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Can a Muslim organisation collect interest money from Muslims to help renavating a department in a Goverment hospital which all kinds of Muslims use. They requested Muslims to assist them.

Answered according to Hanafi Fiqh by Askimam.org
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 renovate a government hospital.

and Allah Ta’ala Knows Best

Mufti Ebrahim Desai

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