Building a Better World: Exploring Muslim Philanthropy Initiatives

Growing up in a Muslim community, I have been a witness to Muslims actively striving to make the world a better place for everyone. I have observed firsthand the transformational power of Muslim philanthropy initiatives rooted in my personal experiences and Islamic teachings. In order to achieve social welfare and bring about positive changes in society, philanthropy has become a vital tool for both individuals and organizations. Muslim philanthropy stands out among various philanthropic initiatives. It emphasizes charitable giving and helping those in need, a principle deeply rooted in Islamic principles. Understanding Muslim philanthropy initiatives and their impact on building a better world through philanthropy, is a personal objective for me. According to the Muslim American Zakat Report 2022, published by Indiana University’s Muslim Philanthropy Initiative (MPI), giving encompasses both obligatory and voluntary acts, and addresses societal needs, fosters well-being, and promotes justice. This is a way to express gratitude to God and offer assistance to those in need. There are two key Islamic philanthropic traditions: Zakat and Sadaqah. In Islam, zakat is a mandatory act of charity, while Sadaqah refers to voluntary acts of generosity, and it can take the form of money, action, or abstention; the intention is what defines the act as charitable.

Islamic charitable institutions facilitate Muslim philanthropy at the local, national, and international levels. Historically, Islamic charitable giving has been recognized as a valuable resource for tackling socio-economic challenges. In addition to reducing poverty, it can provide social safety nets, promote financial inclusion, and strengthen community bonds. The work of Muslim philanthropic organizations is exemplified by organizations such as Islamic Relief, Helping Hand for Relief and Development[1], and the Aga Khan Foundation. For instance, HHRD is a global humanitarian relief and development organization that responds to human suffering in emergency and disaster situations. Along with its emergency relief efforts in natural and man-made disasters, it also works on long-term relief and development.

Meanwhile, according to the Muslim American Zakat Report 2023 also published by MPI, Muslims in the United States gave an estimated $1.8 billion in zakat in 2022. “Thirteen items were used to gauge the importance of zakat use in various areas such as education empowerment, hunger alleviation, economic sustainability, and so on.”  Hunger alleviation, poverty alleviation, and immediate relief were the three most significant areas for zakat giving, while self-employment, advocacy, and economic empowerment were the least important.

When we talk about meeting sustainable development goals (SDGs), we can assert that philanthropy by Muslims has a profound impact on the world. SDGs are being achieved by Muslim philanthropists worldwide through their Islamic social finance tools and instruments such as zakat, waqf, Islamic microfinance, and other shariah-compliant financing approaches for powering sustainable development efforts.

A remarkable platform that harnesses the true potential of Islamic giving is the Global Muslim Philanthropy Fund for Children (GMPFC). All forms of Islamic philanthropy, including Zakat and Sadaqah, are accepted by this fund. Millions of dollars are donated by Muslim philanthropists every year to lift people out of poverty and enable them to live a dignified life. The GMPFC embodies the impact of Islamic philanthropy as it provides life-saving financing, humanitarian aid and addresses the SDG’s related to children.

Although Muslim philanthropy has made significant progress, there are still challenges to overcome. Resource mobilization, effective governance, transparency, scalability, and sustainability present some of these challenges. It is possible to view these hindrances as opportunities for collaborating with other philanthropic organizations, leveraging technology for greater impact, and strengthening partnerships with government, businesses, and civil society organizations.

Finally, I am proud to belong to a faith-based tradition that emphasizes compassion, generosity, and justice. A Muslim philanthropy initiative helps marginalized communities, promotes sustainable development, and contributes to global efforts to create a more equitable and inclusive society. Through philanthropy, Muslims around the world actively contribute to positive change and leave a lasting impact on humanity. By addressing social, economic, and environmental challenges, we are dedicated to social justice, activism, and building a better world.

Footnotes:

Delehanty, Jack. (2023). Making Moral Citizens, How Faith-Based Organizers Use Vocation for Public Action, The University of North Carolina Press Chapel Hill.

Faiqa, Mahmood. (2019). American Muslim Philanthropy: A Data-Driven Comparative Profile. The Institute for Social Policy and Understanding, Lake institute, 1-30

Ghazaleh, P. (Ed.). (2011). Held in Trust: Waqf in the Islamic World. The American University in Cairo Press.

Hoexter, M. (2002). The Waqf and the Public Sphere. SUNY Series in Near Eastern Studies.

Hughes, M., Thapa, S., Cheema, J., Ajmal, M., Wasif, R., Siddiqui, S., Paarlberg, A., Noor, Z., Mofawaz, M. (2023), Muslim American Zakat Report 2023. Muslim Philanthropy Initiative at Indiana University Lilly Family School of Philanthropy.

Muller, DOMINIK M. (2017). From Consultancy to Critique- The ‘Success Story’ of Globalized Zakat Management in Malaysia and its Normative Ambiguities, Globalizations, Vol. 14, No. 1, 81 –98

Nurzaman, M.S. (2017). Evaluating the impact of zakat by indicator of disaggregated Human Development Index, Handbook of empirical research on Islam and economic life, 93-108

Organisation for Economic Co-operation and Development. (2020). How Islamic finance contributes to achieving the sustainable development goals. OECD Publishing.

Siddiqui, S., Wasif, R., Hughes, M., Paarlberg, A., & Noor, Z. (2022), Muslim American Zakat Report 2022. Muslim Philanthropy Initiative at Indiana University Lilly Family School of Philanthropy.

UNICEF, The Global Muslim Philanthropy Fund for Children

[1] HHRD