Family Welfare Trust - Is it permissible to start one?
Question
Assalam o Alaikum,
Our extended family is planning to start family welfare trust to help eash of us. Everyone must be contributing minimum fixed amount per menth and whoever needs it can get required amount as Qarz Hasana. We did not write the procedural details yet. I would like to know the shariah ruling regarding this.
Q1. Do we all need to make intention to put amount as sadaqa in this account?
Q2. Can we invest this amount to Halal business by getting agreement of all and place the earnings in the same account for same purpose?
I have more questions, which I may ask later.
JazakAllah Khair,
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
It will be permissible to start such a family welfare trust provided that all the clauses and conditions are Shariah Compliant.
1. It is not necessary for one to make the intention of Sadaqah when depositing money into such a joint pool.
2. It will be permissible to invest the money in Halal investment opportunities provided all members agree. Furthermore, it will be permissible to re-invest the profits or deposit the profits thereof back into the joint pool.
You may forward us the complete procedural details. We will advise further.
You may forward your email to: [email protected]
And Allah Ta’āla Knows Best
Hammad Ibn Ismail Jogiat
Student Darul Iftaa
Cambridge, Ontario, Canada
Checked and Approved by,
Mufti Ebrahim Desai.
- Answered by
- Hammad Ibn Ismail Jogiat
- Checked & approved by
- Mufti Ebrahim Desai
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