In recent times, it has become common for families to establish a special fund for their members, from which anyone in need can borrow for any purpose.
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The questioner : May Allah reward the honorableThe Shaykh : In recent times, it has become common for families to establish a special fund for their members, from which anyone in need can borrow for any purpose. Is zakah due on this fund or not? Please inform us, may Allah reward you with good.
The Shaykh : Yes. If those who contribute their shares to this fund believe that their ownership remains over what they have deposited, meaning that if they wish to withdraw it, they can, and that if they die, it is inherited from them, then the ownership belongs to all of them and its zakah is obligatory. Pay attention to this detail so that the issue is resolved! However, if the contributor to this fund believes that the money has exited his ownership and that he will not be able to withdraw it, nor will it be inherited after his death, then there is no zakah on it, because it has exited his ownership. Yes. Yes? What? I say: If the contributors believe that what they contributed has exited their ownership, and that they cannot withdraw it, meaning retrieve it, and that if they die, it is not inherited from them, then it has exited their ownership and there is no zakah on it. But if they can withdraw it whenever they wish and it is inherited after their death, then zakah is due on it. Yes.
The questioner : He says.
The Shaykh : Yes. What? What?
The questioner : The owner of the fund. The trustee of the fund, does he not sin?
The Shaykh : What did you say?
The questioner : He sins. He asks, is there sin on him?
The Shaykh : If zakah becomes obligatory, he must pay it out. And as I said in the detail: he should ask each of them to appoint him as their agent to pay out their zakah, and he pays out his own. If there is no such appointment, then each one of them must know what he deposited in this fund and pay out its zakah. Yes.
The Shaykh : Yes. If those who contribute their shares to this fund believe that their ownership remains over what they have deposited, meaning that if they wish to withdraw it, they can, and that if they die, it is inherited from them, then the ownership belongs to all of them and its zakah is obligatory. Pay attention to this detail so that the issue is resolved! However, if the contributor to this fund believes that the money has exited his ownership and that he will not be able to withdraw it, nor will it be inherited after his death, then there is no zakah on it, because it has exited his ownership. Yes. Yes? What? I say: If the contributors believe that what they contributed has exited their ownership, and that they cannot withdraw it, meaning retrieve it, and that if they die, it is not inherited from them, then it has exited their ownership and there is no zakah on it. But if they can withdraw it whenever they wish and it is inherited after their death, then zakah is due on it. Yes.
The questioner : He says.
The Shaykh : Yes. What? What?
The questioner : The owner of the fund. The trustee of the fund, does he not sin?
The Shaykh : What did you say?
The questioner : He sins. He asks, is there sin on him?
The Shaykh : If zakah becomes obligatory, he must pay it out. And as I said in the detail: he should ask each of them to appoint him as their agent to pay out their zakah, and he pays out his own. If there is no such appointment, then each one of them must know what he deposited in this fund and pay out its zakah. Yes.