What is impure income?
Many otherwise-permissible companies hold cash that earns interest, or have a minor non-core revenue stream that isn’t permissible. The portion of a company’s income that comes from such sources is “impure.” The financial screen keeps it small (under 5% of revenue); purification cleanses the rest from your share.
How it’s calculated
A common method: for each dividend you receive, multiply it by the company’s impure-income percentage, and give that amount to charity. Example — a $100 dividend from a company with 3% impure income means roughly $3 to purify. If you don’t receive dividends, some scholars still recommend purifying a share of capital gains.
Give it away — without seeking benefit
Purified money should be given to charity as cleansing, not counted as a tax-deductible donation or given to gain benefit. The intention is to remove the impermissible portion from your wealth, not to profit from it.
A note on data
Reliable impure-income figures aren’t always available from market-data providers. Where Rizvest can’t verify it, we say so plainly rather than guess — and we’d recommend a conservative estimate or a scholar’s input for your own purification.