If an Islamic institute such as a Darul Uloom collect zakat on behalf of its students, what is the procedure of collecting and utilizing the zakaat on behalf of a student and if zakaat has been collected on behalf of a student and he discontinues his studies, what should be done with that zakaat? If there is a better procedure of using zakaat money to sponsor students please mention in detail.
In the name of Allah, the most Beneficent, the most Merciful.
Zakat can be given to students who are studying in Darul Ulooms as long as they are poor. It cannot be given to students just because they are Fi Sabililah as the term Fi Sabililah does not include them. (Fatawa Darul Uloom Deoband p.252 v.6)
Regarding your question, zakat will be given to the principal of the Darul Uloom who acts as a representative of the student. He will then give it to the poor students who will be able to do what they want with it. Most likely, they will hand it back to the principal as fees who will then be allowed to do what he wants with it in terms of using it for the Darul Uloom’s building, bills etc…based on the Islamic principle of Tadeel-e –Milk (changing of ownership)
It is narrated by Saaiduna Anas bin Malik Radiallahu Anhu that some meat was brought to the Prophet of Allah Sallallahu Alahi Wasalam and it was said that the meat had been given in charity to Barira Radiallahu Anha. He said, “It was Sadaqa for Barira but a gift for us.” (Sahih Bukhari)
One final point to mention here is that a principal is the representative of the poor students, thus, by giving the zakat to the principal one’s zakat will be done. (Imdadul Fatawa p.14 v.2 & Fatawa Mahmoodiyah p.41 v.3)
Only Allah Knows Best
Mohammed Tosir Miah
Darul Ifta Birmingham