What is the religious ruling on a type of association that relies on collecting money, where two or more individuals participate by contributing an equal amount of money from each participant, and the entire sum is given to one of them, with the participants having the freedom to withdraw from it before the start of a new cycle for paying the remaining debt, provided there is a clear, explicit, acceptable, and pre-agreed excuse by all participating creditors, and provided that the withdrawing member cannot rejoin the association until their debt is settled, with the possibility for the organizer of the association to take a monthly fee deducted from the total collected amount in exchange for their efforts in organizing, following up, and supervising it?
There is no harm in the commonly practiced employee association (Jam'iyyah), and most scholars have permitted it.
As for withdrawing from the association before repaying the debt, it is permissible in two scenarios: 1. If a valid excuse arises that prevents the employee from continuing, they remain indebted to their associates unless the associates absolve them. 2. If the participants allow a needy person to join and take the association's money first, with their knowledge that he might not be able to continue, then this is considered a gift contingent upon the condition of inability to repay, and it is permissible.
It is permissible to give the person responsible for collecting, safeguarding, and distributing the money a wage with the consent of all participants. This is in return for his work and not a guarantee for the money.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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