Zakah on funds collected for expenditure in the causes of charity
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Fatwa No. ( 19427 )
Q: We wish to bring to the attention of your esteemed Highness that the charitable society in Hail has, with the approval of the competent authority, namely the Ministry of Labor and Social Affairs, purchased several vacant plots of land for the purpose of investment and profit. In fact, one of the plots was sold for a profit of 330%. The question to your excellence, may Allah protect you: Is zakah due on the value of those lands? It is known that their original value was secured from donations
The benefactors' donations, not their zakah, and the profit currently returns to the association to be spent in various areas; such as administrative expenses or social care or investment projects; such as guaranteed-profit lands or building schools with educational and investment objectives, and a portion of this amount is deducted to support the zakah expenditures that we spend on the poor and the needy. If zakah is due on it, to whom is it paid? To the association's zakah fund or to other entities? Please inform us, may Allah reward you.
A : Funds collected from benefactors for the purpose of expenditure in the causes of charity do not have zakah due on them; because they do not belong to a specific owner. If they are collected from zakah, then it is obligatory to hasten to distribute them in the channels of zakah, and it is not permissible to delay them, retain them, or invest them. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: We wish to bring to the attention of your esteemed Highness that the charitable society in Hail has, with the approval of the competent authority, namely the Ministry of Labor and Social Affairs, purchased several vacant plots of land for the purpose of investment and profit. In fact, one of the plots was sold for a profit of 330%. The question to your excellence, may Allah protect you: Is zakah due on the value of those lands? It is known that their original value was secured from donations
The benefactors' donations, not their zakah, and the profit currently returns to the association to be spent in various areas; such as administrative expenses or social care or investment projects; such as guaranteed-profit lands or building schools with educational and investment objectives, and a portion of this amount is deducted to support the zakah expenditures that we spend on the poor and the needy. If zakah is due on it, to whom is it paid? To the association's zakah fund or to other entities? Please inform us, may Allah reward you.
A : Funds collected from benefactors for the purpose of expenditure in the causes of charity do not have zakah due on them; because they do not belong to a specific owner. If they are collected from zakah, then it is obligatory to hasten to distribute them in the channels of zakah, and it is not permissible to delay them, retain them, or invest 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.