ISLAMIC PHILANTROPHIC INSTITUTIONS IN INDONESIA

PAPER

Islamic Philanthropy course

Lecturer: H. Amin Hamdani, M.Ag.

Arranged by :

Rizal Fathurrohman 1204030093

Neng Listina Ramadan 1204030081

Siti Komala 1204030102

DEPARTMENT OF PRAISE MANAGEMENT

FACULTY OF PRAISE AND COMMUNICATION

STATE ISLAMIC UNIVERSITY OF SUNAN GUNUNG DJATI

2023
 FOREWORD

All praise for God Allah SWT, blessings And regards always poured out
to Rasulullah SAW. Thanks to His abundance and grace we were able to finish
this paperwork on time. This paper was created to fulfill the midterm exam
assignment in the Islamic Philanthropy course entitled "Islamic Philanthropic
Institutions in Indonesia".
We hope that this paper can provide knowledge more And beneficial for
para reader, we realize in making This paper is still far from perfect, so we really
hope for criticism and suggestions from supporting lecturers H. Amin Hamdani,
M.Ag. And from para reader.
End say, we convey accept love to all party Which help in drafting paper
This so that paper This can resolved. Hopefully Allah SWT always bless us all.

Sukabumi, 25 April 2023

Compiler

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 LIST OF CONTENTS

INTRODUCTION ...................................................................................................i
TABLE OF CONTENTS ........................................................................................ii
CHAPTER I ..........................................................Error! Bookmark not defined.
INTRODUCTION ..................................................................................................1
A. Background ..................................................................................................1
B. Problem Formulation ...................................................................................2
C. Purpose of Writing .......................................................................................2
CHAPTER II ...........................................................................................................3
DISCUSSION .........................................................................................................3
A. Definition and Purpose of a Philanthropic Institution .................................3
B. Characteristics of Philanthropic Institutions ................................................4
C. Main Duties, Roles and Functions of Philanthropic Institutions .................5
D. Islamic Philanthropic Institutions in Indonesia ............................................6
CHAPTER III .........................................................................................................8
CLOSING ...............................................................................................................8
A. Conclusion ...................................................................................................8
B. Suggestion ....................................................................................................8
BIBLIOGRAPHY ...................................................................................................9

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 CHAPTER I

INTRODUCTION
A. Background
Philanthropic institutions are institutions that assist the community in
managing zakat to be distributed to those who are entitled to receive zakat.
Philanthropic institutions are basically voluntary institutions for the welfare
of society. In general, philanthropy is defined as voluntary action for the
public interest.

Philanthropy is an approach to promote prosperity, including efforts to

eradicate poverty. Philanthropy as a form of social capital through the
provision of donations or assistance to underprivileged communities. The
growth of the philanthropic movement is one of them with the presence of
Islamic philanthropic institutions in the form of zakat, infaq, and shadaqah.
When you have paid zakat, the obligations towards the pillars of Islam have
been carried out, as well as helping fellow Muslims in easing their burdens in
meeting their daily needs.

Another aspect of Islamic philanthropy is infaq which means something

that is given to other people to meet their needs, whether in the form of food,
drink and other things that are based sincerely because of Allah. Apart from
that, infak is also related to something that is done obligatory and sunnah.
While sadaqah means giving someone sincerely to those who are entitled to
receive it.

The philanthropic activity carried out by the Dompet Peduli Ummah

institution in the Imopuro Metro Pusat sub-district is one that distributes
zakat, infaq, and shadaqah in community empowerment and reducing social
inequalities between communities. . In addition to assistance in the form of
consumptive forms, the Rumah Zakat Dompet Peduli Ummah also provides
productive assistance in the form of business capital which is handed over to

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 the community who are considered worthy of receiving this assistance to
manage the business as well as possible.

B. Formulation of the problem

1. What is the meaning and purpose of a philanthropic institution?
2. What are the characteristics of philanthropic institutions?
3. What are the main tasks, roles and functions of philanthropic institutions?
4. What Islamic philanthropic institutions exist in Indonesia?

C. Writing purpose
1. To know the meaning and purpose of philanthropic institutions
2. To find out how the characteristics of philanthropic institutions
3. To find out how the main tasks, roles and functions of philanthropic
institutions
4. To find out what Islamic philanthropic institutions exist in Indonesia.

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 CHAPTER II

DISCUSSION

A. Definition and Purpose of Philanthropic Institutions

Philanthropic institutions are a type of non-profit institution that helps
raise social funds. However, actually philanthropic institutions are different
from CSR, and have certain characteristics as their trademark. Philanthropy
comes from the Greek word which means love or humanity. In another sense,
philanthropy refers to the positive concept of loving and helping fellow
human beings. Therefore, philanthropic institutions emerge as organizations
that usually develop human solidarity.

A philanthropic institution is an organization or institution that offers

kindness to many people so that the world becomes a better place. This
kindness can be in the form of money, energy, and time to help in various
fields. Especially, the social sector, the education sector, the health sector,
and others. In Indonesia alone, examples of philanthropic institutions are the
National Amil Zakat Agency (Baznas), Dompet Dhuafa, Rumah Zakat,
Greeneration Foundation, The Nature Conservancy (TNC), Human Initiative,
and many more.

The goal of philanthropic institutions is to help people in need to

improve their welfare." It can be seen that the goal of philanthropic
institutions is very clear to provide social assistance or useful services to
many people. Such as foundations, communities, endowments, amil zakat,
and donations by utilizing a number of assets or income derived from donors
or philanthropists.

To achieve its goals, philanthropic institutions often work with several

parties, including the government to provide assistance to people in need. For
example, when natural disasters occur, poverty alleviation, educational

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 scholarship programs, provision of free health facilities, and so on. In
essence, the purpose of philanthropic institutions is to focus on helping
people in need and providing solutions to problems that exist in society.

B. Characteristics of Philanthropic Institutions

Philanthropic institutions have characteristics that distinguish them from
other organizations. The characteristics of philanthropic institutions are as
follows.

1. Agile and fast moving

Today's philanthropic organizations or institutions must move
quickly to adapt to conditions. Including when natural disasters or
emergency situations occur, philanthropic institutions must move quickly
to collect and distribute funds.
2. Focus on objectives
Philanthropic institutions always focus on vision, mission and
goals. The main goal is to become a strong, sustainable and measurable
philanthropic institution.
3. Pay attention to donors
Philanthropic institutions really understand that donors are an
important part of the organization. Therefore, the donations made must be
accounted for in a transparent manner. In addition, philanthropic
institutions strive to maintain good relations with donors.
4. Sources of funding vary
It is very important for philanthropic institutions to keep a close
eye on their finances. Multiple funding sources are advised not to receive
more than 30% of funding from a single source. Because, if these funds
are lost, it will stop the entire operation of the organization.
5. Can inspire others
The next characteristic of philanthropic institutions is that they are
able to inspire volunteers, donors, and their staff to build strong
communities.

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 6. Digitally smart
Technology is transforming philanthropic institutions in terms of
fundraising in a professional and transparent manner. Online fundraising is
growing every year. That is why it is very important for the management
of philanthropic institutions to increase knowledge about new tools,
websites, applications and platforms. Digital systems can increase the
operational efficiency of philanthropic institutions and increase
competitiveness so that they continue to grow and develop.
7. Willing to listen to criticism and suggestions
Finally, the hallmark or characteristic of philanthropic institutions
is their willingness to listen and accept criticism. Especially from
volunteers, staff, donors, and the general public. Criticism and suggestions
are needed so that philanthropic institutions are able to develop new, better
programs to meet the needs of beneficiaries.

C. Main Duties, Roles and Functions of Philanthropic Institutions

There are several main tasks and functions of philanthropic
institutions. First, provide assistance to poor families. Indeed, it is a little
difficult to distinguish the religious context from the social context, the
religious motive of giving alms is most often found in philanthropic social
contexts. This behavior is not only carried out by individuals, but also
community-based, where other community members contribute to other
communities who need and deserve this assistance. Second, infrastructure
development for the common good. Infrastructure development includes
construction and repair of public facilities, such as mosques, roads and
irrigation canals. Philanthropy is a form of community self-sufficiency in
localistic infrastructure development which is an alternative source of
development funds .1

Philanthropic institutions also act as instruments of economic justice.

Philanthropy is a concept contained in Islam that aims for good, given the

1
Imron Hadi Tamin, The Role of Philanthropy in Alleviating Poverty in Local Communities , Journal of
Islamic Sociology vol. 1 no. 1, April 2011

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 conditions at different social and economic levels of society, the idea or
concept of philanthropy is an alternative for a group of people to reduce
social inequalities among people. The effectiveness of philanthropy in efforts
to reduce social inequality is inseparable from the role of philanthropic
institutions that manage these activities. The potential sourced from this
philanthropy is enormous by implementing the distribution of capital to those
who can't afford it, so that they can play a role in economic activity, as
producers in increasing income.2

D. Islamic Philanthropic Institutions in Indonesia

1. Amil Zakat Agency (BAZ)
The zakat institution formed by the government is based in Jakarta
under the name of the National Zakat Amil Agency (BAZNAS). Then it
has a network at the city and district levels in almost all of Indonesia under
the name Regional Amil Zakat Agency (BAZDA). As well as in every
ministry with the name Zakat Management Unit (UPZ).
2. Amil Zakat Institution (LAZ)
Zakat institutions formed by community groups or religious
organizations. This institution is growing rapidly and sporadically in every
city in Indonesia, with good and systemic facilities and services.
3. Zakat, Infaq and Shodaqoh Committee (PANZIS)
This temporary institution stands in every mosque and prayer room
during the month of Ramadan or events commemorating Islamic holidays.
The number reaches thousands in Indonesia. Even this temporary
institution was also formed in schools during the month of Ramadan.
4. Baitul Maal Wat Tamwil (BMT)
An Islamic microfinance institution that has a dual role, namely
carrying out banking and baitul maal functions. So that zakat profit sharing
from the profits of the banking business of this institution will be managed
by the Baitul Maal which carries out philanthropic values. The number

2
Abdiansyah Linge, Islamic Philanthropy as an Instrument for Social Justice , Central Aceh, Vol. 1 No.2
2015

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 continues to grow from year to year because it is relatively easy to
establish such an institution as a cooperative.
5. Sharia Cooperatives (Kopsya), Sharia People's Credit Banks (BPRS), and
Sharia Banks or Sharia Business Units.
This institution is not much different from the BMT model, the
difference is only in terms of the legality of the legal entity. The trend of
shari'ah banking is excellent in the banking world because they are not
much affected by external conditions. The number also continues to grow
in line with public interest and relatively safe profit margins.

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 CHAPTER III

CLOSING
A. Conclusion
This philanthropic institution has been very helpful in efforts to
improve the welfare of society with some assistance to people who need and
deserve assistance. with good and trustworthy ZIS management, also the
criteria set are very appropriate to get assistance provided by philanthropic
institutions.

The benefits felt by the community with the existence of philanthropic

institutions around them are very beneficial. Many people are greatly helped
by the existence of philanthropic institutions. So with the existence of a
philanthropic institution in the city of Metro, it has been able to improve the
welfare of the people around the institution. With the amount of assistance
provided by the institution to people in need.

B. Suggestion
The existence of a philanthropic institution in the city of Metro has
helped many people who live around the institution. However, philanthropic
institutions must be more careful in selecting potential beneficiaries. So that
the assistance provided from the philanthropic institution is truly on target
and the recipient of the assistance is also truly a person who deserves to be
assisted. Because there are still some people who feel they cannot be
categorized as capable but have not received assistance from these
philanthropic institutions.

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 BIBLIOGRAPHY
Abdiansyah linge, "Islamic Philanthropy as an Instrument for Economic Justice",
Darusalam Economic Perspective Journal, Volume 1, No 2, September
2015.
Delfiyando, Rizki. 2019. The Role of Islamic Philanthropic Institutions in
Improving Community Welfare. Metro IAIN Metro

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