What is the ruling on investing zakah funds in charitable associations?
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The questioner : The charitable association. So some of the officials informed him: that some of the zakah funds are invested. I do not know the ruling on this matter?
The Shaykh : The charitable association has a license from the government, and I think that among the things it is licensed to do is accepting zakah. So if the zakah reaches it, it has reached its rightful recipient, on the basis that it is acting on behalf of the government. Thus, the zakah payer’s obligation is discharged if he delivers it to the charitable associations.
So if it were to be lost or destroyed in the hands of the charitable associations, the zakah payer is not liable for it, because he paid it to its people who took possession of it on behalf of the government.
As for investing it in purchasing real estate and the like, I do not see that as permissible, because the obligation is to meet the need of the deserving poor person now. As for the poor people of the future, their matter is left to Allah. But for us to go and put it in real estate for investment, while it is zakah that meets an urgent need, I say: this is forbidden and not permissible. Yes, the question.
The Shaykh : The charitable association has a license from the government, and I think that among the things it is licensed to do is accepting zakah. So if the zakah reaches it, it has reached its rightful recipient, on the basis that it is acting on behalf of the government. Thus, the zakah payer’s obligation is discharged if he delivers it to the charitable associations.
So if it were to be lost or destroyed in the hands of the charitable associations, the zakah payer is not liable for it, because he paid it to its people who took possession of it on behalf of the government.
As for investing it in purchasing real estate and the like, I do not see that as permissible, because the obligation is to meet the need of the deserving poor person now. As for the poor people of the future, their matter is left to Allah. But for us to go and put it in real estate for investment, while it is zakah that meets an urgent need, I say: this is forbidden and not permissible. Yes, the question.