Is it permissible to sponsor an orphan using zakaah money?

The ways in which zakaah
money may be spent are defined in the Qur’aan, where Allaah says
(interpretation of the meaning): 

“As-Sadaqaat (here it means Zakaah) are only for the
Fuqaraa’ (poor), and Al‑Masaakeen(the poor) and those
employed to collect (the funds); and to attract the hearts of those who have
been inclined (towards Islam); and to free the captives; and for those in
debt; and for Allaah’s Cause (i.e. for Mujaahidoon — those fighting in a
holy battle), and for the wayfarer (a traveller who is cut off from
everything); a duty imposed by Allaah. And Allaah is All-Knower, All-Wise”

[al-Tawbah 9:60]

If the orphan falls into one of these categories, such as if
he is poor or needy, it is permissible to give zakaah to him.  

Simply describing a person as an orphan does not mean that he
is entitled to zakaah funds, because he may be rich and have sufficient
wealth to make him independent of means. 

Shaykh Ibn ‘Uthaymeen (may Allaah have mercy on him) was
asked about giving zakaah to sponsor orphans and he replied: 

Orphans who are poor are
among those who are entitled to zakaah, so if the zakaah is given to their
guardians, this is sufficient, if they are trustworthy. So their guardians
may be given what will cover their needs and he may buy what they need
himself. End quote. 

Majmoo’ Fataawa Ibn ‘Uthaymeen,
18/346 

He also said: 

But there is a point which should be noted: some people think
that all orphans are entitled to zakaah funds, and that is not the case.
Orphans are not one of the categories of people who are entitled to take
zakaah, and an orphan has no right to zakaah unless he falls into one of the
eight categories of those who are entitled to zakaah. 

As for simply being an orphan, an orphan may be independent
of means and have no need of zakaah (end quote). 

Majmoo’ Fataawa Ibn ‘Uthaymeen,
18/353 

He also said: 

We must understand that
zakaah is not for orphans as such; zakaah is for the poor and needy, and the
other categories (mentioned in the aayah). An orphan may be rich; his father
may have left him wealth that makes him independent of means, or he may have
an income from social security and the like which makes him independent of
means. 

Hence we say that the orphan’s guardian should not accept
zakaah if the orphan has sufficient wealth to make him independent of
means. 

As for charity, it is mustahabb to give it to orphans even if
they are independent of means. End quote. 

Majmoo’ Fataawa Ibn ‘Uthaymeen,
18/307 

With regard to giving
zakaah to the poor in installments, we have stated in the answer to question
no. 52852 that that is not
permissible, because it is delaying zakaah after one year has passed; but if
it is paid earlier, there is nothing wrong with giving it in installments to
the poor in that case, because it is not being delayed until after it has
become due.

 And Allaah knows best.