencies. As Muslims in the modern digital age, we must ensure that even our crypto assets reflect our faith and commitment to charity. But unlike traditional assets, crypto presents unique challenges. For instance, how do you measure your holdings’ value amidst constant market fluctuations? When exactly do you pay zakat on crypto that’s actively traded?

To navigate these questions, let’s first clarify what makes your crypto assets zakat-eligible. Then, we’ll explore strategies to simplify your zakat calculation.

When is Crypto Eligible for Zakat?

For crypto zakat, think of your holdings in two ways: long-term investments and active trading profits. This distinction can make your zakat calculation easier:

  • Long-Term Crypto Investments: If you hold crypto assets with the intention of long-term growth, these holdings will be zakat-eligible if their value meets or exceeds the nisab threshold—either 85 grams of gold or 595 grams of silver.
  • Trading Profits: For those actively buying and selling crypto, each profit transaction may feel like a gain. While zakat is traditionally due once a year, paying on each profit as you go can be an added form of generosity or sadaqah (voluntary charity). We’ll explore how to incorporate this approach into your annual zakat.

Step-by-Step Guide to Calculating Zakat on Crypto

Let’s break down how to determine zakat on crypto investments:

  • Determine the Nisab Threshold: Use either the gold or silver value to find the minimum zakat-eligible amount. For most, silver is the preferred standard since it has a lower value, making zakat more accessible and inclusive.
  • Calculate Your Total Holdings: Add up the market value of all zakat-eligible crypto assets in your wallet, including both long-term holdings and trading profits, if applicable. Remember, fluctuations in crypto prices can impact the final amount. Pick a stable time in the year, based on the lunar calendar, to assess your assets.
  • Apply the Zakat Rate: Once your holdings exceed the nisab, calculate 2.5% of the total value to determine your zakat obligation. This is the standard rate for zakat on assets like crypto and gold.
  • Crypto Zakat Calculator: We have simplified all these steps and Zakat calculator takes into account your assets plus crypto assets and you can calculate from here.

Example Calculation

Imagine you’ve held Bitcoin and Ethereum in your wallet over the past year, with combined holdings valued at $10,000. As long as this amount exceeds the nisab, you would owe $250 in zakat (2.5% of $10,000). If you’ve also gained an additional $1,000 from trading profits, you could add this amount to your total holdings or pay 2.5% of the $1,000 as extra zakat.

Paying Zakat on Each Profit: Optional but Rewarding

While paying zakat once a year is obligatory, some investors choose to pay on each profit transaction as a way to maintain regular charity. This approach can be especially fulfilling if you aim to purify each gain right away.

Steps for Paying Zakat on Each Profit

  • Set a Percentage: You may opt to set aside 2.5% of each profit from spot trading. This percentage can go directly towards charitable causes or be added to your annual zakat.
  • Track Your Profits Consistently: Since crypto markets fluctuate rapidly, keep a log of each trading profit and calculate zakat accordingly. At the end of the lunar year, compare your total holdings with what you’ve already donated to ensure you meet the annual zakat requirement.
  • Benefit to Recipients: This approach provides a continuous stream of support to recipients, which can be especially impactful for those in need, such as the fuqara (poor) and other eligible groups. This point is very important, we can save the poor and needy with continuous payments and help them throughout the year.

You can pay your crypto zakat from this link, or if you want to pay anonymously, you can pay wallet to wallet from this link.

Fulfilling Your Obligation and Strengthening Your Faith

At “Our Islamic Charity,” we believe in making zakat as straightforward and impactful as possible. Whether you choose to pay annually or on each profit, the key is sincerity and commitment to the principle of charity. By dedicating a portion of your crypto earnings, you can purify your wealth and foster compassion within the broader Muslim community.

Crypto zakat may seem complex at first, but with the right tools and intentions, it becomes a powerful way to align your investments with faith. Whether you hold crypto or trade actively, your zakat can transform lives—yours and those of the people you help.

CryptocurrencyIbadah / Acts of WorshipReligionSadaqahZakat

Sharia Law on Crypto Betting and Gambling

In today’s fast-evolving financial world, the question arises for many: is gambling or betting with cryptocurrency haram (forbidden)? To help you understand the Islamic perspective, let’s dive into what Islam says about gambling and betting, no matter the currency, and how we can purify any haram wealth we may have gained.

Is Gambling with Cryptocurrency Different from Traditional Gambling in Islam?

In Islam, any form of gambling, whether it’s with cash, cryptocurrency, or other assets, is considered haram. Gambling and betting, known as “Maisir” in Arabic, have long been deemed Haram (forbidden) in Islam. This prohibition is rooted in Shariah, as gambling relies on chance, not on fair trade or productive work. Engaging in these activities, regardless of the currency, leads to uncertainty (gharar), promotes dependency on luck rather than skill, and carries a risk of addiction—all elements that go against Islamic principles. This holds for all Muslims, regardless of the type of asset involved, including cryptocurrency.

What Should You Do If You’ve Earned Money Through Gambling or Betting?

If you find yourself with money earned through gambling or betting and want to make it halal, there are steps you can take to cleanse this wealth and seek Allah’s forgiveness. By making sincere efforts to remove haram income from our lives, we aim to align our intentions with the teachings of Islam. Here’s how:

1. Repent to Allah (SWT) with a Sincere Heart

The first step toward purification is sincere Tawbah(repentance). Repent to Allah (SWT) for having engaged in haram activities, and resolve never to return to these actions again. When we turn to Allah with genuine regret, He is always ready to forgive, as long as we intend to stay away from haram means of earning in the future.

2. Dispose of Haram Money in Charity

The money earned through gambling or betting should not be used for personal gain, as it does not carry barakah (blessing). Instead, give this money to charitable causes or the poor to cleanse your wealth. Remember, this donation is not considered zakat since zakat requires pure income. Donating to causes that benefit society, such as feeding the needy, building community resources, or supporting Islamic institutions, is a way to rid yourself of haram funds and replace them with halal earnings.

Can’t Separate the Haram Money from Your Wealth? Try These Solutions

If gambling earnings are mixed with your entire wealth and it’s hard to separate them, there are three ways to approach this situation:

Option 1: Estimate and Donate the Same Amount as Sadaqah

If you have a rough idea of how much money was gained from gambling or betting, then calculate this amount and give it in sadaqah. This charity should be directed toward people in need or charitable projects, without expecting any personal gain or reward. Here you can pay Sadaqah in various cryptocurrencies such as Bitcoin, Ethereum and more…

Option 2: Give Khums if Haram Earnings Are Minor

If you’re uncertain about the exact amount but know that it’s a small part of your wealth, you can purify it by giving khums. This involves giving one-fifth of your wealth to charity, which is a portion that, in Islamic tradition, serves to purify earnings. Here you can pay Khums in various cryptocurrencies such as Bitcoin, Ethereum and more…

Option 3: Donate a Larger Amount if Haram Earnings Are Substantial

If a large part of your wealth is believed to contain haram earnings from gambling or betting, consider giving more than khums in charity. The amount depends on what brings you peace and what you feel is sufficient to purify your wealth. Some Muslims, in pursuit of full peace of mind, donate a major portion or even all of their wealth if they feel it’s heavily mixed with haram income. Allah knows our intentions best, and in striving for a pure heart, we seek His acceptance of our actions.

Seeking Allah’s Satisfaction and Inner Peace

In our journey as Muslims, we aim to preserve our religion and keep our earnings and hearts pure. By repenting sincerely, donating haram funds to charitable causes, and taking actions that align with Islamic principles, we show our dedication to living in a way that pleases Allah.

Remember, Allah sees every action and knows our intentions. He understands when we strive to cleanse our lives and make our wealth pure, and He rewards the effort to keep haram out of our lives. May Allah grant us success in our intentions, accept our efforts, and guide us on the path of purity, honesty, and peace.

CryptocurrencyIbadah / Acts of WorshipKhumsReligionSadaqah