What is the ruling on investing zakah funds for the purpose of growing them?
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The questioner : A questioner asks: Is it permissible to invest zakah funds for the purpose of growing and increasing them, and then distributing them to those who are entitled to them?
The Shaykh : Yes, this is an important question. It is not permissible to trade with the zakah funds that have been paid to the poor on the pretext that he is growing them so that they will continue, because the need of the poor person who is present now takes precedence over the need of the poor person who is expected in the future.
For example, if we assume that there are ten million in collected zakah, and all of it is needed by the poor people who are present now, and someone says, "I want to buy ten buildings with the ten million, each of which will yield, may Allah will it, a certain amount per year." We say this is not permissible. The need of the poor person now must be met, and as for the future, Allah the Exalted is in charge of it. This is different from charitable works; regarding charitable works, it may be said that there is nothing wrong with the people in charge looking at what is most beneficial. But zakah must be distributed to its recipients immediately. Yes, if we assume—and this is a hypothetical assumption that is not a reality at all—if we assume that the need of the poor has disappeared, meaning that the zakah exceeds their need, then here we might say that there is nothing wrong with growing the excess. But I told you that this is not a realistic matter, because Muslims in many lands are in need of zakah, indeed they are in dire straits. So, if we assume that the people of the country you are in have become wealthy, there are poor people in other places who are in need. Yes.
The Shaykh : Yes, this is an important question. It is not permissible to trade with the zakah funds that have been paid to the poor on the pretext that he is growing them so that they will continue, because the need of the poor person who is present now takes precedence over the need of the poor person who is expected in the future.
For example, if we assume that there are ten million in collected zakah, and all of it is needed by the poor people who are present now, and someone says, "I want to buy ten buildings with the ten million, each of which will yield, may Allah will it, a certain amount per year." We say this is not permissible. The need of the poor person now must be met, and as for the future, Allah the Exalted is in charge of it. This is different from charitable works; regarding charitable works, it may be said that there is nothing wrong with the people in charge looking at what is most beneficial. But zakah must be distributed to its recipients immediately. Yes, if we assume—and this is a hypothetical assumption that is not a reality at all—if we assume that the need of the poor has disappeared, meaning that the zakah exceeds their need, then here we might say that there is nothing wrong with growing the excess. But I told you that this is not a realistic matter, because Muslims in many lands are in need of zakah, indeed they are in dire straits. So, if we assume that the people of the country you are in have become wealthy, there are poor people in other places who are in need. Yes.