Spend charity money on assests
Mu' meneen Brothers and Sisters,
As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)
One of our brothers/sisters has asked this question:
My husband is involved in a few charitable organisations. He found that some of these organisations buy immoveable properties with the money collected from charity and then rent these out to other individuals. The rent so collected is then distributed as charity. Is it right to buy assets with the charity money? Or should not the money collected for charitable purposes be distributed immediately to deserving families? Kindly clarify.
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In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.
Sister there is no restriction if money collected for charity is used to buy assets and then the rent earned is used for distribution to the needy. As a matter of fact this is highly encouraged because the income will be a source of relief for the less fortunate in the Muslim Ummah for an extended time frame. If the money collected is immediately spent in charity, though it might reach more people there is a big risk of the funds coming in drying out and then everything stops completely. It is important that Muslims accumulate assets and institutions for future generations. Not only will there be huge appreciation in the value of the assets, but charity will be continuous and it will strengthen the Islamic organizations no end.
Whatever written of Truth and benefit is only due to Allahs Assistance and Guidance, and whatever of error is of me. Allah Alone Knows Best and He is the Only Source of Strength. Allah Alone Knows Best and He is the Only Source of Strength.
Your brother and well wisher in Islam,
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