What is the ruling if the owner authorizes the poor recipient to use the Zakat funds for a purchase before the recipient takes possession?
Chapter on Zakat on Sheep
Al-Mughni
Book of Zakat
Primary text
If the owner entrusts a poor person with Zakat funds, and before the poor person takes possession, he instructs that person to buy an item (like cloth or food) on his behalf, and the money is lost, or the purchased item is lost, the owner must provide the equivalent amount. This is because the poor person never took possession; thus, the authorization to purchase was void (fasid) as it was an authorization to buy with what the poor person did not yet own. The funds remained the property of the Zakat payer, and thus the loss is his responsibility.
Supporting text
If the poor person takes possession of the funds first, and then the original owner asks for them back and directs the poor person to purchase something, and then the money or the purchased item is lost, the owner bears no liability, provided the owner was not negligent in safeguarding the returned item.