❀ Zakat Ruling on Funds of Kashmir Welfare Association ❀
✦ Taken from: Fatāwā ʿUlamā’-e-Ḥadīth, Kitāb al-Ṣalāh, Vol. 1
❖ Question:
We have established a welfare organization in the UAE named “Kashmir Welfare Association”. Each member contributes 120 dirhams annually. The purpose is to support members in case of accidents or death — for instance, 30,000 dirhams are given to the deceased’s heirs, and hospital expenses are covered for injuries.
Over the past 10–15 years, around 600,000–700,000 dirhams have been accumulated, kept in a bank account. The money does not belong to any one individual, but is a collective pool owned by all Kashmiri members.
Is zakat obligatory on this amount? And is this initiative in accordance with Islamic teachings?
❖ Answer:
① Ruling on Establishing the Welfare Association:
Your initiative does not involve any impermissible element.
Rather, it is an excellent and praiseworthy form of mutual cooperation, through which members assist each other in times of hardship.
✔ Islam encourages such acts of social support and communal aid.
② Ruling on Zakat Obligation:
In this specific scenario, Zakat is not obligatory on the accumulated amount. The reasons are:
➤ The funds are not privately owned by any individual.
➤ According to Sharī‘ah, ownership is a precondition for Zakat to be obligatory.
➤ Zakat is obligatory on individuals, not on collective charitable reserves like this one.
➤ This fund is dedicated solely for welfare purposes — just as Zakat money is not subject to Zakat, likewise this non-personally owned aid fund is not liable for Zakat.
✔ Conclusion:
✅ The formation and operation of your welfare association is Islamically valid and commendable.
✅ Zakat is not due on the accumulated collective funds due to lack of individual ownership.
✅ Your initiative is a beautiful example of mutual cooperation and Islamic solidarity.
May Allah accept your noble efforts and bless them abundantly.
