Is it permissible for someone entrusted with distributing private funds to the poor and needy, who is himself poor and cannot meet his needs or pay off his debts, to take from these funds for himself, taking into account the difference between private funds and Zakat?

We hope Allah keeps you steadfast in knowledge and good deeds. We remind you of the Hadith narrated by Abu Sa'id al-Khudri (may Allah be pleased with him), in which the Messenger of Allah (peace and blessings be upon him) taught Abu Umamah a supplication to remove worry and pay off debt: "O Allah, I seek refuge in You from anxiety and sorrow, and I seek refuge in You from inability and laziness, and I seek refuge in You from cowardice and stinginess, and I seek refuge in You from the burden of debt and from being overpowered by men."

Also, we remind you of the Hadith narrated by Ali (may Allah be pleased with him), in which the Prophet (peace and blessings be upon him) taught him a supplication for paying off debt: "O Allah, suffice me with Your lawful provision against Your unlawful, and enrich me by Your grace, sparing me from all except You."

Regarding an agent taking from the Zakat he is entrusted with distributing: if he is eligible for Zakat, there is no objection to him taking from it according to his needs. This is the view of the Maliki school, and it is advised not to publicize this matter.