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﴿ فَاسْأَلُوا أَهْلَ الذِّكْرِ إِن كُنتُمْ لَا تَعْلَمُونَ ﴾

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Ruling on Investing Zakah and Sadaqah Funds in Charitable Institutions

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Is it permissible to invest zakah and sadaqah funds for the benefit of da'wah committees?
As for zakah, it is not permissible; because it is for meeting the need of the present poor person. If it is invested, it may please the existing poor people and exploit those poor people who are not present now. It is for meeting the needs of the present poor people, so it is not permissible to invest zakah in projects.
As for sadaqah, yes,Perhaps we would say: if the sadaqah is in excess of the needs of the people of the town and he sees that he can invest it, then that is good, on the condition that he does not deprive those who are present now,If someone says regarding zakah: and if the people of the town do not need it?We said: Give it to other countries from among the Muslim countries in the East or the West. As for sadaqah, it is broader.
So the summary of the answer now, and it is an important answer; because some people of good who manage such associations act with good intentions, but their action is not sound: It is not permissible to establish investment projects with zakah; because it was established for the need of the present poor person. If there are no poor people in the town, it is transferred to the nearest countries to them.
As for sadaqah, it is broader,It can be said: if the people of the town are not in need of it, there is no harm in establishing investment projects with it.
Source shamela.ws

The Arabic text is copied verbatim from the original source, without any edits.

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