Zakah on money donated for charity


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Q:A-We agreed to deposit one hundred thousand Riyals (100000) in some banks without investing them in sales and purchases. (Part No. 9; Page No. 295) Instead, it was intended to be on standby for any member of this community who experiences an accident and becomes liable to pay Diyah (blood money). Therein, the Diyah would be paid from the retained money. Is it permissible to keep this sum without investing it? Should Zakah (obligatory charity) be paid on it?B-We bought a local house in the city of Riyadh for one hundred and fifteen thousand Riyals (115.000) which at present is being rented annually for twelve thousand Riyals (12.000). Is this house subject to Zakah? What is the Zakah amount due considering that sometimes it remains unleased? Please, advise!C-We bought plots of land with the rest of the sum in Riyadh and Jeddah to insure the future. Is this land subject to Zakah or not? How much should be paid ?D-We agreed to distribute the Zakah payment to orphans, widows and those in debt among the members of this tribe, is this correct?


A: First: If this sum, more or less, is being collected as donations that nothing of it is distributed to the donors, when no accidents take place, and are spent in aspects of Charity; this is permissible. However, depositing it in a Riba-based bank is impermissible except in case of fear of loss when it is permissible to deposit it without interest as the lesser of two evils. It should be invested in trade or in any permissible type of investment until it is needed for the intended purpose. (Part No. 9; Page No. 296) It should be spent to fulfill the original objective. Furthermore, Zakah is not obligatory on this money, if it is collected according to the previously mentioned manner. Second: If you buy a house with some of this money, you are not obliged to pay Zakah on it or on the rent gained, since it is allocated for charity and support. Also, because it does not belong to anyone of the money donors, therefore, it takes the same ruling of Waqf (endowment). Third: There is no Zakah on the land bought with the rest of the sum for the previously mentioned reasons, as they are no longer possessed by donors after being given in charity. Fourth: Distributing the money or its revenue amongst orphans, widows, indebted persons and other forms of charity is permissible if the donors agree. This is because it is spent for purposes other than those for which it was collected. In this case, it is not considered Zakah, but Sadaqah (voluntary charity).May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.




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