Is Zakat Due on Unreceived Cash Winnings from Contest Prize?

No, Zakat is not payable on a cash prize that has not yet been received.

Here is why:

• Nature of Zakat and Wealth
• Zakat is due only on wealth that is in your actual possession.
• The cash prize must be accessible and under your control to be considered in your Zakat calculation.
• Condition of Receipt
• Although you have won the prize, it is still pending receipt.
• Since the funds aren’t in your possession, they’re considered anticipated income, not accessible wealth.
• Nisab (Minimum Threshold)
• For Zakat to become obligatory, your wealth must exceed the nisab (the minimum threshold).
• As the pending prize is not yet in your control, it cannot be counted towards meeting the Zakat nisab requirement.
• Time Requirement (Hawl)
• Zakat is due only after the wealth has been held for a full lunar year.
• Since the prize money remains uncollected, it does not begin accruing the waiting period necessary for Zakat to be obligatory.
• Islamic Jurisprudence on Possession
• Islamic scholars emphasize that only assets in your immediate possession or control should be included in your Zakat calculation.
• An unreceived prize is considered expected income and is not included in Zakatable assets.
• Practical Implication
• Until you receive the prize money and it becomes part of your tangible wealth, you are not required to pay Zakat on it.
• Once received, the prize money is Zakatable if your wealth meets nisab and the one year.

Hence, because the cash prize remains an anticipated receipt rather than actual, accessible wealth, it is not subject to Zakat until you have received it. 

And Allah knows best!

Other Zakat Questions You May Have

• Is Zakat Due on Money Saved for Hajj?
• Is Zakat Due on Wealth Owned Before Accepting Islam?
• Are Bonds and Treasury Bills Subject to Zakat?
• Do I Need to Pay Zakat on Payments Owed by a Client?
• Are Prepaid Expenses Subject to Zakat?
• How is Zakat Calculated on Cash and Liquid Assets?