What is the ruling concerning an Imaam of a mosque who deposits the donations of the Muslim worshippers in his bank account? Also, what is the ruling of someone who uses them in trade?

All perfect praise be to Allaah, The Lord of the worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and messenger.

If the Imaam intended to deposit the donated money in his account so that it became his private funds, it is definitely impermissible since he is taking over these funds with no legal right. Allaah Almighty Says (what means): {And do not consume one another's wealth unjustly…} [Qur`an 2: 188] Such a deed is a great betrayal to the donors as well as the recipients since he should have paid the money directly to the recipients. Unless there is an external matter that caused him to deposit the money in his account so as to save it, whereas he has to acknowledge that he did so only to save the money for the sake of the recipients, whether it is an individual or a charitable association, then, in this case he is not sinful. However, he is obliged to sign a document, stating that he does not own this money and clarifying the true recipients, fearing that he may die before delivering them and then this money is assigned to his heirs. As for the Imaam who utilizes the donation money in trade, he is sinful as he violated the limits of dealing with entrusted money. All said and done, if he does so, then he becomes a guarantor for this money.

Allaah Knows best.