Leveraging Philanthropy

Shari‘a’s emphasis on distributive justice, surprisingly evident from the earliest Meccan surahs, is a culmination of earlier divine revelations, only more comprehensive, practical and unambiguous. Distribution ranks quite high in the shari‘a hierarchy of values, and is an explicit Quranic criterion for evaluating a society, as evident in verses 69:34 and 89:18 of the Holy Qur’an. Refusal to share with the needy is considered transgression “ ﻥﺎﻴﻐﻃ .” ³ Combating poverty, or need fulfillment, is the primary goal of re-distribution in Islam and is one expression of the divine verdict to honor the children of Adam. ⁴ Shari‘a made it mandatory for an individual to earn a living for himself and his dependants. If unable, shari‘a installed four major safety nets, in a specific order, to relieve the poverty of those who cannot fully support themselves: (1) intra-family maintenance; (2) zakat; (3) public treasury (bayt al-mal); and (4) ad hoc taxation. A lower-level safety net such as public treasury is activated only when a higher-level one, such as intra-family maintenance or zakat is insufficient or inapplicable. If a person’s poverty can be relieved by providing microfinance, this becomes a high-priority method because we are helping the individual to do what is mandatory on him/her, and helping him/her to avoid being a burden on others. Thus, monetary waqf ⁵ as a way to combat poverty fulfils a major economic goal in Islam.