EXPLORING THE ROLE OF DONATION-BASED CROWDFUNDING IN ISLAMIC SOCIAL FINANCE

Authors

  • Muhammad Karakulah INCEIF University, Kuala Lumpur
  • Aishath Muneeza International Centre for Education in Islamic Finance (INCEIF)

DOI:

https://doi.org/10.53840/ijiefer147

Keywords:

Islamic Social Finance, Donation-based Crowdfunding, Shariah Principles, Social Welfare

Abstract

This research explores the evolving landscape of donation-based crowdfunding within the context of Islamic social finance, aiming to clarify its role as an instrument of philanthropy and community development. Leveraging a comparative analysis of three prominent platforms—SadaqaHouse, GlobalSadaqah, and LaunchGood—the study explores whether donation-based crowdfunding merely functions as a financing tool or can be classified as a component of Islamic social finance itself. This research utilizes a qualitative approach to investigate the evolving role of donation-based crowdfunding within the realm of Islamic social finance. Focusing on three prominent platforms—SadaqaHouse, GlobalSadaqah, and LaunchGood—the study aims to determine whether donation-based crowdfunding serves merely as a financing tool or can be considered an integral part of Islamic social finance. Through a detailed examination of each platform's operational aspects and campaign offerings, supplemented by thematic analysis and cross-platform comparisons, the research seeks to identify patterns and themes that shed light on the alignment of donation-based crowdfunding with Islamic finance principles. The findings reveal that donation-based crowdfunding platforms transcend the conventional role of financing tools, evolving into instruments of Islamic social finance with a profound impact on global philanthropy. Moreover, these platforms play a pivotal role in advancing social welfare and community empowerment globally, extending beyond financial contributions to tangible social change. The research underscores the originality of its approach in comprehensively evaluating donation-based crowdfunding within the Islamic finance ecosystem, shedding light on its transformative potential as a tool for philanthropy and socioeconomic development.

 

Downloads

Download data is not yet available.

References

Bank Islam. (n.d.) Sadaqa House. https://www.bankislam.com/corporate-info/social-finance-bank-islam/sadaqa-house-bank-islam/

Belleflamme, P., Brodie, R., & Mallebranche, M. (2014). Crowdfunding: Crowdfunding platforms and entrepreneurial finance. Journal of Economic Surveys, 28(3), 695-739.

Chapra, M. U. (2008). The Islamic financial system. Islamic Research and Training Institute, Jeddah: Islamic Development Bank.

Elasrag, O. A. (2019). Islamic social finance: Ethical investment and financial inclusion. Routledge.

Hassan, M. K., & Bashir, A. (2018). Islamic social finance: A literature review. Journal of Islamic Marketing, 9(2), 222-243.

Islamic Development Bank. (2021). Innovation-driven Platforms Win 2021 IsDB Prize for Impactful Achievement in Islamic Economics. https://www.isdb.org/news/innovation-driven-platforms-win-2021-isdb-prize-for-impactful-achievement-in-islamic-economics

Kasri, N. A. M., & Mustaque, A. H. (2021). The role of Islamic crowdfunding platforms in promoting financial inclusion: A conceptual framework. International Journal of Islamic and Middle Eastern Finance and Management, 14(3), 347-363.

Khan, M. I., & Bhatti, M. A. (2019). The role of Islamic crowdfunding in poverty alleviation: A case study of LaunchGood. Journal of Islamic Marketing, 10(2), 313-332.

LaunchGood. (n.d.). Categories. https://www.launchgood.com/discover

Mollick, E. (2014). The dynamics of crowdfunding: A theoretical synthesis. Journal of Business Venturing, 29(1), 1-16.

Muneeza, A.; Arshad, N. A. and Arifin, A. T. (2018), "The Application of Blockchain Technology in Crowdfunding: Towards Financial Inclusion via Technology", International Journal of Management and Applied Research, 5(2), 82-98.

Nesta. (2016). A brief history of crowdfunding. https://www.nesta.org.uk/feature/innovation-methods/crowdfunding/

Rahman, S. A., Ali, S. S., & Hassan, M. K. (2016). Islamic finance and risk management: A survey. Journal of Islamic Accounting and Business Research, 7(2), 127-151.

Saeed, R. (2019). Islamic crowdfunding: A new paradigm for financing social ventures. Journal of Islamic Marketing, 10(2), 292-312.

Schwienbacher, A., & Laurison, D. (2017). Crowdfunding and social innovation: A systematic review of the evidence. International Journal of Technology and Management, 12(3), 398-423.

Schwienbacher, A., & Sutter, M. (2017). The role of crowdfunding in social entrepreneurship. Technological Forecasting and Social Change, 114, 349-361.

Utomo, Budi, & Ramadhani, Fitriyah. (2019). The potential of Islamic crowdfunding for social finance in Indonesia. Journal of Islamic Accounting and Business Research, 10(3), 322-343.

Downloads

Published

2024-07-19

How to Cite

Karakulah , M. ., & Aishath Muneeza. (2024). EXPLORING THE ROLE OF DONATION-BASED CROWDFUNDING IN ISLAMIC SOCIAL FINANCE. International Journal of Islamic Economics and Finance Research, 7(1 July), 42-58. https://doi.org/10.53840/ijiefer147