Is it permissible to purchase in-kind goods (such as baby milk and diapers) for the needs of orphaned infants in a governmental orphanage using Zakat funds?

Zakat is not given to an orphan merely because of their orphanhood. Rather, they must belong to one of the eight categories eligible for it, such as the poor and the needy.

Scholars have differed regarding the permissibility of paying the value (cash equivalent) for zakat, with the majority of them not allowing it. The more cautious approach is to disburse zakat from the same type of wealth on which it became due, and to transfer ownership of it to the guardians of the orphans so they may purchase what they need with it.

Abu Hanifa and Ibn Taymiyyah permit purchasing necessities directly with zakat funds (if it serves the interest of the poor).