Enhancing Socio-Economic Potential of Zakat Through Donation-Based Crowdfunding Model in Bangladesh

Abstract

This paper aims to develop a model to enhance social justice through zakat in Bangladesh by utilizing donation-based crowdfunding. Whilst being one of the most populous Muslim majority countries, Bangladesh still lacks a centralized policy regarding zakat. Zakat collection and distribution in Bangladesh follows an informally coordinated model which is inefficient. In the absence of required government engagement, solutions are needed to optimize the underutilized potential of zakat. To accomplish this objective, this research employs a qualitative approach. It is found that integrating zakat into a donation-based crowdfunding model is an innovative Islamic fintech approach that can contribute towards improving the socio-economic potential of zakat in Bangladesh. The proposed model has the potential to improve the socio-economic situation of zakat recipients, which can lead to an increased standard of living and enhancement of social justice. The results of this study may enhance the efficiency of zakat and its effects in Bangladesh.