What is the Islamic ruling on dealing with an association through the following method: Each person who joins the association pays (20) dinars as a donation and must invite two people to join. These two individuals must also pay the same amount. When the number of participants reaches (8), the person at the top receives the total amount paid by the members. If they wish to move to the second stage, they must pay half of what they received in the first stage, and this process repeats over five stages. This system applies to all participants.

All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon Prophet Mohammad and upon all his family and companions.

After inquiring about the nature of the transaction mentioned in the question, it was found that it is referred to as the "Inheritance Gift System" In this system, each participant pays an amount of (20) dinars as a gift in each stage and is required to recruit two people in order to qualify for the reward. The person at the top receives the total amount paid by the new participants and then advances to the next stage if they wish, paying half of what they received in the previous stage. This process repeats in each of the five stages.

Thus, upon examining the details of the transaction, it becomes clear that it is a form of network or pyramid marketing—which has already been declared prohibited by the Iftaa` Department. However, in this case, there are no actual goods being marketed; the entire transaction is based on exchange rather than a true gift. The participant joins this program solely with the expectation of earning multiple times what they initially paid. Since a gift that comes with a condition of compensation is, in essence, considered a sale, manipulating terminology does not change the reality of the transaction. In contracts, what matters are the objectives and meanings, not merely the words and formal structures.

The reality of this transaction is that it is based on gambling and unjustly consuming people's wealth. The upper tier in the program profits at the expense of the lower tier, while the final tier, where the program ultimately ends, will incur losses and receive nothing. Those who pay are at risk of either gaining or losing, which involves excessive uncertainty (Gharar) and gambling (Maysir), both of which are prohibited in Islam.

In conclusion, it is prohibited to participate in the mentioned program due to its elements of gambling and excessive uncertainty, making it a form of consuming people's wealth unjustly. And Allah The Almighty Knows Best.