---
title: "What is Sadaqah? | IslamicOpenFinance™"
description: "Voluntary charity given to people in need, beyond the obligatory zakat."
url: https://islamicopenfinance.com/glossary/sadaqah/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Social finance and zakat](https://islamicopenfinance.com/glossary/#social)

Social finance and zakat

# Sadaqah

Voluntary charity given to people in need, beyond the obligatory zakat.

Sadaqah is voluntary charity. Bank Negara Malaysia's glossary describes it as a donation to people in need for the purpose of seeking closeness to God. Unlike zakat, it has no fixed rate, threshold or timing, and in Islamic finance it is also the destination of amounts an institution cannot keep as income, such as late payment penalties and purified earnings.

## Sources

- [Bank Negara Malaysia, Shariah Contract Framework discussion paper, 2024: Glossary, Sadaqah](https://www.bnm.gov.my/documents/20124/938039/dp-shariah-contract-nov24.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Zakat** An obligatory annual contribution on qualifying wealth above a minimum threshold, paid to specified categories of recipients.](https://islamicopenfinance.com/glossary/zakat/) [**Purification of income** Giving away, usually to charity, income from a non-compliant source or a Shariah breach, so the institution does not benefit.](https://islamicopenfinance.com/glossary/purification/) [**Waqf** An endowment: an asset is dedicated so that its principal is preserved and its benefits go to a stated purpose.](https://islamicopenfinance.com/glossary/waqf/) [**Qard hasan** A benevolent loan repaid at face value with no return for the lender, often used for social and hardship lending.](https://islamicopenfinance.com/glossary/qard-hasan/)

**Social finance and zakat**

1. [Zakat](https://islamicopenfinance.com/glossary/zakat/)
2. [Nisab](https://islamicopenfinance.com/glossary/nisab/)
3. [Waqf](https://islamicopenfinance.com/glossary/waqf/)
4. [Qard hasan](https://islamicopenfinance.com/glossary/qard-hasan/)
5. [Zakat recipients (asnaf)](https://islamicopenfinance.com/glossary/zakat-recipients/)
6. [Cash waqf](https://islamicopenfinance.com/glossary/cash-waqf/)
7. [Nazir (waqf trustee)](https://islamicopenfinance.com/glossary/nazir/)
8. [Zakat base](https://islamicopenfinance.com/glossary/zakat-base/)

[All 221 terms](https://islamicopenfinance.com/glossary/)