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Fiqh-us-Sunnah - 3.80
Hadith 3.80.1
Giving Charity to Seekers of Religious Knowledge
An-Nawawi holds that if someone is able to earn a suitable living and wants to occupy himself by studying some of the religious sciences but finds that his work will not allow him to do so, then he may be given zakah since seeking knowledge is considered a collective duty (fard kifayah). As for the individual who is not seeking knowledge, zakah is not permissible for him if he is able to earn his living even though he resides at a school.
An-Nawawi says: "As for one who is engaged in supererogatory worship (nawafil) or for one who occupies himself in nawafil with no time to pursue his own livelihood, he may not receive zakah. This is because the benefit of his worship is confined only to him, contrary to the one who seeks knowledge."
Hadith 3.80.A
Setting Debt Free through Zakah
Formulating the issue, an-Nawawi says in al-Majmu': "Suppose a person owes a debt to another person and at the same time he qualifies for zakah. [When zakah is due for the lender to pay,] he tells [the borrower]: 'Consider the debt for [my] zakah.' Would it be valid?" An-Nawawi says there are two opinions on it. According to Ahmad and Abu Hanifah, who held the better opinion, it does not constitute zakah because it cannot be discharged unless actually paid, while Hasan al-Basri and 'Ata maintain that the responsibility to pay zakah will be discharged even though there is no payment of zakah (at that point in time) by its payer.
Likewise, if an individual trustingly assigns some money to a person to keep and at the time of zakah he asks the assignee to keep the amount in lieu of his zakah, it will be valid.
The jurists, however, agree that if a person pays zakah to another who owes him money and then receives it back to redeem his loan to him, the obligation to pay zakah will not be discharged. It is also invalid for a person to accept zakah on the condition that he will pay it back to the lender (the zakah payer) for the amount he owes him. Nevertheless, if at the time of lending and acceptance of the loan both agree to do so, even though it was not mentioned in the deal, it will be valid as zakah.
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"When a person dies, his works end, except for three: ongoing charity, knowledge that is benefited from, and a righteous child who prays for him."
Prophet Mohammed (PBUH)
"The best of what a man leaves behind are three: a righteous child who supplicates for him, ongoing charity the reward of which reaches him, and knowledge that is acted upon after him."
Sunan Ibn Mājah
"Every day two angels come down from Heaven and one of them says, 'O Allah! Compensate every person who spends in Your Cause,' and the other (angel) says, 'O Allah! Destroy every miser.'"
Sahih Bukhari
