Donations in Islam: Everything about Zakat, Sadaqah and Modern Donation Campaigns
Learn how donations work in Islam, what types there are, and how to start your own donation campaign on GoodCrowd.org.
Redaktion
GoodCrowd.org
Reading time: 7 min
Updated: 16.09.2025
Donations are particularly deeply rooted in Islamic religious practice. Those who donate not only do good for others, but also act in accordance with their own spirituality: their wealth is ‘purified’ and they show gratitude to God.
With platforms such as GoodCrowd.org, it is easier than ever to start your own fundraising campaign – whether it is for an emergency or a personal cause close to your heart. In this article, you will learn
- how Islamic donations work
- how they can be put into practice today in a digital and globalised world
- what the terms Zakat and Sadaqah mean
- and how to design your own campaign in a way that inspires trust and moves people – regardless of their faith.
Why donations are so important in Islam
Spiritual significance and ethical framework
In Islam, giving is not only seen as a kind gesture, but as an act of worship (ibadah). This means that those who give are performing a religious act, similar to prayer or fasting. Giving shows gratitude to God (Allah in Arabic) and reminds us that everything we possess is ultimately on loan.
An often-quoted verse from the Quran sums up this idea:
‘The parable of those who spend their wealth in the way of God is like a seed which, when it falls on good soil, produces seven ears of corn, each ear having a hundred grains.’ (Quran, 2:261)
This verse conveys the message that a single good deed can result in a wealth of blessings – far more than we expect.
Values that everyone can share
Even though the practice of giving in Islam is based on religion, the values behind it are universal: compassion, solidarity, social and interpersonal responsibility. That is why many non-Muslims also support Muslim campaigns: whether out of humanity, personal friendship or the desire to be part of a good cause. GoodCrowd.org facilitates this bridge-building: Campaigns may be Muslim-inspired, but they are open to anyone who wants to help.
The three most important types of Islamic donations
1. Zakat – The obligatory tax
Zakat (Arabic for ‘purification’ or ‘purity’) is one of the five pillars of Islam and an obligatory tax for Muslims who have a certain minimum amount of wealth, known as nisab. It is usually 2.5% of annual wealth and is intended for clearly defined purposes: people in need, people in debt, travellers in need or other groups mentioned in the Quran (Sura 9:60). The aim of zakat is to promote social justice while spiritually ‘purifying’ the wealth of the donors.
Good to know for campaign starters: If you create a donation campaign that is Zakat-compliant, you should clearly state this and explain in your campaign description why it meets the criteria. Zakat-compliant campaigns are characterised by three things:
- Clear recipient groups: The donations exclusively benefit people who are eligible to receive zakat according to Islamic teachings, such as those in need or in debt.
- Earmarked use of funds: The funds are only used for the specified purpose. On GoodCrowd.org, campaign starters can clearly indicate this transparency in the campaign text, for example by separating budgets for project and administrative costs. GoodCrowd.org requires all campaign starters to keep invoices and payment receipts. The use of funds is randomly checked by the platform.
- Transparent communication: Donors must be able to understand how and to whom the funds are distributed. Updates and evidence help donors to understand that their obligation is being properly fulfilled. Detailed descriptions and regular updates (e.g. detailed reports) help to build trust.
- No consideration for donors: Zakat is a form of giving to those in need without expecting anything in return. Campaigns should therefore not offer material ‘thank you’ gifts or presents to donors (as is common in some crowdfunding models).
2. Sadaqah – Voluntary charity
Sadaqah (Arabic for ‘generosity’ or ‘truthfulness’) refers to voluntary donations that are not bound by fixed rules. Every Muslim can give sadaqah at any time and in any amount – be it money, donations in kind or even small good deeds such as sharing a meal or helping out in everyday life. A well-known hadith (saying of the Prophet Muhammad) says:
‘A smile for your brother is a sadaqah.’
This breadth makes sadaqah particularly flexible: it can be given spontaneously in response to an emergency, but it can also support long-term projects such as education, medical care or the construction of wells. While zakat is primarily a religious duty, sadaqah is an expression of personal generosity and compassion.
Good to know for campaign starters: Sadaqah campaigns are particularly suitable for individual aid campaigns or broad, non-earmarked projects, as they are not subject to fixed recipient groups. The most important thing to note is:
- Versatile applications: You can use sadaqah for almost any aid project – from emergency aid after natural disasters to long-term education programmes.
- Emotional storytelling: Since sadaqah is voluntary, a campaign is most effective when it features authentic stories, images and a sense of urgency about the project.
- Transparency creates motivation: Regular updates show donors what a difference their voluntary help is making – this motivates them to make repeat donations.
Sadaqah campaigns are particularly successful on GoodCrowd.org because they are open to everyone – both Muslims who want to do additional good deeds and non-Muslims who feel drawn to the projects.
3. Waqf – The Islamic foundation model
A waqf (foundation) is a special form of donation: here, assets are permanently donated to a charitable cause, while the proceeds, such as interest or rental income, are used for projects such as schools or wells. Historically, waqf foundations played a major role in the education and health care systems of Muslim societies.
Even today, many NGOs and private individuals use this model to provide sustainable aid.
When Muslim donation campaigns are particularly effective
Some times and occasions are particularly suitable for donation campaigns because they combine emotional and religious factors and increase the willingness to donate.
Ramadan – The month of fasting as a time of intense charity
Ramadan, the holiest month in the Islamic calendar, is not only a time of fasting, but also a time of particularly generous giving. Muslim tradition says that good deeds are rewarded many times over during this month.
Many people consciously use the last ten days of Ramadan, known as the ‘blessed nights’, to give their zakat or sadaqah. This is an ideal time for campaigns on GoodCrowd.org: people are actively looking for projects to support and often share them with family and friends.
Eid al-Adha – The Festival of Sacrifice as a sign of solidarity
Eid al-Adha commemorates the story of the prophet Ibrahim (Abraham), who was prepared to sacrifice his son to God. Traditionally, an animal is slaughtered for the festival and a third of the meat is distributed to those in need.
Many aid organisations organise campaigns to give families in need access to meat or food. A campaign on GoodCrowd.org can make a difference here: even small amounts from several donors can enable large distributions.
Acute crises – rapid assistance in disasters
Muslim communities respond particularly quickly to emergencies such as earthquakes, floods or humanitarian crises. Such events also mobilise a great deal of willingness to help across religious boundaries.
GoodCrowd.org makes it possible to launch campaigns within a few hours and immediately distribute them worldwide. Thanks to updates and transparent presentation, donors know that their help is going directly to those in need – a crucial factor of trust in acute crises.
Challenges of Muslim campaigns
Sensitive issues and legal requirements
Donations in Muslim contexts, especially for crisis areas such as Palestine, Syria or Afghanistan, are often subject to strict scrutiny. Authorities want to ensure that funds are used exclusively for humanitarian purposes. This can seem complicated for campaign starters.
GoodCrowd.org takes a lot of the work off your hands: legal aspects are taken into account and you receive clear guidelines on how to design your campaign safely.
Transparency and trust
Muslim donors attach great importance to their donations being used for specific purposes – especially in the case of zakat. On GoodCrowd.org, you can specify exactly:
- Who the recipients are
- What the donations will be used for
- Whether the project is Zakat-compliant
This creates trust – even among donors who are less familiar with the topic.
Example: ‘Direct Aid Gaza’ – Rapid support for families in need
One of the most successful campaigns on GoodCrowd.org in recent months was ‘Direct Aid Gaza’. The aim of the campaign was to quickly provide families affected by the ongoing humanitarian crisis with food, medical aid and emergency shelter.
- Type of donations: The campaign was designed as a sadaqah campaign, so any voluntary donation was welcome.
- Special feature of the campaign:
- From the outset, the initiators provided transparent lists of needs (e.g. costs for food parcels, medicines).
- They provided regular updates with photos and reports on how many families had been reached.
- The donations went directly to partner organisations active on the ground, which created trust among the supporters.
- Result: Within a few weeks, the campaign raised more than €100,000 and directly supported over 100 families – an example of how online campaigns can connect people worldwide. This is a means of being able to do something, for example in cases of crisis, inhumane violence or genocide.
Inclusive approach: Why GoodCrowd is open to everyone
Even though you can start a zakat or sadaqah campaign on GoodCrowd.org, the platform is not exclusively religious. Projects can be designed to be open so that non-Muslims can also donate or get involved. This creates an inclusive community: people helping people – regardless of religion or origin.
Donations in Islam are a mixture of faith, responsibility and humanity. With GoodCrowd.org, you can put these values into practice digitally: securely, transparently and with global reach. If you've had a project close to your heart for a long time, now is the time.
Frequently asked questions about donations in Islam:
1. What is the difference between zakat and sadaqah in Islam?
Zakat is a mandatory tax for Muslims with a certain minimum wealth (nisab) and amounts to 2.5% of annual wealth. It is one of the five pillars of Islam and must go to clearly defined recipient groups such as the needy or those in debt.
Sadaqah, on the other hand, is a voluntary donation with no fixed rules – every Muslim can donate at any time and in any amount, even through good deeds such as a smile.
2. When is the best time for Muslim donation campaigns?
The most effective time for Muslim fundraising campaigns is Ramadan, especially the last ten days, as good deeds are considered to be rewarded many times over during this holy month. Eid al-Adha (Feast of Sacrifice) is also ideal, as meat is traditionally distributed to the needy. Acute crises such as natural disasters also quickly mobilise a great deal of support in Muslim communities.
3. As a non-Muslim, can I donate to an Islamic fundraising campaign?
Yes, absolutely! Platforms such as GoodCrowd.org are open to all donors, regardless of religion or origin. The values behind them, such as compassion, solidarity and social responsibility, are universal. Many non-Muslims support Muslim campaigns out of humanity or personal connection.
4. What makes a fundraising campaign Zakat-compliant?
A Zakat-compliant campaign must meet three criteria: Clear recipient groups (only people who are eligible to receive Zakat according to Islamic teachings, e.g. the needy or those in debt), earmarked use of funds (funds only for the specified purpose) and transparent communication (traceable distribution of donations). Important: No material rewards may be offered to donors.
5. What are the challenges of Muslim donation campaigns?
The main challenges are regulatory requirements, especially for donations to crisis areas such as Palestine, Syria or Afghanistan, as authorities want to ensure that funds are used exclusively for humanitarian purposes. In addition, transparency is crucial – Muslim donors attach great importance to donations being used for specific purposes, especially in the case of zakat. Platforms such as GoodCrowd.org provide support through clear guidelines and transparency tools: the campaign text must clearly state what the donations will be used to finance, and invoices and payment receipts must be kept and provided as evidence in the event of an audit.
6. How does Islamic crowdfunding work in the digital world?
Modern crowdfunding platforms such as GoodCrowd.org make it possible to implement Islamic donation principles digitally. Campaigns can be labelled as Zakat or Sadaqah compliant, offer transparent reporting on the use of funds and quickly reach a global Muslim and non-Muslim community through updates and social media.
