Tabarru (Donation)
The principle of contributing funds for mutual support, key in Takaful.
Detailed Description
Tabarru (Donation)
What does Tabarru mean?
Tabarru is an Arabic term meaning 'donation' or 'gift,' referring to the voluntary act of giving without expecting anything in return.
How does Tabarru contribute to community welfare?
Tabarru fosters a sense of community and mutual assistance, allowing participants to support those facing financial hardships.
In what financial product is Tabarru commonly integrated?
Tabarru is often integrated into Takaful, which is Islamic insurance that relies on mutual assistance.
What is the legal framework governing Tabarru based on?
The legal framework governing Tabarru is based on Shariah law, emphasizing ethical conduct in financial transactions.
What challenges does Tabarru face in Islamic finance?
Challenges include lack of awareness among participants, ensuring transparency in fund management, and regulatory hurdles.