The Family Charity Fund
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Fatwa No. ( 7449 )
Q: I have a sum of money as a tribal association fund, from which 100 riyals are paid per person, male, whether old or young, at the beginning of each Hijri year. They save it to benefit from it in blood money for car accidents and other disasters that befall some people unintentionally, or in self-defense. This amount can reach large sums, potentially exceeding 200,000 riyals or more, and is called "Tribal Differences." I was chosen by unanimous agreement to be the trustee of this amount. Is zakat due on these funds if a lunar year passes without them being needed? Knowing that this payment is repeated every year?
A: If the situation is as described, and the funds accumulated do not return to those who donated them in proportion to their donations, but their specific ownership ceases immediately upon their donation, and the funds are only spent on what they donated for, then there is no zakat on them. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his companions.
Q: I have a sum of money as a tribal association fund, from which 100 riyals are paid per person, male, whether old or young, at the beginning of each Hijri year. They save it to benefit from it in blood money for car accidents and other disasters that befall some people unintentionally, or in self-defense. This amount can reach large sums, potentially exceeding 200,000 riyals or more, and is called "Tribal Differences." I was chosen by unanimous agreement to be the trustee of this amount. Is zakat due on these funds if a lunar year passes without them being needed? Knowing that this payment is repeated every year?
A: If the situation is as described, and the funds accumulated do not return to those who donated them in proportion to their donations, but their specific ownership ceases immediately upon their donation, and the funds are only spent on what they donated for, then there is no zakat on 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.