To whom can Zakah be paid? Can we pay Zakah to hospitals who use Zakah money for the treatment of needy people? Can we pay Zakah to such hospitals where the Zakah money is only used for the treatment of Muslims? What is ruling if hospitals treat Muslims as well as non-Muslims?
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger.
Zakah should only be given to the eight categories of people mentioned in the verse. Allaah Says (what means): {Zakah expenditures are only for the poor and for the needy and for those employed to collect [zakah] and for bringing hearts together [for Islam] and for freeing captives [or slaves] and for those in debt and for the cause of Allaah and for the [stranded] traveler — an obligation [imposed] by Allaah. And Allaah is Knowing and Wise.}[Quran 9:60]
What is meant by {for the cause of Allaah}, is fighting in the Cause of Allaah and spending on all what that necessitates and all what the Mujaahid needs. For instance, the Mujaahid needs medicine and medical treatment and matters that could only be done by a hospital, like surgical operations. Therefore, building hospitals from the Zakah money in order to treat the injured in the Cause of Allaah is permissible, but anything other than this, is not permissible.
Besides, a Muslim is obliged to pay the Zakah to the people who really deserves it. A person who claims to be poor is believed unless there is evidence that contradicts what he claims or that he is from the locality, in which case, his case should be disclosed.
Therefore, if a person should do his best to give it to illegible poeple whom he beleives deserve it. If he does so, it was said that this is sufficient for him and he is not required to pay Zakah again. However, it was also said that this is not sufficient from him and he is obliged to pay Zakah again. This last opinion is better in order to be on the safe side.
Allaah Knows best.
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