Institute of Islamic Social Finance (IISF)

About IISF

1611211651240

ABOUT IISF

The Institute of Islamic Social Finance has been established as a specialized center dedicated to advancing the principles and practices of Islamic social finance. Our focus is on leveraging Islamic finance instruments, including Zakat, Waqf, Sadaqah, Qard Al-Hasanh and other related mechanisms to address social and humanitarian challenges and promote sustainable development within our community.
Institute of Islamic Social Finance (IISF) function as a subsidiary organization under the purview of the Center for Zakat Management (CZM). All operational endeavors of the IISF carried out under the direct and vigilant supervision of CZM. The IISF is directly accountable to CZM for matters pertaining to its financial activities, transactions, general operations and overall performance.

Islamic Social Finance Instruments

Social finance is a term used in the financial world to reflect the approach of managing funds or investments that generate financial returns while including measurable positive social impact. Islamic social finance refers to the management of the fund based on Islamic principles to create a financial or non-financial return to the community with an emphasis on the poor segment of the community.

ZAKAT

Is a word derived from the word ( زَكَى ) which means purified and fertile, including clean, blessed, growing and beneficial to the zakat property, the payer and the payee. Zakat is giving away a certain type of property at a certain rate in accordance with certain conditions to be distributed to certain groups of people.

UsHAR

The word Ushar means one-tenth part of something. Ushar specifically refers to the Zakat from agricultural produce. For Ushar, it is not a requirement to possess the ownership of the produce for one full year. Instead, Ushar is due on the day of harvesting the crop.

SADAQA

In the Quran, the terms Zakat and Sadaqah are used interchangeably. However, some jurists consider Zakat to be obligatory and Sadaqah to have a general meaning. In the context of voluntary charity , they often use the term Sadaqah extensively.

Qard Al hasan

Qard-al-hasan refers to providing assistance for mutual cooperation, where the given asset is expected to be beneficial to the recipient, who will, in turn, reciprocate the favor.

Waqf

The term "Waqf" means donating a property under the condition that the original asset will be preserved intact, and its profit will be spent for charitable purposes.

Sadaqa-e-jariaya

"Sadaqah Jariya" means continuous charity. Sadaqa Jariya refers to a form of charity where the benefits of the donation continue over time.Examples building a well establishing an educational institution etc.

fidiya

"Fidiya" is compensation in Islam, paid when one cannot fast or fulfill certain religious duties due to valid reasons, like illness. It serves as a form of atonement and is applicable to ordinary Muslims under specific conditions. 

Kaffara

Kaffara is the penalty determined by Sharia to seek forgiveness from a transgression. It involves providing physical and financial compensation for four specific offenses: homicide, injury, breaking a fast during Ramadan, and violating an oath.

hadiya

"Hadiya" means giving a gift. It involves presenting something to someone without any exchange or expectation of receiving something in return. "hadiya" or gift can be given to anyone, and it is not limited to any specific occasion.. 

WHAT PEOPLE SAY