Recipients of Zakat

1. The recipients of zakat are eight categories as Allah mentioned them in the Qur'an:

إِنَّمَا الصَّدَقَاتُ لِلْفُقَرَاءِ وَالْمَسَاكِينِ وَالْعَامِلِينَ عَلَيْهَا وَالْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِي الرِّقَابِ وَالْغَارِمِينَ وَفِي سَبِيلِ اللَّهِ وَابْنِ السَّبِيلِ فَرِيضَةً مِنَ اللَّهِ وَاللَّهُ عَلِيمٌ حَكِيمٌ (60)

{Alms are for the poor and the needy, and those employed to administer the (funds); for those whose hearts have been (recently) reconciled (to the truth); for those in bondage and in debt; in the cause of Allah; and for the wayfarer: (thus is it) ordained by Allah, and Allah is full of knowledge and wisdom.}

2. Poor: One who possesses less than half of his basic needs or nothing at all.
3. Needy: One who possesses at least half but less than all of his basic needs.
4. Administrators: Those paid [standard market] wages to collect, preserve and distribute the properties of zakat.
5. Those whose hearts come near: At first this was influential mushrikeen where there was hope of their imminent acceptance of Islam and their influence on others.  Later, it was only for new Muslims not yet strong in faith for whom monetary gifts were an incentive.
6. Those in bondage: Slaves in the process of mukaatiba (working their way out) or the freeing of any slave or prisoner of war.
7. Those in debt: Those who undertook a financial burden in order to bring peace and reconciliation between others - or those who got into debt for any halaal purpose or reason but then fell on hard times.
8. In the cause of Allah: Defense and military expenses of defending the Ummah.  How some have widened this category.
9. The wayfarer: a traveler stranded and cut off from his property while far from home.
10. Anything paid in zakat is only lawful to a non-needy person in five cases (Ibn Majah, sahih):

لَا تَحِلُّ الصَّدَقَةُ لِغَنِيٍّ إِلَّا لِخَمْسَةٍ لِعَامِلٍ عَلَيْهَا أَوْ لِغَازٍ فِي سَبِيلِ اللَّهِ أَوْ لِغَنِيٍّ اشْتَرَاهَا بِمَالِهِ أَوْ فَقِيرٍ تُصُدِّقَ عَلَيْهِ فَأَهْدَاهَا لِغَنِيٍّ أَوْ غَارِمٍ

"Zakat is not lawful for anyone not in need except for five cases: 1) an administrator of zakat, 2) a fighter in Allah's path, 3) if he purchased it with his property, 4) if it was given as a gift from the needy person who first received it and 5) one sunk in debt [from lawful activity]."


 

11. Each needy category is given according to need.  The others are given according to what is fair or "market".
12. Rendering zakat to rulers who are corrupt and unjust is valid and relieves one of the obligation.
13. Zakat is invalid if given to a non-Muslim (except in the one case of "those whose hearts are drawn near").
14. Zakat is invalid if given to one who has wealth or the ability to earn it.
15. Zakat is invalid if given to one who it is your responsibility to support.