Is it permissible to invest the funds of a cooperative fund based on donations, which provides financial aid to shareholders upon their final return to their home country? And should all of its funds be invested or only part of them? How should profits be distributed among shareholders? Is it permissible to distribute profits equally with their consent? Is it a condition to seek permission from each shareholder before investing, or is it sufficient to inform them?
Source: FtawySummarized from the full answer at Ftawy · reviewed Sep 2, 2026
Firstly, establishing this fund is permissible and falls under cooperation in good deeds.
Secondly, it is permissible to invest the fund's money or a portion of it.
Thirdly, the profits resulting from the investment are to be added to the fund or distributed among the contributors, according to their agreement. There is no objection to distributing them equally.
Fourthly, permission from the donors must be obtained to invest the fund's money, or this should be stipulated in its regulations, because the overseeing committee acts as an agent, and an agent's actions are restricted by permission.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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