Socio-demographic and Economic Factors Affecting Regular Charity-giving: a Case of Low-income Households in Indonesia International Journal of Zakat | ISSN: 2541 1411 | Vol. 2 (1) 2017
Article Sidebar
Main Article Content
Abstract
A Muslim is encouraged do charity for the blessings and rewards from Allah subhanahuwata’ala, not limited to low-income households. Some social finance institutions have been encouraging their zakat and infaq recipients, along with empowering programmes, to gradually give away a portion of their income as charity to the institutions; thus, it would be circulated among them. It is necessary to identify what factors influence them in regularly giving charity. Questionnaires were distributed to 1780 respondents from six areas in the west, middle, and east of Indonesia. By employing logistic regression, results show that determinants affecting regular charity giving of low-income households in Indonesia are employment status, household size, portion of charity per income, expectation of future economy, income, religious activity, and type of financing institution. Many Islamic economic researches have looked at compulsory charity, that is, zakat, and waqf topics, but none of them has covered voluntary monetary charity giving of low-income households in Indonesia. This research tries to fill the gap.
Keywords: charity giving, low-income households, Indonesia, social finance
Downloads
Article Details
References
Arsyianti, L. D., & Kassim, S. (2015). Regular charity giving of low-income households in Indonesia. In 4th International Conference on Inclusive Islamic Financial Sector Development, 17-18 November 2015, Islamabad, Pakistan. Islamabad, Pakistan: International Institute of Islamic Economics (IIIE), International Islamic University Islamabad (IIUI) and IRTI-IDB.
Arsyianti, L. D., & Kassim, S. (2016). Regular charity giving behaviour among low- income households in Indonesia. Intellectual Discourse, 1(24), 133–156. Retrieved from http://journals.iium.edu.my/intdiscourse/index.php/islam/article/view/653/556
[BAZNAS] BadanAmil Zakat Nasional. (2015a). Laporan. http://pusat.baznas.go.id/laporan-bulanan/. Retrieved on February 5, 2015.
Beik, I. S. (2013). Economic Role of Zakat in Reducing Poverty and Income Inequality: A Case Study in the Province of Jakarta, Indonesia. Germany: Lambert Academic Publishing.
Beik, I. S., & Arsyianti, L. D. (2016). Measuring Zakat Impact on Poverty and Welfare Using CIBEST Model. Journal of Islamic Monetary Economics and Finance, 1(2), 141–160.
Bekkers, R., & Wiepking, P. (2007). Generosity and Philanthropy: A Literature Review. In 35th Annual Conference of the Association for Research on Nonprofit and Voluntary Action, November 16-18, 2006 (pp. 1–68).
[BPS] Central Board of Statistic, Indonesia. (2014). Average Household Size by Province, 2000-2014. [Online]. Retrieved from http://www.bps.go.id/linkTableDinamis/view/id/849, on November 6, 2015.
Hafidhuddin, D. (2007). Agar HartaBerkahdanBertambah. Jakarta: GemaInsani Press.
Halim, A., Hamid, A., Azmin, N., & Nordin, M. (2001). A Study on Islamica Banking Education and Strategy for The New Millenium - Malaysian Experiance. International Journal of Islamic Financial Services, 2(4), 2–11.
Hogarth, J. M. (2006). Financial Education & Economic Development. Retrieved from http://search.oecd.org/daf/fin/financial-education/37723380.pdf
Hosmer, D. W. &Lemeshow S. (2000). Applied Logistic Regression. U.S.A: John Wiley and Sons.
Lammam, C., & Gabler, N. (2012). Determinants of charitable giving : A review of the literature. Fraser Forum, (April), 12–15.
Lyons, A. C., Chang, Y., & Scherpf, E. M. (2006). Translating Financial Education into Behavior Change for Low-Income Populations. Journal of Financial Counseling and Planning, 17(2), 27–45. Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2232122
Mandell, L., & Klein, L. S. (2009). The Impact of Financial Literacy Education on Subsequent Financial Behavior. Journal of Financial Counseling and Planning, 20(206), 15–24.
Martin, M. (2007). A literature review on the effectiveness of financial education. Federal Reserve Bank of Richmond Working Paper No 07-03, June 15, 2007.
Mushlihah, N. (2016). The Impact of Zakat Fund Distribution for Poverty Reduction Based on CIBEST Model (Case: LAZ PM Al Bunyan Bogor City). Undergraduate Thesis, Bogor Agricultural University.
Pharoah, C., & Mckenzie, T. (2013). Giving back to communities of residence and of origin: An analysis of remittences and charitable donations in the UK. London: Alliance Publishing Trust.
Pharoah, C., & Tanner, S. (1997). Trends in Charitable Giving. Fiscal Studies, 18(4), 427–443. http://doi.org/10.1111/j.1475-5890.1997.tb00272.x
Piper, G., & Schnepf, S. V. (2008). Gender differences in charitable giving, (3242). http://doi.org/10.1007/s11266-008-9057-9
Schervish, P. G., O’Herlihy, M. A., & Havens, J. J. (2002). Charitable giving: How much, by whom, to what, and how? (W. Powell & R. Steinberg, Eds.). Yale Press.
The Noble Qur’an. English translation of the meanings and commentary. al-Hilali, M. T. & Khan, M. M. (Eds.). Madinah: King Fahd Complex for the Printing of the Holy Qur’an.