After fasting the entire month of Ramaḍān, Muslims have an opportunity to celebrate on the day of Eid. This day is supposed to be enjoyable and fun. People will visit family members, enjoy nice food and wear nice clothes. However, there is a segment of society that would find it difficult to be able to celebrate this day due to their financial circumstances. Their minds would be preoccupied, even on this day of celebration, with having to fulfill their basic needs for the day.
A solution to this difficulty was instituted by the Messenger of Allah when he announced to his Companions that they must give a certain amount of food in charity before people went to pray the Eid prayer in the morning. This charity is called Fiṭrah, Zakātul Fiṭr or Sadaqatul Fiṭr, which means: the charity for breaking the fast, since it is paid when Ramaḍān ends and fasting is over.
The Prophet explained that this charity not only feeds the poor and gives them an opportunity to enjoy the day of Eid, but it also serves as a means of spiritual purification from improper speech and actions that may have been committed in the month of Ramaḍān.
Giving this charity is an obligation [wājib] on every Muslim who possesses more than the monetary equivalent of about 3 ounces of gold [about $5160] in possessions, excluding those which are absolutely required for living like clothing, a vehicle, basic furniture, housing, etc.
The amount to be paid was measured in foodstuffs during the time of the Prophet. It was four double handfuls of a staple food like dates, barley or raisins. The monetary value nowadays is equivalent to about US $10-30, depending on which food item is being given. However, it is recommended to pay the value in cash if it would be more helpful to the poor so they can purchase other things they need for the day of Eid. Giving a gift card to a store might actually be more conducive to helping the poor.
The obligation to pay the Fiṭrah begins at dawn on the day of Eid al-Fiṭr [which is the day after Ramaḍān], so whoever possesses the minimum amount of wealth at that time must pay. If someone delays payment, the obligation remains and must still be fulfilled, even though it is considered late.
If someone lives in an area where it is not easy to identify or encounter legitimate poor people, then it is recommended to give the Fiṭrah to a person or organization who can properly distribute it on their behalf. In such circumstances, it is recommended to pay the Fiṭrah early enough [about a week or two in advance] so that the person or organization distributing it can ensure that it reaches deserving people prior to the Eid prayer. It is important to note that Fiṭrah must be given only to those who do not possess the minimum amount of wealth previously mentioned. Fiṭrah cannot be used for any other purpose like building a mosque, hospital, or other charitable activity.
A man is also required to pay a share of Fiṭrah on behalf of each of his minor children, unless they happen to be wealthy enough to pay it from their savings. A man is not responsible to pay it on behalf of his wife or his mature children. However, if a family member does pay it on behalf of another, it is valid, since permission is usually assumed in such cases.
 See al-Bukhārī #1509
 See Ibn Mājah #1827
 Some scholars mention that minimum amount should be 21 ounces of silver [about $400]. Others say it is required for anyone who will have enough food for one day without having to work for it. If someone is able to pay and does not intend to accept Fiṭrah from others, then it is recommended to pay it.
 Here is an example of how much that amount of raisins would cost: https://market.sunmaid.com/index.php?dispatch=products.view&product_id=29838
 Consult your local Muslim charity organization or mosque for current prices. These organizations usually collect and distribute the fiṭrah.