Spending donation money on a prize-giving gathering

Question

Here an annual collection of donations is made from the small town for Madrasa Islamiyya, the greater part of which consists of obligatory charities (sadaqat wajiba), zakat and the hides of sacrificial animals. The madrasa has two major heads of expenditure: the teachers’ salaries and the expenses of the orphanage; besides these, there are some miscellaneous day-to-day expenses. The donors do not have the details of the madrasa’s expenses in mind, nor is their permission sought every time for each expense.

Answer

If the donors have specified the purpose (masraf), the donation will be spent on that very purpose and nothing contrary to it is to be done. If they have not specified the purpose but have given the rector full authority to spend it on the interests (masalih) of the madrasa, then spending it on any interest is permissible. Sums in which tamlik (transfer of ownership)

Source: Fatawa Mahmudiyya

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