Is Utilising Crowdfunding Platforms Such as GoFundMe Permissible? – Shaykh Irshaad Sedick

Answered by Shaykh Irshaad Sedick

Question

Using crowdfunding platforms like GoFundMe to establish an educational institute is permissible in Islam if the intention is noble, such as spreading beneficial knowledge and serving the community. This action is differentiated from begging by offering communal benefits and engaging in ongoing charity (sadaqa jariya). Ensuring transparency, honesty, and ethical use of funds in accordance with Islamic principles is crucial.

Answer

In the Name of Allah, the Most Merciful and Compassionate. May Allah alleviate our difficulties and guide us to what pleases Him. Amin.

Using crowdfunding platforms like GoFundMe to establish an educational institute is permissible in Islam if the intention is noble, such as spreading beneficial knowledge and serving the community. This action is differentiated from begging by offering communal benefits and engaging in ongoing charity (sadaqa jariya). Ensuring transparency, honesty, and ethical use of funds in accordance with Islamic principles is crucial.

Intention is Key

It is essential to recognise that Islam significantly emphasises the intention (niyya) behind actions. The Prophet Muhammad (Allah bless him and give him peace) said, “Actions are but by intention, and every man shall have only that which he intended” [Bukhari & Muslim]. 

This foundational hadith underscores that the permissibility and reward of actions are profoundly linked to the intentions behind them. Therefore, if a crowdfunding platform intends to establish an educational institute for Allah’s (Most High) sake, spread beneficial knowledge, and serve the community, then the action is rooted in a noble intention.

Mutual Cooperation and Assistance in Goodness

Islam encourages seeking assistance that contributes positively to the community and the umma. Establishing an educational institution falls squarely within the domain of public benefit (maslaha). It is considered a form of sadaqa jariya (ongoing charity) from which the benefits continue to accrue even after the person’s passing. 

Allah says, “Help one another in acts of piety and righteousness” [Quran, 5:2]. In this context, crowdfunding can be viewed as a modern tool that facilitates the collective support of virtuous projects.

Begging?

The differentiation between utilising crowdfunding platforms and begging lies in the nature and purpose of the request for funds. Begging, traditionally discouraged in Islam except under extreme necessity, involves asking for personal financial assistance without offering a return or benefit to the community. 

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Conversely, crowdfunding for establishing an educational institute calls for investment in a communal benefit, where the contributors become partakers in the ongoing reward of the knowledge imparted.

However, ensuring that such crowdfunding efforts’ operation aligns with Islamic ethical guidelines is critical. This includes transparency about how the funds will be used, honesty in conveying the needs and potential impact of the institute, and ensuring that the money raised is used judiciously and for the stated purposes. 

Avoid Debt

It is also advisable to avoid incurring debt that cannot be repaid and to ensure that transactions are free from interest (riba), as prohibited in Islam.

In conclusion, utilising crowdfunding platforms like GoFundMe to raise funds for establishing an educational institute can be permissible (halal) in Islam, provided the intentions are noble, the means are ethical, and the purpose serves a communal benefit. This differentiates it from begging due to the endeavour’s structured, goal-oriented, and beneficial nature. 

I pray that this answer benefits and that Allah knows best.

[Shaykh] Irshaad Sedick
Checked and Approved by Shaykh Faraz Rabbani

Shaykh Irshaad Sedick was raised in South Africa in a traditional Muslim family. He graduated from Dar al-Ulum al-Arabiyyah al-Islamiyyah in Strand, Western Cape, under the guidance of the late world-renowned scholar, Shaykh Taha Karaan. 

Shaykh Irshaad received Ijaza from many luminaries of the Islamic world, including Shaykh Taha Karaan, Mawlana Yusuf Karaan, and Mawlana Abdul Hafeez Makki, among others.

He is the author of the text “The Musnad of Ahmad ibn Hanbal: A Hujjah or not?” He has served as the Director of the Discover Islam Centre and Al Jeem Foundation. For the last five years till present, he has served as the Khatib of Masjid Ar-Rashideen, Mowbray, Cape Town.

Shaykh Irshaad has thirteen years of teaching experience at some of the leading Islamic institutes in Cape Town). He is currently building an Islamic online learning and media platform called ‘Isnad Academy’ and pursuing his Master’s degree in the study of Islam at the University of Johannesburg. He has a keen interest in healthy living and fitness.