Understanding Nisab
Who receives Zakah?
When should Zakah be paid?
Investing & Zakah
Estimating your Zakah
Distributing your Zakah
Zakah Application
Consider the following example of a typical year-end statement for an Amana Income Fund account. Using the statement’s transaction history, Zakah may be estimated as follows: New Investments of $3,100 are subtracted, and Disbursements of $1,070 are added back. The estimated amount subject to Zakah for this calendar year is $195.25. Zakah is 10.3% of that amount, or $20.11.
| Estimating Zakah on Amana Income Fund Account (Example) | |||
| Beginning of Year Value (as of 01/01/2005): | $0.00 | ||
| 2005 New Investments | |||
| 01/02/2005 Purchase for | $1,000.00 | ||
| 04/01/1999 Purchase for | $2,100.00 | ||
| Total Purchases: $3,100.00 | |||
| 2005 Disbursements | |||
| 08/01/2005 Redemption for | $520.00 | ||
| 11/01/2005 Redemption for | $550.00 | ||
| Total Disbursements: $1,070.00 | |||
| End of Year Value (as of 12/31/2005): | $2,225.25 | ||
| Less New Investments | $(3,100.00) | ||
| Adding Back Disbursements | $1,070.00 | ||
| Adjusted End of Year Value: | $195.25 | ||
 |
|||
| Gain is equal to the Adjusted End
of Year Value Less Beginning of Year Value: $195.25 - $0.00 = $195.25 |
|||
|
|||
| Total Amount Subject to Zakah: | $195.25 | ||
| Zakat at 10.3% | $20.11 | ||
Zakah on Retirement and Brokerage
For the purpose of Zakah, retirement accounts are considered part of net worth, as the contributor has eventual access to the funds. Thus for
retirement accounts (401(k), Keogh, IRA, SEP-IRA, Roth IRA), the investor is subject to Zakah on 10.3% of the increase in a Gregorian calendar year.
Public trusts and charitable organizations are not subject to Zakah.
The same method to that illustrated above with Amana shares can be applied to Zakah calculation for entire portfolios. Brokerage accounts with Saturna Brokerage Services are automatically incorporated as part of the Zakah estimation performed by Saturna Capital.
Continue to Distributing Your Zakah 
