Zakah is the third of the Five Pillars of Islam. It is giving money to the poor. Muslims believe that it is their duty to ensure Allah’s wealth has been distributed equally as everyone is the same - Allah created everyone equally. If a Muslim decides not to follow the pillar of Zakah, it may affect how they are judged in the afterlife. This could make it more likely that they will be sent to Hell (Jahannam) rather than Paradise (Jannah).
Zakah means ‘that which purifies’. By giving money to charity, Muslims can cleanse their wealth. It is important that Muslims do not get attached to unnecessary things such as money and possessions. Islam teaches that focusing on wealth and material possessions does not make a good Muslim.
Zakah refers to a Muslim giving 2.5% of their earnings to charity, after they have paid for what is necessary to support themselves and their family. This means that people who are too poor are not required to suffer hardship in order to give Zakah. Muslims see wealth as ultimately belonging to Allah, and giving Zakah helps to make people more equal. Helping one another is also seen as helping Allah. Zakah donations help Muslims to purify their souls by not being greedy. It is said that the giver of the money will receive a ‘hundred-fold’ back in the afterlife. This means that the giver of the money will receive back a hundred times what they gave as Zakah during their life.
Some Muslims perform Zakah by giving directly to a charity. Others contribute to donations in the mosque, which then distributes the money to people in need.
As well as donating money in a mosque, some Muslims choose to invest time or money (known as Sadaqah) in a chosen charity of their choice. They do this in order to please Allah. However, there are some limitations to how Muslims can donate their time and money. According to Surah 9 in the Qur’an, Zakah can only be used for the following:

helping the poor
helping people in need
freeing prisoners, slaves or captives
helping people out of debt