Is there zakat on the funds held by my sport club?

Q: A sport club  earns their money through main sponsors (businesses), local individuals, membership fees, selling member kits, match day fees, selling sandwiches/tea/coffee etc.

The club has expenses including league fees, league fines, league dinner, purchase of member kits and printing sponsor names, fuel, insurance, umpire fees, scorer fees, purchase of tea/coffee etc, match balls, annual community dinner for locals/players/sponsors and player trophies.

The club does not have any owners, all players are owners of the club, which is run by a management team. The club’s profits are not given/shared to the owners or management. They will be used for expenses, if and when sponsors cannot be found to fund the running of the club. Will there be zakat on the fund held by the club?

الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب

A: As the members are the owners of the club and so therefore own the funds held by the club, each member needs to include a pro rata share of the funds in his own calculation of his zakatable assets and then give the appropriate amount of zakat for that.

 

 

 

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