Paying a portion of zakah funds to a social solidarity fund dedicated to regional services
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Fatwa No. ( 14627 )
Q: The men of my town in the al-Bahah region established a cooperative charitable fund about twenty years ago. This was done by every male member of the tribe who reaches the age of fourteen paying an annual subscription determined by the tribe's sheikhs, which is deposited with the person entrusted with the fund's custody. The objectives of this fund are charitable and noble, including assisting any member of the tribe who suffers from accidents, disasters, or calamities, or carrying out certain charitable projects or things that benefit the people of the village or its youth; such as lighting the roads, forums, and gatherings, or fencing sports fields, or cemeteries, or paving some of the roads, and similar objectives that serve the general welfare of the village and its people. By virtue of our position among the tribe's men and their trust in us, praise be to Allah, they entrusted the fund's custody to us. We have been, and still are, collecting the prescribed annual subscriptions and recording them in a special account in the name of the fund, then depositing the amount among our personal funds. I and my brothers, the sons of the late (A.M.H), have decided to increase our support for the fund by deducting a portion of the zakah on our wealth to add to the fund's assets, so that the fund has sufficient liquidity to make an effective contribution to achieving its noble objectives. However, some of the tribe's men have emerged who consider this not permissible, and that adding a percentage is tainted by the prohibition of riba. In our pursuit of following what the noble Shari'ah decrees, we ask you, Your Eminence, to issue a fatwa regarding the following: 1- Is the obligatory zakah due on the fund's assets, which have been in existence for years, from the first year in which they exceed the nisab? 2- Is it permissible for us, as the sons of the late (A.M.H), to deduct a portion of the zakah on our wealth and add it to this fund as an annual percentage?
From the sons of the tribe for accidents, disasters, or calamities, or to carry out certain charitable projects or what benefits the people of the village or the youth of the village; such as lighting the roads, forums, and gatherings, or fencing sports fields, or cemeteries, or paving some of the roads and similar goals that return to the public interest of the village and its people. And by virtue of our position among the sons of the tribe and their trust in us, and praise be to Allah, they entrusted the treasury to us, and we have been and still are receiving the prescribed annual subscriptions and recording them in a special account in the name of the treasury, then we deposit the amount among our private funds. I and my brothers, the sons of the late (A.M.H), have seen that we should increase support for the treasury by deducting a portion of the zakat of our wealth to add it to the funds of the treasury so that liquidity is available in the treasury to contribute effectively to achieving its noble goals. However, there are some who have appeared from the sons of the tribe who see that this is not permissible, and that adding a percentage is tainted by the prohibition of riba. In our pursuit of following what the noble Shari'ah decrees, we ask you, Your Eminence, to issue a fatwa regarding the following: 1- Is the Shari'ah zakat obligatory on the funds of the treasury, which have passed several years and from the first year exceeded the nisab? 2- Is it permissible for us, as the sons of the late (A.M.H), to deduct a portion of the zakat of our wealth and add it to this treasury with an annual percentage?
3- Is adding an annual percentage haram and does it fall under the scope of riba, whether it is from the zakat as we mentioned or from our money as a donation to this treasury, and sometimes the percentage is fixed at 10%? We are awaiting your fatwa to act upon it and to inform the sons of the village of it. May Allah reward you with good and prolong your life in health and safety. And peace be upon you and the mercy of Allah and His blessings.
A: First: The ruling on the obligation of zakat in the funds of the donation fund varies according to the intention of the donors, and a fatwa has been issued by us regarding this, the text of which is: (If the situation is as mentioned, and the donated amounts do not return to those from whom they were collected, even if the project fails, and are spent in other avenues of righteousness, then zakat is not obligatory. And if they return to those from whom they were collected if the project fails, then zakat is obligatory on each person in his share from which it was collected if the year has passed). Second: It is not permissible to pay zakat to the aforementioned fund. Third: You may not dispose of the funds of the treasury; because it is a trust in your possession, you must preserve it, and if it is possible to hand it over to someone who trades in it with a known undivided share of the profit, such as half, for example, and the like, there is no harm. As for your donation to the treasury of something from your money, there is no harm with it; because it is a mere donation that does not entail any of the rulings of riba.
And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: The men of my town in the al-Bahah region established a cooperative charitable fund about twenty years ago. This was done by every male member of the tribe who reaches the age of fourteen paying an annual subscription determined by the tribe's sheikhs, which is deposited with the person entrusted with the fund's custody. The objectives of this fund are charitable and noble, including assisting any member of the tribe who suffers from accidents, disasters, or calamities, or carrying out certain charitable projects or things that benefit the people of the village or its youth; such as lighting the roads, forums, and gatherings, or fencing sports fields, or cemeteries, or paving some of the roads, and similar objectives that serve the general welfare of the village and its people. By virtue of our position among the tribe's men and their trust in us, praise be to Allah, they entrusted the fund's custody to us. We have been, and still are, collecting the prescribed annual subscriptions and recording them in a special account in the name of the fund, then depositing the amount among our personal funds. I and my brothers, the sons of the late (A.M.H), have decided to increase our support for the fund by deducting a portion of the zakah on our wealth to add to the fund's assets, so that the fund has sufficient liquidity to make an effective contribution to achieving its noble objectives. However, some of the tribe's men have emerged who consider this not permissible, and that adding a percentage is tainted by the prohibition of riba. In our pursuit of following what the noble Shari'ah decrees, we ask you, Your Eminence, to issue a fatwa regarding the following: 1- Is the obligatory zakah due on the fund's assets, which have been in existence for years, from the first year in which they exceed the nisab? 2- Is it permissible for us, as the sons of the late (A.M.H), to deduct a portion of the zakah on our wealth and add it to this fund as an annual percentage?
From the sons of the tribe for accidents, disasters, or calamities, or to carry out certain charitable projects or what benefits the people of the village or the youth of the village; such as lighting the roads, forums, and gatherings, or fencing sports fields, or cemeteries, or paving some of the roads and similar goals that return to the public interest of the village and its people. And by virtue of our position among the sons of the tribe and their trust in us, and praise be to Allah, they entrusted the treasury to us, and we have been and still are receiving the prescribed annual subscriptions and recording them in a special account in the name of the treasury, then we deposit the amount among our private funds. I and my brothers, the sons of the late (A.M.H), have seen that we should increase support for the treasury by deducting a portion of the zakat of our wealth to add it to the funds of the treasury so that liquidity is available in the treasury to contribute effectively to achieving its noble goals. However, there are some who have appeared from the sons of the tribe who see that this is not permissible, and that adding a percentage is tainted by the prohibition of riba. In our pursuit of following what the noble Shari'ah decrees, we ask you, Your Eminence, to issue a fatwa regarding the following: 1- Is the Shari'ah zakat obligatory on the funds of the treasury, which have passed several years and from the first year exceeded the nisab? 2- Is it permissible for us, as the sons of the late (A.M.H), to deduct a portion of the zakat of our wealth and add it to this treasury with an annual percentage?
3- Is adding an annual percentage haram and does it fall under the scope of riba, whether it is from the zakat as we mentioned or from our money as a donation to this treasury, and sometimes the percentage is fixed at 10%? We are awaiting your fatwa to act upon it and to inform the sons of the village of it. May Allah reward you with good and prolong your life in health and safety. And peace be upon you and the mercy of Allah and His blessings.
A: First: The ruling on the obligation of zakat in the funds of the donation fund varies according to the intention of the donors, and a fatwa has been issued by us regarding this, the text of which is: (If the situation is as mentioned, and the donated amounts do not return to those from whom they were collected, even if the project fails, and are spent in other avenues of righteousness, then zakat is not obligatory. And if they return to those from whom they were collected if the project fails, then zakat is obligatory on each person in his share from which it was collected if the year has passed). Second: It is not permissible to pay zakat to the aforementioned fund. Third: You may not dispose of the funds of the treasury; because it is a trust in your possession, you must preserve it, and if it is possible to hand it over to someone who trades in it with a known undivided share of the profit, such as half, for example, and the like, there is no harm. As for your donation to the treasury of something from your money, there is no harm with it; because it is a mere donation that does not entail any of the rulings of riba.
And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.