Philanthropy from Islamic Tradition

Islamic presence is intended to meet all the demands of life (shumul al-hayah). In the economic sphere, Islam set rules comprehensively about the relationship between religion and the economy, that both should go hand in hand, such as philanthropic actions. Since the early days, philanthropy has become the basic Islamic economy, where philanthropy that means “love of people” had been successfully practiced by the Prophet and the companions accompanied by moral motivation to achieve the glory of Islam, social justice, and the removal of economic oppression. Philanthropy in Islam has had a clear legal basis, either from the Qur’an or al-Hadith. However, the current discussion of the economics of philanthropy is very much clouded by the conventional view that argues that the forms of charitable gifts are motivated by government tax policy. Our view, which is derived from Islamic law theory, may deviate from such a view in the sense that the motives, causes, and influences of philanthropic behavior are different. Therefore, this study will explore the economics of philanthropy adapted from Islamic law. The end result might cause us to readjust the impact of philanthropic behavior on intergenerational transfers and the provisions of public and private goods.