If you are used to put your profits immediately in your pocket without writing down any accurate accounts, you should never manage the money of an orphan.
Orphans have a special place in Islam. Their rights are never to be taken for granted. One of such rights is in the management of their properties; there are grave consequences if there is mismanagement. Allah warns in numerous verses of the Glorious Quran, including a chapter, that the wrong consumption of orphans wealth is detestable. Otherwise, one has to be prepared for a precise and difficult reckoning in the hereafter. Quran, Chapter 107.
If the orphan has wealth, you can invest it on a reasonable basis. In other words, if you invest the money of the orphan, you should refrain from taking the profits at all, but if one is poor then you may consume some by taking payment equal to that of anyone else doing a similar job or what satisfies your needs. Let us say, for example, that one invests about a hundred thousand and the gain is ten thousand, then the profit should be fifty-fifty, or what satisfies your needs, i.e., just two thousand if that is what one needs. ‘But if he is poor, let him have for himself what is just and reasonable (according to his work’ (An-Nis’a: 6)
It is not allowed, when it comes to the capital of the orphan, to invest it in goods that might not be the best sellers. The prophet Mohammad (PBUH) says, “Use his money the way you use yours.” Suppose you are an importer of textiles and you know which goods can make you huge and stable profits. Use the money to pay for the best seller goods and the one that have huge profits. The Prophet (PBUH) admonished, ‘If you are used to put your profits immediately in your pocket without writing down any accurate accounts, you should never manage the money of an orphan Otherwise, you have to be prepared to a precise and difficult reckoning in the hereafter. As reported by Muslim in his Sahih,
Every kobo of orphan money must be accounted for. Islam says to never think of wasting the money of an orphan. Accounts must always be accurate (the profits and the losses), stocktaking is regular, and the list of all the goods with you, is always ready for checking. You should even pay for the things you give out from the investments made on behalf of orphans. Do not use the orphan’s money recklessly. ‘’And give to the orphans their property, substitute not worthless things for their good ones, and devour not their property adding to your own property, this surely a great sin’’ Q 4;2.