Time To Give It Out
As is clear from Ibn `Abbas's report above, zakatul-fitr should be given on the Eid day, no later than the prayer.
It has further been reported that Ibn `Umar used to give it out one or two days before the Eid. This provides a basis for giving it a few days before the Eid.
But it is wrong to give it too early in the month of Ramadan. Doing that would conflict with its wisdom of being atonement of the sins during the month, and provision for the needy on Eid; it further conflicts with the practice of the sahabah (may Allah be pleased with him) and the Salaf.
However, it is permissible to give it early to those who collect it, trusting that they would not deliver it to those who deserve it before the end of the month. This was done at the time of the sahabah, when the collectors used to finish collecting it one or two days before the Eid.
Collecting It
It is permissible to appoint individuals to collect zakatul-fitr from the people; it is also permissible to give from it to those collectors if they need and deserve it. Ibn `Umar used to do so.
It is further recommended to appoint a person to take care of the collected zakatul-fitr. The Prophet (peace be upon him) appointed Abu Hurayrah to this job, as he (may Allah be pleased with him) said:
"Allah's Messenger (peace be upon him) entrusted me to look after the zakah of Ramadan."
People Who Deserve It
Zakatul-fitr should be distributed to the miskin (the needy), as was stated in the Hadith of Ibn `Abbas. It may not be distributed among all of the eight types to which the normal zakah is given.
A miskin is not a person in complete poverty, but is one whose financial means are very limited.
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