Is It Permissible for Islamic Madāris to Take Zakāt Council Aid?
Reference: Ahkam wa Masail, Zakāt Issues, Vol. 1, Page 273
❖ Question:
Every year, the Punjab Zakāt Council provides financial aid to Islamic madāris. Is it permissible to accept this aid? It is heard that this aid comes from the interest (ribā) which the government collects from public accounts under the label of “profit,” from which zakāt is deducted and then distributed to madāris. Is this true?
❖ Answer:
Al-ḥamdu lillāh, waṣ-ṣalātu was-salāmu ʿalā Rasūlillāh, ammā baʿd!
The information you have heard is indeed correct. There is no doubt that this is actually ribā (usury/interest).
◈ The so-called “profit” distributed by the government is in fact interest earned on the public funds kept in banks.
◈ From this interest-based money, zakāt is deducted and then given to madāris as “aid.”
◈ Since the source of this money is ribā, it is not permissible to accept or use it.
Hādhā mā ʿindī, wallāhu aʿlam biṣ-ṣawāb.