Trading with the Madrasa’s Money

Question

There is a purely religious madrasa following the Dars-i Nizami (the traditional madrasa curriculum of South Asia). People give this madrasa various donations by way of assistance, for example zakat, sadaqat al-fitr, the hides of sacrificial animals and their value, votive offerings and so on, and that money is spent on food and other needs of the madrasa’s boys.

Answer

It is not permissible to trade with it. Liability (daman) for the whole loss incurred will be binding upon the secretary. If that money was zakat, he must return that amount of zakat to those who gave the zakat.

Source: Fatawa Mahmudiyya

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