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﴿ فَاسْأَلُوا أَهْلَ الذِّكْرِ إِن كُنتُمْ لَا تَعْلَمُونَ ﴾

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Developing the wealth of orphans from donations

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Question:
A man says that he collects money from people of good and the benevolent for orphans, with the intention of spending it on them after several years for their needs. He says that a sum of money has currently accumulated with him from zakah and general charity, and he wishes to develop it through lawful means. His question is: Is it permissible for him to develop the money? Knowing that what it produces will belong to the orphans, and if he incurs a loss, he will bear the loss on their behalf?

Answer:
First, if the orphans have enough to suffice them, it is not permissible to take zakah for them. Donations, yes, there is no harm. As for zakah, it is only for the needy, and these people now have enough to suffice them, so he does not take zakah for them. He takes donations for them. It is recommended for him to develop this money, to develop the wealth of the orphans, the wealth of the minors. He develops it. If he profits, the profit is for them. If he loses, the loss is on them, not on him. He is a benefactor, and there is no blame on the benefactors. If he profits, the profit is for them. If he loses, it is on them. Even if he takes from it the amount of his work, there is no harm; he may take the amount of his work. But on the condition that he consults the judge so that he may assign him a specific amount. Yes.
Source المنتقى من أخبار سيد المرسلين [25] — alfawzan.live (1:08:43)

The Arabic text is a machine transcription of the audio recording.

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