Conceptualization Benefidonors Model in Waqf

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INTERNATIONAL ISLAMIC ECONOMIC SYSTEM CONFERENCE (I-iECONS 2021)

Fauzias Mat Nor

Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM), Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan Malaysia

Tel: +606 798 660 E-mail: fauzias @usim.edu.my

Fuadah Johari

Tel: +606 798 6412 E-mail: fuadah @usim.edu.my

Hasnah Haron

Tel: +606 798 8600 E-mail: hasnahharon @usim.edu.my

Zurina Shafii

Tel: +606 798 6325 E-mail: zurina.shafii @usim.edu.my

Syahidawati Shahwan

Tel: +606 798 6318 E-mail: syahidawati @usim.edu.my

Hanim Misbah

Tel: +606 798 86391 E-mail: hanim @usim.edu.my

Azuan Ahmad

Faculty of Science and Technology, Universiti Sains Islam Malaysia (USIM), Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan Malaysia

Tel: +606 798 6510 E-mail: azuan @usim.edu.my

Amir Shaharuddin

Tel: +606 798 8633 E-mail: amir @usim.edu.my

Abstract

Waqf movement in Malaysia has a long history since the colonization era with plenty of innovations being practiced by waqf managers. The literatures have highlighted on the performance of waqf as a social finance instruments with transformational impacts to the economic wellbeing of the beneficiaries. There is a considerable gap between the cyclic impact on the transformation of beneficiaries into donors that need to be highlighted. This research aims to conceptualize benefidonors model, as the concept suggests on the transformational impacts of the components of the players within the movement.

Benefidonors is a hybrid word that derived from the word, “Beneficiaries” and “Donors”. The “benefidonors” promote “share more”, “use more” and “donate more” for waqf ecosystem using the concept of prosumer and consumerchant.

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443 1. Introduction

Waqf fall under the definition of Islamic social finance ecosystem. In Malaysia, waqf is managed under State Religious Islamic Council (SRIC). The existing structure of the Islamic social finance environment in Malaysia is decentralised due to the nature of the separation of power between federal and states. Bank Negara regulates the Islamic financial sector under the federal constitution. Meanwhile, State Religious Islamic Council (SRIC) governs all waqf assets and activities in Malaysia as sole trustee. Due to its ecosystem nature, Waqf in Islamic social finance can complement the role of Islamic finance beyond the commercial objective by integrating the business-related objective and social responsibilities.

This research aims to conceptualise beneficiaries-donors model from the perspective of prosumers, consumerchant, mutual assistance and altruism as the concept suggests on the transformational impacts of the components of the players within the movement. The beneficiaries-donor cyclic transformation is therefore coined as ‘benefidonors’ from here on.

2. Methodology

This paper is based on the on-going academic research work and descriptive analysis to conceptualise the model of Benefidonor in Waqf. It is conceptual in nature and analytical method is being used to give account the formation of Beneficiaries, Donor with the assistance of the Waqf manager (Mutawalli) which will evolve and help to synergise benefidonors. Data and information are collected through libraries collections, scholarly journals both local and international. In other words, it is conceptual analysis in which taken into consideration from previous research between year 2011 and 2021. 1331 waqf literatures were found for the

Period of 1957-2017 (Salehuddin and Nor Asiah, 2018) and 289 articles which mainly focused on waqf role in poverty alleviation during 2006 – 2016 (Nur Atikah Atan and fuadah, 2017). Therefore, there are additional articles in the area of waqf and Islamic Social Finance literature review from 2011 - 2021 from this research focussing on Beneficiaries, donors and information sharing.

3. Background of the theoretical underpinning

Benefidonors is a hybrid word that derived from the word, “Beneficiaries” and “Donors”. The concept is inspired from the concept of prosumer and consumerchant. Information sharing with others so that others can use the waqf project as well and donate back to the waqf fund, and promote waqf and encourage new donors and beneficiaries in waqf eco-system. Prosumer in nature is about empowering ordinary consumers and has the potential to revolutionise the sharing economy by the active participation of consumers. It also means that consumers are also producers. Today, many of us are already prosumers because we benefit from the latest technologies by easily download free open-source software, courseware and even hardware designs. This means more consumers may leverage on these freebies and their active participation in production having a knock-on effect of cheaper products. Naturally, this has redefined the concept of sharing (Saifullah et al., 2020). ConsuMerchant is a hybrid word that derived from the words, “Consumer” and “Merchant”, this is a PG Mall very own genuine profit-sharing economy business model that empowers consumers/shoppers, young or old to be entrepreneurs and build a permanent business empire. (https://pgmall.my/consuMerchant-concept). It is basically a profit-sharing plan developed to benefit PG Mall shoppers by rewarding them with cash back ranging from 0.5% to 3.5% upon every successful transaction made. This concept also applies for referring new shoppers onboard under PG Mall referral programme.

Hence, based on the concept of prosumers popularised by Toffler (1980), the prosumer initiatives as USIM agenda (Saifullah et al., 2020) and ConsuMerchant by Wira Louis Ng Chun Hau (2020), the operational definition of the benefidonors concept in this study refers to beneficiaries who use waqf product, share or encourage others to use the waqf product and from the savings that the individual has made will be used to invest in other waqf product and transform the beneficieries becoming donors. The concept of the Benefidonors will be based on the information highlighted by the benefidonors theme as shown in Figure 1 as follows.

Table 1 shows the summary of the concept of Prosumer, Consumerchant and Benefidonor as an early assumption in Literature Review Analysis theoritical background.

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444 Figure 1: The Benefidonors Themes

Source: adapted from shop-share-earn in Consumerchant concept and learn more and make more and share more in USIM’s prosumers.

Table 1: Summary of the concept of Prosumer, Consumerchant and Benefidonor as an early assumption in Literature Review Analysis theoritical background

Concept Prosumer Alvin Toffler

(1980)

Prosumer USIM (Noraini, 2020);

(Saifullah, Wan Nadihah &

Mohamed Ridza, 2020)

Consumerchant (Louis Ng Chun

Hau , 2020)

Benefidonor of Waqf (IFWMI

and KKP USIM, 2021),

Benefidonor in Gontor Education

System

Role 1 Consumer Learn more Shop Use more Use more (as

student)

Role 2 Producer Make more Earn Donate more Produce more

managing (in enterprise)

Role 3 Share more share Share more Share more

volunteerily Aspiration “The third

wave - the information age of the

“Do it yourself”

revolution to limit and reduce labor costs

“Do it yourself”.

Learn more from many sources including online sources (iot) before and make and share more the knowledge to generate income.

Job creator.

Shopper become merchant and introduce new shopper

To create more Waqf activist

as social

innovation in

waqf co-

creation ecosystem

Individual

and firm Individual (student, academican and administration staff)

Individual which register in the

system /

platform

Individual which register in the system / platform?

Self

sustaining Enterpreneurship agenda in the university

Enterpreneurship

through online system

Social innovation based on Waqf co-creation (with enterpreneural mind through digital

platform)

USE DONATE MORE MORE

SHARE

MORE

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Thus, with the aspiration in gathering beneficiaries and donors in one platform under one roof,

“Benefidonors” sharing economy instils the spirit of the Shared Prosperity Vision 2020 blueprint as a ground platform of economic competitiveness in emerging self-reliance surrounding beneficiaries and donor’s interaction to uplift the decent standard of living for all Malaysian towards 2030. This is in line with Sustainable Development Goals (SDG) such as to eradicate poverty, ensuring zero hunger and ensuring good health and wellbeing and reduce inequality (United Nation Envision 2030).

4. Conceptualizing benefidonor from prosumer framework in waqf research

Benefidonor had been in existence in current literature but mostly focusing in the form of three roles played by the three parties as waqf manager (mutawalli), beneficiaries and donors. The role of sharing information mostly being executed by the waqf manager. Thus, to boost up more impactful and not really depending to the mutawalli, a social innovation of Benefidonor using prosumer framework is vital that can be evaluated and measured in the society.

Benefidonors using prosumer concept mean one person act in three roles. its closely related to do it yourself or in other word as volunteer that promotes the concept of use more, share more and donate more. Volunteer in Waqf is nothing new, Mufid Suryani and Nida Nusaibatul Adawiyah (2017) propose that when the government is unable to prosper the people through their program, volunteer sector can be seen as an alternative way out. As mentioned by Agung Abdullah (2020), a study aimed to examine the sincerity factor as the main motivation to work for non-profit organizations, especially in waqf institutions found out that, voluntary behavior and sincerity can surpass economic considerations, more broadly revealing that work carried out on the basis of volunteers is felt to be more sincere than the work done by paid workers. The study interviews with 20 waqf practitioners (Nadzir) both as top leaders and implementers in pesantren or Islamic boarding school. The finding in this study is supported by the results of Hoogervost's (Hoogervorst et al., 2015) in volunteer basis. Besides that, other findings of work done sincerely are more able to attract trust from their clients, because the approach taken is directed towards an emotional approach.

According to Ma Binghaiaa and Salina Kassim (2017) that the quality of volunteers are varies. For small waqf institutions, government departments launched the volunteer project for long- term development to play a good social function. Most waqf institutions communicated the project by online promotion, advertisement, and government support. Volunteers are from the various sectors of society, and the main resources are from fresh graduates, idle staff, and retirees.

Agung Abdullah (2020) also mentioned that waqf in educational institutions such as Islamic boarding schools with all their charitable efforts managed with sincerity and volunteer has proven successful, however they propose to explore the sincerity and volunteer aspect in other type of waqf area. Thus, the volunteering and waqf activist can be exist in Benefidonor framework as shown in Figures 2 as follows:

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Figure 2: The proposed model of the Concept of Benefidonor from the concept of Prosumers

5. Conclusion

There is a big gap in most of waqf literature and analysis on the cyclic impact and the transformation of beneficiaries into donors. This research aims to conceptualise benefidonors model from the perspective of prosumerism and consumerchant, as the concept suggests on the transformational impacts of the components of the players within the movement. Benefidonors is a hybrid word that derived from the word, “Beneficiaries” and

“Donors”.

The development of the benefidonors concept is further based on analytical method on waqf literature from the year of 2011 to 2012 with the main theme of use more, donate more and share more. This paper proposes an interactive relationship between donors and beneficiaries with the assistance of the Mutawalli will hence evolve and help create benefidonors, where both donors and beneficiaries can donate, use and share more information about waqf. In turn, waqf activism and volunteerism need to be powered by a common platform that facilitates sharing of information faster and more effective.

Acknowledgment

This paper is part of the research outputs supported by Ministry of Higher Education via Konsortium Kecemerlangan Penyelidikan (KKP) research grant with INCEIF and Universiti Malaysia Kelantan (UMK), with research code: USIM/KKP-I01/IFWMI/FEM/LUAR-K/43920

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