Financial Transactions

Is it ethical for Muslim charities to pay high overhead costs and influencer fees? What percentage is acceptable?

Some overhead is inevitable and Islamically legitimate — the Quran allocates zakat to amils. 15–20% overhead is acceptable; 50–60% is not. Percentage-based fees for fundraisers are absolutely unethical in Yasir Qadhi's view. His personal condition: always a flat fee from organizers' funds, never from donations raised.

Is taking a conventional mortgage from a bank considered the prohibited riba?

The riba in modern mortgages is a secondary type prohibited by hadith, not the primary Quranic riba. Major fatwa councils permit conventional mortgages under conditions of genuine need such as buying a home.

Is zakat due on a woman's gold jewelry?

The safer position is that zakat is due on women's gold jewelry at 2.5%, even though the majority of scholars say it is not required on gold used for personal adornment. The Hanafi position, which requires zakat, has strong evidence since gold can function as currency.

How do you calculate zakat on long-term investments like 401k and mutual funds?

For long-term investments not actively traded, zakat is due on one-third of the total value (2.5% of one-third). For day traders actively buying and selling, zakat is due on the full 100%.

Are student loans permissible in Islam?

Student loans involving interest are riba and thus haram by default. However, the European Fiqh Council, AMJA, and the Fiqh Council of North America all permit students to take such loans when no alte

Does haram money become halal when inherited?

By default, inherited money does not require source investigation. If wealth was clearly and specifically stolen from identifiable people, it must be returned; for generically haram earnings with no specific claimant, the inheritor may keep it though giving sadaqah is recommended.

Is Bitcoin and cryptocurrency halal or haram in Islam?

Yasir Qadhi holds that Bitcoin and established cryptocurrencies are permissible (halal) based on the default Islamic legal principle that all transactions are permissible unless proven otherwise. He a

Are stock options halal in Islam?

Stock options are haram (impermissible) according to the vast majority of Islamic finance bodies including the OIC Fiqh Academy, European Fatwa Council, and AAOIFI, due to excessive gharar (uncertainty) and qimar (gambling).

Can one pay Zakat on behalf of someone else?

Zakat is the obligation of the wealth's owner. A husband may voluntarily pay his wife's Zakat as a gift but is not required to. Guardians of orphans should pay Zakat from the orphan's own wealth, not their personal funds. Paying Zakat on behalf of another is permissible if done voluntarily.

Is a 401K early withdrawal repayment penalty considered haram interest?

A 401K repayment penalty is not riba (interest) because the money goes from your pocket back into your own account — no third party is involved. Riba requires a payment flowing from one party to another.

Is it permissible to purchase an extended warranty when buying an expensive product?

If a warranty is offered and bundled at the time of purchase (even at extra cost), it is treated as a corollary to the sale and many scholars allow it.

Is it permissible to short sell stocks in Islam?

Short selling stocks is not permissible according to the vast majority of Islamic finance councils, primarily because you are selling what you do not own, which contradicts the Prophet's explicit hadith.

Should you deduct mortgage debt from your savings when calculating zakat?

No. Long-term debt like a mortgage is not deducted from zakatable wealth. If you allowed deducting the full remaining mortgage, most homeowners would never pay zakat for 30 years — this goes against the goals of the Sharia. Pay zakat on savings held for a year regardless of outstanding long-term debts.

Can Muslims invest in stocks and the S&P 500?

Investing in stocks is permissible in Islam if certain conditions are met. The company's primary product must be halal, and the proportion of interest-based loans and liquid assets must fall within ac

Is it Permissible To Play Board Games with Dice (or Chess) in Islam?

Yasir Qadhi addresses this question and explains the ruling with key conditions and practical caveats.

Ruling on Mortgages & ‘Shariah Compliant' Loans for Homes?

Yasir Qadhi addresses this question and explains the ruling with key conditions and practical caveats.

Leasing A Car With Installment Payments at a Higher Price?

In this answer, Yasir Qadhi addresses "Leasing A Car With Installment Payments at a Higher Price" and outlines the ruling with its main conditions and limits.

Can We Participate in A Competition With A Fee And A Prize?

In this answer, Yasir Qadhi addresses "Can We Participate in A Competition With A Fee And A Prize" and outlines the ruling with its main conditions and limits.

Are Credit Cards Haram?

In this answer, Yasir Qadhi addresses "Are Credit Cards Haram" and outlines the ruling with its main conditions and limits.

Is cryptocurrency halal in Islam?

Yasir Qadhi says major established cryptocurrencies such as Bitcoin are generally permissible, with the condition that exchange-style transactions be done on the spot and with financial caution.

Is house, car, and life insurance permitted in Islam?

Car and health insurance are permitted due to necessity in Western countries. House and property insurance are also allowed. Life insurance remains impermissible unless provided automatically by an employer.