The role of muslim millionaires in enhancing waqf-based crowdfunding: a proposed framework

Abstract

The Islamic Waqf appears to have emerged as a credible device in funding the socio-economic development of Islamic countries in the past. However, nowadays the management of waqf needs to make repetitive calls for donation to fund the development of even a single waqf property. This paper aims to re-establish waqf, by proposing a framework on the roles of Muslim millionaires in enhancing waqf based crowdfunding platform. As of date, crowdfunding is widely used by entrepreneurs who are seeking capital to execute their businesses. In 2011, nearly US$1.5 billion was raised through crowdfunding in raising capital for business and projects, while in 2012 US$2.7 billion was captured. Waqf is proposed to be revitalized by distributing the profits gained from entrepreneurship projects that has been financed through funding collected using crowdfunding platform. An interview with millionaires, and a case study on Rumah Pengasih Warga Prihatin (RPWP), an organization that have managed a philanthropic using the mentioned waqf method is presented through this paper. By analyzing the concept of waqf, crowdfunding, and the case study, the paper is then continued with a proposed framework on the millionaires' roles in enhancing waqf-based crowdfunding. The research results in a new collaboration between Muslim millionaires in enhancing waqf by incorporating crowdfunding platform in assisting Muslims around the world.