Fatwa No : 39553
Principal of a madrasa invest the madrasa’s funds into any business

Principal of a madrasa invest the madrasa’s funds into any business

(1) Can the principal of a madrasa invest the madrasa’s funds into any business with the intention of depositing the profit back into the madrasa’s funds?
(2) Can the principal give charity to his poor relatives from the funds of the madrasa?
(3) Can the expenses of the office in the madrasa used by the principal himself be paid from the madrasa’s funds? (E.g.: Heater or A.C in the madrasa’s office is for guests but it is also used by the principal)

الجوابُ حامِدا ًو مُصلیِّا ً

It is permissible for the caretaker of a madrasa or masjid to make use of the amount given to him by the administrators in exchange for his services. However, it is not permissible for him to give money from the funds of the madrasa or masjid to any of his relatives or to spend from it on fulfilling his own needs. This must be avoided. As for the Zakat money that has been donated to the funds of the Madrasa, it cannot be invested before Shar’i Tamleek (i.e. The one who’s Zakat is due must first give his zakat to one who is eligible to receive Zakat and this person will then give the money that has been given to him in Zakat to the madrasa). In fact, it must be spent on those eligible of Zakat as soon as possible. However, if the other amounts (i.e. amounts given to the madrasa or masjid in donation other than zakat money) currently exceeds the needs of the madrasa or masjid, then with the permission of the donators, it will be permissible to invest it in any profitable business in which the chances of loss are low, and spend the profit on the madrasa. If this is not the case then it will not be permissible.
And Allah knows best.