ZAKAT AND WAQF: DEVELOPMENTAL ROLE OF MODERN APPROACHES TO ISLAMIC PHILANTHROPY AND ENDOWMENTS
Keywords:
Zakat, Waqf, Islamic Philanthropy, Endowments, Digital Innovation, Sustainable Finance.
Abstract
The growing complexity of contemporary social issues, including poverty alleviation, environmental sustainability, and educational development, highlights the need for a modernized approach to traditional Islamic philanthropic practices such as Zakat and Waqf. The advent of digital technologies, coupled with evolving financial systems, presents an opportunity to enhance these practices' effectiveness and reach. This study explores modern approaches to Zakat and Waqf, two cornerstone practices of Islamic philanthropy, in the context of contemporary societal needs. This research investigates recent innovations in these practices, including digital platforms, strategic fund allocation, and integration into modern financial systems. A systematic literature review of 11 verifiable studies published between 2015 and 2024 revealed that advancements such as the use of blockchain technology for Zakat transactions, online cash Waqf platforms, and corporate Waqf models. The impact of these innovations on community development and social responsibility is analyzed, revealing their potential to address modern challenges effectively. Adapting traditional Islamic philanthropic practices through modern approaches can enhance their effectiveness in addressing contemporary social issues. Policy recommendations are provided to guide the development and implementation of these innovations, ensuring that Zakat and Waqf continue to contribute significantly to community welfare and social responsibility.
JEL Classification Codes: G00, G20.
References
Abubakar, A. (2018). The Practice of Zakat and Poverty Alleviation in Accra, Ghana (Doctoral dissertation, University of Ghana).
Ahmed, H. (2007). Waqf-based microfinance: realizing the social role of Islamic finance. World Bank, 6-7.
Al Kubaisi, A. A. S. H. (2024). The Impact of the Islamic Financial Wills System on Achieving Sustainable Social Development. Sustainability, 16(15), 6661. https://doi.org/10.3390/su16156661
Ali, J. A. (2016). Zakat and poverty in Islam. In Islam and Development (pp. 15-32). Routledge.
Aliyu, S. U. (2019). Reflections on the socioeconomic role of Waqf in an Islamic economic system. IJUS| International Journal of Umranic Studies, 2(1), 31-43. https://doi.org/10.59202/ijus.v2i1.560
Almomani, M. A. A., AbuAlhoul, M. A., Alqudah, M. T. S., & Al-Khalidi, I. K. S. (2024). Exploring Digital Waqf Management: Opportunities and Challenges. International Journal of Religion, 5(12), 20-30. https://doi.org/10.61707/ax7vd794
Al-Qardawi, Y. (2000). Fiqh al zakah: A comparative study of zakah, regulations and philosophy in the light of Quran and Sunnah. King Abdulaziz University.
Asyari, A., Hoque, M. E., Susanto, P., Begum, H., Awaluddin, A., Marwan, M., & Mamun, A. A. (2024). Online cash waqf behavioral intention: the role of knowledge of cash waqf and trust. Journal of Islamic Marketing, 15(11), 2864-2890. https://doi.org/10.1108/JIMA-07-2023-0224
Bachri, S., & Rosyadi, I. (2024). The Potential and Challenges of Waqf in Overcoming Economic Crises and Recessions. al-Afkar, Journal For Islamic Studies, 7(1), 56-78. https://doi.org/10.31943/afkarjournal.v7i1.883
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108
Blau, P. M. (1964). Justice in social exchange. Sociological Inquiry, 34(2), 193-206. https://doi.org/10.1111/j.1475-682X.1964.tb00583.x
Conateh, A. (2022). Collection of Zakat in the Gambia: Issues and Challenges. (Doctoral dissertation, Universiti Islam Sultan Sharif Ali).
Dembele, A. (2019). The global cash waqf: A tool against poverty in Muslim countries (Master's thesis, İstanbul Sabahattin Zaim Üniversitesi, Sosyal Bilimler Enstitüsü, İslam Ekonomisi ve Finans Anabilim Dalı).
Durohman, H., & Qesya, A. Z. (2024). AN APPROACH AND STRATEGY FOR INCREASING THE POTENTIAL OF PRODUCTIVE ZAKAT THROUGH SHARIA CROWDFUNDING SYSTEM AND ZAKAT ALLOCATION TO EMPOWER ROHINGYA REFUGEES IN INDONESIA. Al Fiddhoh: Journal of Banking, Insurance, and Finance, 5(1), 15-27. https://doi.org/10.32939/fdh.v5i1.3513
Fatima, N. (2019). Institutional Setup of Market Economy & Property Rights in Islam. Building an Islamic Case for Open Markets.
Gary, S. N. (2010). The problems with donor intent: Interpretation, enforcement, and doing the right thing. Chi.-Kent L. Rev., 85, 977.
Hassan, M. K., Mohsin, M. I. A., & Muneeza, A. (2024). Application of Zakat: From Classical and Contemporary Perspective. World Scientific.
Hefner, R. W. (2007). Introduction: The culture, politics, and future of Muslim education. Schooling Islam: The culture and politics of modern Muslim education, 1-39. https://doi.org/10.1515/9781400837458.1
Homans, G. C. (1961). The humanities and the social sciences. American Behavioral Scientist, 4(8), 3-6. https://doi.org/10.1177/000276426100400802
Ibrahim, S. S., Abd Halim Mohd Noor, R. A., & Ismail, S. (2018). Enhancing Strategic Corporate Philanthropy for Sustainability through Moderating Effect of Waqf Orientation: A Solution Through VBI Framework. IMDeC2018, 110.
Islamic Development Bank. (2021). Islamic finance and digital transformation: Opportunities and challenges. Islamic Development Bank Group.
Kamaruddin, M. I. H., Hanefah, M. M., & Masruki, R. (2024). Challenges and prospects in Waqf reporting practices in Malaysia. Journal of Financial Reporting and Accounting, 22(3), 752-765. https://doi.org/10.1108/JFRA-01-2022-0018
Kazak, H. (2023). Is Islamic financial management getting enough attention? A bibliometric analysis. Journal of Islamic Accounting and Business Research, 15(7), 1156-1177. https://doi.org/10.1108/JIABR-02-2023-0068
Kroessin, M. R. (2008). Concepts of Development in Islam: a review of contemporary literature and practice. RAD Working Papers Series.
Kuran, T. (2020). Zakat: Islam’s missed opportunity to limit predatory taxation. Public Choice, 182(3), 395-416.
Lubanska, M. (2015). Muslims and Christians in the Bulgarian Rhodopes.: Studies on Religious (Anti) Syncretism. Walter de Gruyter GmbH & Co KG.
Mohsin, M. I. A., Dafterdar, H., Cizakca, M., Alhabshi, S. O., Razak, S. H. A., Sadr, S. K., & Obaidullah, M. (2016). Financing the development of old Waqf properties. New York: Palgrave Macmillan US. Retrieved March, 27, 2021.
Nafar, N. (2019). Investment in waqf properties and infrastructure development. Revitalization of Waqf for Socioeconomic Development, Volume I, 285-308.
Niswah, I. D. (2020). A review of zakat studies in ASEAN. Ekonomi Islam Indonesia, 2(1). https://doi.org/10.58968/eii.v2i1.7
Nor, N. A. M., & Sari, N. M. (2022). A study of Muslims in Klang Valley on the cash waqf for public health expenditure. AZKA International Journal of Zakat & Social Finance, 3(2), 100-123. https://doi.org/10.51377/azjaf.vol3no2.119
Olanipekun, W. D., Brimah, A. N., & Sanusi, H. B. (2015). The role of Zakat as a poverty alleviation strategy and a tool for sustainable development: insights from the perspectives of the holy prophet (PBUH). Arabian Journal of Business and Management Review (Oman Chapter), 5(3), 8-17.
Owoyemi, M. Y. (2020). Zakat management: The crisis of confidence in Zakat agencies and the legality of giving Zakat directly to people experiencing poverty. Journal of Islamic Accounting and Business Research, 11(2), 498-510. https://doi.org/10.1108/JIABR-07-2017-0097
Pamungkas, M. S. N., & Zaki, I. (2020). Concept of Waqf in Supporting Health Facilities and Its Compliance with Regulation in Indonesia. AFEBI Islamic Finance and Economic Review, 5(1), 11-23. https://doi.org/10.47312/aifer.v5i01.378
Pertiwi, R. S., Herianingrum, S., & Kusuma, A. (2020). Zakat and Youth Empowerment: A Case Study of Al Azhar Zakat Institution, Indonesia. Zakat and Youth Empowerment. International Journal of Zakat, 5(2), 51-66.
Quran. (n.d.). Quran 2:177 [Sahih International translation]. Retrieved from https://quran.com/2/177
Qurrata, V. A., Yusida, E., Hussain, N. E., Merlinda, S., Purnamasari, V., & Seprillina, L. (2021). Effectiveness of cash waqf management in improving community welfare: Challenges and opportunities. Review of Integrative Business and Economics Research, 10, 342-359.
Rasidb, S. Z. B. A., Basiruddinc, R. B., & Mohamedd, W. A. B. (2021). Technology Perspectives of Zakat Collection and Distribution in Optimising Financial Inclusion. About i-Keizac 2021, 11.
Reich, R. (2020). Just giving: Why philanthropy is failing democracy and how it can do better. Princeton University Press.
Rion, M. (2024). Optimizing Productive Waqf Management to Achieve Sustainable Development Goals (Study of the Indonesian Waqf Board (BWI) Representative of Lampung Province). KnE Social Sciences, 9(16), 153-168. https://doi.org/10.18502/kss.v9i16.16242
Rusdianto, R. (2022). The direction of zakat accounting research: an analysis of the issues and implications of zakat institution management practice. Al-Uqud: Journal of Islamic Economics, 6(1), 96-111. https://doi.org/10.26740/aluqud.v6n1.p96-111
Salleh, M. C. M., & Chowdhury, M. A. M. (2020). Technological transformation in Malaysian zakat institutions. International Journal of Zakat, 5(3), 44-56. https://doi.org/10.37706/ijaz.v5i3.263
Sandıkçı, Ö. (2011). Researching Islamic marketing: past and future perspectives. Journal of Islamic Marketing, 2(3), 246-258. https://doi.org/10.1108/17590831111164778
Sanusi, S., & Shafiai, M. H. M. (2015). The Management of Cash Waqf: Toward Socioeconomic Development of Muslims in Malaysia. Jurnal Pengurusan, 43, 3-12.
Shirazi, N. S. (2014). Integrating Zakat and Waqf into the poverty reduction strategy of the IDB member countries. Islamic Economic Studies, 130(1155), 1-30. https://doi.org/10.12816/0004131
Supiyan, M. Y. B. M. (2023). Essays on the Demand for and Supply of Cash Waqfs in the Muslim World. University of Washington.
Taha, R., Mohd Nor, M. N., Embong, M. R., & Zulkifli, M. F. (2017). Zakat fund in Malaysia: where does it all go? Management & Accounting Review (MAR), 16(1), 137-166. https://ir.uitm.edu.my/id/eprint/30260
Usman, M., & Ab Rahman, A. (2021). Financing higher education through Waqf in Pakistan: issues and challenges. Jurnal Pengurusan, 62, 159-171.
Widyatama, A., Baso, A. S., & Haq, F. (2020). The other side of Zakat in poverty reduction: a phenomenology study. Iqtishadia, 13(1), 77.
Wright, P. M., McMahan, G. C., & McWilliams, A. (1994). Human resources and sustained competitive advantage: a resource-based perspective. International journal of human resource management, 5(2), 301-326. https://doi.org/10.1080/09585199400000020
Yusroni, N., & Chadhiq, U. (2021). Understanding the impact of Zakat and Waqf on the economic development of the community in rural areas. International Research Journal of Management, IT and Social Sciences, 8(6), 639-647. https://doi.org/10.21744/irjmis.v8n6.1966
Ahmed, H. (2007). Waqf-based microfinance: realizing the social role of Islamic finance. World Bank, 6-7.
Al Kubaisi, A. A. S. H. (2024). The Impact of the Islamic Financial Wills System on Achieving Sustainable Social Development. Sustainability, 16(15), 6661. https://doi.org/10.3390/su16156661
Ali, J. A. (2016). Zakat and poverty in Islam. In Islam and Development (pp. 15-32). Routledge.
Aliyu, S. U. (2019). Reflections on the socioeconomic role of Waqf in an Islamic economic system. IJUS| International Journal of Umranic Studies, 2(1), 31-43. https://doi.org/10.59202/ijus.v2i1.560
Almomani, M. A. A., AbuAlhoul, M. A., Alqudah, M. T. S., & Al-Khalidi, I. K. S. (2024). Exploring Digital Waqf Management: Opportunities and Challenges. International Journal of Religion, 5(12), 20-30. https://doi.org/10.61707/ax7vd794
Al-Qardawi, Y. (2000). Fiqh al zakah: A comparative study of zakah, regulations and philosophy in the light of Quran and Sunnah. King Abdulaziz University.
Asyari, A., Hoque, M. E., Susanto, P., Begum, H., Awaluddin, A., Marwan, M., & Mamun, A. A. (2024). Online cash waqf behavioral intention: the role of knowledge of cash waqf and trust. Journal of Islamic Marketing, 15(11), 2864-2890. https://doi.org/10.1108/JIMA-07-2023-0224
Bachri, S., & Rosyadi, I. (2024). The Potential and Challenges of Waqf in Overcoming Economic Crises and Recessions. al-Afkar, Journal For Islamic Studies, 7(1), 56-78. https://doi.org/10.31943/afkarjournal.v7i1.883
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108
Blau, P. M. (1964). Justice in social exchange. Sociological Inquiry, 34(2), 193-206. https://doi.org/10.1111/j.1475-682X.1964.tb00583.x
Conateh, A. (2022). Collection of Zakat in the Gambia: Issues and Challenges. (Doctoral dissertation, Universiti Islam Sultan Sharif Ali).
Dembele, A. (2019). The global cash waqf: A tool against poverty in Muslim countries (Master's thesis, İstanbul Sabahattin Zaim Üniversitesi, Sosyal Bilimler Enstitüsü, İslam Ekonomisi ve Finans Anabilim Dalı).
Durohman, H., & Qesya, A. Z. (2024). AN APPROACH AND STRATEGY FOR INCREASING THE POTENTIAL OF PRODUCTIVE ZAKAT THROUGH SHARIA CROWDFUNDING SYSTEM AND ZAKAT ALLOCATION TO EMPOWER ROHINGYA REFUGEES IN INDONESIA. Al Fiddhoh: Journal of Banking, Insurance, and Finance, 5(1), 15-27. https://doi.org/10.32939/fdh.v5i1.3513
Fatima, N. (2019). Institutional Setup of Market Economy & Property Rights in Islam. Building an Islamic Case for Open Markets.
Gary, S. N. (2010). The problems with donor intent: Interpretation, enforcement, and doing the right thing. Chi.-Kent L. Rev., 85, 977.
Hassan, M. K., Mohsin, M. I. A., & Muneeza, A. (2024). Application of Zakat: From Classical and Contemporary Perspective. World Scientific.
Hefner, R. W. (2007). Introduction: The culture, politics, and future of Muslim education. Schooling Islam: The culture and politics of modern Muslim education, 1-39. https://doi.org/10.1515/9781400837458.1
Homans, G. C. (1961). The humanities and the social sciences. American Behavioral Scientist, 4(8), 3-6. https://doi.org/10.1177/000276426100400802
Ibrahim, S. S., Abd Halim Mohd Noor, R. A., & Ismail, S. (2018). Enhancing Strategic Corporate Philanthropy for Sustainability through Moderating Effect of Waqf Orientation: A Solution Through VBI Framework. IMDeC2018, 110.
Islamic Development Bank. (2021). Islamic finance and digital transformation: Opportunities and challenges. Islamic Development Bank Group.
Kamaruddin, M. I. H., Hanefah, M. M., & Masruki, R. (2024). Challenges and prospects in Waqf reporting practices in Malaysia. Journal of Financial Reporting and Accounting, 22(3), 752-765. https://doi.org/10.1108/JFRA-01-2022-0018
Kazak, H. (2023). Is Islamic financial management getting enough attention? A bibliometric analysis. Journal of Islamic Accounting and Business Research, 15(7), 1156-1177. https://doi.org/10.1108/JIABR-02-2023-0068
Kroessin, M. R. (2008). Concepts of Development in Islam: a review of contemporary literature and practice. RAD Working Papers Series.
Kuran, T. (2020). Zakat: Islam’s missed opportunity to limit predatory taxation. Public Choice, 182(3), 395-416.
Lubanska, M. (2015). Muslims and Christians in the Bulgarian Rhodopes.: Studies on Religious (Anti) Syncretism. Walter de Gruyter GmbH & Co KG.
Mohsin, M. I. A., Dafterdar, H., Cizakca, M., Alhabshi, S. O., Razak, S. H. A., Sadr, S. K., & Obaidullah, M. (2016). Financing the development of old Waqf properties. New York: Palgrave Macmillan US. Retrieved March, 27, 2021.
Nafar, N. (2019). Investment in waqf properties and infrastructure development. Revitalization of Waqf for Socioeconomic Development, Volume I, 285-308.
Niswah, I. D. (2020). A review of zakat studies in ASEAN. Ekonomi Islam Indonesia, 2(1). https://doi.org/10.58968/eii.v2i1.7
Nor, N. A. M., & Sari, N. M. (2022). A study of Muslims in Klang Valley on the cash waqf for public health expenditure. AZKA International Journal of Zakat & Social Finance, 3(2), 100-123. https://doi.org/10.51377/azjaf.vol3no2.119
Olanipekun, W. D., Brimah, A. N., & Sanusi, H. B. (2015). The role of Zakat as a poverty alleviation strategy and a tool for sustainable development: insights from the perspectives of the holy prophet (PBUH). Arabian Journal of Business and Management Review (Oman Chapter), 5(3), 8-17.
Owoyemi, M. Y. (2020). Zakat management: The crisis of confidence in Zakat agencies and the legality of giving Zakat directly to people experiencing poverty. Journal of Islamic Accounting and Business Research, 11(2), 498-510. https://doi.org/10.1108/JIABR-07-2017-0097
Pamungkas, M. S. N., & Zaki, I. (2020). Concept of Waqf in Supporting Health Facilities and Its Compliance with Regulation in Indonesia. AFEBI Islamic Finance and Economic Review, 5(1), 11-23. https://doi.org/10.47312/aifer.v5i01.378
Pertiwi, R. S., Herianingrum, S., & Kusuma, A. (2020). Zakat and Youth Empowerment: A Case Study of Al Azhar Zakat Institution, Indonesia. Zakat and Youth Empowerment. International Journal of Zakat, 5(2), 51-66.
Quran. (n.d.). Quran 2:177 [Sahih International translation]. Retrieved from https://quran.com/2/177
Qurrata, V. A., Yusida, E., Hussain, N. E., Merlinda, S., Purnamasari, V., & Seprillina, L. (2021). Effectiveness of cash waqf management in improving community welfare: Challenges and opportunities. Review of Integrative Business and Economics Research, 10, 342-359.
Rasidb, S. Z. B. A., Basiruddinc, R. B., & Mohamedd, W. A. B. (2021). Technology Perspectives of Zakat Collection and Distribution in Optimising Financial Inclusion. About i-Keizac 2021, 11.
Reich, R. (2020). Just giving: Why philanthropy is failing democracy and how it can do better. Princeton University Press.
Rion, M. (2024). Optimizing Productive Waqf Management to Achieve Sustainable Development Goals (Study of the Indonesian Waqf Board (BWI) Representative of Lampung Province). KnE Social Sciences, 9(16), 153-168. https://doi.org/10.18502/kss.v9i16.16242
Rusdianto, R. (2022). The direction of zakat accounting research: an analysis of the issues and implications of zakat institution management practice. Al-Uqud: Journal of Islamic Economics, 6(1), 96-111. https://doi.org/10.26740/aluqud.v6n1.p96-111
Salleh, M. C. M., & Chowdhury, M. A. M. (2020). Technological transformation in Malaysian zakat institutions. International Journal of Zakat, 5(3), 44-56. https://doi.org/10.37706/ijaz.v5i3.263
Sandıkçı, Ö. (2011). Researching Islamic marketing: past and future perspectives. Journal of Islamic Marketing, 2(3), 246-258. https://doi.org/10.1108/17590831111164778
Sanusi, S., & Shafiai, M. H. M. (2015). The Management of Cash Waqf: Toward Socioeconomic Development of Muslims in Malaysia. Jurnal Pengurusan, 43, 3-12.
Shirazi, N. S. (2014). Integrating Zakat and Waqf into the poverty reduction strategy of the IDB member countries. Islamic Economic Studies, 130(1155), 1-30. https://doi.org/10.12816/0004131
Supiyan, M. Y. B. M. (2023). Essays on the Demand for and Supply of Cash Waqfs in the Muslim World. University of Washington.
Taha, R., Mohd Nor, M. N., Embong, M. R., & Zulkifli, M. F. (2017). Zakat fund in Malaysia: where does it all go? Management & Accounting Review (MAR), 16(1), 137-166. https://ir.uitm.edu.my/id/eprint/30260
Usman, M., & Ab Rahman, A. (2021). Financing higher education through Waqf in Pakistan: issues and challenges. Jurnal Pengurusan, 62, 159-171.
Widyatama, A., Baso, A. S., & Haq, F. (2020). The other side of Zakat in poverty reduction: a phenomenology study. Iqtishadia, 13(1), 77.
Wright, P. M., McMahan, G. C., & McWilliams, A. (1994). Human resources and sustained competitive advantage: a resource-based perspective. International journal of human resource management, 5(2), 301-326. https://doi.org/10.1080/09585199400000020
Yusroni, N., & Chadhiq, U. (2021). Understanding the impact of Zakat and Waqf on the economic development of the community in rural areas. International Research Journal of Management, IT and Social Sciences, 8(6), 639-647. https://doi.org/10.21744/irjmis.v8n6.1966
Published
2025-01-04
How to Cite
Abdulquadri, A. O., & Quadri, Y. O. (2025). ZAKAT AND WAQF: DEVELOPMENTAL ROLE OF MODERN APPROACHES TO ISLAMIC PHILANTHROPY AND ENDOWMENTS. International Journal of Sukuk and Waqf Research, 6(1), 1-11. https://doi.org/10.46281/ijswr.v6i1.2268
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Section
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper
Copyright (c) 2025 Abdulazeez Olamide Abdulquadri, Yusuf Olamilekan Quadri
This work is licensed under a Creative Commons Attribution 4.0 International License.
