What is the legal ruling regarding one of the participants requesting to withdraw and reclaim their funds after ten years have passed since the establishment of a family association based on assisting those in need, knowing that it was previously agreed upon that no paid amount would be refunded in case of withdrawal, and that some of the funds have been spent for the agreed-upon purposes, and that the remaining funds have been invested in selling electrical appliances in installments with a 20% profit margin? Is zakat obligatory on the funds of this association? And is the aforementioned installment sale method Islamically permissible?

It is permissible to participate in family associations to help those in need, and it is permissible to agree not to reclaim the money paid. Thus, Zakat is not obligatory on the funds of these associations, because they cease to be owned by their contributors and become like an endowment (Waqf).

It is not permissible to demand the money back after agreeing not to reclaim it, due to the obligation to fulfill contracts and conditions, and because the money has left the ownership of the donor, and due to the impermissibility of revoking a gift or charity after it has been taken possession of. For the one who revokes his gift is like a dog that vomits and then returns to its vomit.

There is no harm in buying appliances for those in need and selling them to them in installments with a known profit, provided that the fund first owns the commodity before selling it to them. This is known as Murabaha for one who requests a purchase.