Zakat on money collected to assist those in need
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The fifth question from Fatwa No. ( 18425 )
Q5: I have money from the tribe (collected from the tribe's members) that was placed with me to be invested. If the tribe incurs a blood debt or needs to provide assistance to other tribes—such as a marriage gift, a man who owes a blood debt, or other forms of aid—payment is made from this money that the tribe placed with me for such matters. When the lunar year passed, I paid the zakat on it, but some of the tribe's members said: there is no zakat on it, and their argument is that the money we give to the groom or to the man who owes a blood debt counts as the zakat for this money. Is it obligatory to pay zakat from the money when the lunar year passes, or is it sufficient to rely on what is paid out from it for these matters? Please inform us, may Allah reward you.
A5: There is no zakat on money collected to assist those in need; because it has exited the ownership of its owners for the purpose of donation, charity, and resolving problems. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q5: I have money from the tribe (collected from the tribe's members) that was placed with me to be invested. If the tribe incurs a blood debt or needs to provide assistance to other tribes—such as a marriage gift, a man who owes a blood debt, or other forms of aid—payment is made from this money that the tribe placed with me for such matters. When the lunar year passed, I paid the zakat on it, but some of the tribe's members said: there is no zakat on it, and their argument is that the money we give to the groom or to the man who owes a blood debt counts as the zakat for this money. Is it obligatory to pay zakat from the money when the lunar year passes, or is it sufficient to rely on what is paid out from it for these matters? Please inform us, may Allah reward you.
A5: There is no zakat on money collected to assist those in need; because it has exited the ownership of its owners for the purpose of donation, charity, and resolving problems. 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.