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

Abstract

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.

The impact of remittance inflows on economic growth, unemployment and income inequality: An international evidence

“…This outcome is reported in Table 12. The emanated outcome is significant, since the income inequality is a burning issue around the globe [11]. Remittance inflows help to enhance the income of low-income group through transfer to them from moderate-income groups, and like that, all the income groups are coming into a decent level of income.…”

Cattle Fattening Program: The Effectiveness of Zakat Community Development

“…The productive Zakat distribution model that promotes economic empowerment aims to change the status of recipients from mustahiq (Zakat recipient) to muzakki (Zakat payers) (Toriquddin, 2015), so that productive Zakat programs can contribute significantly to community economic activities (Romdhoni, 2018). However, according to Ashiq and Mushtaq (2020), many problems plague the Zakat institution's structure in achieving social and economic justice. One of these problems is improper Zakat distribution, due to a lack of efficiency in Zakat management, which results in some areas not receiving the appropriate benefits.…”