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If an organisation receives interest, can this interest funds be used to pay its expenses

Answered according to Hanafi Fiqh by Darulihsan.com

July 2008

Q: If an organisation receives interest, can this interest funds be used to pay its expenses such as electricity and water, telephone, bank charges, repairs and maintenance?

A:

If an organisation receives interest, can this interest funds be used to pay its expenses

This is not permissible. The interest funds should be returned to the owners or their heirs. If one is unable to ascertain who the interest was taken from as is generally the case in interest received from banks,then the interest should be given in charity.
 
Mufti Shafiq Jakhura
Iftaa Department, Darul Ihsan Islamic Services Centre
 
I concur with the answer:
Mufti Zubair Bayat

Ameer, Darul Ihsan Islamic Services Centre 

 

This answer was collected from DarulIhsan.com. It’s the official website of Darul Ihsan, which is an Islamic organisation (PBO) based in Durban, South Africa.

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