Equity Crowdfunding based on Islamic Philanthropy A Concept

Abstract

As a country with a Muslim majority, Indonesia has enormous potential to collect Islamic philanthropic funds such as zakat, infaq, alms, and waqf. However, in reality, it is still far from the expected potential. This is inseparable from several important problems such as the lack of use of technology, the lack of public awareness of the importance of the role of Islamic philanthropy, and the lack of trust of the Muslim community towards the institution of zakat. We tried to develop a model of collection by integrating the Equity crowdfunding system with the Islamic philanthropy system. It is hoped that with this model the collection of zakat and other Islamic philanthropy will increase further because it provides transparency to funders so that it will increase their trust. In addition, the object of receiving funds from this model in the form of SMEs (productive zakat) will build an Islamic philanthropic system that is more sustainable and has a greater impact. Because in addition to providing funds, recipients of funds will be given training in managing their business so that they can make their own simple reports. Zakat institutions in this model play an important and central role for the success of the program. Starting from planning, management, monitoring, to evaluation of success.