During the holy month of Ramadan, Muslims are to focus on spiritual reflection and coming together in family and community. The latter underlies strong traditions of charitable giving and action during the month. The non-negotiable Islamic practice of zakat, charitable or alms giving, is one of the five pillars of Islam and an important religious duty. In practice, an estimated 85% of zakat donations are made during Ramadan. Muslims at certain income levels are required to give 2.5% of their wealth to charity, and strict parameters outline the nisab, or threshold, that makes you liable for zakat and eligible to receive it.

Zakat practices vary widely among different world regions, with some tightly regulated under government oversight, while in other places it is largely informal. The overall impact is large, and the World Bank estimates that global zakat funds reach $600 billion per year. While some fear that the economic downturn linked to the COVID-19 pandemic will result in a drop in zakat funds, charitable giving could still provide an important boost for the global economy and contribute to the critical need to support those who are most vulnerable.

Religious charitable giving has important effects at the local level. In Pakistan, people are stopping outside supermarkets to give money and food to those living on the streets, accompanying the contribution with a plea that the receiver “pray that [the coronavirus] ends soon.” Mosques around the world are providing food to those who are going hungry. These acts of charitable giving are especially important given school and business closures and rising levels of food insecurity. Prime Minister Imran Khan of Pakistan observed recently that 25% of Pakistanis cannot afford to eat two times a day. 

Observers are also focusing on the broad economic impact of COVID-19 and practices linked to Ramadan. Many Muslims spend money on food, gifts, and Eid outfits during Ramadan: in the United Kingdom alone, an estimated £200 million is spent during the month. Thus the economic downturn could have especially significant ramifications during Ramadan.

(Based on: April 1, 2020, BBC article, April 8, 2020, New Yorker article; and April 30, 2020, EuroNews article)