The ruling regarding charitable organizations opening bank accounts
Question:
"The question of opening several accounts for a charitable fund in the local banks has been thoroughly discussed with the aim of making it easier to receive aid and a means of zakah (obligatory charity) and Sadaqah (voluntary charity) and the like. Through these accounts it will be easier to contribute into the fund on the part of individuals, banks, and companies according to the proximity of each bank account to the different donors. We would like to present the issue to your Honor that you may guide us to what is best. May Allah protect and preserve you!"
Answer:
"It is permissible for Al-Bir society and other charitable organizations to open bank accounts, if its purpose is as mentioned because this would facilitate making contributions for donors, but it is not permissible to open the account for making any forbidden type of investment and taking Riba (usury)-based interest on deposits. This is according the Hadith that reads: “The Messenger of Allah (peace be upon him) cursed the devourer (taker) of Riba (usury/interest), its payer, its two witnesses, and its scribe.”
May Allah grant us success! May peace and blessings be upon our Prophet Muhammad, his family, and Companions!
Permanent Committee for Scholarly Research and Ifta'
Shaykh 'Abdul-'Azeez ibn Baz
Shaykh 'Abdul-'Azeez Aal ash-Shaykh
Shaykh 'Abdullah Ghudayyan
Shaykh Saalih al-Fawzan
Shaykh Bakr Abu Zayd
Source: www.alifta.net - Fatwa no. 17200.
"The question of opening several accounts for a charitable fund in the local banks has been thoroughly discussed with the aim of making it easier to receive aid and a means of zakah (obligatory charity) and Sadaqah (voluntary charity) and the like. Through these accounts it will be easier to contribute into the fund on the part of individuals, banks, and companies according to the proximity of each bank account to the different donors. We would like to present the issue to your Honor that you may guide us to what is best. May Allah protect and preserve you!"
Answer:
"It is permissible for Al-Bir society and other charitable organizations to open bank accounts, if its purpose is as mentioned because this would facilitate making contributions for donors, but it is not permissible to open the account for making any forbidden type of investment and taking Riba (usury)-based interest on deposits. This is according the Hadith that reads: “The Messenger of Allah (peace be upon him) cursed the devourer (taker) of Riba (usury/interest), its payer, its two witnesses, and its scribe.”
May Allah grant us success! May peace and blessings be upon our Prophet Muhammad, his family, and Companions!
Permanent Committee for Scholarly Research and Ifta'
Shaykh 'Abdul-'Azeez ibn Baz
Shaykh 'Abdul-'Azeez Aal ash-Shaykh
Shaykh 'Abdullah Ghudayyan
Shaykh Saalih al-Fawzan
Shaykh Bakr Abu Zayd
Source: www.alifta.net - Fatwa no. 17200.