Salam wa' alikum
Continuing onto the next pillar of Islam is Zakah, or charity! Yes giving to charity is a requirement in Islam. The rules are pretty simple:
Who pays and how much?
Now not everyone has to pay, when I say "total saved income" I mean however much money, savings, assetts, property, cars, or extra that you earned and didn't use during the year. Things like that. Now if you earned as much as you needed to spend of food, clothes, etc, then you are not obligated to give Za'kat.
They ask you about intoxicants and gambling: say, "In them there is a gross sin, and some benefits for the people. But their sinfulness far outweighs their benefit." They also ask you what to give to charity: say, "The excess." GOD thus clarifies the revelations for you, that you may reflect. 2:219
Who gets Za'kat
Charities(Sadaqaat) shall go to the poor, the needy, the workers who collect them, the new converts, to free the slaves, to those burdened by sudden expenses, in the cause of Allah, and to the traveling alien. Such is GOD's commandment. GOD is Omniscient, Most Wise. [Qur'an 9:60]
What can you give for Za'kat?
Any charity you give, or a charitable pledge you fulfill, GOD is fully aware thereof. As for the wicked, they will have no helpers. 2:270
Benefits of Za'kat
Za'kat can be used as a powerful and fair system form of social security and unemployment. Since you only give if your able it doesn't force anyone into poverty or to give up income that you need, or could really use. And since it's based on a percentage, everyone pays equally and no one gets to cheat.
Those who give to charity night and day, secretly and publicly, receive their recompense from their Lord; they will have nothing to fear, nor will they grieve. 2:274
Support in Qur'an
Righteousness is not turning your faces towards the east or the west. Righteous are those who believe in GOD, the Last Day, the angels, the scripture, and the prophets; and they give the money, cheerfully, to the relatives, the orphans, the needy, the traveling alien, the beggars, and to free the slaves; and they observe the Contact Prayers (Salat) and give the obligatory charity (Zakat); and they keep their word whenever they make a promise; and they steadfastly persevere in the face of persecution, hardship, and war. These are the truthful; these are the righteous. 2:177
Conclusion
Insh'allah this post has helped muslims and non-muslims alike to understand what za'kat is.