What is the ruling on offering a car, upon which a lottery is conducted, and the collected money from it is used to build a mosque, knowing that only one person wins the prize?

This transaction is forbidden because it is clear gambling, and gambling is forbidden by Islamic law. Using the money generated from it to build mosques or schools does not make it permissible, for the means take the ruling of the ends, and must be lawful. Mosques are built from pure earnings. "Indeed, Allah is good and accepts only what is good." For one who has fallen into this and repented, it is permissible for him to spend the money obtained in acts of charity.