Zakat
This is the compulsory alms-giving which Allah has given the order for in the Qur’an. Its status is Fardh. Zakah is only eligible upon mature, sane men and women who meet Nisab threshold. 2.5% of their wealth must then be given. Zakah must only be given to the specific eight categories mentioned in the Qur’an. If it is not given to any of them, then it will be void and necessary to re-pay. So donate to charity Zakat and fulfil the right of your wealth that Allah has bestowed upon you.
Sadaqah
This is the general term used for giving charity in Islam. All acts of worship through financial expenditure are, by broader definition, classified as Sadaqah. Due to there being many types, they have been divided into the following two categories both of which have separate rulings:
1. Sadaqah Wajibah
This is charity which is binding in nature. This includes Sadaqah al-Fitr, etc. This form of Sadaqah is similar to Zakah in that it must be spent on the same categories as defined by the Qur’an, except that it is not a condition for the beneficiary to be Muslim.
This type of Sadaqah includes: