We are a group of youth and we have established a charitable organization to aid the poor and needy among us, and anyone befallen by a calamity. If we have a good amount of money in the organization, is it due on us to give Zakaah from that money if a lunar year has elapsed upon it? Please advise me. May Allaah Reward you.
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His Slave and Messenger.
If that money is donated and ceases to be owned by its donators once the donation is made, in such a way that none of its profits would be given to them in case it was invested, nor would anything thereof be restored to them in any way whatsoever, no Zakah will be due on the charitable organization’s property, since it takes the ruling of an endowment. Ar-Ruhaybaani, the Hanbali scholar said: “Zakah is not due on the property of Fay’ (property gained without war), or one-fifth the war booty, since it is spent on the public welfare of the Muslims; nor is it due on money bequeathed to be spent on goods or to buy an endowment, even if it incurs profits, because its owner is unidentified.”
Allaah Knows best.
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