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

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.