Maqasid al-Sharia-based distribution of Islamic social funds: Evidence from Baitul al-Qur'an Gontor

Purpose – This study explores how the Baitul al-Qur'an Gontor Social Fund Institution (Lembaga Dana Sosial Baitul Quran, LDSBQ) operationalizes maqasid al-Sharia principles in the governance and distribution of Islamic social funds to enhance community welfare.Methodology – Employing a qualitative single-case study, data were collected in July and August 2025 through semi-structured interviews with the LDSBQ director, 3 operational staff, and 10 program beneficiaries. Triangulated with non-participant observations and document analysis, the data were analyzed using thematic coding.Findings – LDSBQ integrates the five dimensions of maqasid al-Sharia not merely as a descriptive program matrix (e.g., da'wah for al-dīn, healthy smile for al-nafs), but as a holistic welfare creation mechanism. The analysis demonstrates how this maqasid-driven allocation moves beneficiaries from basic survival towards bounded economic empowerment. It also uncovers implementation challenges, particularly monitoring constraints in remote areas and limited long-term capital for micro-enterprises.Implications – The findings offer Islamic philanthropic institutions an illustrative, empirically grounded pathway to shift from ad-hoc charity to structured community empowerment by anchoring resource allocation directly in maqasid objectives. Originality – Moving beyond theoretical discussions, this study contributes to the Islamic social finance literature by empirically detailing the operational mechanisms, beneficiary impacts, and grassroots implementation challenges of a localized maqasid-based institutional framework.