Shariah Governance Framework for Islamic Donation-Based Crowdfunding Platforms in Malaysia

Abstract

This study attempts to examine current Shariah governance practices and propose a Shariah governance framework for Islamic donation-based crowdfunding (DCF) platforms in Malaysia. A series of interviews with six Islamic DCF platforms in Malaysia was conducted. For reporting purposes, this study employed a single-case study approach. The interview was conducted and completed at the end of August 2022 via an online approach through Google Meet. The findings highlight Shariah governance practices for Islamic DCF platforms covering Shariah governance structure, roles of the parties involved and types of Shariah contracts used in the operation. Based on these findings, a Shariah governance framework for Islamic DCF is proposed covering Shariah contracts, roles of parties, establishment of the Shariah committee as well as Shariah governance functions. This study is among the pioneer studies that explore Shariah governance framework for Islamic DCF platforms in Malaysia. The study findings and recommendations are useful for Islamic DCF platforms as well as related parties like regulators, funders, potential project managers and the public in general to understand Shariah governance framework for Islamic DCF platforms in Malaysia.

Keywords: Shariah Governance, Islamic Donation-Based Crowdfunding