Exploring the financial system of Madrasas in Gujarat with focus on sources of funds and its utilizations

• Main Authors: Hassan, Rusni, Patel, Ibadurrehman
• Format: Conference or Workshop Item
• Language: English; English; English; English
• Published: 2021
• Subjects: HG3368 Islamic Banking and Finance
• Online Access: http://irep.iium.edu.my/93559/1/Financial%20System%20of%20Madrasas%20in%20Gujarat.docm; http://irep.iium.edu.my/93559/2/Acceptance%20Letter%20Paper%20ID%20_168-Financial%20System%20of%20Madrasahs%20in%20Gujarat.pdf; http://irep.iium.edu.my/93559/3/ICBT%202021-poster.pdf; http://irep.iium.edu.my/93559/4/ICBT2021%20Schedule_Final_3_11.pdf; http://irep.iium.edu.my/93559/
• Institution: Universiti Islam Antarabangsa Malaysia

Abstract. The Main focus of this paper is to explore the financial system of Is-lamic educational institutions (Madrasas) of Gujarat specially where the income of these institutions comes from and how this fund is utilized. Madrasas are the main providers of Islamic education in India. From the conquest of India by Muslims majority of Islamic teachings is completely free till now because chil-dren from very low-income families almost exclusively populate madrassas. Un-fortunately, since the British control, the Madrasas’ financial system has been completely overlooked, and both the number of donors of waqf land and the number of waqf properties have been steadily diminishing, though in some states like Assam, Bihar, Madhya Pradesh, Orissa, Rajasthan, Uttar Pradesh, and West Bengal few Madrasas receive financial aid from the government. This paper tries to explore the income and expenditure of the Madrasas in Gujarat state where Madrasas does not get any financial help. This study adopts qualitative research which includes annual audit reports of these institutions. It also gathers infor-mation from library and electronic resources. This research shows that Madrasas in Gujarat are more dependent on public funding in terms of Zakat, Sadaqah, Fitra, Fidya, Lillah (general donation), while wages, electricity, repairing, food, gift, program and exam, collection, travel, and hospitality of the guest are the main expenses associated to operate the Madrasas. This is one of the early studies that give analysis on the financial system of Islamic educational institutions in Gujarat.