The determinants of donors’ behavior toward Islamic charities: a phenomenological inquiry

Purpose This study aims to discover the determinants of Zakat donation to charity organizations (COs) among donors of a predominantly Muslim-majority country, Pakistan. To achieve their social objectives, COs need to understand the behavior of Zakat donors to design effective strategies for mobilizing contributions from this class. This research, therefore, unearths the underlying factors that motivate Muslims to donate to COs. Design/methodology/approach This research is based on in-depth interviews with 16 participants from both urban and rural areas of Pakistan. The data are analyzed through Quirkos 2.4, a qualitative data analysis software. Findings This study finds that donors exhibit great interest in, and are influenced by, the organizations’ disbursement mechanism. The provision of financial information by, and awareness about, the organization also affects donation decision. The results further reveal that trust is important in donors’ behavior toward contributing to COs. Overall, these results support the assertion that trust in COs, fair disbursement of charity funds, disclosure of financial information to the stakeholders and spreading awareness about the COs activities are important considerations for the stakeholders. Research limitations/implications Based on insights derived from this study, the authors suggest that COs enhance donors’ trust, ensure fair disbursement of charity funds, disclose financial information to the stakeholders and create awareness among people about their societal contribution to retain the existing donors and attract new ones. Practical implications Besides its relevance to the charity sector, this study has managerial implications. COs and particularly Zakat organizations are increasingly confronted with challenges, including competitive environments and publicized scandals, undermining donors’ confidence in this sector. Innovative approaches are required to counter these challenges and retain public support in Zakat organizations. Measures that can be helpful in this connection include sufficient financial disclosure, enhancing the fund disbursement mechanism and providing information about the achievements of COs to the general public to create awareness and dispel misperceptions. Originality/value This study explores the psychological factors affecting donation behavior of the Muslims in Pakistan, an area where research is generally limited to the Western context. The findings can help the management and nonprofit marketers in fundraising and attracting donors toward COs. The study also enriches the knowledge of donors’ behavior toward charity under a centralized Zakat system.