Factors Influencing Thai Muslims' Willingness to Donate Cash Waqf to Religious Project

Author:

Hassama Aris,Nor Asmat Ismail

Abstract

Purpose — Muslim communities in Thailand have lately used cash waqf as a creative strategy to raise seed money from Muslim contributors to implement religious projects such as building religious institutions like mosques and Islamic schools. The factors influencing this unique kind of giving have, to date, rarely been studied. This research attempts to examine the motivational and economic elements that impact people’s willingness to donate (WTD) cash waqf to such religious projects. Design/Methodology/Approach — The study utilised a Contingent Valuation Method (CVM) and an ordinal logistic regression method to examine the effects of various independent variables on the WTD. A validated structured questionnaire was utilised to collect primary data from 404 cash waqf donors in the southernmost provinces of Thailand. Findings — When comparing donors with medium income levels to those with higher salary levels, the findings show that donors in the higher salary category were more likely to generate a higher WTD propensity. The probability of donors’ WTD was positively influenced by any reductions in debt levels. Furthermore, factors such as belief in the afterlife, the salience of one’s Muslim identity, and the experience of a warm glow were found to have a positive impact on individuals’ WTD cash waqf to religious projects. Originality/Value — This study utilised the Contingent Valuation Method (CVM) to examine the cash waqf practices, which has received limited attention in previous scholarly works. Furthermore, the variables employed in this research serve to broaden the scope of understanding in the realm of Islamic philanthropy, surpassing the confines of the attitude-intention framework. Research Limitations/Implications — The factors used in this study encompass the internal drives of potential donors. In reality, a number of external circumstances, such as the validity of the waqf project and the donor’s accessibility to other options, may have an impact on the donor’s choice. Additionally, the scope of this study was restricted to the southern border provinces of Thailand. It would be of interest to conduct additional research that broadens the sample size and geographical scope to include other regions within the country or even other countries with diverse cultural and socioeconomic contexts. This would enable the generalisation of the findings obtained from this study. Practical Implications — Waqf fundraising organisations should focus on boosting awareness among high-income, low-debt people. This population group donates more than middle- and lower-class people. Mosques and religious organisations can use a strategy to help donors reassess the spiritual benefits of waqf giving in relation to the afterlife, the reinforcement of their Muslim identity, and the emotional satisfaction of giving. These motivators will increase the likelihood of mosque donations.

Publisher

International Centre for Education in Islamic Finance

Subject

Economics and Econometrics,Finance,Development

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