Zakat on the funds of a family cooperative association
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The second question of Fatwa No. ( 21559 )
Q2: We have a cooperative association for our family, and a lunar year has passed over it. It has a capital sum annually. Is zakat due on it? May Allah preserve you.
A2: If the aforementioned association is for investment, then zakat is obligatory on you for the funds in your association if they reach the nisab and a lunar year has passed over them, and their profits follow them. However, if the funds are donations that do not return to those who contributed them, and if the project fails, they are spent on charitable causes, then zakat is not obligatory on them. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q2: We have a cooperative association for our family, and a lunar year has passed over it. It has a capital sum annually. Is zakat due on it? May Allah preserve you.
A2: If the aforementioned association is for investment, then zakat is obligatory on you for the funds in your association if they reach the nisab and a lunar year has passed over them, and their profits follow them. However, if the funds are donations that do not return to those who contributed them, and if the project fails, they are spent on charitable causes, then zakat is not obligatory on them. 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.