Must the orphan's guardian have the orphan live with him in the house, or is it sufficient to pay the sponsorship amount to the orphanage? And is the sponsorship a one-time payment or does it continue until the orphan reaches maturity?

The meaning of sponsoring an orphan (kafalat al-yatim) is to take care of their affairs and interests, including their expenses, clothing, discipline, and upbringing. Sponsorship is fulfilled if the payment of money to an orphanage meets the orphan's needs for sustenance, discipline, and care. It is not a condition that the orphan be taken into one's home. Furthermore, obtaining reward is not prevented for one who sponsors an orphan for a specific period.