QUESTION:
Is it correct for organizations or similar establishments, who claim to be non-profit, or working for the community, to have huge investments with so called Islamic finance or Islamic financial institutions? While having such huge investments, they still solicit funds from the public for running expenses, maintenance and even expansion programs. Is this not a form of deceit?
ANSWER:
It is necessary for organizations to utilize all funds donated by donors according to the donor’s instructions and specifications. If the donor stipulates that his funds should be used on student’s fees, then the donated funds cannot be utilized to construct the Wudhu facilities at the institute, as this is tantamount to contradicting the donor’s instructions. Similarly, if the donor donates funds to feed the needy Muslims of Syria, then the funds cannot be utilized to feed the needy Muslims of Palestine, as this too is contradicting the donor’s instructions. In conclusion, it is obligatory to adhere to the instructions of the donor in utilizing the donated funds.
This in essence means that, funds donated to an organization for a particular objective (such as students fees, feeding, etc.) cannot be invested with a bank or any investment company, as this too will be considered as contradicting the instructions of the donor. Secondly, the possibility of profit or loss exists in all investments, hence there is a strong possibility of losing the donated funds if the investment collapses or crashes which is quite common nowadays. It is obvious that donors will not allow any organization to risk their hard-earned money. It is therefore necessary that the donor’s funds are spent according to their specifications as soon as possible, so that they may reap the rewards of their charity.
It is indeed deception to lead the public into believing that an institute is short of funds (to meet their expenses) and thereby acquire more contributions, whilst ample funds (belonging to the institute) are invested with financial institutes.
Yes, if an institute intends investing in a Halaal business venture or investment, then donors should be informed that their funds will be invested in a particular business venture or investment, and the organization will benefit from the proceeds of the investment. If donors agree to contribute towards the investment (for the benefit of the institute), then there is no harm in using their funds for the said investment.
فإِنَّ شَرَائِطَ الْوَاقِفِ مُعْتَبَرَةٌ إذَا لَمْ تُخَالِفْ الشَّرْعَ وَهُوَ مَالِكٌ، فَلَهُ أَنْ يَجْعَلَ مَالَهُ حَيْثُ شَاءَ مَا لَمْ يَكُنْ مَعْصِيَةً (رد المحتار 343 ج4)
وَلَا يَجُوزُ لِلْقَيِّمِ شِرَاءُ شَيْءٍ مِنْ مَالِ الْمَسْجِدِ لِنَفْسِهِ وَلَا الْبَيْعُ لَهُ وَإِنْ كَانَ فِيهِ مَنْفَعَةٌ ظَاهِرَةٌ لِلْمَسْجِدِ. (البحر الرائق ص401 ج5)
وَفِي المنبع الْمُتَوَلِي إِذا آجر الْوَقْف سِنِين مَعْلُومَة بِأُجْرَة مثله ينظر إِن كَانَ الْوَاقِف اشْترط أَن لَا يُؤَاجر أَكثر من سنة لَا يجوز لِأَن شَرط الْوَاقِف يجب مراعاته وَلَا يتَجَاوَز عَمَّا شَرطه (لسان الحكام ص301 ج1)
يُتْبَعُ شَرْطُ الْوَاقِفِ فِي إجَارَتِهِ حَتَّى إذَا شَرَطَ أَنْ لَا يُؤَجِّرَ أَكْثَرَ مِنْ سَنَةٍ وَالنَّاسُ لَا يَرْغَبُونَ فِي اسْتِئْجَارِهَا سَنَةً وَكَانَ إجَارَتُهَا أَكْثَرَ مِنْ سَنَةٍ أَدَرَّ عَلَى الْوَقْفِ وَأَنْفَعَ لِلْفُقَرَاءِ فَلَيْسَ لِلْقَيِّمِ أَنْ يُخَالِفَ شَرْطَهُ وَيُؤَجِّرَ أَكْثَرَ مِنْ سَنَةٍ بَلْ يَرْفَعُ الْأَمْرَ إلَى الْقَاضِي حَتَّى يُؤَجِّرَهُ الْقَاضِي أَكْثَرَ مِنْ سَنَةٍ؛ لِأَنَّ لِلْقَاضِي وِلَايَةَ النَّظَرِ لِلْفُقَرَاءِ وَالْغَائِبِ وَالْمَيِّتِ، وَإِنْ لَمْ يَشْتَرِطْهُ الْوَاقِفُ فَلِلْقَيِّمِ أَنْ يُؤَجِّرَ أَكْثَرَ مِنْ سَنَةٍ بِلَا إذْنِ الْقَاضِي كَذَا فِي الْخَانِيَّةِ (درر الحكام ص138 ج2)
بَلْ غَايَةُ الْأَمْرِ أَنَّهُ وُجُوبُ اتِّبَاعِ شَرْطِ الْوَاقِفِ عَلَى النَّاظِرِ (البحر الرائق ص266 ج2)
ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!
ANSWERED BY:
Mufti Mohammed Desai
Date:- 10 Rabi-ul-Awwal 1445 / 26 September 2023
