Date : 22-12-2014

Question :

Is it permissible to establish an Islamic bank whose revenues are dedicated to educating the poor through using a sum from the Zakaat money as a Waqf (an endowment)?

The Answer :

All perfect praise be to Allah. Blessings and peace be upon Prophet Mohammad: Waqf is a blessed channel of charity for which Almighty Allah has dedicated an abundant and a constant reward. In a narration, the Hanafite and the Hanbalite jurists allowed using money as a Waqf to be spent in different channels of charity. Al-Mardawi reported in his book { Al-Insaaf } : “ Imam Ahmad allowed using money as a Waqf. “ However, it isn`t allowed to use Zakaat money as a Waqf because Zakaat must be put into the possession of the poor. In addition, it isn`t permissible to delay the payment of Zakaat beyond its due time. Accordingly, it is permissible to use non-Zakaat money as a Waqf dedicated for educational purposes; whereas, using Zakaat money for such an end is impermissible .