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Resolutions of Iftaa' Board


Resolutions of Iftaa' Board

Resolution No.(178): "Ruling of Sharia on Deducting Part of the Donations to Cover Administrative Expenses"

Date Added : 02-11-2015

Resolution No.(178)(10/2012) by the Board of Iftaa`, Research and Islamic Studies:

"Ruling of Sharia on Deducting Part of the Donations to Cover Administrative Expenses"

Date: 8/8/1433 AH, corresponding to 28/6/2012.

 

All perfect praise be to Allah, The Lord of The Worlds; and may His blessings and peace be upon our Prophet Mohammad and upon all his family and companions.

During its fifth session held on the above given date, the Board reviewed the following question:

From time to time, the Professional Associations Complex launches fund-raising campaigns to support the poor in Jordan, or our Arab brothers. Since such campaigns involve administrative expenses, is it permissible to cover them from the raised-funds?

After researching and deliberating, the Board decided what follows:

There are two types of administrative expenses needed by charitable societies:

First: Administrative expenses that are essential for achieving the objective of the fund-raising campaign, such as expenses of delivering funds to their eligible recipients, the expenses of safeguarding these funds and the like, are permissible to be covered in compliance with the agreed upon jurisprudential maxim: "The means takes the ruling of the end.". This maxim has been indicated by many of the Sharia-approved evidences, and was stated in many books of the scholars, such as Al-Izz Bin Abdulsalaam.

Second: Other administrative expenses of the society, such as staff salaries, rent, water, electricity..etc, shouldn`t be covered from the funds that have been raised for a certain purpose; rather, from the general donations made to the society in general, or for it in particular.

To be on the safe side, the Board advises those in charge of raising these funds to inform the donors that a small part of them covers administrative expenses. And Allah Knows Best.

 

Chairman of the General Iftaa` Board, His grace the Mufti General of the Hashemite Kingdom of Jordan, Sheikh Abdulkareem Al-Khasawneh

Sheikh Sa`ied Hijawi/ Member

Prof. Abdulsalam Al-Abbadi/ Member

Prof. Mohammad Al-Khwdah/Member

Prof. Abdul N`nassir Abu-Al-bas`sal/Member

Dr.Yahia Al-Boutoosh/Member

Dr. Wasif Al-Bakhri/ Member

Dr. Mohammad Al-Khalayleh/ Member

Dr. Mohammad Az`zoubi/ Member

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Summarized Fatawaa

What is the ruling on someone who possesses cash reaching the niṣāb (minimum threshold liable for zakah), and then uses part of it to purchase gold before the ḥawl (lunar year) is complete — must he pay zakāh on all of it [combined], or only on the remaining cash, excluding the gold?

All praise is due to Allah, and peace and blessings be upon our master, the Messenger of Allah ﷺ.
Gold acquired for hoarding and saving is subject to zakāh once it reaches the niṣāb (minimum threshold liable for Zakah) — when combined with any cash held — and once a full ḥawl (lunar year) has elapsed over it. The starting point for calculating this ḥawl is the ḥawl of the paper currency [used to purchase it], which had already reached the niṣāb and was then used to purchase the gold.
It is stated in Mughnī al-Muḥtāj (Vol.2/p.78): "As for someone who sells silver in exchange for gold, or vice versa, zakāh remains obligatory upon it, since he builds [the calculation of] its ḥawl upon [the ḥawl established at the time of] the original transaction [i.e., when the wealth was first acquired]."
This has already been explained in detail in Fatwa No. 2670 — please refer to it.
And Allah, the Exalted, knows best.

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