May one forgive a loan to a person who cannot afford to pay it back and deduct it from Maaser?[1]

Some Poskim[2] rule that it is forbidden for one to forgive a loan to a pauper and deduct it from Maaser funds unless if to begin with, when the money was lent to the pauper, one intended on doing so. Furthermore, even in the case that it is permitted, one is required to acquire the Maaser money to the pauper through another person and only then may he take it for himself to repay the owed monies.[3] This is with exception to if one is accustomed to always give charity money to this pauper in which case it is not necessary to acquire it to him through another.[4] Majority of Poskim[5], however, rule that it is permitted for one to forgive a loan to a pauper and deduct it from Maaser funds even if he did not intend on doing so at the time that he lent the individual the money. However, even in their opinion, one must inform the pauper and receive his permission to do so. Furthermore, he may only do so if he would’ve anyways given charity money to this pauper and is not just doing so to cover his losses.[6] [Practically, there are two options to avoid controversy, and restrictions of the allowance. 1) The lender should take from his Maaser funds the amount of money that he is owed and give it to the pauper who will then use it to pay him back. When paid back he may then keep the money for himself. 2) One should ask the pauper to give him the money, and he will then return the money to the pauper as part of his Maaser contributions.]

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[1] See Rama Y.D. 257:5; Igros Moshe Y.D. 1:153; Pesakim Uteshuvos 257:17

[2] Shach 257:12 in explanation of Rama ibid; Opinion in Yerushalmi Gittin 3:7, brought in Noda Beyehuda Tinyana Y.D. 199, brought in Pischeiy Teshuvah 257:5; Chochmas Adam 148:4; See Igros Moshe Y.D. 1:153

[3] Shach 257:12-13; Rambam Maaser 6:6; Sefer Haterumos end of Shaar 5; Rav Ovadia Bartenura Gittin 3:7; Gittin 30a

[4] Shach 257:13

[5] Zeira in Yerushalmi Gittin 3:7, brought in Noda Beyehuda Tinyana Y.D. 199, brought in Pischeiy Teshuvah 257:5; Chasam Sofer Y.D. 237; Meishiv Davar 2:49; Beis Din Shel Shlomo Y.D . 1; Shaareiy Tzedek 10:58; Yaskil Avdai Y.D. 1:13; Minchas Yitzchak 5:34-8; Igros Moshe Y.D. 1:153; Teshuvos Vehanhagos 1:560-11; 2:471; Pesakim Uteshuvos 257:17; See Rambam Maaser 7:7

[6] Noda Beyehuda Tinyana Y.D. 199, brought in Pischeiy Teshuvah 257:5