Quantitative Finance

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Islamic Philanthropy: Exploring Zakat, Waqf, and

Sadaqah in Islamic Finance and Economics
edited by Abdul Ghafar Ismail, Rose Abdullah, and Muhammad Hasbi
Zaenal, Palgrave Macmillan (2022). Hardcover. ISBN 978-3-031-06889-8. E-
book. ISBN 978-3-031-06890-4.

Ubbadul Adzkiya’, Anis Fittria & Syamsul Wathani

To cite this article: Ubbadul Adzkiya’, Anis Fittria & Syamsul Wathani (2023): Islamic
Philanthropy: Exploring Zakat, Waqf, and Sadaqah in Islamic Finance and Economics,
Quantitative Finance, DOI: 10.1080/14697688.2023.2224395

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Published online: 26 Jun 2023.

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Quantitative Finance,
https://doi.org/10.1080/14697688.2023.2224395
Book review
© 2022, Palgrave Macmillan
Islamic Philanthropy: Exploring Zakat, Waqf, and
Sadaqah in Islamic Finance and Economics, edited by
Abdul Ghafar Ismail, Rose Abdullah, and Muhammad Hasbi
Zaenal, Palgrave Macmillan (2022). Hardcover. ISBN 978-3-
031-06889-8. E-book. ISBN 978-3-031-06890-4.
Philanthropy has a positive impact on the economy by benefit-
ing people through the property, facilities, services, charities,
buildings, and other tangible and intangible objects, ulti-
mately enhancing social cohesion. It can also reduce social
jealousy and hatred among social classes, leading a coun-
try toward a welfare state. However, there is a debate on
whether social programs should be undertaken by the govern-
ment or the voluntary sector (Schuyt 2017). Islamic philan-
thropy is recognised as new economics and a part of welfare
economics, and incorporating Islamic philanthropy into the
welfare economic system remains a challenge. The current
studies on philanthropy have been heavily influenced by the
Christian tradition, with no mention of the Islamic tradition’s
instruments and principles (Leat 2016). Therefore, this book
aims to examine the comprehension of philanthropy from the
Islamic tradition to shed light on the debate on the paradigms
of ‘state or market’ and ‘welfare state or philanthropy’.
This edited book combines contributions from the Confer-
ence on Philanthropy for Humanitarian Aid, organised jointly
by Sultan Sharif Ali Islamic University and the International
Research Center of Islamic Economics and Finance, Interna-
tional Islamic University College, in collaboration with the
Islamic Research and Training Institute. It examines Islamic
philanthropy, which covers three main spectrums of activity:
zakat (almsgiving), waqf (endowments), and sadaqah (pub-
lic charity). In Islam, philanthropy includes various activities
with different goals and principles. Zakat is used as an aid
to relieve human suffering. Waqf is an effort to increase
the potential of individual humans and advance society with
the principle of maximising the potential of individuals and
society. Sadaqah is used as a reform effort to solve social
problems. Philanthropy as civic engagement seeks to build
better community structures and services and is directed by
civic responsibility.
2 Book review
The book, edited by Abdul Ghafar Ismail, Rose Abdullah,
and Muhammad Hasbi Zaenal, consists of five parts, includ-
ing an introduction and conclusion. Part 1 is an introduction
consisting of three chapters, where the editors introduce top-
ics that will be discussed in the following 18 chapters (pp.
3-22). In Chapter 2 (pp. 23-49), Muhammad Hasbi Zaenal,
Abdul Ghafar Ismail, and Muhammad Hakimi Mohd. Shafiai
discuss the understanding of philanthropy from an Islamic
perspective, which was recently recognised as new economics
by the American Economic Association in early 2020 and
became part of welfare economics. Chapter 3 by Salman
Ahmed Shaikh discusses the solutions offered by Islamic
finance through the underlying value system and worldview
and through a series of commercial and social financial insti-
tutions to intervene in development assistance through and
beyond the markets (pp. 51-72).
The following five chapters are included in Part II, which
discusses waqf. This part was initiated by Rose Abdullah,
Khairul Hidayatullah Basir, and Nur Haziyah Abdul Halim,
who examined the obstacles to developing waqf land in
Brunei Darussalam and explored how to overcome these
obstacles to realise the potential economic value of waqf
land in Chapter 4 (pp. 75- 91). In Chapter 5, Mehmet Bulut
and Cem Korkut investigate the history of cash waqf in the
Ottoman Empire as a model of altruistic finance (pp. 93-
111). Chapter 6 by Ruslaina Yusoff, Shariful Amran Abd
Rahman, Wan Nazihah Wan Mohamed, Parichard Benrit, and
Faizah Darus examines the relevance of the Theory of Plan-
ning Behaviour in predicting student intentions to donate
cash waqf in Malaysia and Thailand (pp. 113-133). Samsinar
Sulaiman, Shifa Mohd Nor, and Suhaili Alma’amun pro-
pose an entrepreneurial financing mechanism by integrating
crowdfunding and waqf as Sharia-compliant crowdfunding in
Chapter 7 (pp. 135-150). In Chapter 8, Marhanum Che Mohd
Salleh, Nurdianawati Irwani Abdullah, Nor Azizan Che Embi,
and Nan Noorhidayu Megat Laksana examine the impact of
flooding on Malaysian society, investigate the experiences of
flood victims living in flood evacuation centres, and propose
permanent flood evacuation centres based on the principle of
waqf (pp. 151-170). Shahida Shahimi, Siti Hanisah Fuad, and
Rabiatul Hasanah Mahmood propose cash waqf as a means of
environmental and human protection from the haze crisis in
Malaysia in Chapter 9 (pp. 171-181).
Part III discusses zakat, which consists of five chapters.
Hendri Tanjung and Nurman Hakim review the subject of
zakat, which has been explored by previous studies in Chap-
ter 10 (pp. 185-195). In Chapter 11, Norhaziah Nawai and
Farah Shazwani Ruzaiman review the literature on zakat dis-
tribution and its impact (pp. 197-212). Chapter 12 by Indah
Piliyanti and Agni Alam Awirya examines the role of state
Islamic higher education in optimising Islamic philanthropic
studies and Islamic philanthropic organisations in Indone-
sian universities (pp. 213-228). In Chapter 13, Ajeng Pratiwi
and Umma Sa’ida offer the GO ZAKAT mobile application
to optimise the collection of zakat funds in Indonesia (pp.
229-237). Kamaru Salam Yusof, Abdul Ghafar Ismail, and
Muhammad Hasbi Zaenal analyse the potential of zakat funds
for disaster relief centres in managing disasters in Chapter 14
(pp. 239-251).
The following four chapters are included in Part IV, which
discusses zakat. This part was initiated by Luqman Zakariyah,
Suhaimi Bin Mhd Sarif, Azman Bin Mohd Noor, and Rahmah
Bt. Ahmad Osman, who analyse the investment strategy of
tabung masjid (mosque donation fund) in Malaysia for the
fulfilment of maqasid al-syariah (purposes of Islamic law) in
Chapter 15 (pp. 255-274). Chapter 16 by Hussain Mohi-Ud-
Din Qadri examines whether the Khanqahs and Sufi Shrines
of Pakistan, as ‘faith-based organisations’, contribute signifi-
cantly to society’s social and economic development (pp. 275-
292). In Chapter 17, Muhammad Haron explores how faith-
based organisations contribute to addressing refugee crises
and natural disasters and evaluates their impact on promoting
South Africa’s philanthropic image (pp. 293-313). Chapter
18 by Roshayani Arshad, Nawal Kasim, Ruhaini Muda, and
Chakir Ahmed proposes a model framework for philanthropic
organisational governance that incorporates the antecedents
and consequences of good governance in Malaysia (pp. 315-
332). In the last chapter in Part V, the editors summarise
the previous chapters and recommend some policies (pp.
343-350).
One of the advantages of this book is its wide and compre-
hensive coverage of material on zakat, waqf, and sadaqah.
This book examines the origins, basic principles, and his-
torical development of these three types of philanthropy in
Islam, as well as contemporary practices and current issues in
Islamic finance and economics. The book also offers models
for developing Islamic philanthropy and policy recommen-
dations. Additionally, it examines contemporary issues and
challenges in Islamic philanthropy, such as the role of tech-
nology in facilitating the payment of zakat and the impact of
the COVID-19 pandemic on charitable giving in the Mus-
lim world. While the book provides a clear and easy-to-
understand overview of the subject matter, readers new to the
topic may find some of the more technical aspects challeng-
ing to follow. There are also some deficiencies, such as the
absence of a glossary, inconsistencies in writing references,
inconsistencies in Arabic transliteration, and other technical
errors that reduce the book’s excellence. However, readers
with a basic understanding of Islamic principles and Islamic
finance will be able to grasp the content of this edited book
comprehensively.
Overall, this book is an essential contribution to Islamic
finance and economics, particularly in exploring the role of
zakat, waqf, and sadaqah in promoting social welfare and
economic development in Muslim communities. The book is
well-written, informative, and engaging, providing valuable
insight into today’s field challenges and opportunities. Given
the growing importance of Islamic finance and economics in
the global economy, this book makes a timely and relevant
contribution to the related literature. Therefore, this book is
highly suitable for graduate and undergraduate students, pol-
icymakers from governmental and non-governmental insti-
tutions, practitioners in the Islamic finance industry, and
researchers in Islamic finance and economics.
 Book review
Acknowledgment
This work was supported by the Lembaga Pengelola Dana
Pendidikan (LPDP) under the Ministry of Finance of the
Republic of Indonesia and the Beasiswa Indonesia Bangkit
(BIB) under the Ministry of Religion of the Republic of
Indonesia.
References
Leat, D., Philanthropic Foundations, Public Good and Public Pol-
icy, 2016 (Palgrave Macmillan: London).
Schuyt, T. N. M., Philanthropy and the Philanthropy Sector: An
Introduction, 2017 (Routledge: London).
Ubbadul Adzkiya’ 0000-0002-4108-4015
Faculty of Islamic Religion, Universitas Wahid Hasyim,
Semarang, Indonesia
Anis Fittria 0000-0003-1217-6495
Faculty of Sharia and Law, Walisongo State Islamic
University, Semarang, Indonesia
3
Syamsul Wathani 0000-0001-9962-9498
Department of Islamic Studies, Sunan Kalijaga State Islamic
University, Yogyakarta, Indonesia
© 2023, Ubbadul Adzkiya’, Anis Fittria and Syamsul
Wathani
Ubbadul Adzkiya’ is a lecturer at Universitas Wahid Hasyim,
Semarang, Indonesia. He is pursuing his Ph.D. at the Department of
Shariah Economy, Islamic Studies, at the School of Graduate Stud-
ies, Walisongo State Islamic University, Semarang, Indonesia. His
research interests include Islamic Economics, the History of Islamic
Economics, and Socio-Economics.
Anis Fittria is a lecturer at Walisongo State Islamic University,
Semarang, Indonesia. She is pursuing her Ph.D. at the Depart-
ment of Islamic Jurisprudence, Islamic Studies, at the School of
Graduate Studies, Walisongo State Islamic University, Semarang,
Indonesia. Her research interests include Sharia Economics, Islamic
Economics, Islamic Studies, and Social Entrepreneurship.
Syamsul Wathani is a lecturer at STAI Darul Kamal NW Kembang
Kerang, Nusa Tenggara Barat, Indonesia. He is pursuing his Ph.D. at
the Department of Islamic Studies, at the School of Graduate Studies,
Sunan Kalijaga State Islamic University, Yogyakarta, Indonesia. His
research interests include the Science of the Qur’an & Tafsir, Hadith
Studies, and Islamic Studies.