Forms of Charity in Islamic Economics: An Analysis in the Quran and Sunna (As Reported in Bukhari and Muslim)

Charity is a way of bringing justice to every society, while justice is the essence of all religions in the World. It is in this respect that Islam made charity particularly Zakat, obligatory and binding upon all those who embrace the religion. Poverty had existed right from time immemorial, with around 3 billion people in the World living in abject poverty, out of which 35% are from Muslim World (World Bank 2010).This concern calls for urgent, collective and concrete efforts among the Muslim World to improve the conditions of poor Muslims, regardless of their color, gender, nationality and sect, since Islam amplifies unity and brotherliness. The objective of this research is therefore, to explore the forms of charity in Islam based on the two important sources which are the Quran and Sunna of the Prophet (PBUH) as reported in Bukhari and Muslims. Qualitative approach is employed in conducting the research and the data is collected through relevant literature survey, while descriptive technique is based on document analysis on literatures in the Qur’an and Hadith of the Prophet as reported in both Bukhari and Muslim as well as some views of few experts in Hadith literatures, such as Al Nisai, Ibn Majah and Tirmidhi which are used in analyzing the data. The general findings of the paper indicates that man is merely an agent carrying out God’s will and pleasure on earth, and is therefore expected to expend the entrusted wealth on the various forms of charity in both the Qur’an and Sunna of the Prophet Muhammad (PBUH), these are: Zakat, which is an obligation, Charity as a social responsibility, which comprises, Sadaqat, Voluntary alms (Khairat) and Baitul Mal Funds. The research further identified eight categories classified in the Holy Qur’an and expatiated in Hadith, as the beneficiaries of Zakat and other forms of charity. While the method of payment of Zakat and other forms of charity should be in such a way that beneficiaries are not molested and only that which is good and honorable is given in charity. Finally, the paper found that rewards will be met by those who comply and render Zakat and other forms of charity, while terrible punishment await those who fails to comply with the various injunctions of the Qur’an as well as traditions of the Holy Prophet in disbursing Zakat and other forms of charity. It is suggested from this study that various governments could support charitable institutions to effectively collect and disburse Zakat and other forms of charity towards the alleviation of the sufferings of the general public.