Is it permissible to collect Zakat al-Fitr for a man who is indebted and smokes, knowing that the one collecting the Zakat for him is one of his creditors, and people do not know about this until after it has been collected?
The majority of jurists hold that al-Fitr is disbursed to the eight categories of recipients, and no one is obligated to collect it for the poor. However, there is no objection to an individual undertaking its collection for a needy person and delivering it to him as a trust. This is permissible, unless the giver of zakat knows that the poor person is indebted to the individual collecting the zakat and wishes to pay it off as a settlement of his debt; in this case, it is permissible according to the Hanbalis. The trustee is not permitted to take the zakat before delivering it to the poor person, unless the giver of zakat intends it as a settlement for the indebted person, or with a specific authorization from the indebted person. The fact that a poor person smokes does not prevent giving him zakat, as long as he is a needy Muslim.
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