The Instrumentation of Shadaqah Funds as a Means of Mosque based

Community Empowerment

Widiyanto Bin Mislan Cokrohadisumarto and Yuli Indah Sari

Sultan Agung Islamic University (UNISSULA), Indonesia

Keywords: Shadaqah Fund, Community Empowerment, Mosque.

Abstract: The poverty rate in Indonesia is still quite high despite a downward trend. Various solutions have been

made, including the presence of Islamic microfinance institutions to provide financing. However, this still

leaves the problem, that the lower layers of society (the poorest of the poor) are also still excluded where

there are still many members of the community who have not been able to obtain riba-free financial

services. This article proposes the idea of empowering the poorest of the poor model using mosque-based

shadaqah funds. The integration of da'wah through mosques and economic empowerment will increase the

resilience of the community especially the poorest of the poor against the onslaught of apostasy efforts.

Improving the quality of faith will increase the fighting spirit to improve economic and religious life. The

involvement of religious leaders and the community around the mosque and rich people towards the fate of

the poor is expected to help them to organize their lives at a better level. This empowerment model is based

on the local community around the mosque so that the mosque is not only a center of worship but will also

function as a center for community economic empowerment.

1 INTRODUCTION

Poverty is still a serious problem for several

countries including Indonesia. BPS (2019) states that

the number of poor people in Indonesia as of March

2019 still reaches 9.41%. Although this figure has

decreased by 0.25% relative to September 2018

(BPS, 2019). Various policies have been carried out

by the government to overcome these problems,

such as the Family Hope Program (PKH),

educational assistance through the Smart Indonesia

Program (PIP), food assistance, and contribution

assistance for the National Health Insurance

Program (JKN) (Ministry of Finance, 2019). Other

institutions also participated in giving their best

contributions, such as Islamic Micro-Finance

Institutions (IMFI) which channeled funding and

amil zakat institutions that channeled alms to the

poor. However, the amount of zakat funds is still not

as expected and the program management has not

been realized optimally. The problem of poverty

leaves many problems, including reaching the

poorest of the poor and providing usury-free

financial services. Related to the many limitations,

the smart solution is to present the voluntary

financial sector (Shadaqah) as an instrument for

which implementation is relatively easier. However,

to implement it requires good planning.

As the most populous Muslim country, Indonesia

has more than 700 thousand mosques spread

throughout the country (Ministry of Religious

Affairs, 2019). The number of mosques and great

potential in gathering people can be optimized for

economic development (Riwajanti, N. I & Fadloli,

2019). This potential can be utilized through the

management of shadaqah funds for productive

community empowerment. Regarding shadaqah,

Rais (1998) states that one of the problems faced by

Muslims to build a better future is a weakness in

funding. He mentioned that infaq (Shadaqah) was

the solution to the problem. Furthermore, Islam

encourages Muslims to spend part of their wealth in

the path of Allah through Shadaqah (QS: 2; 254 and

Q.S: 2; 261). Supporting this, Albadri, Aziz, &

Amaliah (2019) has proven that well-managed

shadaqah management encourages community

economic empowerment more effectively. This

means that the integration of the potential of the

mosque and shadaqah funds is new hope for

overcoming the problem of poverty and improving

the people's economy. Given that the mosque has a

function, one of which is to distribute shadaqah

(Movahed, 2014). The integration also promotes

178

Cokrohadisumarto, W. and Sari, Y.

The Instrumentation of Shadaqah Funds as a Means of Mosque based Community Empowerment.

DOI: 10.5220/0010119800002898

In Proceedings of the 7th ASEAN Universities International Conference on Islamic Finance (7th AICIF 2019) - Revival of Islamic Social Finance to Strengthen Economic Development Towards

a Global Industrial Revolution, pages 178-185

ISBN: 978-989-758-473-2

usury-free empowerment solutions and presents a

balanced well being both in the life of the world and

the hereafter.

Another fundamental challenge faced is about

the understanding of society which considers that the

teachings of Islam are only limited to the problem of

worship. Whereas Islam also teaches something

broader namely, about muamalah / economic

relations between Muslims and takaful / mutual

assistance activities (Riwajanti, N. I & Fadloli,

2019). Thus, they suggested holding da'wah

focusing on the basis of Islamic economics in order

to increase public awareness regarding the

willingness to channel shadaqah funds. Furthermore,

in relation to da'wah, Torabi & Noori (2019) state

that religious leaders hold a greater responsibility,

that is, the responsibility to educate and influence

the people regarding the awareness of sharing or

making shadaqah. That is, to support the role of the

mosque as a means of managing shadaqah funds, the

presence of religious leaders is urgently needed.

Aside from religious leaders, another important

factor is the role of the university. Paletta, et al.

(2019) states that partnerships with universities

facilitate responsible entrepreneurship and

organizational capacity to face new challenges, such

as globalization, informed society and changes in

production and consumption patterns. According to

Riwajanti, N. I & Fadloli (2019), mosque-based

empowerment is largely driven by non-

governmental institutions and institutions of higher

education or universities. Furthermore, Wakkee, van

der Sijde, Vaupell, & Ghuman (2019) state that

entrepreneurship-based universities have a very

important role as agents of change for sustainable

regional development (local community).

Universities as agents of change and development

agents accelerate economic growth (Supriyadi,

2012). But unfortunately, the existence of the

university is currently only seen as a provider of

science, technology and human resources

(community service is still very weak). Whereas

Supriyadi (2012) states that harmonization,

empowerment and partnership networks among

actors (government, regional government, business,

community, and universities) are important

principles and steps in developing the local

economy.

Therefore, the solution to overcome poverty and

community empowerment is to integrate mosques,

shadaqah funds, religious leaders, and universities.

In this case, shadaqah fund instrumentation becomes

very important to get more attention from various

parties, including support from the community itself.

This article aims to develop a model of

community empowerment by integrating the

functions of mosques and shadaqah funds supported

by the presence of religious leaders and universities.

Harmonization of the model is expected to give birth

to true community welfare (Falah).

2 LITERATURE REVIEW

Background Theory

1. Community Empowerment

According to Hossain, Asadullah, & Kambhampati

(2019) (citing the views of Ibrahim & Alkire

(2007)), empowerment is control over a series of

personal decisions, household decision making and

the ability to change one's life at both the individual

and community level. More specifically according to

Lailatussufiani, M, & Multifiah (2016),

Empowerment is defined as the distribution of

Zakat, Infaq, and Shadaqah (ZIS) funds

accompanied by the aim of changing the economic

conditions of mustahiq (poor and needy).

Empowerment refers to the power to influence

changes in one's life and affect changes in society

(Trommlerová, Klasen, & Leßmann, 2015). Ismail

A. (2012) explaining the essence of community

empowerment is to help clients (the poor) so that

they gain power in making decisions and determine

actions to be taken to improve their lives. In this

regard, including reducing the effects of personal

barriers to using the power they have, among others

through the transfer of power from their

environment. According to Sumodiningrat (1997)

Empowerment is an effort to build the power of the

poor by providing motivation and raising awareness

about their potential, and striving to develop it.

Empowerment has the meaning of producing

resources, opportunities, knowledge, and skills to

increase the capacity of the community to determine

their future (Saleh, 2017). From this discussion, it

can be summarized that community empowerment

refers more to the control of personal decisions and

abilities in an effort to provide motivation, realize

the potential of the community, and develop it to

improve the quality of their lives (faith, knowledge,

and charity). Thus, the welfare of the community is

not only improving the economy of the community

but also improving the quality of faith and worship

of God.

In the study of Lailatussufiani, M, & Multifiah

(2016), community empowerment is measured from

The Instrumentation of Shadaqah Funds as a Means of Mosque based Community Empowerment

179

empowerment in the fields of education, economics,

and health. Empowerment in the field of education

serves to improve the quality of people's lives in the

future. Economic empowerment is done by

contributing capital for the business to the

community. And health empowerment is done by

providing free health services for the poor. Whereas,

Trommlerová, Klasen, & Leßmann (2015) in his

study measured community empowerment adjusted

to the aspects of socio-demographic (older, men,

large households, married, and household), socio-

economic (educated, literate, economically active,

wealthy), and self-reported capability (healthy).

Whereas in Hossain, Asadullah, & Kambhampati

(2019) whose research focus is on individual

empowerment makes five measurement indices,

namely production decision making, access to

productive resources, income, community

leadership, and time allocation. Albadri, Aziz, &

Amaliah (2019), who in his research examined the

distribution of ZIS for community economic

empowerment states that:

a. Empower some groups that are entitled to zakat

assets, for example, the poor, namely by giving

them zakat assets so that they can meet their

needs. In addition, by providing capital to those

who have expertise but face obstacles in the

form of limited capital.

b. Empowering the needy, namely by providing a

number of assets to fulfill life and empowering

those without expertise.

c. Empowerment of several groups entitled to

zakat assets, which have new income with their

incapacity. They are zakat employees and

Muslim converts.

d. Empowerment of several groups entitled to

zakat property to realize the meaning and

purpose of actual zakat other than those

mentioned above

Furthermore, Saleh (2017) found a series of

empowerment processes in Muslim communities can

be assessed through three main levels, namely:

a. The scope of the individual has a direction to

increase spiritual intelligence, intellectual and

improve individual quality.

b. Family scope, forming a harmonious family

through the formation of harmony between

members and the desire to excel in gaining the

grace of God Almighty.

c. Community, the actualization of science and

charity. Science as a process of awareness

towards strengthening faith becomes a charity

to guide social life.

2. Instrument of Shadaqah

Shadaqah (voluntary charity) is a virtue in Islam (QS;

3: 92). In fact, it is considered as proof of one's faith.

The word shadaqah (Alms) comes from the Arabic

"shadaqah." In language means "true or honest."

Meanwhile, according to the term, Shadaqah means

voluntary gifts, both in the form of money, goods,

services, kindness, and others (Mulazid & Mufliha,

2019). This is given to people who have the right to

receive it with an unspecified amount, given anytime

and anywhere for the sake and hope of Allah SWT.

Mulazid & Mufliha (2019) mentioned that

"Shadaqah" has two meanings. First, the sunnah

"Shadaqah", and second is the compulsory "Shadaqah

(zakat)". Shadaqah (Alms) is giving movable or

immovable property, which will soon be used up

whether or not used, to other people or legal entities,

such as foundations or the like, without compensation

and conditions, but only to please God and expect his

possessions to be rewarded on the Day of Judgment

(Lailatussufiani, M, & Multifiah, 2016).

The Qur'an has provided the parable of shadaqah:

the parable of the person who spends his wealth in the

way of Allah like a seed growing seven stalks, in each

stalk, there are one hundred seeds (QS; 2: 261). In

connection with this verse, Hamka (1996) in Tafsir

Al-Azhar outlines that spending wealth in the way of

Allah will bring thousands of benefits (for many

people) and Allah will multiply (reward) to whom He

wants. Shadaqah in Islam is highly recommended as a

form of social life and to create a unity in life,

especially in the economic field of Muslims. Every

shadaqah issued in return will surely return to

yourself. No matter how small the wealth offered in

the path of God with sincerity, surely God will

multiply, and sometimes from an unexpected

direction.

Rasulullah SAW said: "For every Muslim, it is

recommended to be shadaqah", the Companions

asked, "O Prophet, how do those who do not get

something to share or shadaqah (with him)?". "They

asked again," did he not get anything? "Rasulullah

SAW answered again," Let him do good and refrain

from evil because that is his shadaqah. "(HR. Ahmad

bin Hanbal). This means that shadaqah is something

that is highly recommended.

3. The Important Role of Shadaqah

Instrumentation for Community

Empowerment

Islamic teachings about infaq (shadaqah) are very

high in value. In addition to eroding the bad qualities

such as stingy and selfishness, infaq also raises a

7th AICIF 2019 - ASEAN Universities Conference on Islamic Finance

180

deep social awareness, that humans always need

each other, and someone will not be able to live

alone. Therefore there must be mutual cooperation

and mutual giving so that the gap between the rich

and the poor can be eliminated, brotherhood can be

fostered with a more intimate relationship. Spending

wealth in the way of Allah, both those that are

obligatory such as zakat and those that are Sunnah

such as alms used for the welfare of the people, to

eradicate poverty and ignorance, for the

broadcasting of Islam and for the development of

science are highly demanded by religion, and are

strongly encouraged by the Shara’.

Chaudhry (2012) explains that voluntary

shadaqah which is done to achieve the pleasure of

Allah will be rewarded in the world and in the

hereafter, this shadaqah also helps channel wealth

from the rich to the poor and needy. The goal to be

achieved with voluntary alms is justice (distributive

and social). Proper management of shadaqah funds

will help empower the community's economy better

(Albadri, Aziz, & Amaliah, 2019). The distribution

of shadaqah funds can be used for productive

programs such as in the fields of education, health,

and economics.

4. The Role of the Mosque

The word masjid or mosque has evolved from the

word sajada (prostration) which refers to filial piety,

faithful and with heads bowed with respect and

respect. The mosque is not only a place of worship

but also a place to gain knowledge (Mohamed, Ab

Aziz, Masrek, & Daud, 2014). Malik (2013)

concluded that the mosque as one of the religious

institutions not only has a theological dimension that

regulates the relationship of Muslims with God but

also as a basis for the development of da'wah and

education that shapes Islamic culture. Mohamed, Ab

Aziz, Masrek, & Daud (2014) mentions that a

mosque is also a place for meetings of members of

the Islamic community, as well as a place to hold

various religious ceremonies and rituals, such as a

marriage contract (wedding ceremony). To be able

to fully implement the role and function of the

mosque at this time, it must also be known how the

mosque functioned during the time of the Prophet

Muhammad. According to Karamoy (2019) quoting

from Ismail & Castrawijaya (2010) among the roles

and functions of the mosque at that time was a place

of worship, as a meeting place, as a place of

consultation, as a place for social activities, as a

place of care for the sick and as places of pilgrimage

and Islamic da'wah The problems that occur in

Muslim communities, namely poverty and

inequality, force the mosque to give a role that is

more than just a place of worship such as a center

for community empowerment.

Karamoy (2019) explains that mosques can be

classified as Nonprofit Organizations (NPOs),

dealing with public funds received from the

government, corporate and public donations, control

over financial activities in handling funds received

and released by organizations, has become an

attractive area for being investigated. Donated funds

(shadaqah) received should be able to be managed

for various beneficial activities. Mosques must be

designed to meet the modern needs of Muslims to

popularize their use and provide effective lateral

support is important in the process. Mosque imams

must be trained in ineffective management methods

and modern communication technology. In the

process of development, the mosque must be made

to attract the interests and needs of the modern

Muslim lifestyle.

5. The Role of Religious Leaders

Ulama in Arabic is the form of jama' from the word

"alim" (knowledgeable person); whoever has the

knowledge and whatever field of science, is called

"alim". Ulama means people who are knowledgeable

or scientists (Nasution, 2016). In the hadith of the

Prophet narrated Tirmidhi in his Sunan no. 2681 or

Musnad Imam Ahmad Juz 5 p. 169, the Prophet

Muhammad mentioned that ulama became heirs who

inherited the prophets. Religious leaders become

role models and references for solving all problems

both religion and community life, even Muslim

communities often refer to ijma '(the agreement of

the scholars in establishing law in religion based on

the Qur'an and Hadith in a case that occurs).

In a shift in the new era, religious leaders are

challenged to participate in adapting to provide the

best solution method for existing problems,

justification, and respond to at least some questions

that will be different about the information

revolution, the internet era, and globalization

(Torabi & Noori, 2019). Supported by Nasution

(2016) which states that the rapid development of

the Islamic economy cannot be followed by some of

our scholars, causing their response to the Sharia

economy to be less positive. The biggest challenge

to help the problem of community empowerment is

to broaden people's thinking about economic

relations between Muslims (muamalah) and mutual

assistance activities (ta'awun) not just in worship

(Lailatussufiani, M, & Multifiah, 2016). In this case,

The Instrumentation of Shadaqah Funds as a Means of Mosque based Community Empowerment

181

religious leaders have the power to raise awareness

and influence the attitudes, behavior, and practices of

their followers. They can form social values in line

with religious-based teachings. However, scholars

and religious institutions need to strengthen their

knowledge and insight in the fiqh of muamalah and

Islamic economics so that this important role can be

carried out effectively. The most important thing in

this problem is commitment; it is necessary to build a

strong commitment among religious scholars and

institutions to develop the Islamic economy and the

welfare of the people and nation (Nasution, 2016).

6. The Role of the University

Higher education institutions aspire to focus on

academic research with little practical orientation

(Hatakenaka, 2007). Even though the size of the

Ummah/student-owned actually has a very big role

to help improve the economy. Hatakenaka (2007)

states that universities can play an indirect but

important economic role in the local social, cultural

and intellectual fields. Supported by Sevinc (2014)

which states that universities create technological

innovation, employment, university-industry

collaboration, and various socio-cultural activities,

and also encourage the development of local and

regional economies. Ozturk (2008) states that

education increases people's productivity and

creativity and promotes entrepreneurship and

technological progress. In addition, it plays a very

important role in securing economic and social

progress and increasing income distribution.

Lailatussufiani, M, & Multifiah (2016) found

that most people in urban areas who were educated

with an open view were willing to accept the usury-

free empowerment program. Whereas for people in

rural areas still lacking this knowledge and are more

receptive to conventional programs. From this

opinion, as an academic community, universities

also play an important role to assist mosque-based

empowerment programs by utilizing shadaqah

funds. Especially because universities as agents of

change and development agents accelerate economic

growth (Supriyadi, 2012) so that entrepreneurial-

based universities have a very important role as

agents of change for sustainable regional

development (local community) (Wakkee, van der

Sijde, Vaupell, & Ghuman, 2019).

Previous Study

There are several studies on the community

empowering as follows:

Lailatussufiani, M, & Multifiah (2016) examined

the use of zakat, infaq, and shadaqah funds for

community empowerment studied at the National

Alms Agency (BAZNAS West Nusa Tenggara

Province, Indonesia). They found that the zakat,

infaq, and shadaqah funds managed by BAZNAS

were able to optimally roled community

empowerment in terms of education, health, and the

economy.

Riwajanti, N. I & Fadloli (2019) examined the

mosque-based Islamic cooperative for the economic

development of the community. Researchers

revealed the initial step to implement the concept is

to change the mindset of the community through

mosque lectures and other communication channels

because the concept of Islamic economics is still

unknown. There are four pillars that are used

(commitment and integrity, consistency and focus,

good capability, capacity and professional

management, and accountability and transparency)

to foster trust in the mosque which can then

empower the economic potential of the mosque

through the establishment of Islamic cooperatives.

Furthermore, Albadri, Aziz, & Amaliah (2019)

examining the influence of zakat, infaq, and

shadaqah management for community

empowerment (BAZNAS Cirebon, Indonesia). This

study found that each of the management of zakat,

infaq, and shadaqah were positively able to

empower the community. This means that if the

management of zakat, infaq and shadaqah funds is

carried out effectively, it will increase community

empowerment to a more productive basis.

3 ANALYSIS MODEL

Data

The data used in this article are secondary data that

is sourced from literature, books, research journals

and data from the company. The secondary data in

this study were obtained from various other sources

that present information about all matters relating to

the community empowerment model through the

integration of mosque-based shadaqah funds.

Model Development

Trommlerová, Klasen, & Leßmann (2015) stated

that intrinsically institutions and empowerment can

be instrumentally effective in promoting human

development and reducing poverty. Supported by

Zaenal, Astuti, & Sadariyah (2018) which states that

7th AICIF 2019 - ASEAN Universities Conference on Islamic Finance

182

empowering urban communities can reduce the

existing poverty index through the use of ZIS funds.

Furthermore, Albadri, Aziz, & Amaliah (2019)

found that through good shadaqah fund

management, community economic empowerment

would be more effective.

Bahari & Sihabbuddin (2016, March) in an

explorative study of the role of Malaysian mosques in

community development prove that Malaysian

mosques play a very significant position. The

mosques practice a dual role, namely upholding one's

relationship with Allah (Íabl min al-Allāh) and

executing human worldly affairs (Íabl min al-nas).

Furthermore, Movahed (2014) explained that mosque

theory practiced would significantly improve the

Muslim community. Mosque theory can provide a

conceptual framework for the process of community

development in various fields of activity. It will also

provide a framework for understanding the relation-

ship between religious and social development.

Community development can occur by carrying out

and utilizing the vitality of the community through the

strengthening of morality, brotherhood, devotion, and

knowledge. There are five things to be gained from

community development through mosques: forming

fraternal relationships in the community, learning new

things, creating knowledge, abandoning sin (because

of faith), and hoping for divine love. This means, to

strengthen the economic dimension of the mosque it

can be used as an empowerment center for the

effective management of ZIS funds (Saleh, 2017).

Furthermore, Mustafa, et al. (2017) found out

about the role and effectiveness of Muslim religious

leaders and mosques in promoting health

empowerment in Western societies. Not only in the

field of health empowerment, but religious leaders

also play a very important role in promoting wider

knowledge about religion and finding solutions for

solving problems in the new era of humans such as

empowering environmental aspects (Torabi & Noori,

2019). In addition to religious leaders, the university

also helps create technological innovation,

employment, university-industry collaboration, and

various socio-cultural activities, and also fosters local

and regional economic development (Sevinc, 2014).

This means that religious leaders and universities

have a very significant function in order to assist

community empowerment through the integration of

mosque-based shadaqah funds.

Method

This article uses a qualitative approach by

examining the latest literature to build a model of

community empowerment. The literature review

needed is related to community empowerment

issues, shadaqah fund instrumentation, the role of

mosques, religious leaders, and universities. From

the results of this study, a model of community

empowerment was formed.

Result

The community empowerment program is carried out

through the integration of the mosque as a center for

managing shadaqah funds from the community. This

integration is supported by the role of religious

leaders and universities. Where these two aspects

function as aspects that help mosques gather people

and promote the use of shadaqah funds for

community empowerment. In addition, the university

as an agent of development and change into aspects

that support the usury-free program through

integration above. Then the harmonization of all

aspects contributes to an intelligent community

empowerment program to create sustainable

community welfare. Among them welfare to improve

their worldly economy. And welfare to further

enhance the faith and worship and through sharing

activities with fellow believers. So that welfare arises

is true welfare (Falah). Based on the results of the

discussion in the previous section which refers to the

study of literature, it can be formulated a conceptual

framework for community empowerment as follows:

Sources: Trommlerová, Klasen, & Leßmann (2015),

Zaenal, Astuti, & Sadariyah (2018), Albadri, Aziz, &

Amaliah (2019), Bahari & Sihabbuddin (2016, March),

Movahed (2014), Saleh (2017), Mustafa, et al. (2017),

Torabi & Noori (2019), Sevinc (2014)

Figure 1: Community Empowerment Model Through

Instrumentation of Shadaqah Funds.

The Instrumentation of Shadaqah Funds as a Means of Mosque based Community Empowerment

183

Analysis

The developed model of this study, it is in the

context of community empowerment have been

supported by various recent literature studies. It

needs to be understood that the most important thing

in optimizing the potential of mosque and shadaqah

funds for community empowerment is to build

public awareness and knowledge of the benefits of

these funds. The concept of Islamic economics is

still something that is rarely known by some society.

Community still think that the mosque is only a

place of worship or religious (shadaqah) activities

carried out only when there is a disaster. Productive

activities (empowerment) carried out through zakat,

infaq, shadaqah and waqf funds are still very strange

among the community because they consider that

these funds are only intended for sympathetic care

(consumptive) funds. So providing understanding to

the community in relation to this is an absolute

necessity to change their mindset.

The economic potential of the mosque can be

run optimally if the mosque's internal management is

well managed, especially in managing zakat, infaq,

shadaqah and waqf funds. In this regard, human

resources who operate mosque activities are required

to have broader capabilities and knowledge about

jurisprudence (fiqh) of Islam. That is because the

management of the mosque's potential must be

carried out in accordance with the provisions of

Islamic sharia, so that in the future there will be no

errors. As a means of strengthening awareness and

intelligence among modern society, religious leaders

and universities are required to continue to have the

best methods and justifications for solving problems

in an ever-changing era. From this discussion, it can

be concluded that the human aspects (intellectual,

faith, and action) both the community and program

managers as well as other parties (religious leaders

and universities) have an important role in the

success of community empowerment programs. The

collaboration is expected to create overall

community welfare (falah). Prosperity is reflected in

the improvement of economic and intellectual

intelligence (dunia) as well as strengthening the faith

and worship of the people to Allah SWT (ukhrawi).

4 CONCLUSION

Conclusion

Community empowerment programs are very

important to be practiced to overcome the inequality

of wealth that occurs and to be new breakthroughs

that can be utilized in the future. Through the

discussion above, some important things that can be

concluded and help the program that is planned

include; First, the importance of raising awareness

and the willingness of the community to share with

others is an important point. Awareness that

shadaqah is a form of faith in Allah Almighty needs

to be emphasized and promoted more massively.

Second, shadaqah funds collected and managed for

productive activities will help empower and improve

the community's economy. Third, as a center of

progress, the mosque is not only seen as a place of

worship for humans. The current mosque must be a

sector that continues to be renewed and answer the

problems being faced by the Ummah (poverty),

namely through proper management of shadaqah

funds which is full of commitment, responsibility,

and transparency. In addition, the development of

networking among other parties must also be

maintained properly, to maintain the optimal

function of empowering mosques to the community.

Fourth, religious leaders must participate in

massively disseminating knowledge and insights

about the importance of shadaqah to the wider

community. Refreshing and educating the public's

knowledge becomes a big responsibility and must be

carried out by religious leaders. Because with the

potential to gather people, religious leaders play a

very important role in the economy and welfare.

Religious leaders are also role models to lead people

in a better direction and in accordance with Islamic

teachings. Fifth, community empowerment also

requires support from the university. The university

is an agent of change and development towards a

better society. Support from the university can be

done by helping the mosque collect shadaqah funds

regularly. As is known, universities are intellectuals

who have an open view, especially to encourage the

empowerment of usury-free communities. So, it is

important for tertiary institutions, to participate in

socializing this program to the public.

Recommendation

That is the power of Sadaqah instrumentation for

community empowerment and certainly cannot be

separated from the role of mosques, religious

leaders, and universities. So, the model built must be

discussed further to be implemented.

7th AICIF 2019 - ASEAN Universities Conference on Islamic Finance

184

REFERENCES

Albadri, M., Aziz, A., & Amaliah, R. (2019, February 22).

Infaq and Shadaqah Management on Community

Economic Empowerment in Baznas, Cirebon. Infaq and

Shadaqah Management on Community Economic

Empowerment in Baznas, Cirebon, hal. 1-10.

Bahari, C. A., & Sihabbuddin, A. (2016, March).

Exploration of the Role of Mosques In Community

Development: Malaysian Experience. Kuala Lumpur,

Malaysia: Proceeding of the 3rd International

Conference on Arabic Studies and Islamic Civilization

ICASIC2016 (e-ISBN 978-967-0792-08-8).

BPS. (2019). Profil Kemiskinan di Indonesia. Jakarta:

Badan Pusat Statistik.

Chaudhry, M. (2012). Fundamental of Islamic Economic

System. Jakarta: Kencana.

Hamka. (1996). Tafsir Al-Azhar Juz III. Jakarta: PT Pustaka

Pajimas.

Hatakenaka, S. (2007). The role of higher education

institutions in innovation and economic development.

International Higher Education, 47, 4-5.

Hossain, M., Asadullah, M. N., & Kambhampati, U. (2019).

Empowerment and life satisfaction: Evidence from

Bangladesh. World Development, 122, 170-183.

Ibrahim, S., & Alkire, S. (2007). Agency and

empowerment: A proposal for internationally

comparable indicators. Oxford development studies,

35(4), 379-403.

Ismail, A. (2012). Al-Qur’an dan Kesejahteraan Sosial

Sebuah Rintisan Membangun Paradigma Sosial Islam

Yang Berkeadilan dan Berkesejahteraan. Tangerang:

Lentera Hati.

Ismail, A. S., & Castrawijaya, C. (2010). Manajemen

Mosque . Bandung: Angkasa.

Karamoy, D. N. (2019). Determination of Mosque Funds by

Indonesian Law towards the Development of People:

Case Study Mosque Raya Ahmad Yani Manado,

Indonesia. JL Pol'y & Globalization, 82, 53.

Lailatussufiani, S., M, U. B., & Multifiah. (2016). The

Utilization of Zakat, Infaq and Shadaqah for

Community Empowerment (Case Study of BAZNAS

West Nusa Tenggara Province). . International Journal

of Business and Management Invention, 5(10), 152-160.

Malik, N. L. (2013). Etos Kerja, Pasar dan Masjid

Transformasi Sosial-Keagamaan dalam Mobilitas

Ekonomi Kemasyrakatan. Jakarta: LP3ES.

Ministry of Finance. (2019). Kementerian Keuangan Badan

Kebijakan Fiksal. Dipetik september 20, 2019, dari

https://fiskal.kemenkeu.go.id/dw-konten-view.asp?id=

20181228101637900330336

Ministry of Religious Affairs. (2019). Sistem Informasi

Masjid. Dipetik september 20, 2019, dari

http://simas.kemenag.go.id/

Mohamed, I. S., Ab Aziz, N. H., Masrek, M. N., & Daud,

N. M. (2014). Mosque fund management: issues on

accountability and internal controls. Procedia-Social and

Behavioral Sciences, 145, 189-194.

Movahed, K. (2014). Kent State University. Dipetik

September 20, 2019, dari https://digitalcommons.

kent.edu/acir/2014/Three/16/

Mulazid, A. S., & Mufliha, N. M. (2019). The Effect Of

Distribution Funds Of Zakat Infaq Shadaqah, Social

Assistance Expenditure, And Subsidy Expenditure On

Poverty In Indonesia. I-ECONOMICS: A Research

Journal on Islamic Economics, 5(1), 1-16.

Mustafa, Y., Baker, D., Puligari, P., Melody, T., Yeung, J.,

& Gao-Smith, F. (2017). The role of imams and

mosques in health promotion in Western societies—a

systematic review protocol. Systematic Reviews, DOI

10.1186/s13643-016-0404-4, 1-5.

Nasution, M. Y. (2016). Peran Strategis Ulama dalam

Pengembangan Ekonomi Syariah. HUMAN FALAH:

Jurnal Ekonomi dan Bisnis Islam, 1(1), 17-28.

Ozturk, I. (2008). The role of education in economic

development: a theoretical perspective. Available at

SSRN 1137541, 2-8.

Paletta, A., Fava, F., Ubertini, F., Bastioli, C., Gregori, G.,

La Camera, F., & Douvan, A. R. (2019). Universities,

industries and sustainable development: Outcomes of

the 2017 G7 Environment Ministerial Meeting.

Sustainable Production and Consumption, 19, 1-10.

Rais, M. A. (1998). Tauhid Sosial: Formula Menggempur

Kesenjangan. Bandung: Mizan.

Riwajanti, N. I, & Fadloli. (2019). Mosque-Based Islamic

Cooperative for Community Economic Development.

Review of Integrative Business and Economics

Research, 8, 196.

Saleh, T. (2017). Community Development In Coastal

Society Based on Islamic Values Perspective In

Tanjung Village, Pademawu, Pamekasan. KARSA:

Journal of Social and Islamic Culture, 25(1), 90-117.

Sevinc, H. (2014). The role of universities in local economic

development: a case of TRA2 region in Turkey.

Research Journal of Business and Management, 1(4),

448-459.

Sumodiningrat, G. (1997). Pembangunan Daerah dan

Pengembangan Masyarakat. Jakarta: Bina Rena

Parwara.

Supriyadi, R. E. (2012). Local economic development and

Triple Helix: Lesson learned from role of Universities in

higher education town of Jatinangor, West Java,

Indonesia. Procedia-Social and Behavioral Sciences, 52,

299-306.

Torabi, M., & Noori, S. M. (2019). Religious Leaders and

the Environmental Crisis: Using Knowledge and Social

Influence to Counteract Climate Change. The

Ecumenical Review, 3(71), 344-355.

Trommlerová, S. K., Klasen, S., & Leßmann, O. (2015).

Determinants of empowerment in a capability-based

poverty approach: Evidence from The Gambia. World

Development, 66, 1-15.

Wakkee, I., van der Sijde, P., Vaupell, C., & Ghuman, K.

(2019). The university's role in sustainable

development: Activating entrepreneurial scholars as

agents of change. Technological Forecasting and Social

Change, 141, 195-205.

Zaenal, M. H., Astuti, A. D., & Sadariyah, A. S. (2018).

Increasing urban community empowerment through

changing of poverty rate index on the productive zakat

impact. IOP Publishing, 106(1), 012104.

The Instrumentation of Shadaqah Funds as a Means of Mosque based Community Empowerment

185