Analysis on the Islamic Ruling of Taking Commission from the Donation Collection

Abstract

The practice of giving donation to those in need is a very common thing among society in Malaysia. As a result, there are various parties that act as a collector agent either as an individual or organization. However, there is confusion among the collector regarding on taking the commission other than there is no specific commission rate to be given to the collector of the donation. The purpose of this study is to analyze the Islamic ruling of taking commission from the donation collection according to Islamic perspective. In addition, it also aims to study whether the contract of ijarah, ji’alah and wakalah comply with the Islamic ruling of taking commission taken from the donation collection. The methodology of this study is qualitative with the approach of document analysis. The finding shows that the contract of ijarah, ji’alah and wakalah are comply with Islamic ruling of taking commission taken from the donation collection. However, it is necessary to set the commission of coin limit which can be taken by the collector to avoid the misuse or malpractice of the donation. Further research need to be done to identify the factors that influence the setting of commission of coin limit especially by non-governmental organizations (NGOs) in Malaysia.