Will institutions eg: Hospitals, Drug & Alcohol Rehab Ctrs, Old Age homes, or disabled / mental centres fall under this rule. Unfortunately Muslims have and do accrue interest and need to dispose of this, please clarify where this can be done in the above. Jazaku-Mullah.
Answer
Interest monies must be given to the poor and needy who are eligible to
accept Zakaat without the intention of reward. However, interest received
from government institutes, eg. post office could be used to offset
government taxes. Interest received from private banks cannot be used to
offset taxes. It may be used to offset interest charged from the same bank.
Interest monies cannot be used to build institutions.
and Allah Ta’ala Knows Best
Mufti Ebrahim Desai
FATWA DEPT.