Types of Zakat and Waqf in Philanthropic Management

Abstract

Zakat and waqf are two important instruments in the management of Islamic philanthropy which have a significant role in the social and economic development of the people. Both are managed based on sharia principles which aim to reduce social inequality and strengthen social solidarity among Muslims. Zakat, as one of the five pillars of Islam, is defined as a financial obligation that every capable Muslim must pay to those who are entitled to receive it. On the other hand, waqf is a voluntary philanthropic activity, where a person gives up part of his or her assets to be used for purposes that have sustainable social and religious benefits. In the context of philanthropic management, zakat and waqf not only act as a tool to purify wealth and souls, but also as an effective wealth redistribution mechanism. Through the collection and distribution of zakat and the management of waqf, a just and sustainable economic system can be created. This is in line with the sharia goal of achieving broad social welfare and alleviating poverty.