There is no zakaah on charitable funds

Money that has been put in a charitable fund to give loans to
the needy or to help them in emergencies such as accidents etc, is not
subject to zakaah, because it is money that does not belong to a particular
individual, so it is like waqf funds, and no zakaah is due on it. 

The scholars of the Standing Committee for Issuing Fatwas was
asked: One of the tribes acquired a lot of money and they set this money
aside specifically for blood claims that may be made against this tribe, and
they used this money in business, and the profits made go back into the same
fund. Is this money subject to zakaah or not? If they did not use it for
business, would it be subject to zakaah or not? Can the tribe itself pay
their zakaah on its wealth to this
fund?                                                                                                    

They replied: If the matter is as described, there is no
zakaah on the money mentioned, because it comes under the heading of a waqf,
whether it lies idle or is used in business. It is not permissible to pay
zakaah to this fund, because it is not allocated to the poor or to any of
the other categories who are entitled to receive zakaah. 

Fataawa al-Lajnah al-Daa’imah
(8/291). 

They were also asked: A charitable fund has been set up for
tribal members, so as to meet needs that may arise, such as blood claims and
the like, Allaah forbid. Then this money was invested in some Islamic bank.
Is zakaah due on it or not? 

They replied: 

If the matter is as described and the money that was donated
will not be returned to those from whom it was collected, and if the project
fails it will be spent on other charitable causes, then no zakaah is due on
it. But if it will be returned to those from whom it was collected in the
event of the project failing, then zakaah must be paid by every individual
according to his share in that fund, if it reaches the nisaab and one year
has passed. End quote.  

Fataawa al-Lajnah al-Daa’imah
(8/296). 

Shaykh Ibn ‘Uthaymeen (may Allaah have mercy on him) said
about a village charity where the people paid money into the fund every
month so as to help in the event of accidents, diyah claims and loans for
those who needed to get married: These funds are not subject to zakaah,
because they do not belong to the participants and they are not the property
of a specific individual. There is no zakaah on that which does not belong
to a specific individual. End quote from Majmoo’ Fataawa Ibn ‘Uthaymeen
(18/184).