Is it permissible for charitable organizations to invest large amounts of Zakat funds, especially during Ramadan, and direct the profits to the poor and needy?

Zakat funds must be disbursed immediately upon reaching their eligible recipients as mentioned in the Quran. Investing these funds is not permissible because it leads to delaying their arrival to their rightful owners or their complete loss in case of a deficit. Contemporary scholars have issued fatwas prohibiting its investment for this very reason.

Some have permitted its investment on the condition that the urgent and immediate needs of the beneficiaries are met first, and sufficient guarantees are available to avoid loss. However, this condition is difficult to achieve given the large number of needy individuals.