Is it permissible to donate interest money to a charity?

بسم اللہ الرحمن الرحیم

Interest money is a result of a prohibited transaction and should therefore be treated as prohibited wealth. It is necessary to return prohibited wealth to its rightful owner or donate it to charity as the person is not the owner of this wealth. Accordingly, it is necessary to give interest to charity without the intention of reward of charity. Rather, one should seek forgiveness from Almighty Allah. One should also ensure to inform the charity of its source, so it is spent accordingly. (See al-Baḥr al-Rāʾiq 2: 221; Radd al-Muḥtār, 2: 291; 6: 385)

Allah knows best

Yusuf Shabbir

16 Ṣafar 1427 / 16 March 2006