Zakah on money donated for charity

Q: The tribe of Al Husayn in Al-Ahmar launched a fund to fulfill the needs of its members, such as for blood money (Part No. 9; Page No. 297) or in case of disputes - may Allah protect us from this. Fifteen people participated in the fund, each paying 500 riyals in the first two months, and then 100 riyals every subsequent month. The fund was established on 28/8/1401 A.H. and it had grown to a total of 25,000 riyals by 28/8/1402 A.H. I put this money in an Islamic limited partnership project launched by Prince Muhammad Al-Faysal. I did not pay any Zakah on this money as I doubted whether it needed to be done as it belonged to a number of different people. I hope that you will advise me in this matter. I am waiting for your reply to know whether I must pay Zakah on this money or not. May Allah protect you.

A: If the reality is as you mentioned and the money that was donated is not to be repaid to those who gave it, and if the project fails, the money will be used to do charitable work, then no Zakah is due on this money. However, if the project ends and the participants have their shares in the money returned to them, then each one should pay the Zakah on his share after the passing of a lunar year.May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.