Zakat of Charitable Institutions
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Fatwa No. ( 4460 )
All praise is due to Allah alone, and may blessings and peace be upon His Messenger Muhammad, his family, and his Companions. And to proceed: The Permanent Committee for Scholarly Research and Ifta has reviewed the inquiry submitted to His Eminence the President General by the General Manager of the Zakat and Income Authority, registered with the Research Department under number 110 on 25/1/1402 AH. The text of the inquiry is as follows: I wish to present to Your Eminence that King Faisal Charitable Foundation , established by Royal Decree No. A/134 dated 19/5/96 AH, receives donations and bequests and invests them itself or through affiliated or participating institutions with other companies, thereby realizing profits.
Therefore, I sought Your Eminence’s opinion on the extent to which the funds of the Foundation and its branches, as well as similar charitable institutions, are subject to the Shariah zakat that the Authority is responsible for collecting. I have also attached a copy of the Foundation’s basic bylaws for review of its activities and objectives, and I hope you will kindly provide me with the Shariah opinion on this matter. I have also reviewed Article 4 of the aforementioned Foundation’s bylaws, which reads as follows: “The objectives of the Foundation are to receive funds from members or others and spend them on educational and scientific activities and various forms of charity that benefit Muslims anywhere inside the Kingdom of Saudi Arabia and outside it, and to help advance their status and elevate their standing. To achieve these objectives, the Foundation, for example, establishes mosques, schools, institutes, universities, and Islamic centers, and undertakes all works and provides all services that help Muslims, collectively and individually, to master the teachings of their noble and sublime Shariah, to understand its rulings, and to spread Islamic thought and heritage and revitalize authentic Islamic civilization. The Foundation also establishes scientific research centers, provides technical expertise, and offers grants and scholarships to researchers and students in various fields of science and study, to provide Muslims with the opportunity to increase their knowledge and diverse culture and contribute to building a high scientific renaissance. The Foundation also provides assistance and establishes hospitals, clinics,
and various treatment, care, and rehabilitation centers that generally aim to raise the living, social, and economic level of the individual in Muslim societies.
And it responded as follows: Based on the statement that the funds of the aforementioned Foundation do not belong to any individual, but are charitable funds designated for spending on general charitable purposes, such as calling to Islam, establishing mosques, and spending on the poor; the Permanent Committee issues the ruling that there is no zakat due on them, nor on similar funds that are not owned by any individual and are designated for spending on general charitable purposes, because, given the aforementioned circumstances, they are considered an endowment (waqf). And success is from Allah, and may Allah send blessings and peace upon our Prophet Muhammad, his family, and his Companions.
All praise is due to Allah alone, and may blessings and peace be upon His Messenger Muhammad, his family, and his Companions. And to proceed: The Permanent Committee for Scholarly Research and Ifta has reviewed the inquiry submitted to His Eminence the President General by the General Manager of the Zakat and Income Authority, registered with the Research Department under number 110 on 25/1/1402 AH. The text of the inquiry is as follows: I wish to present to Your Eminence that King Faisal Charitable Foundation , established by Royal Decree No. A/134 dated 19/5/96 AH, receives donations and bequests and invests them itself or through affiliated or participating institutions with other companies, thereby realizing profits.
Therefore, I sought Your Eminence’s opinion on the extent to which the funds of the Foundation and its branches, as well as similar charitable institutions, are subject to the Shariah zakat that the Authority is responsible for collecting. I have also attached a copy of the Foundation’s basic bylaws for review of its activities and objectives, and I hope you will kindly provide me with the Shariah opinion on this matter. I have also reviewed Article 4 of the aforementioned Foundation’s bylaws, which reads as follows: “The objectives of the Foundation are to receive funds from members or others and spend them on educational and scientific activities and various forms of charity that benefit Muslims anywhere inside the Kingdom of Saudi Arabia and outside it, and to help advance their status and elevate their standing. To achieve these objectives, the Foundation, for example, establishes mosques, schools, institutes, universities, and Islamic centers, and undertakes all works and provides all services that help Muslims, collectively and individually, to master the teachings of their noble and sublime Shariah, to understand its rulings, and to spread Islamic thought and heritage and revitalize authentic Islamic civilization. The Foundation also establishes scientific research centers, provides technical expertise, and offers grants and scholarships to researchers and students in various fields of science and study, to provide Muslims with the opportunity to increase their knowledge and diverse culture and contribute to building a high scientific renaissance. The Foundation also provides assistance and establishes hospitals, clinics,
and various treatment, care, and rehabilitation centers that generally aim to raise the living, social, and economic level of the individual in Muslim societies.
And it responded as follows: Based on the statement that the funds of the aforementioned Foundation do not belong to any individual, but are charitable funds designated for spending on general charitable purposes, such as calling to Islam, establishing mosques, and spending on the poor; the Permanent Committee issues the ruling that there is no zakat due on them, nor on similar funds that are not owned by any individual and are designated for spending on general charitable purposes, because, given the aforementioned circumstances, they are considered an endowment (waqf). And success is from Allah, and may Allah send blessings and peace 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.