In recent times, there has been an issue where an organization collecting donations for charitable purposes has used a portion of the funds collected to promote further donations by paying influencers or marketing companies. Is this practice permissible in Islam?
In Islamic law, a representative collecting donations is considered a trustee, with the donors being the principals. The trustee is only allowed to use the donated funds as authorized by the donors. This principle is emphasized by Imam al-Syirazi, who stated that a trustee cannot act without the permission of the principal, whether verbally or by custom.
Therefore, any use of donated funds for purposes other than what was agreed upon with the donors requires explicit permission. While it may be customary in Malaysia for a small portion of donations to be used for administrative costs, using funds for promotional purposes would require specific consent from the donors.
According to a decision made during the 137th Legal Consultation Committee Meeting of the Federal Territories on June 9-10, 2022, the following guidelines were established:
1. It is permissible to use public donations for promoting charitable causes with the donors‘ consent.
2. Consent can be obtained by clearly stating in advertisements the intention to use a portion of the donation funds for promotional and advertising costs.
3. The amount allocated for promotional purposes should be reasonable, and the funds should be used judiciously for the benefit of the donors.
4. Before using any collected funds for advertising expenses, the organization must inform and obtain consent from the donors through various means.
Furthermore, it is advised that trustees collecting donations use the funds prudently and avoid excessive spending on promotions to ensure that the donations reach those in need effectively.
In conclusion, organizations, whether non-governmental, corporate, or religious, are allowed to use a portion of donation funds for promotional purposes with the donors‘ consent. This consent can be obtained by clearly communicating the intention to use a specific percentage of the funds for advertising. It is essential to inform and seek approval from all donors before using any collected funds for advertising expenses.
By following these guidelines and principles of Islamic law, trustees can ensure transparency and accountability in their fundraising efforts, ultimately benefiting those in need and upholding the trust of the donors.
Reference:
Imam al-Syirazi, al-Muhazzab fi Fiqh Imam al-Syafii, Beirut: Dar al-Kutub al-Ilmiyyah (n.d), vol. 2, p. 166.