The answer is NOT "Charitable Socities are a Bid'ah / Haram" !

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Fatwa no. 12749 Q: I am a member of the board of directors of the Charitable Society of Al-Atawilah. We receive Zakah from wealthy people to distribute to the people who have a right to it. However, we face some difficulties in distributing this money, and the following are the details: Firstly: Distributing the Zakah to the recipients is sometimes delayed for a whole year under the pretext that the spring or the Ramadan contributions are due. What is the ruling on delaying the distribution of Zakah, especially when those paying the Zakah have entrusted us with the responsibility of doing so? We hope you will explain this issue. Secondly: Some people come to us and ask for Zakah. They tell us that they had a car accident and some people died, and that they have to pay Diyah (blood money). Is it permissible to give them from Zakah? Thirdly: Some people may not be poor in the exact meaning of the word, for example, they may be earning 2,000 Saudi riyals, but have six or seven family members to support. Some people say that this income is not sufficient for a family like this. What is your opinion? A: Firstly, charitable societies should distribute Zakah to the recipients without delay, whenever they find them. (Part No. 9; Page No. 403) Secondly, it is only permissible for charitable societies to give Zakah to the people who are definitely poor or in debt, or those in their opinion who do have a right to Zakah. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions. The Permanent Committee for Scholarly Research and Ifta' http://alifta.com/Search/ResultDetails.aspx?languagename=en&lang=en&view=result&fatwaNum=&FatwaNumID=&ID=3349&searchScope=7&SearchScopeLevels1=&SearchScopeLevels2=&highLight=1&SearchType=exact&SearchMoesar=false&bookID=&LeftVal=0&RightVal=0&simple=&SearchCriteria=allwords&PagePath=&siteSection=1&searchkeyword=115111099105101116121#firstKeyWordFound Member Deputy Chairman Chairman `Abdullah ibn Ghudayyan `Abdul-Razzaq `Afify `Abdul-`Aziz ibn `Abdullah ibn Baz

Fatwa no. 17200 Q: The question of opening several accounts for a charitable fund in the local banks has been thoroughly discussed with the aim of making it easier to receive aid and a means of zakah (obligatory charity) and Sadaqah (voluntary charity) and the like. Through these accounts it will be easier to contribute into the fund on the part of individuals, banks, and companies according to the proximity of each bank account to the different donors. We would like to present the issue to your Honor that you may guide us to what is best. May Allah protect and preserve you! A: It is permissible for Al-Bir society and other charitable organizations to open bank accounts, if its purpose is as mentioned because this would facilitate making contributions for donors, but it is not permissible to open the account for making any forbidden type of investment and taking Riba (usury)-based interest on deposits. This is according the Hadith that reads: “The Messenger of Allah (peace be upon him) cursed the devourer (taker) of Riba (usury/interest), its payer, its two witnesses, and its scribe.” (Part No. 13; Page No. 376) May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions. The Permanent Committee for Scholarly Research and Ifta' Member Member Member Deputy Chairman Chairman Bakr Abu Zayd Salih Al-Fawzan `Abdullah ibn Ghudayyan `Abdul-`Aziz Al Al-Shaykh `Abdul-`Aziz ibn `Abdullah ibn Baz