Reference: Fataawa Noor ‘alad-Darb – Question No.6295, Page 123, Volume 12
Question: Is it permissible for me to donate money, which I have acquired in a prohibited manner, to my family – since it is impossible for me to return it back to its owner?
Response: It is not permissible for you to donate it to your family, because if you donated it to your family it would be as if it is your money [- which it isn’t].
