Should the zakat money collected by an organization be distributed before the next Ramadan or would it be better to keep the money in the bank and use it when needed?
Question
There is an association which collected Zakat to distribute among needy persons. How long the organization can keep the zakat in its possession. Should it complete the distribution of the zakat before next Ramadan or it can keep it in bank and use it when he needs it?
Answer
It is established in Islamic law that it is permissible to commission another to pay zakat on behalf of another to its deserving recipients. The principle is that zakat must be paid as soon as it fulfills the conditions of its obligatoriness and that it is impermissible to delay its payment except if this is in the interest of the poor. It is impermissible to delay its payment on account of lassitude or procrastination.
Based on this, it is permissible for the person commissioned to pay zakat on another’s behalf to delay and distribute its payment over the year depending on the needs of its recipients. This is permissible provided the rights of the poor who need it at the time are not wasted and the delay achieves interests to the poor by securing what suffices them over the course of the year. It is permissible to pay zakat in cash or in the form of material objects.