The Convergence of Crowd Funding and Zakat System in India: An Integrated Approach for Human Welfare

Muhammed Ashiq, Ubaid Mushtaq


The impact of the Zakat system on human welfare is well established. In India, there is a significant development in terms of localised management of zakat system. However, the targeted delivery of zakat funds, unorganised collections and lack of transparency remain a matter of concern. There is no formal institutional mechanism for efficient Zakat distribution, and problems of circularity are at mostly affecting the progress of welfare mechanisms. Problems of circularity of Zakat funds are still, largely, incoherent and practically disconnected with the mechanics of philanthropic institutions. In our theoretical model, crowdfunding for welfare scheme is being treated as the determinant, which could mediate and alter the performance of zakat welfare. Further, make it more accessible and catering to more comprehensive economic benefits for the community. In this exploratory theoretical paper, we also examine the nature of a common platform for the Zakat distribution. In addition to this, how it could reduce the scrutiny of Government intervention and proper channelisation of Islamic philanthropic activities.  


Zakat welfare; Circularity; Crowdfunding;India

Full Text:



Ali, M.D. (1998). Sistem ekonomi Islam zakat dan wakaf. (The system of Islamic economy of zakat and waqf). Jakarta: University of Indonesia Press.

Al Jaffri Saad, R., & Haniffa, R. (2014). Determinants of zakah (Islamic tax) compliance behavior. Journal of Islamic Accounting and Business Research, 5(2), 182-193.

Asher, S., Novosad, P., & Rafkin, C. (2018). Intergenerational Mobility in India: Estimates from New Methodsand Administrative Data. World Bank Working Paper. Available at: http://www. dartmouth. edu/~ novosad/anr-india-mobility. pdf (accessed December 2018)

Azam, M., Iqbal, N., & Tayyab, M. (2014). Zakat and economic development: Micro and macro level evidence from Pakistan. Bulletin of Business and Economics, 3(2), 85-95.

GOI (2011). Census of India 2011.Registrar General and Census Commissioner of India, Ministry of Home Affairs, New Delhi, India

GOI (2011-2012). National Sample Survey Office – NSSO- 68 th round, Ministry of Statistics & Programme Implementation, New Delhi, India

Hafidhuddin, D., & Beik, I. S. (2019). Zakat Development: The Indonesia’s Experience. Al-Infaq: Jurnal Ekonomi Islam, 1(1).

IAMAI. (n.d.). from

Lessy, Z. (2009). Zakat (alms-giving) management in Indonesia: Whose job should it be?. La_Riba, 3(1), 106-119.

Malik, B. A. (2016). Philanthropy in Practice: Role of Zakat in the Realization of Justice and Economic Growth. International Journal of Zakat, 1(1), 64-77.

Secretariat, C. (2006). Social, Economic and Educational Status of the Muslim Community of India. Development Economics Working Papers

Shirazi, N. S. (1994). An Analysis of Pakistan’s Poverty Problem and Its Alleviation through Infaq. PhD Dissertation. International Islamic University, Islamabad.

Suhaib, A. Q. (2009). Contribution of Zakat in the Social Development of Pakistan. Pakistan Journal of Social Sciences (PJSS), 29(2).

Zeb, A., & Zaman, G. (2014). Assessing the Role of Zakat as a Social Safety Net and problems faced by Zakat Recipients in receiving Zakat Assistance in Pakistan. Abasyn University Journal of Social Sciences, 7(1).



  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Ihtifaz : Journal of Islamic Economics, Finance, and Banking

Kampus 4 Universitas Ahmad Dahlan
Jl. Ring Road Selatan, Tamanan, Banguntapan, Bantul, Daerah Istimewa Yogyakarta 55191
Telp. (0274) 563515; Fax. (0274) 564604
E-mail : 

p-ISSN: 2622-4755 | e-ISSN: 2622-4798

View My Stats