Zakat is the third pillar of Islam and it is obligatory on all Muslims
“Never will you attain the good [reward] until you spend [in the way of Allah ] from that which you love. And whatever you spend – indeed, Allah is Knowing of it.” [Quran 3:92]
The concept of charity is deep rooted in Islam, giving charity is one of the five pillars of Islam it has obvious benefits. Charity is mentioned in the Qur’an many times; spending in the way of Allah, supporting orphans, feeding the poor, relatives and travellers. Taking care of humanity is a central part of Islam. Emphasising the importance of charity in Islam.
Charity in Islam takes many forms, Zakat, Sadaqah, Lillah, Fitrana, Qurbani, and Kaffarah to name some. The two most essential are Zakat (Obligatory charity) and Sadaqah (Voluntary charity).
Zakat is the third pillar of Islam and it is obligatory on all Muslims whose wealth is above the Nisab threshold ( see Zakat calculator - https://www.sktwelfare.org/zakat-calculator). It is a payment of 2.5 % of ones total cumulative wealth for a year and it has to be distributed to one of the eight eligible group of people. (See Zakat FAQ’s - https://www.sktwelfare.org/zakat-faqs)
It is mentioned in the Quran that,
Fulfilling Zakat strengthens our faith and is a mean of self-purification, soul and wealth.