The Ruling on Taking Riba (Usury or Interest) and Giving It in Charity

Question:
May Allah reward you, Honorable Shaykh. A questioner asks: What is the ruling on a man who takes riba (usury or interest) and designates the interest portion as zakah for the poor and needy, spending it in the causes of good? Is this action permissible, or is it forbidden?

Answer:
This is forbidden and not permissible. It is not permissible to take riba (usury or interest); contracting for riba is forbidden, and giving it in charity while it is forbidden is not permissible. Indeed, Allah is Pure and does not accept except what is pure. He does not accept what is impure, and what is impure in charity is what is forbidden. Therefore, it is not permissible for this man to deal in riba, take the profits, and say, "I will spend them in acts of obedience." This is a separation. Allah is Pure and does not accept except what is pure. If he claims this as a debt, it does not clear his soul. A debt is what is paid off from riba. I am afraid that zakah on wealth is not paid from riba, but rather from lawful wealth. It is not obligatory to pay riba as zakah on wealth.
Therefore, it is not permissible to use riba in any way. It is not permissible to take it, nor is it permissible to use it in any manner, because it is impure riba. It is not permissible for a Muslim to deal in riba or be lenient in taking it, saying, "I will dispose of it and not take it for myself; I will give it to others, give it to the poor, I will give it in charity from what is forbidden." As the poet said: "The one who feeds orphans from the proceeds of her sin, whose woe is pure, does not commit fornication and does not give charity." It is not permissible for a person to give charity by committing a sin.