What is the jurisprudential ruling concerning the following: 1. The deduction by branches and general administration of a percentage from donations (charity, orphan sponsorship, general charity) to cover administrative expenses, and is there an upper limit for this deduction? 2. Is it necessary to inform each donor of the percentage deducted from their donation, and is it sufficient to inform through public announcements, or must individual notification be given, and is it sufficient to announce the deduction without specifying its amount? 3. The agreement of some branches with donation collectors on a percentage of the amount they collect, or giving them a percentage in addition to a monthly sum from the administrative expenses fund, and is this percentage considered part of the administrative percentage already deducted? 4. Are there Sharia controls for investing charity and Zakat funds other than those related to other people's money, and is it permissible to lend them with interest or deposit them in interest-bearing banks to earn interest, and is it permissible to lend them to employees or others as interest-free loans or educational loans for needy students? 5. Is it permissible to take bank interest (usurious) offered to us by some people, and are there specific channels for its expenditure, and is it permissible to accept donations from interest-bearing banks, people of the Book, and non-Muslims? 6. Is it permissible to issue a receipt for a larger amount than the actual value of in-kind donations to merchants to benefit from tax exemptions? 7. Deducting a percentage from the sponsorship amount of an orphan, student, or poor family to provide them with health, educational, and advocacy care, and is it necessary to inform sponsors of the deducted percentage, and is it sufficient to inform through public announcements or must individual notification be given, and is there a limit to this percentage, and is it permissible to establish an internal system that includes penalties for those who fail to attend activities (such as freezing sponsorship or a financial penalty or replacing the sponsored individual), and must the sponsor be informed when the sponsored individual is replaced? 8. Is it permissible to give prizes to outstanding orphans and students or competition winners from Zakat funds? 9. Is it permissible to give a portion of in-kind materials, when distributed to the poor, to the institution's employees, especially the poor among them, and is it permissible to disburse amounts to employees as bonuses or overtime pay? 10. What is the jurisprudential ruling concerning the official in charge in the event of an error in making a financial decision that leads to the waste of money, or the administration's negligence in procedures for preserving money, leading to its loss, disappearance, or theft? 11. Is it permissible to retain orphan sponsorship amounts received without specifying a particular orphan as a reserve for existing orphan sponsorships in case their sponsor ceases, to ensure the continuity of sponsorship? 12. Is it permissible to replace cash sponsorship with buying in-kind materials of equal value and distributing them to some families to avoid spending them on undesirable things, and is it permissible to distribute available in-kind materials to sponsored individuals in exchange for the cash sponsorship amount, and is it permissible to use in-kind materials for collective Iftars for benefactors with the aim of collecting donations or spending from the institution's funds for this purpose, and can they be offered to institution guests or a portion consumed in administrative meetings for employees or volunteers?
The charitable society acts as an agent in managing funds and operates only within the limits authorized by the principal. If the principal does not specify any conditions, the agent may act in accordance with what serves the best interest. It is imperative to choose individuals of piety and integrity to work in it.
Summary of issues related to charitable societies:
1. Deducting a percentage for administrative expenses: There is no objection to this as needed, and there is no obligation to inform the donor. 2. Wages for workers collecting donations: There is no objection to this. 3. Investing funds: Zakat: It is not permissible to invest it. Donations: It is permissible to invest them if it is more beneficial for the poor and there are no immediate needy individuals. 4. Lending money with usurious interest or depositing it in usurious banks: This is not permissible except out of necessity. Interest-free loans for employees or students: This is not permissible, because the needy person is entitled without a loan, and the non-needy person should not be given. 5. Accepting donations from usurious banks: It is permissible, and the money should be spent on acts of charity. Donations from non-Muslims: It is permissible if there is no fear of corruption. 6. Writing a receipt for merchants for more than the actual value: This is not permissible, as it is a lie. 7. Deducting from donation funds to organize activities: It is permissible as long as it achieves a benefit and does not negate a greater benefit, and there is no obligation to inform the donor unless specified. 8. Establishing regulations to govern internal operations: There is no objection to this for achieving the intended purpose. Financial penalty for absenteeism: It should not be imposed due to the sponsored person's need for money. 9. Giving prizes to winners from zakat funds: This is not permissible, as zakat has specific legal beneficiaries. 10. Giving a portion of in-kind materials to society employees: It is permissible if the employee is needy or if it serves the work's interest. Paying bonuses or overtime pay to employees: It is permissible. 11. Loss of society's funds due to employees: Without transgression or negligence: The employee is not liable. With transgression or negligence: The employee is liable. 12. Retaining sponsorship of unconditioned orphans: The default is not permissible, unless there is a predominant benefit. 13. Replacing cash sponsorship with in-kind materials: It is permissible if it is more beneficial for the poor or orphan and does not violate the donor's condition. 14. Organizing communal iftars for benefactors to collect donations: There is no objection to this as long as it results in a greater benefit. 15. Honoring guests of the institution and spending on administrative meetings from its funds: It is permissible according to common custom without extravagance.
Those in charge of the society must fear Allah and consider what is most beneficial for donors, the poor, and the needy.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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