Answered by Shaykh Faraz Rabbani
The Islamic society at my university is planning to raise money towards the Tsunami relief efforts. Is it permissible to use money that’s been raised from selling donated items from others (Muslim and non-Muslim) and is it permissible to send the money to a non-Muslim organisation.

“And do good, for Allah loves those who do good.”
[Qur’an, 2.195]
Walaikum assalam,
There is no problem in giving money raised as general “charity” (as opposed to zakat, specifically) to a non-Muslim charity. Rather, in many situations, there may well be much wisdom in allocating at least some of the funds raised to such charities, as long as they aren’t charities with agendas obviously anti-Islam (such as certain Christian missionary groups).
There is also no harm in selling donated items, and sending the funds from such sales instead of the items themselves.
And Allah alone gives success.
Faraz Rabbani.