Some school administrators collect cash amounts from students to contribute to opening the cafeteria to provide light snacks and other items, on the condition that the profits are distributed
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The questioner : Some school administrators collect cash amounts from students to contribute to opening what is called the cafeteria to provide some light snacks, beverages, and some school supplies for the students, on the condition that the profits are distributed among the students at the end of the year. However, what raises my concern in this matter is that some of them specify a certain profit for the students, saying for example: the one who pays ten riyals will receive fifteen or twenty at the end of the year. What is the ruling on this?
The Shaykh : The ruling on this is that it is not permissible to specify the profit, because this money’s profit, whether it is small or large, must belong to those who contributed and participated in it. There is no harm in allocating a portion of the profit to those in charge of it, but it must be a shared portion. For example, it can be said: the workers in this cafeteria are entitled to half the profit, or two-thirds, or one-third, or one-quarter, according to what the school administrator deems appropriate for justice. Alternatively, the entire profit can be given to the contributors, and a fixed monthly salary can be given to those in charge of this cafeteria. As for specifying a known profit for the contributors by designation rather than by sharing, this is not permissible. This is because the cafeteria may profit by the amount of this specified portion, or it may profit more, or it may profit less. This is a transaction based on risk, and every transaction based on risk is a form of gambling, about which Allah the Exalted said:[Al-Ma'idah 5:90].
The Shaykh : The ruling on this is that it is not permissible to specify the profit, because this money’s profit, whether it is small or large, must belong to those who contributed and participated in it. There is no harm in allocating a portion of the profit to those in charge of it, but it must be a shared portion. For example, it can be said: the workers in this cafeteria are entitled to half the profit, or two-thirds, or one-third, or one-quarter, according to what the school administrator deems appropriate for justice. Alternatively, the entire profit can be given to the contributors, and a fixed monthly salary can be given to those in charge of this cafeteria. As for specifying a known profit for the contributors by designation rather than by sharing, this is not permissible. This is because the cafeteria may profit by the amount of this specified portion, or it may profit more, or it may profit less. This is a transaction based on risk, and every transaction based on risk is a form of gambling, about which Allah the Exalted said: