What should a female teacher do who stipulated one Riyal for speaking in her class, and used to conduct a lottery among the students for explaining a lesson, with the winner receiving chocolate and the Riyals she had collected, knowing that the students did not pay them willingly, and how can the collected amounts be given in charity?

Punishing students financially, such as making them pay a Riyal or similar amount, is not permissible. This is because it constitutes financial corporal punishment (ta'zir bil-mal), which jurists have explicitly stated is forbidden. Al-Sawi reported a consensus (ijma') on this matter. If any of this money has been taken, it must be returned to its owner or their permission sought for its use. If it is impossible to reach the owner, then it is permissible to give it away in charity on their behalf, while still guaranteeing the amount to them.