Abstract
In this chapter looks into the intricacies of Islamic charitable practices, namely Sadaqah, Zakat, and Qard Hassan. Providing a nuanced overview, the chapter explores the historical and conceptual dimensions of each form of charity, emphasizing their unique roles within the Islamic social finance framework. Drawing distinctions between Sadaqah, Zakat, and Qard Hassan, the chapter navigates through the legal frameworks governing these practices, shedding light on the Shariah injunctions that guide their implementation. Rich with case studies, the chapter illustrates the real-world applications of these charitable concepts, offering insights into their impact on communities. Additionally, the chapter critically examines the issues and challenges that may arise in the context of Sadaqah, Zakat, and Qard Hassan, contributing to a holistic understanding of these essential elements of Islamic social finance.
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Notes
- 1.
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- 2.
Ibid.
- 3.
Ibid.
- 4.
Zauro, N. A., Zauro, N. A., Saad, R. A. J., & Sawandi, N. (2020). Enhancing socio-economic justice and financial inclusion in Nigeria: the role of zakat, Sadaqah and Qardhul Hassan. Journal of Islamic Accounting and Business Research, 11(3), 555–572.
- 5.
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- 6.
Shariah Resolution in Islamic Finance, 2nd Edition. https://www.bnm.gov.my/documents/20124/9198675/shariah_resolutions_2nd_edition_EN.pdf (1 October 2023).
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Ibid.
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- 10.
Tabung Haji, Terms and Conditions of Sadaqah. Available at https://www.tabunghaji.gov.my/en/terms-and-conditions-sadaqah.
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- 14.
Article 3 (1) of the Malaysian Federal Constitution.
- 15.
Central Bank of Malaysia Act 2009.
- 16.
Securities Commission Act 1993.
- 17.
Labuan Financial Services Authority Act 1996.
- 18.
Qard Policy Document. https://www.bnm.gov.my/documents/20124/938039/PD+Qard_26022018.pdf/795395cd-aeee-d497-109d-e3af19874a44?t=1592245448584 (1 October 2023).
- 19.
Overview of Development Financial Institutions (DFIs) in Malaysia https://www.bnm.gov.my/dfi-overview (1 October 2023).
- 20.
BNM’s Qard Policy Document.
- 21.
Ibid.
- 22.
Ibid.
- 23.
Ibid.
- 24.
“Wadi’ah Yad Dhamanah means safe keeping with guarantee. It refers to the transaction between the depositor (Customer) and the custodian (Bank) for the safe keeping of the goods or money. The acceptance and continuance of an account may be granted by the Bank subject to the Shariah principles, and upon compliance with the Rules & Regulations under the concept of Wadi’ah Yad Dhamanah by the depositor. The Bank in this situation is guaranteeing the safe keeping of the goods or money and will return the same to the depositor accordingly, subject to the Bank’s procedures.” (extracted from https://www.lawinsider.com/dictionary/wadiah-yad-dhamanah).
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- 29.
Ibid.
- 30.
Hameed, L. B., dan Nur, A. F. M. S., & Jamaludin, I. (2018). Model SADAQA HOUSE: Menyantuni Kebajikan Ummah. In Proceedings of the 6th International Seminar on Entrepreneurship and Business. ISEB, UMK. (PDF) Model SADAQA HOUSE: Menyantuni Kebajikan Ummah (researchgate. net).
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Karim, N. A., Ab Aziry, N. A., Ridzuan, N. I. M., Jaafar, M. N., & Muhamat, A. A. (2023). Customers’ intention to use digitalized Islamic crowdfunding: the case of Bimb Sadaqa House. Advances in Social Sciences Research Journal, 10(6.2).
- 32.
Ibid.
- 33.
- 34.
Eldersevi, S., & Muhammad, M. (2022). Asnaf Care: a case study of the Malaysian-based charity crowdfunding platform to combat the impact of COVID-19.
- 35.
- 36.
- 37.
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- 39.
- 40.
Ibid.
- 41.
Muneeza, A., & Nadwi, S. (2019). The potential of application of technology-based innovations for zakat administration in India. International Journal of Zakat, 4(2), 87–100.
- 42.
Ibid.
- 43.
Retnowati, M. S., & Aziz, M. A. (2022). Modern philanthropy model as a mosque economic empowerment strategy: in rice ATM program reviewing from Maqasid Sharia. In Indonesian Conference of Zakat-Proceedings (pp. 239–249).
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Nawai, N. (2021). The implementation of Islamic microfinancing for poverty alleviation in Malaysia.
- 45.
Frequently Asked Question Bangkit Microfinance. https://www.bankislam.com/wp-content/uploads/BangKIT-FAQs_web.pdf (1 October 2023).
- 46.
Ibid.
- 47.
Ibid.
- 48.
Nawai, N. (2021).
- 49.
Razak, D. A., & Dawami, Q. (2020). Achieving Islamic social finance goals through Zakat, Waqf, and Sadaqa in selected countries: issues and challenges.
- 50.
Ibid.
- 51.
Atia, M. (2011, December). Islamic approaches to development: a case study of Zakat, Sadaqa and Qard al Hassan in Contemporary Egypt. In: 8th International Conference on Islamic Economics and Finance, Center for Islamic Economics and Finance, Qatar Faculty of Islamic Studies, Qatar Foundation.
- 52.
Ibid.
- 53.
Ibid.
- 54.
Ibid.
- 55.
Nordin, N., & Zainuddin, Z. (2023). A review of a fintech financing platform: potential and challenges of Islamic crowdfunding to entrepreneurs. International Journal of Islamic Business, 8(1), 79–90.
- 56.
Abidin, A. Z., Alwi, N. M., & Ariffin, N. M. (2011). A case study on the implementation of Qardhul Hasan concept as a financing product in Islamic banks in Malaysia. International Journal of Economics, Management and Accounting, 19(3).
- 57.
Ibid.
- 58.
Satar, N., & Kassim, S. (2020). Issues and challenges in financing the poor: lessons learned from Islamic microfinance institutions. European Journal of Islamic Finance, (15).
- 59.
Ibid.
- 60.
Ibid.
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Kunhibava, S., Muneeza, A., Khalid, M.B., Mustapha, Z., Sen, T.M. (2024). Sadaqah, Zakat and Qard Hassan: Legal Framework. In: Islamic Social Finance. Springer, Singapore. https://doi.org/10.1007/978-981-97-1410-0_2
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