Zakat is one of the five pillars of Islam and refers to the obligatory act of giving a portion of one’s wealth to those in need.
It is a form of charity that serves to purify wealth and promote social justice. People use to give Zakat in the holy month of Ramazan.
It is permissible for the person to give entire amount of Zakat to either a single deserving individual or distribute it among multiple deserving people. Both options are valid according to Islamic teachings.
However, it is disliked (makruh) to give such a large amount to a single individual unless he/she is in dire need of such amount. Nevertheless, if the Zakat is given to an individual, it is still valid.
The preference (afzal) depends on the circumstances and needs of the individuals involved. For instance, if one person has greater needs, such as higher family expenses or being in debt, and the full amount of Zakat will address these needs, it would be better to give the entire Zakat to that person, so their needs can be fully met.
On the other hand, if the total amount of Zakat exceeds the needs of a single person, then it would be preferable to distribute the Zakat among multiple individuals, ensuring that the needs of several people are met.