Table 2 Summary of financial operation practices in Islamic DCFs
From: Financial management practices in Islamic donation-based crowdfunding (DCF) platforms in Malaysia
Practices | Islamic DCF A | Islamic DCF B | Islamic DCF C | Islamic DCF D | Islamic DCF E | Islamic DCF F |
|---|---|---|---|---|---|---|
Fund management process | Acts as an intermediary between project owners and donors Limited to only transfer the fund to project owners Project owners and beneficiaries are different parties | Acts as a fund manager Transfer the fund directly to the third parties (project owners/ beneficiaries will pay to) | Acts as an intermediary between project owners and donors Limited to only transfer the fund to project owners Project owners and beneficiaries are different parties | Acts as an intermediary between project owners and donors Limited to only transfer the fund to project owners Project owners and beneficiaries are different parties | Acts as an intermediary between project owners and donors Limited to only transfer the fund to project owners Project owners and beneficiaries are the same party | Acts as a fund manager Transfer the fund to project owners and monitor the project through beneficiaries |
Income generation | Service fee 5.5% from the fund received plus RM1 for payment gateway (Toyyibpay) cost per transaction Subsequent disbursement will be charged RM1 for each transaction | Service fee 5% from the fund received plus RM1 per FPX transaction (internet banking) or 5% for MasterCard/Visa Collect zakat fund and received commission from it | Service fee 5% or RM2 (which is higher) from the fund received | Service fee 5% from the fund received | Informed that they reserve the right to charge service fee 10% but currently just charge 5% | Service fee 6% from the fund received. |
Involvement with Islamic social finance fund | Donation received in form of zakat, waqf, sadaqah and infaq funds | Donation received in form of zakat, waqf, sadaqah and infaq funds Collect zakat fund -collaboration with authorized entity (amil) | Donation received in form of zakat, waqf, sadaqah and infaq funds | Donation received in form of zakat, waqf, sadaqah and infaq funds | Donation received in form of sadaqah and infaq funds | Donation received in form of zakat, waqf, sadaqah and infaq funds |
Financial sustainability | Service fee imposed able to cover operation cost | Service fee imposed able to cover operation cost Conduct other activities (aqiqah, qurban and umrah) to cover operation cost | Service fee imposed able to cover operation cost | Service fee imposed able to cover operation cost | Service fee imposed able to cover operation cost | Service fee imposed able to cover operation cost |
Operational cost | Main cost: staff salary and platform maintenance expenses Marketing cost borne by project owners | Main cost: staff salary and platform maintenance expenses Marketing cost borne by project owners | Main cost: staff salary and platform maintenance expenses Marketing cost borne by project owners | Main cost: staff salary and platform maintenance expenses Marketing cost borne by project owners Online transaction cost like FPX or MasterCard/Visa covered by its parent | Main cost: staff salary and platform maintenance expenses Marketing cost borne by project owners | Main cost: staff salary and platform maintenance expenses Marketing cost borne by project owners |
Financial disclosure | Annual financial reports are not disclosed publicly Project cost details are disclosed upon the information given by the project owners Donation recipients are disclosed on a real-time basis Project owners can view fund disbursement transactions for their projects Mention for using ujrah contract | Annual financial reports are not disclosed publicly Project cost details are disclosed upon the information given by the project owners Donation recipients are disclosed on a real-time basis Project owners can view fund disbursement transactions for their projects Mention for using wakalah contract | Annual financial reports are not disclosed publicly Project cost details are disclosed upon the information given by the project owners Donation recipients are disclosed on a real-time basis Project owners can view fund disbursement transactions for their projects Donors can view donation transaction history | Annual financial reports are not disclosed publicly Project cost details are disclosed upon the information given by the project owners Donation recipients are disclosed on a real-time basis Project owners can view fund disbursement transactions for their projects | Annual financial reports are not disclosed publicly Project cost details are disclosed upon the information given by the project owners Donation recipients are disclosed on a real-time basis Project owners can view fund disbursement transactions for their projects | Annual financial reports are not disclosed publicly Project cost details are disclosed upon the information given by the project owners Donation recipients are disclosed on a real-time basis Project owners can view fund disbursement transactions for their projects Mention for using ujrah contract |