Is zakaat due on charitable money that is invested?

Dear Brothers & Sisters,
As-Salaamu-Alaikum 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:
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?
(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)
Check below answers in case you are looking for other related questions:


Praise be to Allaah.

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.

Whatever written of Truth and benefit is only due to Allah's Assistance and Guidance, and whatever of error is of me. Allah Alone Knows Best and He is the Only Source of Strength.

Related Answers:

Recommended answers for you: