Is zakah obligatory on the funds of cooperative associations among the people of a village?

The questioner:
Hassan from 'Asir, go ahead, Hassan. Hello, peace be upon you. And upon you, peace.

The Shaykh:
Peace.

The questioner:
How are you, Shaykh? May Allah welcome you, please, my question.

The Shaykh:
May Allah welcome you with good, praise be to Allah.

The questioner:
Long may you live. My community's association, a money association for my community, is zakah due on it or not? Thank you.

The Shaykh:
What do you want to do with it? Is it for investment, or do you not want it for helping the needy?

The questioner:
Uh.

The Shaykh:
If you want it...

The questioner:
Or for reconciliation, or a need, or marriage, or something like that.

The presenter:
All right, thank you.

The Shaykh:
Look, my brother, if this association is for investment and nothing from its returns goes back to the contributing owners, but rather it is intended to help the needy, then there is no zakah in it because its distribution is the distribution of zakah. But if it is for investment and seeking profit, then there is zakah in it. Yes.