Is Islamic Philanthropy in Indonesia Heading to The Right Pathtowards Islamic Economic Development?

Abstract

More practices are being carried out in Islamic philanthropic institutions in Indonesia. These practices are decentralized so that over time the patterns will become more diverse. So far, there is no empirical evidence that can conclude whether the practices of Islamic philanthropic institutions in Indonesia are in accordance with the direction of economic development in an Islamic perspective, especially in terms of the distribution and utilization of Zakat, Infaq, Shodaqah, and Waqf funds. This study aims to investigate the practices of distributing and utilizing ZISWAF funds in Islamic philanthropic institutions in Indonesia in accordance with the principles of economic development from an Islamic perspective. This research uses a qualitative description method through content/document analysis. Islamic philanthropy institutions that become the unit of analysis are religious philanthropy, corporate philanthropy, family philanthropy, and independent philanthropy. The results of this study show that various types of philanthropic institutions have a practice of distributing and utilizing funds that are quite in accordance with the indicators of economic development in an Islamic perspective. The majority of philanthropic organizations focus on improving access to education and economic equality. In addition, some institutions also pay attention to the social, health institutions also pay attention to the social, health and environmental sectors.