Evaluation Study of Islamic Microfinance Program Based on Islamic Social Funds (Zakat, Waqf, and Sadaqah)

This study evaluates the effectiveness and impact of Islamic microfinance programs that are integrated with Islamic social funds, namely zakat, waqf, and sadaqah, in promoting financial inclusion and alleviating poverty. By adopting a mixed-methods approach, the research combines quantitative data from structured surveys with qualitative insights from interviews and focus group discussions involving beneficiaries, microfinance institutions (MFIs), and Islamic social fund agencies. The findings reveal that the integration of Islamic social funds into microfinance initiatives enhances outreach to the ultra-poor, supports ethical and interest-free financing mechanisms, and promotes socioeconomic empowerment, particularly among women and micro-entrepreneurs. Beneficiaries reported increased income levels, improved financial literacy, and strengthened community trust in Shariah-compliant financial models. However, the study also identifies key challenges, including fragmented institutional coordination, governance inefficiencies, and limited technological adoption. The research concludes that while integrated Islamic social finance programs have significant potential, their success depends on effective policy frameworks, transparent governance, and institutional innovation. This study contributes to both academic discourse and practical efforts to advance inclusive, ethical, and sustainable Islamic financial systems.