It is not permissible for the trustee of a charity to borrow money for himself from the charity’s funds
Question

                I have been entrusted with the funds of some charitable organizations. Sometimes I need to take some of this money, then I put it back within a short time. That is because when I go out sometimes and I do not have my own cash with me, I take some of this money, then I put it back straightaway. But I do not take it because I don’t have any money; rather I take it because of what I mentioned. What is the ruling on this action?.
Praise be to Allah.
      It is not permissible for the trustee of a charity to 
      dispose of the charity’s funds except within the limits that serves its 
      interests, according to what has been approved by the administration and 
      he has been appointed to do. That is because the trustee of the charitable 
      organization has been entrusted with the money that is under his control, 
      so he has to take care of it and look after it, and not dispose of it 
      except in the ways permitted by the administration. He does not have the 
      right to go against that, even if it is only a small amount, because a 
      small amount may lead to a greater amount. 

    The scholars (may Allah have mercy on them) stated that one 
    of the forms of transgressing against the trust that a trustee may fall into 
    is borrowing some of the money that has been entrusted to him.  

    If he does that, he is transgressing and is responsible for 
    the money, even if the money was lost after he returned it due to no 
    transgression or carelessness on his part; he is still responsible and 
    liable for that money because by transgressing against the trust the first 
    time, he became like a robber, therefore he is responsible and liable for 
    the money. 

    See: al-Insaaf, 5/396; Kashshaaf al-Qinaa‘, 
    3/484; Asna al-Mataalib, 2/122; al-Mawsoo‘ah al-Fiqhiyyah, 
    12/236-237 

    Shaykh Ibn ‘Uthaymeen (may Allah have mercy on him) said: 

    The one who is entrusted with something is a trustee, because 
    the item he acquired by being entrusted with it was acquired with the 
    permission of the owner. What kind of action is regarded as a breach of that 
    trust? The trust is breached in the event of transgression or negligence or 
    if he starts to handle it in a dishonest manner. 

    For example: I gave someone ten thousand riyals, and he put 
    it into the box, and it stayed in the box and he did not dispose of it. Now 
    he is entrusted with it, because the money is in his possession with the 
    permission of the owner. Some day this man needs money and borrows this 
    money, and buys something with it, then he returns it to the box the same 
    day. Now the trust is breached, because his action means he is now 
    dishonest, because he handled the money without the permission of its owner. 
    This is a kind of transgression. 

    If someone were to say: But he took the ten thousand and put 
    it back on the same day, in the same box, our response is to say: But he did 
    not have the right to handle the money of someone else except with his 
    permission, and he was not given permission.  

    If we assume that this box was burned and the money inside it 
    was destroyed, including this ten thousand, and that was after he had 
    borrowed it and put it back, then he is liable for it, because he became 
    dishonest by borrowing it. But if he left it alone and did not handle it, 
    then the box was burned, he is not liable for it, because he is still 
    honest. 

    Pay attention to this principle, because it is very useful. 
    End quote. 

    Al-Sharh al-Mumti‘, 9/103 

    He also said (may Allah have mercy on him): The trustee is 
    entrusted, so it is not permissible for him to overstep the mark with regard 
    to what has been entrusted to him. End quote. 

    Fataawa Noor ‘ala al-Darb, 
    1/234 

    The scholars of the Standing Committee for Issuing Fatwas 
    were asked: 

    Is it permissible for the employee to borrow money from the 
    petty cash through the accountant because he needs it, and the accountant 
    will deduct it from his salary at the end of the month in which he borrowed 
    it? 

    They replied: 

    If the situation is as described in the question, then this 
    action is not permissible, because the accountant does not have the right to 
    dispose of the petty cash that is entrusted to him, because he is a trustee, 
    and the trustee cannot dispose of what has been entrusted to him. He has to 
    repent to Allah and not do such a thing again. End quote. 

    Fataawa al-Lajnah al-Daa’imah, 
    23/477-478. 

    Shaykh Saalih al-Fawzaan (may Allah preserve him) was asked: 

    I work in business, and a lot of ex-patriate brothers come to 
    me and entrust their cash to me, then when they ask for it, I give it to 
    them in full. But during the time it is left with me, I put it with my own 
    money, and use it for myself. Is it permissible for me to do this if it is 
    without their permission? Do they have a share of the profits that I make or 
    what the money they left with me made, or not? 

    He replied: 

    It is not permissible for you to do this, because you have 
    been entrusted with these sums of money that have been left with you, and 
    you have to look after them. If you use them, you have overstepped the mark 
    with regard to that trust, and if they are lost or destroyed, you are liable 
    for replacing them for their owners, because you overstepped the mark and 
    did not take care of them as you should have. 

    With regard to whatever profits were earned, the profits of 
    their wealth belong to them, and you are entitled to payment equal to that 
    of your peers, unless they gave you permission to do that or some of it, 
    because this is an invalid kind of mudaarabah, as it was not done with the 
    consent of both parties. If mudaarabah is done in an invalid way, then any 
    profits earned belong to the owner of the money, but the one who did the 
    work is entitled to payment equal to that of his peers. End quote. 

    Al-Muntaqa min Fataawa al-Fawzaan, 
    1/76 

    Our advice to you is to refrain from this haraam action, ask 
    Allaah for forgiveness, repent to Him, and resolve not to do such a thing 
    again. 

    And Allah knows best.