A member of a cooperative, meaning the members contribute a share of their funds
Machine translationRead the Arabic original
The questioner : A member of a cooperative, meaning the members contribute a share of their funds, and the share is, for example, one thousand riyals, so that they collect an amount which the person receives to meet his needs at the end of each month. If the period is twelve months and this person receives his share in the twelfth month, is there zakah on it after the wealth has reached the nisab? Please inform us of this.
The Shaykh : First, regarding this cooperative, I clarify to the brother questioner that there is nothing wrong with it. That is, there is nothing wrong with employees in a certain department agreeing to deduct one thousand riyals from each of their salaries to give to one person, and in the second month to give to the next, and in the third, and so on. This is not a loan that yields benefit, because the lender does not receive more than what he lent, and the benefit is for everyone. The one who benefited from the cooperative first is deprived in the second month, and the benefit goes to the second, then the third, then the fourth, and so on.
As for zakah, it is obligatory for him to pay zakah on what he receives if the lunar year has completed, because it is a debt owed by a solvent person, since it is known that these members will fulfill their share every month, and zakah is obligatory on debts owed by solvent people.
The questioner : May Allah reward you, O honorable Shaykh, and may Allah bless you and your knowledge, and benefit the Muslims through you.
The Shaykh : First, regarding this cooperative, I clarify to the brother questioner that there is nothing wrong with it. That is, there is nothing wrong with employees in a certain department agreeing to deduct one thousand riyals from each of their salaries to give to one person, and in the second month to give to the next, and in the third, and so on. This is not a loan that yields benefit, because the lender does not receive more than what he lent, and the benefit is for everyone. The one who benefited from the cooperative first is deprived in the second month, and the benefit goes to the second, then the third, then the fourth, and so on.
As for zakah, it is obligatory for him to pay zakah on what he receives if the lunar year has completed, because it is a debt owed by a solvent person, since it is known that these members will fulfill their share every month, and zakah is obligatory on debts owed by solvent people.
The questioner : May Allah reward you, O honorable Shaykh, and may Allah bless you and your knowledge, and benefit the Muslims through you.