Türkiye Diyanet Foundation faces 48% loss on donation funds

The Türkiye Diyanet Foundation (TDV) is facing controversy following allegations that donations and zakat funds intended for needy regions, including Palestine, were invested in investment funds, resulting in a reported 48 percent loss.

Reports indicate that after market fluctuations, Diyanet President Safi Arpaguş ordered an exit from the funds. However, this attempt to withdraw capital reportedly led to significant losses, with claims that the foundation could only recover half of the invested amount due to official procedural obstacles. While some sources within the institution claim the funds were simply moved to a different fund and no loss occurred, others note a substantial decrease in participation shares.

The decision to invest these funds was reportedly based on advice from the General Directorate of Foundations to protect the money against inflation. This move has drawn criticism for potentially contradicting a 2022 ruling by the High Board of Religious Affairs, which stated that it is not permissible for charitable organizations to use zakat funds for investment purposes before they are distributed to rightful owners.