To what extent can Muslims engage in business with non-Muslims? Is it possible to engage in business with the non-believers when it involves the Masjid donations, or non-Muslims advertising in Islamic literature?

Praise be to Allah, the Lord of the Worlds; and may His blessings and peace be upon our Prophet Muhammad and upon all his Family and Companions.

It is permissible for a Muslim to engage in business with a non-Muslim if some conditions are met.

Firstly, the non-Muslims should not be given free-hand to act without the consent of the Muslim, because he is not God-fearing in what is Haram, and is not cautious in what a Muslim would be cautious about.  He may carry out dealings with interest and usury without the Muslim’s knowledge.  It is because of this prohibition that some scholars are of the opinion that it is disliked to take a non-Muslim as associate.

However, since the business being carried out is collecting donations for the mosque or advertising for Islamic projects, then it is permissible, to indulge in it.

Allah knows best.