Is it obligatory to repay Zakat if it becomes apparent that the charitable organization entrusted with its disbursement spent a portion of it on expenditures not religiously permissible?
It is necessary to re-distribute Zakat if the institution spent the money on categories other than the eight mentioned in Surah At-Tawbah/60, or on individuals who are not eligible, with the possibility of demanding compensation from the charity. However, if the institution paid the money to someone it believed to be poor, and then it was discovered that they were wealthy, there is a difference of opinion on this matter. The preponderant opinion is that it suffices, because the reality of poverty may be hidden, and because what matters is the Zakat payer's assumption after investigation. The evidence for this is the noble Hadith: "So he went out with his charity and placed it in the hands of a rich person. The people started talking in the morning, saying: 'Charity was given to a rich person!' He said: 'O Allah, to You be praise! [Charity was given] to a rich person!' Then he was told: 'As for your charity, it has been accepted, and perhaps the rich person will take heed and spend from what Allah has given him.'"
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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