Question: I heard from some of the brothers that Communal Iftar is an innovation, in the month of Ramadan or for voluntary fasts, is this correct?

Answer: There is no harm in communal Iftars in Ramadan or outside of it as long as he does not believe this gathering is an act of worship due Allah’s statement:

 لَيْسَ عَلَيْكُمْ جُنَاحٌ أَنْ تَأْكُلُوا جَمِيعًا أَوْ أَشْتَاتًا

No sin on you whether you eat together or apart.

[24:61]

However, if he fears by the communal iftar, showing off due to distinguishing the fasting people for other than them, then it is disliked for them that.

With Allah is Tawfeeq

May Peace and Blessings be upon our Prophet Muhammad, his Followers, and Companions. 

Permanent Committee for Islamic Research and verdicts

Chairman

Abdul Aziz ibn Baz

Members

Abdullah ibn Abdurahman al-Ghudyaan
Salih al-Fawzaan
Abdul Aziz ibn Abdullah ala Shaikh
Bakr Abu Zaid

[Taken from: http://www.alifta.net/fatawa/fatawaDetails.aspx?BookID=3&View=Page&PageNo=4&PageID=13573&languagename= ]

Translated by 

Faisal ibn Abdul Qaadir ibn Hassan
Abu Sulaymaan