Is zakat obligatory upon a charitable society whose aim is to ensure family solidarity and meet the needs of distressed family members, and whose resources are monthly or annual contributions? And how is it to be disbursed if zakat is due? And does the ruling change if the donated amount is used to lend to family members on the condition that they repay the loan?

There is no Zakat on the funds of charitable organizations that have been donated to the poor, the needy, and for charitable causes, as these funds have left the ownership of their original owners, seeking the countenance of Allah. Likewise, there is no Zakat on money that the needy borrow from these organizations and then return to them. It is permissible to endow cash (waqf) for the purpose of benefiting from it through loans.