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Shariah

Shafi'i Fiqh

Is Purchasing a Plot of Land with Charitable Donations Considered a Continuous Charity?

A charitable society extends help to poor families, takes care of the orphans and supports local projects for the development of the community. Its revenue sources are donations given by people and contributions of members. Currently, this society is working on purchasing a plot of land to build in order to build its headquarter on. This building will help the society practice its various activities to achieve its goals. Are these donations considered a continuous charity?

Hanafi Fiqh

Investment Agent

Thank you muftisaab. So I have been trading stocks personally for a number of years, and always follow Islamic protocol. I am mindful of what industries I invest in, never going short on trades, mindful of debt ratios etc and alhamdulilah have had good success. This led me to wanting to grow my venture to open up the scalability of it and to start to do it on behalf of others. So I’ve approached friends and family initially, with the proposal that they invest their money with my limited business, and I trade on their behalf in a way that is similar to a fund, of course concentrating only on halal stocks. What I have offered to them is that they receive a X% return on their investment per annum, and If I manage to out perform X% on the market, whTever is in excess, is profit for myself as well, so that the arrangement is mutually beneficial. I have told them that if the year elapses and they request their money back, and the money is currently tied up in open investments in the market, I will honour their request from the pool of funds I have sitting on the side as liquidity, which remains untouched to underwrite any clients investment. I was wondering, mufti, whether this arrangement is permissible? And if it is not permissible, how I can adjust my business model in order to bring it into accordance to Islamic shariah. JazakAllah khair

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