Crowdfunding from an Islamic Perspective
Ahmad Sufian Bin Che Abdullah
Crowdfunding is a financial innovation that enables financing access by connecting fund seekers and money providers through online platforms. It is one of the fastest-growing segments of the financial industry. Crowdfunding is often in donations (charitable projects) or direct funding (equity and debt). However, due to economic incentives, this concept requires further analysis from an Islamic perspective. This paper begins with an attempt to evaluate the concept and operations of crowdfunding critically. Moreover, the study adopts a Shariah perspective of crowdfunding analysis by adopting Maqāṣid al-Sharī’ah theory, specifically wealth preservation. Since this is conceptual and exploratory research, the approach used in the discussion is based on library research. The results show that crowdfunding is not a concept alien to Islam, as it is deeply rooted in the meanings of many verses of the Glorious Qur’an and is supported by many rules and concepts of the schools of Islamic jurisprudence. Accordingly, crowdfunding activities are in line with Islamic principles and values. However, the research on crowdfunding from an Islamic perspective is minimal, and more research is needed. These studies are encouraged to conduct empirical studies to investigate and validate their findings.
Keywords: Crowdfunding, Islamic crowdfunding, Maqāṣid al-Sharī’ah .