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The Empowerment of Educational Philanthropy-Based Funds in Malaysian Public University; A Case Study of Sultan Idris Education University

  • Mohd Abdul Nasir Abd Latif
  • 1226-1237
  • Feb 4, 2025
  • Education

The Empowerment of Educational Philanthropy-Based Funds in Malaysian Public University; A Case Study of Sultan Idris Education University

Mohd Abdul Nasir Abd Latif

Institute of Tahfiz Education and Islamic Turath, Sultan Idris Education University

DOI: https://dx.doi.org/10.47772/IJRISS.2025.9010103

Received: 31 December 2024; Accepted: 04 January 2025; Published: 04 February 2025

ABSTRACT

This study is regarding the empowerment of philanthropic funds in a public university in Malaysia, namely Sultan Idris Education University (UPSI). This qualitative research involves document review method. The findings show that UPSI has established three main entities that play a significant role in philanthropy-based funding, namely the Welfare, Services, and Student Housing Section, the Welfare Unit of the Human Resources Division of UPSI, and the establishment of the Wakaf, Endowment, Zakat, Charity, and Donation Center (WEZAS). Philanthropy-based funding is derived from government funds, tuition fees, and public donations. Public donations consist of waqf fund, endowment, almsgiving, welfare fund, and charity. These funds have been used for the benefit of UPSI members and the general public through various schemes, with each source of funding being managed based on its respective guidelines. This study shows that philanthropic funds play a significant role in supporting university finances for welfare purposes and educational infrastructure at UPSI in particular and at Malaysian public universities in general.

KeywordsPhilanthropy, Education, Public university, UPSI.

INTRODUCTION

In general, the term Philanthropy is derived from two Greek syllables. Firstly, philos (φίλος) which means affection or love [1]. Secondly, anthropos (ἄνθρωπος) which means humanity [2]. The combination of both syllables forms the word “philanthrope [3].” This term was later adopted into Malay as “filantropi,” which means a sense of love for mankind and generosity [4]. Philanthropy is a concept intertwined with the elements of kindness, compassion, mercy, generosity, and love for mankind.  It involves the deepest sense of affection and love when individuals voluntarily donate their possessions, be it in the form of money, time, energy, or other resources, in favour of helping others [5]. In daily practice, philanthropy is characterized by the spirit of generosity towards those around us, motivating individuals to do good by assisting others physically or spiritually. Those who actively engage in such charitable activities are declared as Philanthropists.

Propositions of philanthropy are abundant in the Qur’an through nafaqa phrase. In this context, the propositions of philanthropy are presented in various forms, such as in the form of comparisons, as in the following verse;

مَّثَلُ ٱلَّذِينَ يُنفِقُونَ أَمۡوَٰلَهُمۡ فِي سَبِيلِ ٱللَّهِ كَمَثَلِ حَبَّةٍ أَنۢبَتَتۡ سَبۡعَ سَنَابِلَ فِي كُلِّ سُنۢبُلَةٖ مِّاْئَةُ حَبَّةٖۗ وَٱللَّهُ يُضَٰعِفُ لِمَن يَشَآءُۚ وَٱللَّهُ وَٰسِعٌ عَلِيمٌ

Meaning;

The example of those who spend their wealth in the way of Allah is like a single seed that grows seven stems; in every stem, there are a hundred grains. And remember, Allah multiplies the reward for whom He wills, and Allah is all-Encompassing (in His grace) and all-Knowing [6].

The recommendation for generosity also comes in the form of a principle that should exist for the Philanthropist, which is not to repeatedly bring up or remind others of their giving. The word of Allah;

ٱلَّذِينَ يُنفِقُونَ أَمۡوَٰلَهُمۡ فِي سَبِيلِ ٱللَّهِ ثُمَّ لَا يُتۡبِعُونَ مَآ أَنفَقُواْ مَنّٗا وَلَآ أَذٗى لَّهُمۡ أَجۡرُهُمۡ عِندَ رَبِّهِمۡ وَلَا خَوۡفٌ عَلَيۡهِمۡ وَلَا هُمۡ يَحۡزَنُونَ

Meaning;

Those who spend their wealth in the way of (the religion of) Allah, and then do not follow up their spending with reminders of their generosity or hurtful words (towards the recipient), they will have a reward with their Lord. There will be no fear for them, nor will they grieve [7].

The recommendation for generosity also comes in the form of intrinsic motivation. The word of Allah;

لَن تَنَالُواْ ٱلۡبِرَّ حَتَّىٰ تُنفِقُواْ مِمَّا تُحِبُّونَۚ وَمَا تُنفِقُواْ مِن شَيۡءٖ فَإِنّ ٱللَّهَ بِهِۦ عَلِيمٞ

Meaning;

You will never attain righteousness and true virtue until you give from what you love. And whatever you give, indeed, Allah knows it [8].

The recommendation for generosity also comes in the form of a command. The word of Allah;

وَأَنفِقُواْ مِن مَّا رَزَقۡنَٰكُم مِّن قَبۡلِ أَن يَأۡتِيَ أَحَدَكُمُ ٱلۡمَوۡتُ فَيَقُولَ رَبِّ لَوۡلَآ أَخَّرۡتَنِيٓ إِلَىٰٓ أَجَلٖ قَرِيبٖ فَأَصَّدَّقَ وَأَكُن مِّنَ ٱلصَّٰلِحِينَ

Meaning;

And spend (in charity) from what We have provided for you before death approaches one of you, and he says: ‘My Lord! If only You would delay me for a little while so I could give in charity and be among the righteous [9].

Based on the examples above, it can be concluded that the recommendation to be generous in the Qur’an is presented through various approaches, all of which use the phrase “nafaqa” (to spend) in the form of verbs, specifically in the present tense (fi’l mudhari’) and the imperative. The use of the phrase in these two forms indicates that philanthropic actions must always occur and continue, as the use of verbs (jumlah fi’liyyah) in the Qur’anic language implies continuity and change [10]. Aishah (RA) narrated that the Prophet Muhammad (SAW) said: “The most beloved deeds to Allah are those that are consistent, even if they are small [11].” Philanthropists are promised multiplied rewards.

This summary reflects the ongoing and consistent nature of generosity in Islamic teachings, emphasizing both its importance and the rewards associated with it.

The word of Allah;

إِنَّ ٱلۡمُصَّدِّقِينَ وَٱلۡمُصَّدِّقَٰتِ وَأَقۡرَضُواْ ٱللَّهَ قَرۡضًا حَسَنٗا يُضَٰعَفُ لَهُمۡ وَلَهُمۡ أَجۡرٞ كَرِيمٞ

Meaning;

Indeed, the men who give in charity and the women who give in charity, and those who make a goodly loan to Allah, it will be multiplied for them (many times over), and they will have a noble reward.”

This passage highlights the importance and benefits of giving charity and making a good loan to Allah, highlighting that such actions will be rewarded abundantly and honourably [12].

EDUCATIONAL PHILANTHROPY

Philanthropy for Education is an encouragement in Islam since it was first revealed to the Prophet Muhammad (peace be upon him). This can be seen through the choice of the house of Al-Arqam bin Abi Al-Arqam Al-Makhzumi as the location for the Prophet (peace be upon him) to convey his teachings and educate the early followers of Islam when it was still in the period of secret preaching [13]. The story of Al-Arqam bin Abi al-Arqam, the seventh convert to Islam, demonstrated an early form of educational philanthropy in Islam through his generosity. This is evident in his willingness to make his home a location for the Prophet Muhammad (peace be upon him) to teach the early Muslims about Islam. This residence was later endowed as a charitable trust, as recorded by Al-Hakim [14].

“In the name of Allah, the Most Gracious, the Most Merciful. This is what has been decreed by Al-Arqam regarding his house located at Bukit al-Safa. Indeed, it is a charitable endowment (waqf), including its location near the Masjid al-Haram, which cannot be sold, transferred, or inherited.”

The above annotation was witnessed by Hisyam bin al-As and one of his freedmen. Hisyam stated that the house remained a charitable endowment and was managed by Al-Arqam’s son, who used it as a residence and charged rent until the time of Abu Ja’far.

History later records various philanthropic initiatives in the form of waqf, establishing that educational endowments are not unfamiliar in the Islamic world. The first institution established on the basis of waqf was the University of al-Qurawiyyin. This university was founded by the endowment of Fatimah al-Fihri, beginning with the purchase of a plot of land worth 60 Uqiyyah. A mosque was then constructed as the primary foundation, followed by the building of storage facilities, which later served as a source of waqf funding. This institution began as an educational entity in the year 859 CE [15] which makes the University of al-Qurawiyyin older than Al-Azhar University in Egypt (970 CE) and its contemporaries in Europe. For instance, the University of Oxford, often regarded as the oldest university in Europe, was founded around 1096 CE, and the University of Bologna was established around 1088 CE [16].

The most eminent example is Al-Azhar University, which was established as a waqf and continues to stand to this day. The founding of waqf educational institutions in Egypt began with the establishment of Jāmiʽ al-Azhar during the Fatimid Caliphate. This event occurred on the 14th of Ramadan in the year 359 Hijri, and Jāmiʽ al-Azhar began to be used for congregational prayers starting from the 7th of Ramadan in the year 361 Hijri, corresponding to June 22, 972 CE. Jawhar al-Siqili [17] subsequently, proposed to al-Muʽiz li Dinillah al-Fatimiyy to transform Al-Azhar, which was previously limited to worship activities, into an education institution [18]. In 989 CE, Jāmiʽ al-Azhar achieved the status of a college with the support of 45 selected scholars teaching at the institution. This is considered a crucial foundation for establishing al-Azhar as a leading university in the following years [19].

At the beginning of its establishment, waqf funds were sourced from various channels. One of the primary sources was the Fatimid government, which endowed reference books and placed them in the Al-Azhar library [20]. During the reign of al-Aziz bi Allah (365-386 H), the waqf system was started with the purchase of commercial buildings and estates to finance Al-Azhar [21]. During the reign of al-Hakim bi Amr Allah (386 – 411 H), the waqf system was revised with the establishment of a waqf institution named Dar al-Qurb or Dar al-Kharq al-Jadidah. He transformed Al-Azhar into a more systematic institution. With the robust waqf funds, Al-Azhar was able to sponsor its teachers to pursue further education across various parts of the world. The financing for the mosque and university, as well as the salaries of its teachers, was covered by the revenue from the waqf assets of Al-Azhar’s buildings. The university charged only a minimal fee to the students admitted, and also assisted with all expenses related to their education [22].

There are plenty of examples of universities in various countries managed and funded through the concept of waqf. Among them are the University of al-Qurawiyyin in Fez, Morocco; the University of al-Muntasiriyyah in Iraq; the University of Córdoba in Spain; King Abdulaziz University in the UAE; and Universitas Islam Indonesia (UII). Additionally, in Chechnya and Azerbaijan, a total of 800 and 786 universities respectively have been established, all funded by waqf sources. In Turkey, there are 142 universities and 87 schools developed and financed through waqf funds [23].

THE IMPLEMENTATION OF PHILANTHROPY AT SULTAN IDRIS EDUCATION UNIVERSITY

Sultan Idris Education University (UPSI) was established on May 1, 1997. Its early history began with the founding of Sultan Idris Training College (SITC) on November 29, 1922, which aimed to provide professional teacher training for local students. In 1959, SITC was renamed Sultan Idris Teacher Training College (MPSI) to meet the growing need for training future teachers for primary schools. In 1987, it was upgraded to Sultan Idris Teacher Training Institute (IPSI), marking the beginning of its transition to a public university.

Philanthropic initiatives at UPSI can be seen through the establishment of two main entities: the Section of Welfare, Services, and Student Housing under the Student and Alumni Affairs Department, Human Resources Division, and the Registrar’s Office, as well as the creation of the Waqf, Endowment, Zakat, Charity, and Donations Centre (WEZAS).

Section of Welfare, Services, and Student Housing

Through this section, three schemes are offered to students. They are Student Welfare Assistance Scheme (BTKP): This scheme focuses on providing aid to students who face calamities or emergencies, helping them manage unforeseen difficulties.

Student Charity Donation Scheme (DTKP): This scheme involves donations intended to support students in need, providing financial assistance based on charitable contributions. Immediate Cash Loan Scheme: This scheme offers quick loans to students who have sponsorship but require immediate funds to continue their studies at UPSI. Additionally, this section also allocates resources for the food bank program, which is placed at selected locations around the campus to support students with food supplies.

Welfare Unit, Human Resources Division of UPSI

In general, this unit manages matters related to the medical policies of Sultan Idris Education University (UPSI), including claims for medical treatment, insurance, and staff death arrangements. To support financial needs, the unit also receives donations through the establishment of the UPSI Prihatin Fund.

The fund was initially proposed by the UPSI Bursar as a financing effort during the COVID-19 pandemic in 2020 to assist staff affected by the pandemic. It has since been continued and expanded to provide assistance for Student Disaster Assistance, Staff Disaster Assistance, Retiree Disaster Assistance, One-off Donations to Staff and Retirees with Terminal Chronic Illnesses, Food Assistance Through Food Banks for students, staff, and others at several strategic locations within the UPSI campus and Community Assistance through the provision of Starter Kits and non-perishable goods.

The UPSI Prihatin Fund supports various forms of aid and assistance to those in need within the UPSI community [24] with the aims to assist staff affected by any form of disaster or illness. A set of guidelines has been developed to ensure that the management and use of resources from this fund are aligned with its objectives. These guidelines help to maintain proper governance and ensure that the fund’s resources are used effectively and appropriately to support those in need.

THE ESTABLISHMENT OF WAQF, ENDOWMENT, ZAKAT, CHARITY, AND DONATIONS CENTRE (WEZAS)

The Establishment of Waqf, Endowment, Zakat, Charity, and Donations Centre or also known as WEZAS began as a small unit named the Zakat and Welfare Unit under the Islamic Centre Administration of UPSI. This unit was established in line with UPSI’s appointment as a zakat collector by the Perak Islamic Religious and Malay Customs Council (MAIPk). The proposal for its establishment was discussed in the Second Meeting of the Al-Mursyidin Waqf Fund Committee on January 8, 2019, held at the BC 2-7 Meeting Room, UPSI Chancellor’s Building. WEZAS officially commenced operations on August 1, 2020.

WEZAS represents five forms of funding managed by UPSI:

  • W stands for Waqf
  • E stands for Endowment
  • Z stands for Zakat
  • A stands for Charity (Khairat)
  • S stands for Donations

These five types of funding sources collectively form the WEZAS brand.

Fig.1: Acronym for WEZAS Branding

The corporate direction of WEZAS is an initiative by UPSI aimed at empowering funding that serves to support education-based philanthropy, as can be seen in the following infographic:

Fig. 2: The Direction of WEZAS Empowering Philanthropic Funds

Based on the Fig.2 shown above, WEZAS UPSI was established to empower educational philanthropy, covering the following funds :

A. Waqf

The word wakaf refers to something that is given for public use or something allocated for purposes related to Islam [25]. In Arabic, wakaf originates from the word waqf, which means to stand or to stop. (Refer to: Lisan al-Arab, 9/359). Another word with the same meaning as wakaf is al-Habs, which means to stop or to restrain. (Refer to: al-Takrifat al-Fiqhiyyah, 239). Most fiqh scholars define wakaf linguistically using the word al-Habs because this word is closer to the meaning in Islamic law.

From a terminological perspective, various definitions have been proposed by the fuqaha’. Ibn Hajar al-Haitami defines it as withholding an asset that can be benefited from as long as the object remains in good condition by severing the ownership rights over the asset, and transferring it for permissible public interests [26] Ibn Qudamah defines it as withholding the principal (the substance of the property) and donating the fruits (the benefits) [27]. Wahbah al-Zuhayli defines it as withholding property from ownership by a specific individual and managing the benefits (of that property) for the party to whom it has been dedicated (Mauquf Alaihi) [28]. The variety of definitions presented can be summarized as wakaf being the practice of surrendering owned property to be utilized by the community in a way that the property is preserved and developed, and its yields are distributed with the purpose of drawing closer to Allah SWT.

In order to carry out philanthropy based on wakaf funds, WEZAS has received the appointment of Mutawalli from the Perak Islamic Religious and Malay Customs Council (MAIPk) through a letter dated 11 April 2017, agreeing to appoint UPSI as the special wakaf mutawalli. A Memorandum of Agreement (MoA) between MAIPk and UPSI was signed on 8 February 2018, coinciding with the Launching Ceremony of the Al-Mursyidin Wakaf Fund by YBhg. Tan Sri Dato’ Seri Dr. Wan Zahid bin Mohd Noordin, Chairman of the UPSI Board of Directors [29]. The appointment of Mutawalli is a right granted by the Perak State Islamic Religious Council (MAIPk), allowing UPSI, through WEZAS, to collect and manage wakaf assets at UPSI. This appointment is in line with the Perak State Law, Enactment 9 (WAKAF Enactment 2015), Part VII (Powers of the Council), where the Council, as the sole trustee, is given authority under section 27 (1) and (2)[30].

In the context of Fiqh, a person appointed to administer wakaf assets or a trustee is known as ‘al-Mutawalli’ [31].  Al-Mutawalli consists of a person or body that has the capability, trustworthiness, and ability to carry out the wishes of the waqif (the person who donates the wakaf) [32]. The main duties are to care for, preserve, and develop the donated land, collect the wakaf revenue, and subsequently distribute it to the rightful beneficiaries, as well as to protect it as best as possible from any loss or damage, as stipulated by the waqif  [33].

Based on the Memorandum of Understanding (MoU) for the wakaf fund cooperation agreement signed on 8 February 2018, UPSI is generally granted the right to carry out the following three matters;[34]

  1. Collecting wakaf; includes campaigns, sources, collection platforms, and reporting of wakaf fund receipt records.
  2. Managing wakaf collections; includes opening wakaf accounts, issuing receipts, handing over 10% of the collections for management to MAIPk, and reporting related records.
  3. Distributing wakaf benefits based on designated wakaf projects and those to be planned from time to time.

At the same time, WEZAS also obtained tax exemption benefits for wakaf contributions through approval from the Inland Revenue Board (LHDN), which granted approval to the UPSI Wakaf Fund under Subsection 44(11D) of the Income Tax Act 1967 (ITA 1967). This approval notification was conveyed through a letter dated 28 July 2022 [35]. This approval made UPSI the first Public University (UA) in Malaysia to receive tax exemption treatment under the said Subsection and the second wakaf management institution after the Selangor Wakaf Corporation (PWS) [36].

This philanthropy based on wakaf funds focuses on physical development and facilities. For this purpose, two projects have been initiated: the Wakaf Facility of the Institute of Tahfiz Education and Islamic Heritage (IPTTI) and Sri Budiman Primary School. Both projects have already begun their respective operations, with the funds for the development of the Institute already secured, and construction has begun. Other facilities that will utilize wakaf funds will be planned from time to time. For the development of wakaf facilities, the foundation-laying ceremony for the facility was officiated by His Royal Highness the Sultan of Perak, Sultan Nazrin Shah, on 24 April 2024 [37] meanwhile, Seri Budiman Primary School (SRSB) began operations in March 2024 with an initial intake of 28 students [38] Seri Budiman Primary School (SRSB) at Sultan Idris Education University (UPSI) became the first private school at the institution of higher education to receive a Certificate of Registration from the Perak State Education Department (JPN)[39].

B. Endowment

Linguistically, Endowment is an English word that is translated into Malay as financing, gift, or award. In the context of the Malay language, the term endowment has not yet been officially registered as a formal term [40]. However, this term is widely used by organizations that manage endowment funds, particularly in public universities in Malaysia, as displayed on their respective websites [41].

Endow’ is defined as the bestowal of a permanent fund or income [42]. Endowment’ is a certain amount of money someone gives to a school, a college, or other institutions, which encompasses the act of giving money [43]. Moreover, ‘permanent’ can be interpreted as money or property given to an institution, person, or object for permanent use [44]. From a terminological perspective, endowment means the provision of money or assistance as funding for a specific period, with a specific amount, and for a specific purpose, usually for welfare. It is also defined as financial assets donated to non-profit institutions, either in the form of cash, shares, investment funds, or capital assets, where the methods of usage have been mutually agreed upon.

Philanthropy based on endowment funds at UPSI was established with the objective of financing excellence awards, scholarships, bursaries, and activities related to education, teaching and learning, research and innovation, skill development, welfare, and humanitarian efforts, as well as creating educational facilities and infrastructure for the benefit of UPSI students. To achieve these objectives, through this fund, four offerings have been made to benefactors for sponsoring excellence awards, endowments for scholarships, endowments for research and innovation, and sponsorships in the form of providing educational facilities and infrastructure.

The endowment for the purpose of sponsoring excellence awards is divided into two types of awards: book excellence awards and figure excellence awards. The endowment for scholarship purposes is divided into the Bitara UPSI Scholarship and the Bitara Responsibility Center (PTj) Scholarship. To coordinate the scholarship offerings, a committee was established, the UPSI Bitara Scholarship Committee (JBBU), chaired by the Deputy Vice-Chancellor (Academic and International) of UPSI. These scholarships have been offered to sponsor the studies of UPSI students, covering tuition fees and living allowances, such as the sponsorship of 100 scholarships in conjunction with the 100th anniversary of UPSI’s establishment [45].

The endowment for the purpose of sponsoring research and innovation is divided into two forms of sponsorship: research grant sponsorship and chair establishment sponsorship. The establishment of a chair is the most prestigious form of sponsorship as it targets research focused on a specific area of knowledge agreed upon between UPSI and the donor. The endowment for educational facilities focuses on efforts to create infrastructure involving facilities for UPSI students, especially students with special needs and disabilities (OKU).

Just like wakaf contributions, WEZAS also obtained tax exemption benefits for endowment contributions through the approval of the Inland Revenue Board (LHDN), which granted approval to the UPSI Endowment Fund under Subsection 44(11D)(b) of the Income Tax Act 1967 (ITA 1967). This approval notification was conveyed through a letter dated 31 May 2024 [46]. This approval makes UPSI the first public university in Malaysia to receive tax exemption treatment under the said Subsection since it was introduced [47].

C. Zakat

Zakat is a word that originates from Arabic. The word zakat is derived from the root verb ‘zakka’, which means blessed, to grow, clean, and good [48]. From a terminological perspective, al-Nawawi defines zakat as a mandatory right to be taken from specific assets under certain conditions and methods [49]. Al-Qaradawi defines zakat as a specific portion of wealth that is obligatory to be given to those who are entitled to it [50]. The amount taken from a person’s wealth is called zakat because what is given increases in value, becomes more meaningful, and can protect the wealth from destruction.

The philanthropy based on zakat funds implemented at UPSI is grounded in two Agreements appointing UPSI as the Zakat Collector (Amil Zakat) by the Perak Islamic Religious and Malay Customs Council (MAIPk) in 2005 (First MoU) and in 2021 (Second MoA). Through these agreements, UPSI, through WEZAS, is allowed to collect income zakat from UPSI members. Additionally, the permission to collect zakat has been expanded to include all types of zakat [51]. Both MoAs serve as important references for zakat collection and distribution policies at UPSI. Through this agreement, all zakat payers are eligible to receive income tax rebates for Zakat and Fitrah based on Subsection 6A(3) of the Income Tax Act (ITA), as outlined in a Public Ruling No. 2/2005 issued on 6 June 2005 [52].

As is customary in the conditions for zakat distribution, the distribution guidelines also stipulate certain conditions for the allocation of these funds. Among them, applicants must be Muslims and members of UPSI; the application must be made in the name of the student or UPSI staff member, even if the head of the family/father/husband is disabled, ill, or otherwise incapacitated; all applications must be submitted online via the MyUPSI portal or other platforms established at the time. Applications must also be accompanied by the required supporting documents. For application screening purposes, the secretariat will conduct interviews/document reviews/investigations of the applicant and make recommendations and reports to be presented to the Zakat Trust Fund Distribution Committee Meeting. The Zakat Trust Fund Distribution Committee will evaluate, approve, or reject each zakat aid application based on appropriate conditions and considerations [53].

Zakat funds are distributed based on schemes that have been developed to assist eligible students who meet the criteria of the designated asnaf categories. As of 2024, the following schemes have been introduced [53];

  1. Living Allowance Assistance Scheme
  2. General Education Assistance Scheme. Through this scheme, four categories have been established, namely book assistance, assistance to complete coursework, assistance for furthering studies at higher education institutions (for staff and their children), and schooling assistance (for staff’s children).
  3. Preaching Activities and Human Development Assistance Scheme
  4. Tuition Fee Debt Payment Assistance Scheme
  5. Immediate Zakat Assistance Scheme (Cash)
  6. Medical Assistance Scheme
  7. Special Assistance Scheme for First Semester Enrollment
  8. Computer / Laptop Assistance Scheme
  9. Widow Assistance Scheme
  10. WEZAS Scholarship. This category introduces three subcategories: Category A (full assistance covering tuition fees, accommodation, and living allowance), Category B (covering tuition fees and partial living allowance), and Category C (living allowance only).

As a result of the zakat collection conducted and the distribution made based on the schemes mentioned above, the total distribution has reached millions of ringgit, benefiting thousands of UPSI members [54].

D. Charity (Khairat)

“Khairat” is an Arabic word that has been adopted into the Malay language. Essentially, this word means good deeds. According to the Dewan Dictionary, “khairat” means welfare, donation, and charity. In the context of the Muslim community in Malaysia, the word “khairat” is generally associated with death. Therefore, the term “khairat kematian” (death charity) is used to refer to contributions or donations that are collected and given to the next of kin of the deceased. A “khairat kematian” association refers to an organization that collects money (fees) for the welfare of its members who pass away, such as for funeral expenses (Dewan Dictionary) [55].

The context of implementing the khairat (charity fund) at UPSI is also related to death. This fund is collected when a death occurs and is then handed over to the family members or next of kins of the deceased staff members to cover any expenses and needs of the family or heirs. The primary intention behind establishing this fund is to demonstrate solidarity among all staff toward the families of their colleagues when they face the hardship of death. At the same time, it is an initiative by UPSI to realize the principle of staff welfare as part of UPSI’s core values, particularly the spirit of teamwork and concern for the welfare of its members [56]. As of 2024, the implementation of the death welfare fund under the management of WEZAS is limited to staff members only. To date, this welfare fund has benefited 25 staff beneficiaries with a total benefit payment of RM255,755.00 [57].

The collection of khairat funds comes from a salary deduction of only five Malaysian Ringgit (RM5.00) from employees who join the scheme. The deduction is implemented when a death occurs among the participants of the Death Charity Scheme. If in any given month more than two participants die, a salary deduction of only ten Malaysian Ringgit (RM10.00) will be made for that month. Salary deductions in the following month will be made at a rate not exceeding ten Malaysian Ringgit (RM10.00) until the death charity payments to all next of kin of the deceased participants are completed [58].

Donations

In Islam, the term “sedekah” (charity) has a very broad meaning. Simply put, it can be defined as a giving by one person to another in need, whether the giving is directed to the poor, relatives, or for the cause of fi sabilillah (for the sake of Allah), with the intention of drawing closer to Allah S.W.T. The importance of charity is highly emphasized in Islam, as evidenced by the repeated mention of this term in the Qur’an. According to Amin (2022), charity refers to the giving of goods and money without expecting anything in return for the given offerings [59]. (Awang et al., 2017) further expanded and refined the definition of charity, stating that charity refers to donations given in both material and non-material forms [60]. Charity is a form of giving, whether financial or non-financial, that is used to help those in need or to fulfill a societal need within a certain period of time, without expecting anything in return for the offerings. This giving can be considered either obligatory or non-obligatory, depending on specific conditions set by Islamic law (syarak) [61].

In the context of implementing philanthropy based on charitable donations, it is a fund created with the purpose of helping staff, students, and the community to alleviate the burden of disasters and poverty. The use of the charitable donation fund is more flexible compared to the other funds discussed above because the conditions for contributions are more open. It also serves as a platform for staff, students, and concerned members of the public to make donations and contributions to those in need [62]. With this fund, it will indirectly foster awareness and a culture of concern among UPSI members regarding the disasters and hardships faced by the community. The aid schemes established include aid for disasters (accidents, fires, and health), floods and natural disasters, non-Muslims within the UPSI community, orphans of staff members, medical assistance for chronic diseases, as well as aid to organizations, associations, and welfare NGOs. Among the national-level assistance that has used this fund is the aid provided to the families of victims of the air crash involving members of the Royal Malaysian Air Force (TLDM) [63].

CONCLUSION

Based on the discussion presented above, the empowerment of philanthropy that has been implemented at UPSI, as one of the public universities in Malaysia, involves three main entities, namely the Student Affairs Division, the Welfare Unit under the Human Resources Division, and WEZAS. These three entities have played a crucial role in ensuring the welfare of UPSI members is well taken care of. From the perspective of related resources, the philanthropic funds collected derive from government funds, tuition fees, and also public funds. As for the target groups, they consist of UPSI staff and students. However, UPSI also assists the external community, which includes organizations, associations, and welfare NGOs. The empowerment of education-based philanthropic funds at UPSI can be summarized as shown in the following table:

Center of Responsibility Sources Scope Of Support Target Group
BSM Welfare Unit Government funds and Public funds Staff Health Staff
Student Welfare Unit Tuition fees and Public funds Finance and welfare Student
WEZAS Public funds Development of facilities, study sponsorship, finance and welfare Staff, Student and public

CLOSURE

Public universities have played a vital role in empowering philanthropy-based funding. At UPSI, there are three key entities have been identified as instrumental in this funding effort, which has been utilized for the benefit of the UPSI community and the community. The sources of public funds obtained include waqf, endowments, zakat, charity (khairat), donations, and other contributions. The existence of these funds is certainly rooted in the high level of philanthropic awareness among the UPSI community specifically, and the public generally, in their efforts to ensure the welfare of UPSI members is upheld. At the same time, these efforts help alleviate the management burden on UPSI, contributing to the university’s core value of caring for its members.

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