Zakah on the funds of a cooperative society if they are invested
Machine translationRead the Arabic original
Question:
This is a follow-up to a previous question. He says: Your Eminence the Shaykh (may Allah preserve him), you stated that the funds collected for the cooperative society are not subject to zakah, but if these funds are employed or contributed to in order to increase and grow them, what is the ruling?
Answer:
If they are employed for the sake of charity, so that the returns are returned to charity for the poor and the needy, or for those who have been struck by a calamity, there is no harm. If they are employed for the benefit for which they were established, such as how the funds of an endowment are employed, if a person has money or is bequeathed money and he employs it to increase it so that it can be spent in the direction of the bequest, there is no harm. This is because it has exited their ownership through their charity, which is part of this charity. The place of this charity is the poor, the needy, and those afflicted, so there is no zakah on them. Even if they appoint someone to manage it so that it increases,
This is a follow-up to a previous question. He says: Your Eminence the Shaykh (may Allah preserve him), you stated that the funds collected for the cooperative society are not subject to zakah, but if these funds are employed or contributed to in order to increase and grow them, what is the ruling?
Answer:
If they are employed for the sake of charity, so that the returns are returned to charity for the poor and the needy, or for those who have been struck by a calamity, there is no harm. If they are employed for the benefit for which they were established, such as how the funds of an endowment are employed, if a person has money or is bequeathed money and he employs it to increase it so that it can be spent in the direction of the bequest, there is no harm. This is because it has exited their ownership through their charity, which is part of this charity. The place of this charity is the poor, the needy, and those afflicted, so there is no zakah on them. Even if they appoint someone to manage it so that it increases,
Source
وجوب التفقه في الدين — islamhouse.com (1:15:45)
The Arabic text is a machine transcription of the audio recording.
