Can zakaah funds be used to support Qur’aan reciting contests?
Question

                What is the ruling on using Zakaah funds to support a Qur’aan contest in a local school, because the school does not support these activities? What is the ruling on using zakaah funds to renovate the musalla (prayer room) in the school?.
Praise be to Allah.Allaah has spoken about 
    zakaah funds in the verse (interpretation of the meaning):
“As-Sadaqaat (here it 
    means Zakaah) are only for the Fuqaraa’ (poor), and Al‑Masaakeen (the poor) 
    and those employed to collect (the funds); and to attract the hearts of 
    those who have been inclined (towards Islam); and to free the captives; and 
    for those in debt; and for Allaah’s Cause (i.e. for Mujaahidoon — those 
    fighting in a holy battle), and for the wayfarer (a traveller who is cut off 
    from everything); a duty imposed by Allaah. And Allaah is All-Knower, 
    All-Wise”
[al-Tawbah 9:60]
The majority of scholars 
    are of the view that what is meant by the phrase “and for Allaah’s Cause” 
    is jihad for the sake of Allaah. 
See the answers to 
    questions no. 21805 and
    6977. 
Based on that, it is not 
    permissible to build schools or mosques or musallas (prayer rooms) with 
    zakaah funds. 
The same applies to Qur’aan 
    competitions; zakaah funds should not be spent on them. There are many ways 
    of doing good that can help these projects, such as giving voluntary charity 
    (sadaqah), establishing waqfs and giving gifts. 
Shaykh Ibn Jibreen (may 
    Allaah preserve him) was asked: We have a group which is undertaking a major 
    project, which is to build a jaami’ mosque and an Arabic Islamic school in 
    which there is a section just for memorizing the Holy Qur’aan, and a medical 
    clinic. Is it permissible for this organization to accept zakaah funds for 
    this project? 
He replied: The basic 
    principle is that zakaah may only be given to the eight categories mentioned 
    in the Qur’aan, which are: the poor, the needy, those who work to collect 
    zakaah, to attract those whose hearts inclined towards Islam, slaves who 
    have a contract of manumission, debtors, mujaahideen and wayfarers. Some 
    scholars are of the view that charitable projects come under the heading of 
    “for the cause of Allaah”, but the preferred view is that this refers to 
    jihad only. 
Based on this, you should 
    look for funds other than zakaah for this project. And Allaah knows best. 
    Fataawa al-Shaykh ibn Jibreen. 
It says in Fataawa 
    al-Lajnah al-Daa’imah (9/447): With regard to Qur’aan schools, if the 
    zakaah-giver gives it to one of the people in charge of this school for him 
    to give it to poor students and others, that is permissible, even if it is 
    transferred to them from one country to another, if transferring it will 
    serve some interest. But if the zakaah-giver spends it on the school’s 
    budget so that it will be spent on teaching Qur’aan and religious knowledge, 
    that is not permissible. End quote.  
Shaykh Ibn ‘Uthaymeen (may 
    Allaah have mercy on him) was asked: Is it permissible to spend zakaah on 
    building mosques and schools and on places for teaching the Holy Qur’aan? 
He replied: This is a 
    matter concerning which there is a difference of scholarly opinion, which 
    stems from different interpretations of the aayah in which Allaah says 
    (interpretation of the meaning): “and for Allaah’s Cause” – is what 
    is meant everything by means of which a person may draw closer to Allaah of 
    righteous deeds which serve the public interest, or does it mean fighting 
    for the sake of Allaah only? It seems to me that what is meant is fighting 
    for the sake of Allaah only, because this is what is known when the phrase 
    is used in general terms, and because if we assume that it is general in 
    meaning, then there would be no point in the restriction reflected in the 
    words “As-Sadaqaat (here it means Zakaah) are only for…”. And because 
    restricting it to fighting is more on the safe side, and whatever is more on 
    the safe side is more appropriate to be followed. 
With regard to what the 
    questioner referred to of building schools and so on, these are good deeds 
    which people are encouraged to do. They may be spent on from other 
    charitable sources.
End quote from 
    Fataawa Noor ‘ala al-Darb
And Allaah knows best.