Is zakaat due on
    charitable money that is invested?
Question

                A group of people collected an amount of
      money and determined that it should be paid exclusively to any of their number who falls
      on hard times, such as having to pay diyah (blood-money) in the case of manslaughter. They
      invested this money in business, and donate the resulting profits to charitable causes
      agreed upon between them. Do they have to pay zakaat on this money or not? Is it OK to pay
      zakaat to this charitable fund?
Praise be to Allah.If it is as you describe, there is no zakaat due on the
      money mentioned, because it comes under the rulings of waqf (endowment), whether it is
      frozen or is actively circulating in business. It is not permissible to pay zakaat into
      this fund, because it is not devoted especially to the poor and is not intended for any of
      the other purposes for which zakaat should be used. And Allaah knows best.