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THE IDEA AND PRACTICE OF PHILANTHROPY IN THE MUSLIM

The Muslim World Series September 2005 PN-ADD-444 The Issue Paper Series Strengthening Basic Education through Institutional Reform (PN-ACR-350)

Strengthening Education in the Muslim World: Summary of the Desk Study (PN-ACT-009)

Economic Growth in the Muslim World: How Can USAID Help? (PN-ACY-101)

Governance in the Muslim World (PN-ADB-211)

The Idea and Practice of Philanthropy in the Muslim World (PN-ADD-444)

Poverty Reduction Strategy Papers: How Do They Treat the Private Sector? (PN-ACX-270)

This paper is available from USAID’s Development Experience Clearinghouse (DEC). To or download, go to www.dec.org and enter the document identification (see front cover) in the search box. The DEC may also be contacted at 8403 Colesville Rd., Ste. 210, Silver Spring, MD 20910; tel 301-562-0641; fax 301-588-7787; email [email protected]. Editorial, design, and production assistance was provided by IBI–International Business Initiatives, Arlington, VA, under contract no. HFM-C-00-01-00143-00. For more information, contact IBI’s Publications and Graphics Support Project at 703-525-2277 or [email protected]. . THE IDEA AND PRACTICE OF PHILANTHROPY IN THE MUSLIM WORLD

Jon B. Alterman Center for Strategic and International Studies with Shireen Hunter Center for Strategic and International Studies Ann L. Phillips U.S. Agency for International Development

PPC Issue Paper No. 5 Bureau for Policy and Program Coordination The findings and conclusions in this report are those of the authors and do not necessarily represent the views of USAID. Contents

Foreword ...... v Executive Summary ...... vii Introduction ...... 1 Philanthropy in the Muslim World ...... 3 Recommendations for Engagement ...... 11 Conclusion ...... 13 Bibliography ...... 15 Annex ...... 17

THE IDEA AND PRACTICE OF PHILANTHROPY IN THE MUSLIM WORLD iii

Foreword

SAID has been working Together, the papers provide a clearer with Muslim populations for picture of the commonalities and dif- Udecades. As part of a broader ferences among Muslim countries. In U.S. Government effort, USAID estab- particular, they highlight the variation lished an intra-agency working group in the role of in different that consulted outside experts as well as scholarly literature to enhance our and countries. Individually, each ex- own knowledge of how to engage more plores a major dimension of state-so- effectively in predominantly Muslim ciety relations. Recommendations for countries. The result is a series of studies assistance priorities and tactics flow that focus on features essential to the from these analyses. internal dynamics in the Muslim World. The papers compile existing research to They include increase understanding and stimulate • Strengthening Education in the Muslim discussion. They are not statements of World (June 2003) official U.S. Government policy. • Economic Growth in the Muslim World: How Can USAID Help? (June 2004) Andrew S. Natsios • Governance in the Muslim World USAID Administrator (April 2005) July 2005 • The Idea and Practice of Philanthropy in the Muslim World (September 2005)

THE IDEA AND PRACTICE OF PHILANTHROPY IN THE MUSLIM WORLD v

Executive Summary

his philanthropy study is part in the Muslim world offers new avenues of a broader USAID effort to for more effective U.S. engagement. better understand the Muslim T USAID commissioned Jon Alterman, world. Although philanthropy enjoys less attention than political and eco- director of the Program at nomic themes, it is important because the Center for the Strategic and Inter- it harnesses enormous material and national Studies, to write this study. He human resources as well as organiza- convened experts on philanthropy in tional capacity that might be employed Islam and regional specialists to discuss more directly to promote development. current practices and the possibilities Equally noteworthy, philanthropy—its for U.S. engagement. The result is this attendant institutions and practices— compilation of analyses by seminar provides a valuable window into the participants and other leading scholars. dynamics and values of Muslim societ- Recommendations that flow from these ies. Deeper insight into these elements findings are presented for discussion and can help U.S. actors expand partner- consideration, but they do not consti- ships to individuals and organizations tute official USAID or U.S. Govern- ment policy. Key findings and recom- mendations are listed below: Philanthropy harnesses enormous material and human resources as well as organizational capacity that might be • Charity is one of the five pillars of faith in Islam and is obligatory. As employed more directly to promote development. such, it channels enormous wealth, both material and human.

that exercise significant influence in • The practice of philanthropy and their communities but too often have accompanying institutional arrange- been overlooked by official U.S. as- ments vary significantly across the sistance. cultural zones of the Muslim world.

This study explores three dimensions of • Muslim foundations established for philanthropy in Muslim societies: the the public good (waqf khayri) are varying degrees of from or major providers of , schools, subordination to the state; the types of and other services. charitable giving and preferred objects of charity; and the potential role of philan- • Muslim foundations established to thropic organizations in reform and de- shelter family wealth (waqf ahli) could velopment. Taken together, philanthropy constitute an untapped resource for

THE IDEA AND PRACTICE OF PHILANTHROPY IN THE MUSLIM WORLD vii development if their governing rules who can organize them and for what of this assistance. Assistance should were liberalized. purposes. also take the form of matching funds that require charities to maintain and • tend to favor direct charity • Obstacles to expanded coopera- deepen their societal support. to an individual recipient over chan- tion between the and neling their donations through an es- Muslim charities exist on both sides. • The U.S. Government should tablished institution. Among institu- Nonetheless, U.S. actors should ex- support the restoration of greater tions, religious charities are preferred. autonomy for Muslim charities, pand their circle of partners to include Western- NGOs are mistrusted; along with reforms that liberalize mainstream clerics and religious orga- they are regarded as businesses rather rules that govern them. In exchange, nizations engaged in philanthropy. than charities. foundations should improve the transparency of their operations. • The modern state has encroached to • The U.S. Government and NGOs differing degrees on the autonomy should consider increasing levels of • The U.S. Government and NGOs once enjoyed by philanthropic orga- support given to more mainstream should sponsor regional discussions nizations in Muslim societies. Some Muslim charities rather than relying among Muslim charity personnel, states nationalized philanthropic so heavily on predominantly Western with particular attention to shar- foundations, others established NGOs. Strengthening the governance ing experiences of activities that ministries to regulate them, while and transparency of Muslim charities provide public goods and promote others exerted control by determining should be an integral part development.

viii THE MUSLIM WORLD SERIES Introduction

n recent years, the U.S. Govern- philanthropy in Muslim communities ment has sought new modes of are influenced by religious norms. Un- Iinteraction with nongovernmental derstanding the context can help identify institutions and organizations in opportunities and pitfalls in interacting Muslim-majority countries. This with this sphere. heightened activity is partly the conse- quence of a perception that traditional No reliable figures exist for the magni- civil society institutions tend to be tude of philanthropic giving in Muslim weak in such countries. It also reflects communities, but it is estimated to total a fresh appreciation for the value of between $250 billion and $1 trillion an- expanding U.S. interlocutors and part- nually. This estimate takes into account ners to include mainstream religious approximations of per capita giving in leaders and organizations, particularly some countries, per capita incomes in given the mistrust with which West- Muslim-majority countries, religious ern-style NGOs are generally regarded. injunctions to donate at least 10 percent of one’s income to charity, and other factors.

This study examines the idea and The magnitude of philanthropic giving in Muslim practice of philanthropy in the Mus- communities is estimated to total between $250 billion lim world to discern new opportuni- ties, avenues, and approaches for U.S. and $1 trillion annually. Government interaction. One of the study’s primary goals is to provide baseline knowledge of philanthropy in Philanthropy has a long and vital his- the Muslim context. This knowledge tory as an indigenous phenomenon can identify opportunities to strengthen in Muslim culture. Whereas social nongovernmental Muslim-oriented scientists’ notions of how civil society philanthropic organizations, suggest is constituted and interacts with state approaches to increase transparency institutions are deeply grounded in the in that sector, and help such organiza- Western experience, philanthropy in tions expand independence from state Muslim communities is a long-standing control. The second goal is to generate tradition. Both the idea and practice of new ideas for U.S. Government activ-

THE IDEA AND PRACTICE OF PHILANTHROPY IN THE MUSLIM WORLD 1 ity through leveraging the activities of partly on criticisms of U.S. domestic ratization, education, and healthcare. extant groups, identifying best practices, security responses to the September 11 Finally, a better understanding of the and suggesting new areas of operation. attacks. Both criticisms are widespread social contexts in which USAID oper- in Muslim societies, as public survey ates can help inform ongoing Agency Several obstacles to effective engage- data attest. activities, whether or not these seek to ment by the U.S. Government should involve religious organizations. be acknowledged at the outset. First, Nonetheless, the possibility of U.S. the idea of governmental aid to or other engagement is worthy of investigation Experts on philanthropy in Islam and cooperation with Muslim philanthropic for a number of reasons. President Bush on specific regions within the Muslim organizations raises some legitimate and members of his administration have world were consulted for this study.2 concerns. The principle of separation clearly identified the dearth of political Two seminars were convened to dis- between church and state enshrined openness in Muslim-majority coun- cuss the history and current practices in the U.S. Constitution leaves many tries—especially in the —as of philanthropy and the possibilities uncertain about the legal parameters a condition that contributes to for U.S. assistance. A common thread governing support for religious organi- and civil strife, thereby harming U.S. of the presentations was the essential zations. Further, in the current climate national security. In addition, stronger role that philanthropy plays in Muslim many Americans feel that Muslim nongovernmental or quasi-governmen- societies and its ability to harness tre- 1 organizations propound messages inimi- tal organizations in Muslim-majority mendous wealth and human resources. cal to their values and hostile to their countries can help promote economic The shared charitable obligation of all interests. The investigation and shutter- development, good governance, democ- Muslims, however, is transposed into a ing of prominent Muslim charities in rich spectrum of practice and belief that the United States after September 11, varies over time and space and is inher- 2001, due to direct and indirect ties to 1 Quasi-governmental refers to organizations that depend upon government funding but ently dynamic. This study synthesizes terrorist organizations, have reinforced act independently from the government. In analyses by the seminar participants this reluctance. the United States, the National Endowment for , the International Republican and other leading scholars to identify Institute, the National Democratic Institute, Conversely, many Muslim organizations and the United States Institute of Peace are opportunities and constraints for U.S. are equally reluctant to work with the just a few examples. Europeans have similar assistance. The recommendations that foundations, including the Westminster U.S. Government, which significant Foundation in Great Britain and, in Germany, flow from these findings are presented view as hostile to Muslims and the Friedrich Ebert, Konrad Adenauer, for discussion and consideration, but Friedrich Naumann, Hanns Seidel, and Heinrich to Islam. This view rests partly on dis- Boell foundations. they do not constitute official USAID agreement with U.S. foreign policy and 2 See the annex for a list of seminar participants. or U.S. Government policy.

2 THE MUSLIM WORLD SERIES Philanthropy in the Muslim World

hilanthropy is a central tenet of charity and recipients. Obligatory of Islam, and many Muslims charity () aids Muslims, while Pregard charity as a form of wor- voluntary charity (sadaqa) may go to ship. It is one of the five pillars of the non-Muslims. faith (along with prayer, belief in God and the Prophet , fasting The emphasis on charity perhaps during , and pilgrimage to contributes to Islam’s emphasis on the ). What is perhaps less well un- idea of social justice, both as a societal derstood outside Muslim communities ideal and as a government responsibility. is the way in which philanthropy binds There is no expectation of equality of Muslims to each other. In Muslim con- opportunity, but Islam expects leaders to ceptions of faith and community, hu- feed the hungry, heal the sick, and house mans are linked to each other through the orphan and widow, and expects all their obligations to God. A charitable Muslims—be they rich or poor—to act is therefore neither merely an act contribute to such efforts. of faith nor merely an act of commu- Because these principles are familiar nity. It is the of community to non-Muslims, one might reason- through faith, and the building of faith ably ask whether they are particular to through the deepening of community. Islam, shared by all , or simply a universal expression of the better side of human nature. After all, every Philanthropy binds Muslims to each other. In Muslim appears to have some charitable com- conceptions of faith and community, humans are linked ponent, and many secular individuals to each other through their obligations to God. are just as charitable. As such, is a more general phenomenon masquerading as a particularistic one?

This idea is further elaborated in the Without trying to settle this issue, the Islamic concept of takafful, or the fact is that Muslim-majority societ- responsibility of each Muslim for every ies view such impulses predominantly other Muslim. Charity is thus as much as religious, and they are manifested an act of obligation as an act of piety. in predominantly religious ways. This Though no legal barriers to including means that these charitable impulses non-Muslims as beneficiaries of the can be treated as religious phenomena, Muslim practice of charity have ever even if they are more universal in their been established (Kuran 2001, 16), . Indeed, doing so gives activities a distinction is made between types of this kind an authenticity and local

THE IDEA AND PRACTICE OF PHILANTHROPY IN THE MUSLIM WORLD 3 flavor that help ease their acceptance Structures of Philanthropy the Prophet and diminution of the role and dissemination. of the jurist’s personal judgment, domi- Variations in Practice nates in , , and Southeast . Finally, because there is wide variation It is not surprising that an elaborate set in the understanding and practice of There are also differences between Sunni of rules and institutions govern philan- Islam, what is under examination here and Shi’a jurisprudence and within thropic work in Muslim communities, is not one practice but many: from Shi’a jurisprudence itself. The most given philanthropy’s long history and handing a loaf of bread to a beggar to significant differences between Sunni central role in Muslim faith. Despite a putting money in a collection box to and Shi’a have to do with spiritual widespread presumption within Muslim building a network of schools. How and temporal leadership of the Muslim communities that Muslim practices have each person carries out and understands community, which was at the core of the been consistent from time immemo- his or her acts of philanthropy will vary Sunni-Shi’a split in the first Islamic cen- rial, those rules—like many aspects of substantially, not only from one person tury. Sunni schools of law are grounded Islam—have differed greatly over time to another but for the same individual in the rulings of and the legal and space. Hakan Yavuz of the Univer- from time to time. compendia of early jurists, while the sity of Utah suggests that there are seven Shi’ite or Jafari school allows distinct zones of Islam: Arab, Iranian, to serve as sources for law, sometimes Turkish, African, South Asian, Southeast breaking with precedent to address new Types of Islamic Asian, and diaspora (or non-Muslim issues. As such, many analysts regard Charitable Giving majority countries). Across these zones, Shi’ite law as the more dynamic and the practice of Islam varies substantially. zakat: a charitable obligation, open to change. generally calculated at 2.5 One expression of this diversity is found Differences between schools are of percent of wealth of certain in schools of jurisprudence. The rules sufficient practical importance that a categories (excluding, for ex- governing religious charitable dona- Muslim visiting is likely ample, fixed equipment and tions and obligations vary, depending to be asked the school of jurisprudence jewelry that is worn), paid at the on which of the four primary schools to which she or he adheres. What is end of the Ramadan fast. There of Sunni jurisprudence are followed considered “properly Islamic” in one are elaborate rules for calculating (, Hanafi, , and Shafii) zakat obligations. context may not be considered so in an- or which branch of Shi’a Islam. One’s other. For example, a ruling by a North obligation to such a school’s principles is sadaqa: voluntary or discretion- African jurist of high qualifications may generally by custom rather than fiat. In ary charity, not necessarily mon- be considered nonbinding—or perhaps many countries, several different schools etary in nature. Recipients need erroneous—by a Central Asian cleric. of jurisprudence may be in practice not be Muslim. Broad claims that “Islam demands” side-by-side, although one school tends one practice or outcome instead of kaffara: a penitential charitable to dominate. The literalist Hanbali contribution for the breaking of another are unlikely to hold across all school of jurisprudence is the dominant an oath. geographical areas. The closer one gets one in Saudi Arabia, for example, while to the complexity of actual practice, the the more flexible Hanafi school is more khoms: a charitable obligation of more local distinctions are likely to be prevalent in Central and South Asia. Shi’a Muslims, calculated at 20 manifest. percent of annual profits or 20 Maliki Islam, closely tied to what were percent of income above and thought to be the practices of Madina, is That said, one of the emerging tenden- beyond living requirements. prominent in North , , cies in modern Islam is a trend toward and the . The Shafii school, with homogenization and orthodoxy, one its emphasis on confirmed traditions of driven by a combination of communi-

4 THE MUSLIM WORLD SERIES cations technology, travel, and prosely- from commercial stalls surrounding a a way of protecting assets from confisca- tizing efforts from the Arabian Penin- may help maintain it. tion should they fall from power. sula. Some emerging religious leaders Not all awqaf have served strictly It was thus perhaps inevitable that have regional or global audiences, and religious purposes, however. A study of charitable institutions would come their proclamations on what is and is Turkish awqaf founded in the eigh- into conflict with increasingly powerful not Islamic extend far beyond their own teenth century showed that less than modern states. Not only did founda- cities or countries. The broader reach one-third were clearly religious while tions shelter their incomes and assets is assisted by the fact that schools of from state control, but they provided almost one-half provided secular services jurisprudence actually agree on roughly social services, such as schools and clin- (Kuran 2001, 13). The religious linkage 80 percent of law. Differences tend to be ics, that increasingly positioned them as was also diluted in the nineteenth cen- found in details rather than in principle. competitors to modernizing states and tury, when non-Muslims were no longer For example, schools differ on the pen- their bureaucracies for public allegiance. ance required for intentionally breaking prohibited from establishing awqaf. This tension was common even where the Ramadan fast. Although exceptions had been made foundations were filling a gap left by the for wealthy non-Muslims, the practice state’s inability to provide services. For The effects on philanthropy are poten- increased substantially when the prohi- example, during the , tially far-reaching. First, it is increas- bition was lifted (Kuran 2001, 15). The poverty may have been a public policy ingly possible to establish philanthropic change not only increased the number problem, but the state had few instru- causes of truly regional scope. These can of awqaf but may have magnified their ments to coopt charities or compel them go far beyond telethons for Palestin- function of protecting family wealth. to share the burden. ians or Iraqis, a staple of Arab satellite television in the 1990s, and can com- mand hundreds of millions of dollars in Not only did foundations shelter their incomes and annual contributions. Second, practices assets from state control, but they provided social services, of philanthropy are likely to become such as schools and clinics, that increasingly put them at increasingly uniform as popular regional religious authorities (such as television odds with modernizing states and their bureaucracies. cleric Yusuf Qaradawi or religious talk show host Amr Khalid) present views Awqaf are of two principal kinds. A In the early twentieth century, many of “proper” Islam that delegitimize the states responded to the perceived com- imprint of local customs. A revolution waqf khayri furthers the public good petition by nationalizing awqaf, often in the structure of Islamic jurisprudence by establishing hospitals and clinics, establishing a ministry or office to ad- seems unlikely, however; the four major schools, baths, and other such institu- minister their affairs in accordance with schools of Sunni legal interpretation tions. A waqf ahli resembles a family the local civil code and state interests. trust in the West; it serves as something show few signs of weakening in the face In so doing, they extended state control of increased communication. like a tax shelter and mechanism for into what has come to be thought of transmission of wealth from one genera- In addition to individual giving, Islam in the West as the heart of civil society, tion to the next. Sometimes endow- has an elaborate pattern of institutional eliminating a source of independence 3 religious foundations called waqf (pl: ments are established by women to and potential political opposition. In awqaf). Foundations can be endowed by shield their wealth from their husbands 3 State encroachment into private spheres was individuals, families, or institutions, and and their husbands’ families. Govern- not unique to the Muslim world, of course. they often have income-producing ment officials have also established In Western , emerging states pursued different strategies to subordinate the church activities attached. For example, rent awqaf in times of political instability as following the Thirty Years War.

THE IDEA AND PRACTICE OF PHILANTHROPY IN THE MUSLIM WORLD 5 Waqf, Religion, and State

o single relationship between religion, its respective state government, but relies on the endowments, and state institutions has federal Islamic Religious Department for support. Nprevailed in Muslim-majority countries, The Prime Minister’s Department also has an although modern states have generally sought to Islamic Affairs Division that acts as an administrative exert control over the religious sector. That impulse coordinator. The resultant model is a mix between has increased over time. local autonomy and centralized control. In Egypt, the government nationalized religious In , Czarist control followed by state- education in 1958 at al-Azhar University, the world’s oldest university and ’s foremost enforced did away with most Islamic seat of learning, following a millennium of relative institutions. In post-Soviet Uzbekistan, institutions independence. Since 1961, the Egyptian president of local rule called mahallas are resurgent, and has appointed the head of al-Azhar and the have been vested with neotraditional religious (or head jurist) in the country, replacing a pattern meaning. In the meantime, the Uzbek government of clerical elections. Beginning in 1981, the Ministry has appropriated Islamic terms to give legitimacy of Awqaf began implementing a plan to bring every to institutions that bear little resemblance to their mosque and informal prayer circle under ministry orthodox Islamic counterparts. control, giving the government assets and the ability to appoint employees, but also the responsibility of Muslims in South Africa are an important minority paying salaries. The government controls perhaps in the country’s population. The bicentennial of 60,000 of the 80,000 in the country, and the unbanning of Islam and religious freedom was has aggressive plans to control the balance. commemorated in May 2004 with considerable In , the Ministry of Religion was established fanfare. The National Awqaf Foundation of South to oversee religious education, the publication of Africa led the observances, underscoring the religious materials, the (pilgrimage), and public connection of South African Muslims to the whole celebration of holidays. During the last 20 years, umma, or Muslim community. government efforts to train clerics have been stepped up. The government manages ownership of In , religious life is fairly decentralized. Most waqf properties, funds mosques in the country, and Guineans fulfill their charitable obligation by giving has heightened efforts to oversee religious donations, money, food, or livestock directly to needy people sermons, and mosque activities. In the post-Suharto and/or to their local mosques. Nonetheless, the era, the ministry has attended more to administrative government has a ministerial-level secretary of state tasks rather than the ideological watchdog function for religious affairs who has numerous responsibilities. it performed under the New Order. The ministry, These include managing donations made to Guinea one of the few not decentralized under the Regional by wealthier Muslim countries, assigning imams to Autonomy Law, still regulates all schools. mosques, helping to organize the hajj to Mecca, and In , each state has a separate Islamic council informing the public about religious holidays and to administer zakat. Each council is responsible to charitable obligations under the Koran.

6 THE MUSLIM WORLD SERIES the process, states brought under control Objects of Philanthropy substantial assets (sometimes as much While the mechanisms of Islamic The Fethullah Gülen as 15 percent of a state’s wealth), which philanthropy may vary from Movement: A Profile could be directed toward supporting to region and time to time, recipients At a time when outsiders tend to state interests. of philanthropy have been relatively regard most Islamic networks with consistent. suspicion, the Fethullah Gülen is Formal Versus Informal seeking to establish itself as a voice of Mosques: Not surprisingly, the establish- Institutions charity, knowledge, and moderation. ment of a mosque is a principal form Though the elaborate formal structures The Turkish movement has its roots of traditional philanthropy. In this, governing philanthropic giving in Mus- in Sufi, or mystical, Islam, and counts Muslim traditions bear a close relation- lim-majority societies may convey the among its adherents an impressive ship to those of medieval , impression that Muslims systematically array of ’s intellectual elite. when rulers and other wealthy patrons favor formal institutions over informal contributed heavily to the construction Recruiting through personal contacts ones, this is not the case. Individual of houses of worship. While this prac- and operating largely through a series philanthropic acts are far more likely to tice is now less common in Christian of study circles, Gülen’s followers directly connect the giver and recipient countries, heads of state in the Muslim seek to perfect themselves and their than to be funneled through a formal world (such as the late King II of society through study, works, and institution. A 10-year study of philan- ) and religious adherents (such personal probity.Through its efforts, thropy in Thailand, Philippines, Indo- as those faithful to the late the movement has established news- nesia, and shows that individuals papers, television and radio stations, Khomeini of ) have supported the are the main recipients of philanthropy, student dormitories, cultural centers, building of massive mosques that serve followed by religious organizations and and publications. other voluntary organizations (Baron as living memorials. More modest efforts 2003). Widespread distrust of formal, are also common. Adherents have been especially active among Turkish communities in Eu- Western-style foundations reinforces this The frequency of Muslim prayer rein- rope and Turkic-speaking communi- proclivity. Many in Muslim-majority forces the desirability of a large number ties in . Gülen’s followers societies reportedly see foundations and of widely dispersed mosques. Moreover, have founded more than 200 schools NGOs as businesses rather than philan- the physical requirements of a mosque from to China, with most thropic institutions. They are therefore are quite modest. These factors generate located in the former Soviet Union. inappropriate recipients of zakat. an ongoing need for mosques that the average Muslim can support through The movement has not escaped Philanthropic enterprises that enjoy suspicion, however. While outwardly charitable giving. credibility are those run by religious purporting middle-class values and figures because they are presumed to be In a city or town, prayers tend to comfort with the role of the Turkish trustworthy. Such organizations allow draw large crowds to the main mosque, military, some regard it as engaged one to fulfill the religious obligation which is also the center of commu- in a long-term effort to infiltrate with confidence that donations will be nity life and a focal point for political Turkish institutions and subvert the channeled to a worthy cause. Other discussions. In addition, a mosque often . Supporters counter Muslims are less concerned about the provides a locus for basic services, such that its networks are self-correct- use of their donations, arguing that as the provision of healthcare, food, or ing ones that promulgate liberalism their responsibility ends with fulfill- and tolerance, and its followers have clothing for those in need. ment of the obligation to give, and that never been implicated in acts of foundations have to account for their Schools: As in Western societies, schools violence. use of funds. in Muslim communities are frequent

THE IDEA AND PRACTICE OF PHILANTHROPY IN THE MUSLIM WORLD 7 recipients of philanthropic funds. In estinians, Chechnyans, Bosnians, Kash- increases, the need for assistance in some cases, schools are intimately tied miris, and other Muslim communities finding a spouse and paying for a to mosques. One example is ’s mil- under stress are thus popular recipients becomes more acute. Many lennium-old al-Azhar Mosque, which of charity. To outsiders, this can appear Muslim charities have leapt into the is connected to a university that teaches to be support for the “bloody borders breach, not only connecting potential religious and nonreligious subjects and of Islam,” where Muslim minorities (or partners, but assisting with marriage is also linked to programs for younger near minorities) on the fringes of Mus- costs and presiding over less costly people who are not yet in university. In lim-majority areas are often in conflict . other cases, schools supported by phi- with non-Muslim populations. Within lanthropy are freestanding institutions; the Muslim world, however, the prob- Constraints on a school receiving Muslim charity is not lems of these communities reinforce a Philanthropic Activity necessarily a religious school. There are a perception of Muslims under siege, and Philanthropic enterprises in Muslim wide variety of religious schools as well. support for them remains a potent ral- communities face several constraints, The term madrassa, now connected in lying cry. only some of which are of their own the Western public mind with extremist Informal Activities: Muslim philanthropic making. The most important is state en- education, is merely the word for activity is not limited to these formal croachment on their activities. The pop- school. practices. Some of the most developed ular perception in many predominantly Hospitals and Clinics: The provision of and impressive activities of Muslim Muslim countries is that states have medical care has been a priority in Mus- philanthropic groups that are far more simultaneously failed to create just soci- lim communities since medieval times, informal have a great effect on peoples’ eties and blocked political change, thus and political or military leaders have daily lives. Informal activities can be increasing the potential political impor- often endowed hospitals in their distinguished by their ad hoc and highly tance of the nonstate sector. In countries or in the names of their families. Some localized nature, considerable improvi- such as Egypt, nongovernmental actors of the popular support for organiza- sation in the provision of services, and note that while they enjoy freedom of tions such as the , lack of permanent space. speech, their freedom of action is highly Hamas, and is due to the fact constrained. Where juxtaposed against In many cases, formal Muslim philan- that they operate modern, efficient, low- only partly successful governmental thropic groups carry out informal activi- cost clinics in needy areas. efforts, the delivery of more efficient or ties. One such activity is responding to effective services by NGOs poses a po- Support for the Poor, Women, and natural disasters such as earthquakes and litical challenge that extant governments Orphans: Islam has a tradition of caring floods. Muslim charities have earned may be keen to derail. The consequent for women and orphans. Though Islam acclaim for their performance in such government encroachment on such traditionally frowns upon adoption by circumstances, often providing more activities can take many forms. One is nonrelatives, it has a well-developed tra- rapid and effective responses than gov- the nationalization of awqaf and other dition of caring for the disadvantaged. ernment agencies with the same tasks. philanthropic institutions to bring them Many Muslims take pride in the fact Their quick provision of emergency aid and their substantial assets under state that no one is hungry in their commu- to victims of the tsunami that hit Indo- control. In such cases, Muslim philan- nities, even if prosperity remains out of nesia and Sri Lanka in December 2004 thropic institutions serve the interests of reach for most. is a recent example. the state—or perhaps the state’s notion of what the interests of Muslim institu- Aid to Communities in Distress: The con- Another informal activity is assisting tions should be. cept of takafful—that every Muslim is with matchmaking and marriage responsible for every other Muslim—ex- arrangements. As the cost of marriage A related form of state control is the tends to an international solidarity. Pal- rises and youth unemployment state appropriation of legitimate reli-

8 THE MUSLIM WORLD SERIES gious authority. When this happens, the to give wider leeway to activities that represent a cooptation of issues and government takes over religious institu- appear devoid of political content. They individuals under the penumbra of the tions, or religious institutions remain also grant significantly wider berth to state, making the emergence of non- intact but are brought under the control activities that do not involve known po- state institutions harder to justify and of state institutions. Either way, the state litical opposition figures. Finally, many accomplish. Because these NGOs are is the authority on what is officially legit- governments try to formalize informal often elite institutions, they can appear imate from a religious perspective. Start- activities to gain greater knowledge of to foreign funding organizations as the public face of nongovernmental activity ing in the early twentieth century, many and control over them. Middle Eastern states began appointing in such countries, even if they are not a mufti to act as the highest religious au- Compared with restrictions placed on bona fide NGOs. thority in the land (the is derivative relationships between secular institu- of the word fatwa, or religious edict). As tions and Western philanthropic or Policy and Programmatic noted earlier, the Egyptian state appoints governmental groups, states have taken the head of al-Azhar, the preeminent a relatively lax approach to the inflow of Implications Because philanthropic organizations religious training institution in the coun- money to support religious institutions. manage substantial material and hu- try. A potential consequence can be to They thus have a significant advantage man resources and have significant delegitimize religious institutions linked over secular institutions and a far freer institutional capacity—all of which are to the government, especially where the ambit for their activities. States have state itself is viewed as illegitimate. In potential assets for development—the begun to revisit this issue because of the U.S. Government should consider more such circumstances, radical views gain misuse of funds to support extremist popularity as the only ones untainted by active engagement with this sector. groups, but religious charities are highly connection to the state. Moreover, given the generally high pub- resistant to what they view as a part of a lic regard in which these organizations A third form of state control is the de- larger pattern of state encroachment on are held for being “clean” of corruption termination of what forces can organize, their prerogatives. and serving the community well,4 their ability to promote development and re- form should not be overlooked. Indeed, Many philanthropic efforts dovetail with and, in some philanthropic activities in Muslim com- cases, replicate ongoing U.S. Government efforts in munities are at the nexus of political power, state prerogative, and social ac- Muslim communities. tion. Furthermore, many philanthropic efforts dovetail with and, in some cases, replicate ongoing U.S. Government ef- for what purpose, and in what numbers. A fourth form of state control, also forts in Muslim communities. Though Such control is often exercised through common in non-Muslim countries, is limiting U.S. Government interaction local or state security forces or through the introduction of government-orga- to only secular institutions is possible, the domestic intelligence apparatus of nized NGOs. Such organizations fill thinking creatively about working with the state. The relative balance of power the space in society for public groups Muslim religious institutions provides between the state intelligence apparatus engaged in positive social change, and greater opportunities for more effective and religious groups varies greatly from they embrace such issues as poverty assistance. country to country, and can be hard to alleviation, education, and care for discern from outside. Similarly unclear women and children. Often operating 4 The reputation that Muslim charities enjoy is the extent to which orthodox religious under a form of royal patronage or the stands in sharp contrast to public views of groups enjoy support within the state equivalent, they are especially prevalent their own governments in many countries. See Governance in the Muslim World, USAID, April apparatus. On the whole, states tend in a country such as . The groups 2005, for a more detailed discussion.

THE IDEA AND PRACTICE OF PHILANTHROPY IN THE MUSLIM WORLD 9 There are many obstacles to such en- limited understanding among the Mus- gagement, however. The first challenge lim, Judaic, and Christian faithful. is to define a potential U.S. Govern- A second obstacle is widespread suspi- ment role in such activities. This is no cions of the U.S. Government. Many simple task if philanthropy is essentially people in Muslim-majority societies about a community of believers united view the United States as a malevolent through their obligations to God. The power, not only indifferent to their suf- U.S. Constitution mandates the separa- fering but actively abetting it through tion of church and state, setting param- its support for their own oppressive eters for governmental involvement with governments and neighboring countries religious organizations. By contrast, with hostile intent. Muslim organiza- Muslim societies seldom subscribe to a tions may not want to work with the strict separation; even secular govern- U.S. Government or even private U.S.- ments have learned that they cannot based organizations. Overcoming these govern effectively without the legitimacy suspicions will be a slow and uncertain that Islam provides. process, and only partly successful for Legal limitations on the U.S. Govern- the foreseeable future. ment notwithstanding, American society A third obstacle is the limitations on may be best placed among developed qualified partners because of the U.S. nations to appreciate Muslim preferenc- Government’s accounting and report- es to integrate faith into many aspects ing requirements. Understandably, a of public life. Survey data regularly relatively high threshold of transparency show Americans to be the most religious for organizations receiving U.S. Gov- among advanced, industrialized societ- ernment funding is required to prevent ies. Moreover, expressions of faith are public money from being squandered or included in prominent national symbols misappropriated. But if such regulations and government rituals. The Bush ad- effectively prevent the U.S. Govern- ministration’s Faith-Based Initiative is a ment from working with all but small recent example of the U.S. Government elite organizations in capital cities, expanding its support to religious orga- they undercut several key U.S. policy nizations for their charitable works— objectives. The tradeoff between the similar to what is being proposed here need for accountability and achieving for U.S. assistance in the Muslim world. policy objectives needs to be made and Thus, the real obstacle may not reside in acknowledged, rather than focusing on differences over the proper role for faith maximum accountability without regard in public life, but rather in mistrust and for its programmatic effects.

10 THE MUSLIM WORLD SERIES Recommendations for Engagement

Activities at the underground, increasing the possibility State Level of nefarious activity under the guise of Government-to-government interaction philanthropic activity. The U.S. Gov- is one arena for engagement. A diplo- ernment should work with recalcitrant matic agenda should work toward the governments to give philanthropic orga- following goals: nizations and activities more freedom, in return for greater openness about Reduce constraints on informal partner- funding sources and activity. ships: Many governments have overly onerous restrictions on foreign govern- ment interaction with local NGOs. Such Activities at the restrictions hinder international coopera- NGO Level tion through religious channels in favor Some of the most promising philan- of activities that are easier to monitor thropic activities occur in the nongov- and influence. In practice, local religious ernmental sector, although, with the groups often maintain covert ties to exception of religious charities, such institutions remain weak and diffuse. The U.S. Government should work with recalcitrant The U.S. Government could help strengthen a broader range of NGOs in governments to give philanthropic organizations and several ways: activities more freedom, in return for greater openness Sponsor regional discussions on NGO about funding sources and activity. success stories: NGO leaders could learn from best practices and successes in groups overseas, but Western donors are other countries. If such programs had prohibited from interacting with them. primarily a regional—rather than a To the extent these groups are effective U.S.—face, they could come across as in delivering services to broad publics, authentic grassroots success stories. they represent an alternative to a formal partnership with Western countries. The Provide matching funds: When NGOs U.S. Government should seek broader get much of their money from overseas, freedom for interaction with a wide they fail to develop roots in their own variety of groups on a range of issues. societies. Providing matching funds and challenge grants will drive newer NGOs Build autonomy for charities while boost- toward fundraising in their own societ- ing transparency: The secrecy that some ies, giving them a sense of legitimacy philanthropic activities seek drives them and authenticity that is now lacking.

THE IDEA AND PRACTICE OF PHILANTHROPY IN THE MUSLIM WORLD 11 Establish NGO service centers: Expand- to clerics in and to Muslim ing the flexibility of U.S. Government NGOs in Indonesia are examples worth entities serving in a particular country emulating. to fund local organizations and activities that have significant indigenous sup- Work with Muslim charities to improve port will help improve the effectiveness governance: Provide support to main- and sustainability of programs in host stream Muslim charities in exchange countries. for greater transparency and work with them to improve governance. Support informal initiatives: Some of the most promising, creative, and entrepre- Promote tours among like-minded cler- neurial work in religious communities ics and support regional intrareligious is informal. U.S. policy should seek to dialogue: The loudest voices in public discover and reward such work. religious discourse are often the most extreme, and they enjoy many channels for the exchange of ideas. Opportuni- Activities with Clerics and ties for mainstream religious voices to Religious Associations discuss public policy issues would help In the Muslim world, religious lead- leaven public discourse and provide a ers are opinion leaders. Clerics’ views, forum for moderate ideas. therefore, influence the success of U.S. Arrange tours by U.S. NGOs to explain efforts to engage politically, diplomati- faith-based charitable work in the United cally, and programmatically. Engage- States: A successful U.S. tour would ment with clerics could be fostered in expose interested parties to new modes the following ways: of state-civil society interaction and Increase efforts to engage with clerics highlight ways in which state and non- in-country: Most political officers are state activities can coexist, rather than trained to work with political rather compete. At the same time, such efforts than religious figures. Greater outreach would help ameliorate negative views of to clerics could help inform posts of key the United States, which is perceived by aspects of public attitudes and shape many religiously oriented people in the policies and programs that better con- Middle East to be atheistic and hostile form to local realities. USAID outreach toward religion.

12 THE MUSLIM WORLD SERIES Conclusion

ommunities in Muslim-major- have a prominent role in demarcating ity states are going through what is permissible and desirable in Chistorical processes of contes- local contexts. Successful U.S. partner- tation. States are struggling to maintain ships with such institutions are essen- control in the face of broad processes tial to help build trust and accelerate of urbanization, modernization, and development. the spread of communications technol- ogies. The latter is especially important Finally, effective partnerships would in the Middle East, where a common lend support to U.S. objectives of Arabic language can help establish democratization and development in transnational ties among the region’s the Muslim world. They could bolster 22 countries. responsibility and transparency among religious philanthropic organizations Effective U.S. engagement in Muslim societies will require new partnerships. and help them gain greater autonomy In this dynamic environment, con- from state authorities that are often structive relations with certain elements judged to be overbearing, if not repres- of the religious community would be sive. In turn, increased autonomy helpful. Many significant nonstate for foundations and liberalization of actors have a religious orientation, and governing them could unleash a many of their activities are primarily potent force for economic and social philanthropic. Religious institutions development.

THE IDEA AND PRACTICE OF PHILANTHROPY IN THE MUSLIM WORLD 13

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16 THE MUSLIM WORLD SERIES Annex

Seminar participants Jon Alterman Director, Middle East Studies Program, Center for Strategic and International Studies

Mumtaz Ahmed Professor, Hampton University

Mohammed Ayoub Professor, Temple University

Don Emmerson Professor, Stanford University

Shireen Hunter Director, Islam Program, Center for Strategic and International Studies

Mustafa Kamal Pasha Professor, American University

Amira Sonbol Professor, Georgetown University

Tamara Sonn Professor, College of William and Mary

Quintan Wiktorowicz Professor, Rhodes College

Hakan Yavuz Professor, University of Utah

THE IDEA AND PRACTICE OF PHILANTHROPY IN THE MUSLIM WORLD 17

U.S. Agency for International Development The U.S. Agency for International Development (USAID) is an independent federal agency that receives overall foreign policy guidance from the Secretary of State. For more than 40 years, USAID has been the principal U.S. agency to extend assistance to countries recover- ing from disaster, trying to escape poverty, and engaging in democratic reforms. USAID supports long-term and equitable economic growth and advances U.S. foreign policy objectives by supporting • economic growth, agriculture, and trade • global health • democracy, conflict prevention, and humanitarian assistance The Agency’s strength is its field offices located in four regions of the world: • Sub-Saharan Africa • Asia and the • America and the Caribbean • Europe and Eurasia U.S. Agency for International Development 1300 Pennsylvania Avenue, NW Washington, DC 20523 Telephone: 202-712-4810 www.usaid.gov