Investing Charitable Funds in the Bank
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Fatwa No. ( 6594 )
Praise be to Allah, and may peace and blessings be upon His Messenger, his family, and his Companions. After that: The Permanent Committee for Scholarly Research and Ifta has reviewed the question submitted by the Medical Director to His Eminence the President General, which was referred to the Committee with number 50 on 11/1/1404 AH, and its text is: I present to Your Eminence an inquiry from the administration of King Faisal Specialist Hospital regarding the funds of the donation fund that exists in our hospital, whose purpose is to financially assist patients and their companions when in need. I inform Your Eminity that the administration of the hospital's social services department is responsible for evaluating financial assistance and providing it to every needy poor person and visitor to the hospital. Our question is: Is it permissible to invest these amounts in a bank, on the condition that the interest or investment percentage returns to the original amounts in the fund, to be used first and last only for the poor and needy patients and visitors? I ask Your Eminence to kindly provide us with your fatwa on this matter.
And it answered as follows: It is not permissible to invest funds in interest-based banks, whether they are donation funds or otherwise, even if it is to distribute their interest to the poor. It is permissible to invest them through a lawful means that does not involve committing a forbidden act, such as riba, gambling, defective contracts, or the like. As for the funds collected
from zakah, it is not permissible to trade with them; rather, they must be paid out in their lawful categories at the earliest possible opportunity.
Praise be to Allah, and may peace and blessings be upon His Messenger, his family, and his Companions. After that: The Permanent Committee for Scholarly Research and Ifta has reviewed the question submitted by the Medical Director to His Eminence the President General, which was referred to the Committee with number 50 on 11/1/1404 AH, and its text is: I present to Your Eminence an inquiry from the administration of King Faisal Specialist Hospital regarding the funds of the donation fund that exists in our hospital, whose purpose is to financially assist patients and their companions when in need. I inform Your Eminity that the administration of the hospital's social services department is responsible for evaluating financial assistance and providing it to every needy poor person and visitor to the hospital. Our question is: Is it permissible to invest these amounts in a bank, on the condition that the interest or investment percentage returns to the original amounts in the fund, to be used first and last only for the poor and needy patients and visitors? I ask Your Eminence to kindly provide us with your fatwa on this matter.
And it answered as follows: It is not permissible to invest funds in interest-based banks, whether they are donation funds or otherwise, even if it is to distribute their interest to the poor. It is permissible to invest them through a lawful means that does not involve committing a forbidden act, such as riba, gambling, defective contracts, or the like. As for the funds collected
from zakah, it is not permissible to trade with them; rather, they must be paid out in their lawful categories at the earliest possible opportunity.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.