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Does the monthly society gathering become tainted with usury if the value of the money received after deducting the cost of dinner differs, despite the participants' prior agreement to that?

1 min readAlso available in العربية

Monthly associations are defined as an agreement among a group of people to pay an equal monthly sum, with the total amount being paid to one of them each month on a rotating basis until everyone has received what those before them received. This type of association is permissible in Islamic law.

However, the condition that the person whose turn it is to receive the amount must host a dinner party is impermissible in Islamic law, whether the condition is explicit or customary. This is because the association is considered a loan from the payer to the recipient, and obliging the recipient to host a feast for the participants makes this loan a "loan that brings a benefit," which is forbidden. The purpose of these associations is cooperation and mutual support, and such conditions are not fitting for them.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

Read the full answer on Ftawy