Zakat
It is a form of obligatory alms giving, and the collected amount is paid to poor Muslims, to zakat collectors, to new converts to Islam, as income to its clergy, and others. Zakat is mandatory for all Muslims, on their income and wealth above a minimum amount called nisab.
Sadaqah
In the modern context, sadaqah has come to signify "voluntary charity". This concept encompasses any act of giving out of compassion, love, friendship (fraternity), religious duty or generosity.
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