Source: BURSA MALAYSIA | Published: September 2023
Prepared by Shariah Centre of Excellence
The word ‘Sadaqah’ literally means ‘righteousness’. In Islam, it refers to a virtuous deed or an act of kindness done without the expectation of getting anything in return. This voluntary charitable act does not necessarily have to be monetary aid. It can also be as simple as greeting someone with a smile or lending someone a helping hand.
The Quran and Sunnah (the sayings and actions of the Prophet Muhammad) emphasize the importance of Sadaqah. In the Quran, Allah says:
"The example of those who spend their wealth in the cause of Allah (Sadaqah) is that of a grain that sprouts into seven ears, each bearing one hundred grains. And Allah multiplies ˹the reward even more˺ to whoever He wills. For Allah is All-Bountiful, All-Knowing.”
(Surah Al-Baqarah, 2:261)
The Prophet Muhammad SAW said:
Sadaqah extinguishes sin as water extinguishes fire.”
(Al-Tirmidhi: Book 6, Hadith 71)
In Islamic social finance, Sadaqah is used to promote economic development and social welfare. It can be used to fund microfinance projects, educational initiatives, and other programs that benefit the poor and needy.
Sadaqah is an important part of Islamic social finance. It is a way for Muslims to fulfill their religious obligations and to make a positive difference in the world. Here are some of the ways that Sadaqah can be used in Islamic social finance:
- Microfinance: Microfinance is a type of financial services that provides small loans to entrepreneurs and small businesses. Sadaqah can be used to fund microfinance projects, which can help to create jobs and reduce poverty.
- Education: Sadaqah can be used to fund educational initiatives, such as building schools and providing scholarships. This can help to improve the quality of life for people in poor communities.
- Healthcare: Sadaqah can be used to fund healthcare initiatives, such as building hospitals and providing medical care. This can help to improve the health of people in poor communities.
- Infrastructure: Sadaqah can be used to fund infrastructure projects, such as building roads and bridges. This can help to improve the connectivity and accessibility of poor communities.
- Other: Sadaqah can also be used to fund other social welfare programs, such as disaster relief and food aid.
Sadaqah is a powerful tool that can be used to promote economic development and social welfare. It is a way for Muslims to fulfill their religious obligations and to make a positive difference in the world.
In addition to the traditional forms of Sadaqah, there are also a number of new and innovative ways to give Sadaqah in the context of social finance. For example, crowdfunding platforms allow people to donate small amounts of money to support specific projects. This can be a great way to make a difference in the lives of others, even if you don't have a lot of money to give.
Sadaqah is a powerful tool that can be used to make a positive difference in the world. There are many different ways to give Sadaqah, and the best way to give is the way that is most impactful to the society and Ummah.
Tags: Islamic Social Finance
