Sadaqah economics

 

Zakat holds significant form of charity which plays a vital role in economic justice in opportunities and outcomes. Zakat, infaq and sadaqah is economic development and property elevation. They also serve as the solution to human problems.

Infaq is the portion of the wealth that all believers possess to empower human welfare. It is the latest form of donations. Islam offers solutions to all the problems. Government bodies and civil society unlock potential of social justice. [1]

Findings

Zakat is mandatory for Muslims that effect zakat collection and distribution system. Modern Zakat institutions such as in Malaysia and Saudia Arabia. Sadaqah is obligatory to every muslim. It will promote long term social welfare. [2]

The government can decrease the level of poverty elevation. Quality human resources will support good productivity to elevate proverty. Government should review economic growth. Quality of human development growth will increase. [3]

The nature of Sadaqah         

There are few types of Sadaqah. Sadaqah Wajibah ( compulsaory charity on property). Compulsary charity is essential on every muslim. You may compare between sadaqah and terms related to it from unlawful sources.

Pillars and requirement of Sadaqah

Donor should be mature and sane according to the Islamic concept of al-Bulugh and al-Rushd. RIba means interest which is forbidden  in Islam.  Monopoly means collecting goods and control of price. Stealing and bribery is also forbidden in Islam. [4]

The role of Zakat, Sadaqah, and Infaq in the Indonesian community economy for poverty alleviation. The  research elucidates the importance of ZSI as a means of fulfilling religious obligations, promoting social welfare, and fostering communal solidarity. The governance issues, logistical constraints, and inadequate funding, the study identifies opportunities for enhancing the impact and sustainability of ZSI initiatives through collaborative partnerships, technology integration, and capacity building. By recognizing and harnessing the socioeconomic dynamics of ZSI, practitioners, and stakeholders can work together to build more inclusive, where charitable giving serves as a catalyst for positive social change. Moving forward, continued research and dialogue are essential for advancing our understanding of ZSI and its potential for poverty alleviation and community development in Indonesia and beyond. [5]

The research was structured to investigate the influence of sadaqah on enhancing social welfare in Zanzibar. Specifically, it identified the effects of sadaqah on social welfare improvement in the southern region of Unguja. The findings revealed a significant positive contribution of sadaqah on the enhancement of social welfare in Zanzibar society. The paper recommends that, committees of a masjid and other stake holders should make sure that all fund collected from sadaqah are well managed and distributed effectively so as to generate social welfare of the Zanzibar community, Imam in all Masjid in Zanzibar should encourage their followers to provide sadaqah for whatever amount they have this could help them hereafter as well as improving social welfare of the people’s lives in Zanzibar. There is need for the sector concerned with charity/zakat to emphasize their followers to provide more sadaqah for life improvement of the poor and for their own betterment of the life hereafter. [6]

Zakat, infaq, and sadaqah play a crucial role in enhancing the economic welfare of the Indonesian population. In order to alleviate poverty and elevate living standards, it is imperative for Indonesians to comprehend the significance of zakat, infaq, and sadaqah, and to apply their principles in accordance with Islamic law. By doing so, individuals can truly benefit from this system and attain economic prosperity. One of the key findings is the importance of building understanding and trust in the management of zakat, infaq, and sadaqah. Many Muslims currently have reservations and lack confidence in the zakat board, leading them to directly distribute their contributions to those in need. It is essential for efforts to be made in educating the public about the proper mechanisms and processes for managing these charitable funds. By fostering a deeper understanding and establishing transparent and accountable management practices, individuals can have greater confidence in the system, resulting in increased participation and effectiveness. Based on these findings, it is recommended that a comprehensive awareness campaign be undertaken to promote the understanding and importance of zakat, infaq, and sadaqah. This campaign should aim to educate the public on the proper channels for donation, the impact of their contributions, and the benefits that can be derived from the effective management of these funds. It should emphasize the potential economic growth and development that can be achieved through the collective efforts of individuals in fulfilling their religious obligations. Furthermore, efforts should be directed towards improving the management practices of zakat, infaq, and sadaqah institutions. Enhancing transparency, accountability, and efficiency in the collection, distribution, and utilization of these funds is essential. Utilizing information systems and technology can aid in monitoring and analyzing the distribution results, ensuring that resources are allocated to those who are truly eligible. Regular reporting and supervision mechanisms should also be implemented to maintain a high level of accountability throughout the process. The trust, and management of zakat, infaq, and sadaqah, Indonesians can unlock the full potential of these charitable practices in uplifting individuals and communities from poverty. The implementation of effective strategies and the collaboration between stakeholders, including religious institutions, government bodies, and civil society, will be crucial in realizing the positive impact of zakat, infaq, and sadaqah on the economic welfare of the Indonesian society. [7]

The  implementation of zakat can encourage economic growth because providing zakat assistance in the form of consumptives can increase the purchasing power of mustahiq according to its needs and increase demand or increase purchasing power for an item.  This will have an impact on improving the production of a company which means there will be an increase in production capacity and can add to the country's economy aggressively. The potential for zakat is very large, but the amount of zakat obtained is very far different from its potential. This is due to knowledge about zakat that has not been properly socialized to the community and the lack of public trust in zakat management institutions. [8]

Issues have arisen as a result of governments in majority-Muslims countries controlling the majority of the charitable sectors, including the abolition of civil endowments, administrative corruption, lack of a database or accurate statistics, and weak protection over endowment properties, a large number of disputes and attacks on them, the lack of proportionality between the nature of the current government administration and the feature of independence and decentralization of the endowments, and the high costs of endowment and the low ability of the community to endow, the subjection of endowments to serve the objectives of the ruling authority, the non-economic management of endowment assets. Charity throughout history contributed to the treatment of many economic problems such as unemployment, poverty, and the deficit of the state budget through the positive effects of the endowment on economic and social life. The endowment has a positive role in treating the problems facing economic development and providing the preconditions and basic requirements for it, and this is what qualifies it to play a role in this field, especially with its zero cost. Spending on these projects provides a portion of the state’s financial resources for use in spending on other development projects. The subordination of endowments to serve the objectives of the ruling authority weakened the endowment system, so endowments must be freed from the control of the ruling authority, by providing for the fortification and endowment in the constitution. [9]

References

[1] Tasnim, Nurhapirah & Aulia, Riska & Ujung, Adelia & Pohan, Tia & Amelia, Rizqa. (2023). THE ROLE OF INFAQ AND SADAQAH TO IMPROVE COMMUNITY ECONOMIC DEVELOPMENT. CASHFLOW : CURRENT ADVANCED RESEARCH ON SHARIA FINANCE AND ECONOMIC WORLDWIDE. 2. 434-438. 10.55047/cashflow.v2i3.654.

[2] Hamsan, Hanan. (2024). The Role of Islamic Economic Justice in Alleviating Poverty and Promoting Social Equity: A Case Study of Zakat and Sustainable Development Goals.

[3] Gondo Saputro, Eko & Sidiq, Sahabudin. (2020). The Role of Zakat, Infaq and Shadaqah (ZIS) in Reducing Poverty in Aceh Province. International Journal of Islamic Economics and Finance (IJIEF). 3. 10.18196/ijief.3234.

[4] Mohd Dasar, Mohd & Sujimon, Prof. (2020). The Classical Islamic View of Sadaqah: A Preliminary Study. International Journal of Islamic Economics and Finance Research. 1. 89-98. 10.53840/ijiefer34.

[5] https://pdfs.semanticscholar.org/a663/c3c0b3721810df29ca4d4d39132980be49a9.pdf

[6] Ali, Asha & Hamad, Abdalla. (2024). Contribution of Sadaqah for Social Welfare Improvement in Zanzibar Society: A Case Study of Southern Region of Unguja. Research & Development. 10.11648/rd.20240501.14.

[7] Tasnim, Nurhapirah & Aulia, Riska & Ujung, Adelia & Pohan, Tia & Amelia, Rizqa. (2023). THE ROLE OF INFAQ AND SADAQAH TO IMPROVE COMMUNITY ECONOMIC DEVELOPMENT. CASHFLOW : CURRENT ADVANCED RESEARCH ON SHARIA FINANCE AND ECONOMIC WORLDWIDE. 2. 434-438. 10.55047/cashflow.v2i3.654.