An organization investing the money of Zakah paid to it

493

Q 1: Is it permissible for the International Islamic Charitable Organization to invest Zakah (obligatory charity) money that it deposits in banks for liquid investments in a way that does not influence the order or the order and execution of its distribution to the Shar`y (Islamically lawful) stipulated categories of Zakah recipients? For instance, investing it in measured and accredited fields of investment that are free from usurious interests to avoid prohibited or doubtful matters. It is also worth mentioning that the organization is not one or a group of individuals representing themselves but it is an independent legal entity wherein people strive and exercise Ijtihad (juristic effort to infer expert legal rulings) in that which benefits Islam and Muslims.

A: It is not permissible for the trustee of the organization to invest Zakah money; it must be spent on the stipulated Shar`y categories after ascertaining (Part No. 9; Page No. 455) that they are eligible. This is because it aims at meeting the needs of the poor and removing the debts of indebted persons. Also, investment could also lead to missing or delaying delivery of these benefits to the qualified recipients.May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.