Is it permissible for the Society

Q: Kindly, Your Honor, be advised that Al-Birr Association in Al-Madinah Al-Munawwarah offers great services to the poor, the needy, orphans, and widows. Assistance is granted through monthly salaries, living allowances, paid medical treatment at home and abroad, home repairs, and remuneration for disasters such as the collapse of buildings or the case of fires. (Part No. 9; Page No. 452) The Association receives financial contributions from citizens and benefactors, especially in Ramadan, as we receive donations which may reach millions of Riyals from collected Zakah. Currently, we have five million Saudi Riyals in the bank of Madinah. Can we use this money to purchase land for commercial investment, building homes on it and renting them for the Association? Is it Islamically permissible to conduct commercial transactions and investments with the money of the Association with the intention of increasing the financial resources of the Association and creating a steady income for it, although this money was given to us from the money of Zakah to be spent in the form of charity? Please advise so that we may be enlightened and achieve the noble goals of the Association. Many thanks to you, and may Allah protect you.

A: First, the money from Zakah is to be distributed in the manner described in Allah's statement, As-Sadaqât (here it means Zakât) are only for the Fuqarâ’ (poor), and the Masâkin (needy) It cannot be delayed or any portion of it spent on charitable projects. Second, the money which is not from Zakah can be spent in (Part No. 9; Page No. 453) charitable projects, such as building Masjids (mosques), orphanages, hospitals and so on.May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.