Short answer
The Prophet ﷺ said whoever gives a fasting person food to break their fast gets the same reward as that person, without the faster's reward being reduced at all. It is mustahabb, and the reward is hoped for even with a date or a glass of water, though a full meal is better. Zakat money cannot be used for open iftar meals in the Hanafi school.
Giving iftar is mustahabb and highly rewarded. It counts as sadaqah, so it can come from general charity. Zakat requires transferring ownership to an eligible poor person, so an open iftar where anyone eats cannot be paid from zakat.
The four schools agree on this.
Explanation
Zayd ibn Khalid reported that the Prophet ﷺ said: whoever gives iftar to a fasting person will have a reward like his, without anything being taken from the faster's reward. This is one of the easiest ways to multiply your reward in Ramadan.
Who counts:
- Family members, guests, neighbours and colleagues, rich or poor.
- Strangers at the masjid iftar.
- Travellers and students far from home.
How much? The scholars explain that the reward of the hadith is hoped for with whatever breaks the fast, even a date or water. Filling a hungry person's stomach is more complete, and feeding the poor adds the reward of charity.
Paying for masjid iftars. In the Hanafi school, zakat must be handed into the ownership of an eligible poor person. Open iftars where anyone can eat do not meet this, so pay for them from sadaqah, not zakat. Giving food parcels or cash to eligible poor families can be zakat. See who can receive zakat and zakat vs sadaqah.
Etiquette. Invite with sincerity, not to show off. Do not let hosting stop people praying Maghrib on time. If you are the guest, make dua for your host: the Prophet ﷺ would pray for those who fed him that fasting people break their fast with them, the righteous eat their food and the angels pray for them. For more ways to earn reward this month, see the Ramadan planner.
The evidence
Jami' at-Tirmidhi 807
Grading to be checked... من فطر صائما كان له مثل أجره غير أنه لا ينقص من أجر الصائم شيئا ...
"Whoever gives iftar to a fasting person has a reward like his, without anything being reduced from the fasting person's reward."
The reward of giving iftar.
Sunan Abi Dawud 3854
Grading to be checked... أفطر عندكم الصائمون وأكل طعامكم الأبرار وصلت عليكم الملائكة ...
"May fasting people break their fast with you, the righteous eat your food, and the angels pray for you."
The dua the guest makes for the one who gave iftar.
Where the ruling is recorded
- Radd al-Muhtar (Ibn Abidin), Kitab al-Zakat, chapter on the recipients of zakat. Zakat requires transfer of ownership (tamlik); feeding people as guests without giving ownership does not count as zakat.
Checked by our team. For a more accurate answer to your own situation, consult a scholar. Quran translation by Sahih International. Hadith Arabic from the standard editions of the six books and the Muwatta, with gradings as recorded there; the English is our own rendering. Spotted a mistake? Tell us.