Transferring donations via goods and selling them
As a charity, we sometimes encounter difficulty in sending funds to our areas of operation, particularly in volatile areas. What is the Islamic ruling on buying commodities such as rice and nappies with the Zakat and Ṣadaqah donations and sending these goods to these areas and selling these items to recover the cash? Also, can any profit be made from this?
بسم الله الرحمن الرحیم
Every effort should be made to send the money. If this is not possible, then commodities should be sent for distribution to the recipients if this is feasible.
If, however, they need money, then it is permissible to send commodities on the condition that (a) the donors consent to this explicitly or implicitly (b) and you are certain you will be able to recover the full cost or more.
Any profit generated will be used on the poor. If there is no need to make a profit, then it is better avoided. However, it is recognised that sometimes it is better to sell at the market value to avoid impacting other traders. Ultimately, this is a judgment you need to make. Profit per se should not be the motive.
Allah knows best
14 Jumādā al-Thāniyah 1442 / 28 January 2021
Approved by: Mufti Shabbir Ahmed and Mufti Muhammad Tahir