Is zakaat due on charitable money that is invested?
Question A group of people collected an amount of money and determined that it should be paid exclusively to any of their number who falls on hard times, such as having to pay diyah (blood-money) in the case of manslaughter. They invested this money in business, and donate the resulting profits to charitable causes agreed…
Question
A group of people collected an amount of
money and determined that it should be paid exclusively to any of their number who falls
on hard times, such as having to pay diyah (blood-money) in the case of manslaughter. They
invested this money in business, and donate the resulting profits to charitable causes
agreed upon between them. Do they have to pay zakaat on this money or not? Is it OK to pay
zakaat to this charitable fund?
money and determined that it should be paid exclusively to any of their number who falls
on hard times, such as having to pay diyah (blood-money) in the case of manslaughter. They
invested this money in business, and donate the resulting profits to charitable causes
agreed upon between them. Do they have to pay zakaat on this money or not? Is it OK to pay
zakaat to this charitable fund?
Praise be to Allah.
If it is as you describe, there is no zakaat due on the
money mentioned, because it comes under the rulings of waqf (endowment), whether it is
frozen or is actively circulating in business. It is not permissible to pay zakaat into
this fund, because it is not devoted especially to the poor and is not intended for any of
the other purposes for which zakaat should be used. And Allaah knows best.
