Borrowing zakat funds and spending them

Question

It is evident that the recipients of sadaqat and the like are only orphans and the destitute (miskins). Is there, according to the Shari‘a, any way in which these funds may be spent in a madrasa in which there are no boarding (fed) children studying? Is it correct that the madrasa may take [them] as a loan and spend them, and that there is no sin in this? If there is any way of making it permissible, kindly write it down.

Answer

If, with regard to sums that must be transferred into ownership (tamlik), the owners have given permission to mix them and dispose of them, then at a time of need they may be spent as a loan on other heads.

Source: Fatawa Mahmudiyya

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