Is a children's nursery project considered among the trade goods upon which Zakat is obligatory?

The fundamental principle is that educational and recreational projects for children are not considered trade offerings, and thus, zakat is not obligatory on their tools because these tools are not prepared for sale, but rather for educating and entertaining children.

However, if the purpose of the project is to trade in its machinery and equipment, then zakat is due on them based on their value when the hawl (one lunar year) passes, just as one pays zakat on buildings, lands, or animals prepared for buying, selling, and profit-seeking.

As for tools and equipment prepared for use (such as agricultural machinery, and the tools of a carpenter or blacksmith), there is no zakat on them. Zakat is only due on their produce (yield) if it reaches the nisab (minimum threshold) and a hawl has passed over it, and on funds prepared for sale.