Islamic Education Financing Systems and Approaches

Abstract

This study discusses the system and approach to financing Islamic education applied in various Islamic educational institutions in Indonesia. The main focus of this study is to identify the financing model used and analyze approaches that are in accordance with the principles of Islamic economics, such as justice, mutual assistance, and freedom from usury. The research method used is qualitative descriptive with a literature study approach and observation in a number of Islamic educational institutions such as madrasahs, Islamic boarding schools, and integrated Islamic schools. The results of the study indicate that financing for Islamic education comes from several main schemes, including student contributions (SPP), waqf funds, zakat, infaq, sedekah (ZIS), government assistance, and productive business units of the institution. The financing approach applied prioritizes the principles of sustainability, inclusiveness, and independence of the institution. In addition, the application of cross-subsidy models and digitalization of fundraising as modern financing innovations was also found. This study recommends the need to optimize the potential of zakat and productive waqf as the main source of funding, as well as strengthening sharia financial governance in Islamic educational institutions.