Islamic Venture Philanthropy: a tool for sustainable community development

The magnitude of philanthropic giving in Muslim communities is estimated to total between USD 250 billion and USD 1 trillion annually. In spite of being such a huge philanthropic wealth base, in most countries it is being either mismanaged or misappropriated. The current research proposes that this Islamic philanthropy can be interpreted using conventional models of venture philanthropy. This can be done by applying tailored financing. For example, it can be used for professional financial advice and assistance to build strong communities. Philanthropic wealth can be invested in shari‘a compliant activities and the returns can be further used for larger community development. This model will encourage networking of local business people and Islamic investors; a true partnership based on shared risk and profit and with clear development objectives. This model measures both social and financial impact of Islamic venture philanthropy for Muslim communities at large.