Ruling on collecting donations and placing them in a charitable project, then making it ongoing charity on behalf of a deceased person?

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

The Shaykh : As for the matter 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. The evidence that supplication is better than charity for the deceased is the saying of the Prophet (peace and blessings be upon him): This is regarding charity on behalf of the deceased. As for this method you mentioned, where one collects for the deceased and places it in real estate to be ongoing charity, I do not see this; I do not see this. Because among the Companions (may Allah be pleased with them) died great men and those who had rights upon the community, such as the caliphs and others, and they did not collect for them to give charity on their behalf. Then, this opens a door of evil for people, because if such colleagues donate and one of them is told, "Come on, give a donation," he says, "No, I am not going to donate; my children are more deserving of me giving charity than so-and-so." They then disparage him and say, "You have such and such, and such and such, and such and such." Thirdly, it may lead to quarreling, where it is said, "What Allah willed, so-and-so school raised, for example, one hundred thousand riyals and benefited their colleague, and you did not do so?" He would say, "No, we are doing more than one hundred thousand." So I do not see this; I fear that they will establish a practice for people that they have no need for. And I say: May Allah reward you with good. Whoever gives charity on his behalf secretly, between him and them, there is nothing preventing that. And with that, we guide them and say: It is better than giving charity on his behalf that you supplicate to Allah for him. Yes.