Zakah on the monies collected to be spent in righteous ways

Q: We would like to bring to your attention that the non-profit organization in Ha'il has purchased many vacant lots of land after getting approval from the relevant authority, the Ministry of Labor and Social Affairs. These lots have been purchased for the purpose of investment and profit, and one of these lots has already been sold with a profit amounting to 330%.The question: Is Zakah (obligatory charity) due on the value of these lots? It should be mentioned that the par value of these lots has been collected from the donors' (Part No. 8; Page No. 335) contributions, not from the money due on their wealth as Zakah. Moreover, the profits are used for the benefit of the organization in several fields of activity including the administrative expenditures, social care projects, investment projects such as purchasing land with prospective profits and building schools with both educational and investment objectives. A portion of this money is further allocated to support the categories deserving Zakah, i.e. The poor and the needy. So if Zakah is due on these lots of land, to whom should it be given; to the Zakah trust owned by the organization or to other outlets? We hope to benefit from your answer, and may Allah bless you!

A: Zakah is not due on the money received from philanthropists for charitable activities, as it is not owned by a particular individual. However, money which is raised from the Zakah must be promptly given out to its legal recipients. Delaying it and keeping it in possession and even investing it is unlawful.May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.