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Is it permissible to invest the funds of a cooperative fund established on donations, and if permissible, should the entire amount be invested or only part of it, and how should the profits be distributed, and is it necessary to obtain the permission of each contributor before investing?

1 min readAlso available in العربية

It is permissible to establish a cooperative fund based on principles that prevent gambling and demonstrate cooperation, mutual assistance, and social solidarity. These principles are: clarity of the intention of cooperation and solidarity in the founding contract, no linkage between what the subscriber pays and what they receive, specification of the eligible cases, existence of a committee for oversight and determination of entitlement, and the permissibility of the subscription being a fixed or open amount. There is no objection to investing the fund's money to generate profit, provided that the investment is permissible. The authority shall set up a system for distributing profits in cooperation with the subscribers, and the authority shall act as an agent for the shareholders in managing the money, and it is permissible for it to stipulate a percentage of the profit in exchange for investing the funds.

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

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