Zakah is giving of charity 2 1/2% of ones annual savings, to the poor and needy

Zakah (Giving Charity)
The 3rd Pillar:
Giving Zakah (Charity)
Zakâh “alms for the poor” is the Islamic principle of giving a percentage of one’s income to charity. It is often compared to the system of tithing and alms but unlike these older systems, it serves principally as the welfare contribution to poor and deprived people in the Muslim lands, although others may have a rightful share. It is the duty of the state not just to collect it; but to distribute it fairly as well.

Who is Required to Give Zakah
The obligation of Zakah is mandatory on every Muslim who possesses the minimum Nisaab, whether the person is man, woman, young, old sane or insane. Because the proof of Zakah in Al-Qur’an and Sunnah is general and does not exclude young or insane.

“Of their goods take alms so that thou mightiest purify and sanctify them…”
Quran 9:103Imam Ibn Hazim said that every Muslim young or old sane or insane needs to cleanse his or her wealth with Zakah because of generality of the evidence.

Prophet Muhammad peace be upon him said: “Trade with the money of the orphan, lest it is eaten up by Zakah.”
At-Tabraani, Narrated by Anas Bin MalikThe Nisaab

Who is Entitled to Receive Zakah
Knowing who qualifies as recipient of Zakah is an important aspect of Zakah collection in Islam.

“Alms are for the poor and the needy; and those employed to administer (the funds); for those whose hearts have been (recently) reconciled (to 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.”
Quran 9:60The poor and the needy
These are individuals, and those under their care, to live on. By the poor and needy is meant the people whose income or salaries, or whatever material goods they have, fall short of the cost of living in a given environment and economy. The poor and the needy should be given what will suffice them and their families for one full year. The needy who want to get married and have no means should be given enough for this purpose, and so, too, the student who needs money for tuition, rent, food, and books. The working poor should be given supplementary Zakah. But the wealthy, or any person with enough income to live on should not be given Zakah, even if they asked for it. Instead, they should be warned and admonished for asking for what does not belong to them.

Zakah is generally agreed to be two and one half percent (2.5%) of your worth payable annually.

Any more than that is up to the individual and it is always encouraged to be charitable and open hearted with our money and wealth, and to help those less fortunate than us.