Is it permissible to donate to a charity organization that lends to low-income individuals at an interest rate (5-10%) to finance their projects, and spends this interest on its employees' salaries and expanding its activities, while defining itself as "non-profit"?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The loan offered by this institution is usurious (riba-based), and the fact that it spends usurious gains on its employees' salaries or activities does not make it permissible. The ruling on donating to it: If it will spend the donated money on usurious loans, then it is not permissible to donate to it because it is assisting in usury. However, if it will spend it on charitable works, such as supporting needy families, then there is no objection to that.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/173843
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- Ftawy
- Original fatwa ID
- 173843
- Imported
- Translation status
- Source text, unreviewed
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