QUESTION:
A Zakaat organization collects Zakaat into their account. They give vouchers to recipients who filled out a form making the organization the Wakeel. The recipients spend the voucher at a Cash & Carry, taking goods equivalent to the amount on the voucher. Thereafter, the Cash & Carry will send a statement to the Zakaat organization, who in turn, will then settle the account with the Cash & Carry. Is this method correct?
2. A brother is in credit card debt. Despite paying the bank monthly, due to interest charges on his overdraft he is unable to overcome the debt, and some months, his liability remains the same. Would it be permissible to assist him with Zakaat?
ANSWER:
1. The correct procedure would be as follows:
The organization should give an x-amount of Zakaat to the Cash & Carry, thereby appointing them as their Wakeel to discharge the Zakaat. So, in essence, the Cash & Carry is the Wakeel of the Wakeel (organization that collected Zakaat from the people). On receiving the funds, the Cash & Carry will issue vouchers to the value of funds received. These vouchers should then be handed out to the recipients who may purchase their needs at the Cash & Carry. By adopting the above-mentioned procedure, the Zakaat will be discharged.
In the queried scenario, the organization has not given any funds upfront to the Cash & Carry to discharge Zakaat on their behalf. The organization has issued vouchers which entitles the recipients to purchase from the Cash & Carry on credit, and the organization thereafter pays their account. Now, if the organization is settling the recipients’ debt directly with the Cash & Carry without their consent (to take possession of Zakaat on their behalf and further to settle their account with the creditor), then the Zakaat will not be discharged. This is the error of the organization in our understanding. Yes, if the recipient appoints the organization to receive Zakaat on their behalf, and also appoints the organization to utilize the Zakaat to settle their debt with the Cash & Carry, then such an arrangement will be in order. Notwithstanding the above, if the organization has adopted any other method which we are unaware of, then the details may be sent to us.
2. If the individual is struggling to settle the credit card as the interest keeps accumulating (and he is eligible to receive Zakaat), then it will be acceptable to assist him with Zakaat funds. However, he should not repeat his error in future as taking a loan on interest is Haraam. [Re:- Fataawa Qaasmiyyah Pg.687 Vol.10]
ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!
ANSWERED BY:
Mufti Mohammed Desai
Date:- 09 Safar 1445 / 26 August 2023
