Paying off a madrasa’s debt with zakat money

Question

An Islamic madrasa is in debt and runs on collected donations; its financial condition is very weak. Can the madrasa’s debt be paid off with zakat money, given that there is not a single orphan student in the madrasa? The madrasa is heavily in debt.

Answer

For zakat to be discharged, it is necessary that some poor person entitled to it (mustahiqq) be made its owner. Hence, if the money given to the madrasa as zakat is used directly to pay off the madrasa’s debt, the zakat will not be discharged, and compensation (daman) for it will be binding.

Source: Fatawa Mahmudiyya

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