Mufti Zubiar Bayaat (spent a few ramdhans in SH musjid) on his Direct site has a full article on it here :-
http://www.direct.za.org/Pdfs/Fund_Raising.pdf
Walaykum Assalam Warahmatullah
In the name of Allah, Most Compassionate, Most Merciful,
Fundraising events and charity dinners are two separate things. If an event is organized consisting of lectures and other programmes, and an entrance fee is fixed with a view to give the proceeds in charity, then I don't see a problem with that. As far as "charity dinners" are concerned, they are better avoided in view of the many reasons explained by my dear friend Mufti Zubayr Bayyat (May Allah increase him), but I personally would not call them haram or impermissible unless there is some other reason of prohibition such as gambling.
As such, it would be better to raise funds in a manner explained by the learned Mufti, but if you did want to go ahead and have a charity fundraising dinner, then you need to be mindful of the following:
1) Make sure not to exclude the poor and needy. It would be better to have a general free for all entrance but encourage those who attend to donate according to their ability in charity.
2) Emphasize to the attendees that the food is not the return for their donations. The return for their donations will be given to them in the hereafter. The meal is only offered as a courtesy for the guests. It would be better if another event was combined, such as an Islamic lecture, along with the dinner.
3) Ensure no one is forced or pressurized into purchasing tickets.
This is not my final verdict hence please also refer the matter to other scholars, such as Mufti Taqi Usmani, for more clarification. It would be wise to proceed with the support of your local scholars and Ulama.
And Allah knows best
Wassalam
(Mufti) Muhammad ibn Adam al-Kawthari
