CONCEPT AND APPLICATION OF IJARAH, WAKALAH AND JI’ALAH CONTRACT IN THE PUBLIC DONATION: A COMPARATIVE STUDY BETWEEN NON-GOVERNMENTAL ORGANIZATIONS (NGOs) IN MALAYSIA

Abstract

One of the purposes of the establishment of non-governmental organizations (NGOs) is to help the needy people to get a better life. They help them by doing fundraising to the public. As they get the public donation, they are also allowed to take the commission from the donation according to the Islamic contracts that have been existed in Islam. The purpose of this study is to analyse the types of contract that have been applied by the NGOs in collecting public donation. The methodology used in this research is qualitative method by using document analysis and interview. The informants involved are from the six selected NGOs which have been registered under Companies Commission of Malaysia (SSM) or Registry of Societies Malaysia (ROS). These NGOs are chosen due to their enthusiasm, activeness and success in implementing the public donation other than based on their expertise relating to the donation collection of the organization. Besides, they cooperated very well from the beginning of the research until the end. The data obtained is analysed using content analysis. The finding shows that Islamic Relief Malaysia (IRM), Aman Palestin, Majlis Perundingan Pertubuhan Islam Malaysia (MAPIM), Cinta Syria Malaysia (CSM) and Muslim Volunteer Malaysia (MVM) apply the contract of ijarah, wakalah and ji’alah which comply with the law of Sharia. Yet, Serantau Muslim does not apply any contracts as they do not take any commission from the public donation. Further research needs to be done to identify the similarity of the contract applied by the other NGOs.