Am I alowed to invest Maasar and/ or Tzedkoah money?

Question:

I have a separate account where I put Maasar and Tzedakah money and give it out as needed.

1. While the money is sitting in the account, can I invest that money?
2. Would the profits be considered my income or the tzedakah’s income?
3. If the investment loses money, do I need to repay it?
4. Am I allowed to have the tzedakah money pay for the expenses related to the investment (broker’s fee, taxes, etc)?
   Thank you.
5. Does it matter if I am investing for my sake of the benefit of the tzedakah accounts benefit?

Answer:

My apoligies that it took a while to get back to you. Here are the answers to your questions.

1. It is permitted to invest the money that you set aside for tzedakah, as long as it isn’t going to cause a loss for the poor people. Meaning that if the money will not be available to the poor people because of your investment then it isn’t permitted, however if there is enough money left over that whenever a poor person will come, you will have money to give him, then it is permitted.
2. The profits will belong to the tzedakah and not to you.
3. If the investment loses money the loss will be your and not the tzedakah’s.
4. The expenses of investing the money, as long as they are not more than the profit of the investment, then they may be deducted from the net profit of the investment.
5. This question is not really applicable, since the profit is going to the poor people, the investment is obviousely for them and not for yourself. ( except for the fact that you now have more money to help out the poor people).

Sources:

Tzitz Eliezer 14-76, Bais Dino Shel Shlomo1-1-(23), B’orach Tzedakah 11- 72,73.