What is the ruling on collecting donations and placing them in a charitable project, then making it an ongoing charity on behalf of a deceased person?

The questioner : Shaykh, may Allah reward you: A person died, and some of the brothers collected donations for him and placed them in a charitable project as an ongoing charity. Is this action permissible, O Shaykh, and will the reward reach him?

The Shaykh : As for the issue of giving charity on behalf of a deceased person, there is no doubt that it reaches him, as came in the hadith from the Prophet (peace and blessings be upon him) regarding the story of Sa'd ibn Ubadah, where he gave charity to his mother with a date palm, and as in the story of the man who said: However, supplication is better than this, and the evidence that supplication is better than charity for the deceased is...