A conceptual and empirical study on the development of the Islamic donation-based crowdfunding platform model for micro small and medium-sized enterprises (MSMEs) in times of Covid-19 pandemic in Indonesia

Purpose: This study aims to present and to test practically the concept of the Islamic donation-based crowdfunding platform model for providing the financing program of MSMEs in times of COVID-19 pandemic in Indonesia. Methodology: This study uses a conceptual and empirical approach. The primary data is collected through the online survey questionnaires and then the data are descriptively analyzed. Findings: This research finds that the concept of the Islamic donation-based crowdfunding platform model is expected to solve the existing problems due to the adverse impact of the Covid-19 pandemic on MSMEs in Indonesia. Also, the platform model will open the opportunity for more optimum and impactful utilization of Islamic charity donation funds from zakat, cash waqf, sadaqah, and the like. Besides, an empirical study finds the majority of respondents accepted the concept of the Islamic donation-based crowdfunding platform model. The platform model has the potential to optimize financing programs for MSMEs in times of the Covid -19 pandemic situation. Practical implications: The present study also has implications for government, zakat institution, waqf institution, and policymakers to realize the concept of the Islamic donation-based crowdfunding platform model into the real world. Originality: The study will contribute to the existing literature especially on the Islamic donation-based crowdfunding platform model as an alternative strategy to minimize the negative impact of the Covid-19 pandemic on MSMEs in Indonesia.


Introduction
Nowadays, the problematic phenomena of Corona Virus Disease 2019 (Covid -19 -the current term of the virus) have been becoming a disease issue worldwide (Chamani et al., 2020). The Covid -19 is not only a medical problem which is a global pandemic but also becomes economic problems for many countries in the world. Based on the data from London Business School (2020), there are

Literature Review Charity Donation in Islam
The charity donation in Islam can take several forms: Firstly, zakat, it means "purity" and "cleanness." The payment of zakat purifies and cleans the wealth and the heart of the person who pays zakat (muzakki). It cleans the dirt of wealth as well as the heart of the zakat payer. By removing the stringiness, zakat purifies the heart of the zakat payer and prepares him to sacrifice for the cause of Allah (Samad & Glenn, 2010). The other meaning of zakat is fertility or growth. The payment of zakat is designed to enable the poor to grow in wealth and spirit. The establishment of zakat payment has several objectives, namely: to eradicate poverty and maintain socioeconomic justice; safeguard wealth from the jealousy of the others, the poor in particular; purify one's wealth and remove one's stringiness, and remain thankful to Allah for His bounty to him (Samad & Glenn, 2010). Moreover, Zakat is taken from specific sources of wealth and given to specific categories of recipients (mustahik). The specific sources of wealth include livestock, savings, trade goods, crops, and minerals (Indrawan & Herman, 2017). The categories of eligible recipients for zakat are mentioned in the Quran chapter 9 verse 60 states: 'Alms are only for the poor and the needy, and those who collect them [zakat], those whose hearts are to be reconciled, captives, debtors, in the cause of Allah, and wayfarers...'.
Secondly, waqf, or Islamic endowment fund. where waqf is a continuous charity that confers continuing rewards upon the donor and lasting benefits to the public (Mauluddin & Rahman, 2018). From an economic aspect, waqf connotes the transfer of wealth from being exhausted to being profitable, with social equity turning it into a productive asset fruitful for the future of the individual and society (Mauluddin & Rahman, 2018). The form of waqf assets is not limited to permanent property but can also be transferable, such as cash waqf (Mauluddin & Rahman, 2018). Which cash waqf was established by using money to provide services to people in the name of Allah. The popularity of cash waqf has recently increased rapidly in Muslim societies (Cizakca, 1995). Where it is proven by many wealthy Muslims have been giving cash in the form of waqf to specific institutions; the funds are used for providing social services to the vulnerable groups of society (Cizakca, 1995). Currently, there are several models of cash waqf which have been developed for socio-economic development (Che et al., 2018;Kachkar, 2017;Sulistiyo, 2020); for poverty alleviation (Kachkar, 2017;Mohammad, 2015;Raimi et al., 2014); for micro-enterprises (Thaker et al., 2016;Tohirin, 2010); for waqf institutions (Thaker, 2018); for education (Aziz et al., 2013); for microfinance (Abdullah & Ismail, 2017;Haneef et al., 2013); for use by financial institutions (Mohammad, 2011); for entrepreneurship (Iman & Mohammad, 2017); for Muslim refugees (Kachkar, 2017).
Finally, another form of charity donation in Islam is sadaqah, infaq, and kafarah. The sadaqah is another form of charity donation that is performed in various ways such as donation of used clothes, helping with money or providing food to the needy people. The core aim behind the act of sadaqah is to save oneself from evil spirits. Kafarah is another form of charity donation among Muslims which is performed where an oath has been broken down and can take the form of helping others with money or otherwise (Kashif et al., 2018).

The Concept of Islamic Crowdfunding
Crowdfunding is part of financial technology (fintech) segments that provide financing for individuals and businesses (Harahap et al., 2017). Fintech has become a trend in Indonesia, including crowdfunding (Aulia et al., 2020). Many researchers have defined and conceptualized the concept of crowdfunding in a variety of ways. But in the majority of the definitions, crowdfunding is known as a process of collection of funds (in a small amount) by entrepreneurial individuals and groups from a relatively large number of donors or investors by using the website platform/internet to fund a specified project, business venture or for the social project (Belleflamme, et al., 2014;Dresner, 2014;Mollick, 2014;Suhaili & Palil, 2016;Thaker, 2018).
In Islamic perspectives, Achsien and Purnamasari (2016) described that the crowdfunding model in Islam is like the use of small amounts of money obtained from a large number of individuals or organizations, to fund a project, a business or personal loan, and other needs through an online web-based platform based on with shariah principles. Some basic features are distinguishing Islamic crowdfunding from conventional one, as follows: (1) intentions and halal projects, (2) the free usury (riba), gambling (maysir), speculation (gharar), and (3) the existence of Shariah supervisory board (Achsien & Purnamasari, 2016). Additionally, the requirements of the Islamic crowdfunding involve project initiators (e.g. individuals, organizations, and businesses); potential funders (PF); crowdfunding operators (CFO); the board of Sharia (Marzban et al., 2014).
The Islamic crowdfunding can be divided into four types, namely: (1) Donation-based crowdfunding: This type is made for the purpose such as social project or purely philanthropic perspective which is usually managed by NGO's. Contributors do not receive tangible benefits in exchange for their donations; (2) Reward-based crowdfunding: This type is the collection of funds, where contributors receive some tangible reward, such as a membership rewards scheme, as a token of appreciation for their contribution. They back these projects for social motivations; (3) Debtbased crowdfunding or lending-based crowdfunding: This type is investors who provide loans to startups or small enterprises to support their ventures; (4) Equity-based crowdfunding: This type is when investors offer equity funds in the business venture for supporting startups or small enterprises. The main motivation of investors is to get a return in the form of profit-sharing on their investment (Harahap et al., 2017;Hidajat, 2019;Marzban et al., 2014;Ramos, 2015;Sangwan et al., 2019;Thaker, 2018).
The advantage of the concept of Islamic crowdfunding is opened up a new source of funding for entities/community/groups, the ability to attract the emotional interest of donors to contribute and donate irrespective of geography, and a low-cost way of accessing funding (Suhaili & Palil, 2016). Islamic crowdfunding also provides an opportunity for investors, donors, and entrepreneurs for the socio-economic development of the micro small and medium-sized enterprises (MSMEs) sectors in Islamic countries (Marzban et al., 2014).

Legal Aspects of Islamic Crowdfunding in Indonesia
There are three legal aspects of Islamic crowdfunding in Indonesia issued by government authorities, namely:

A Conceptual of Islamic Donation-Based Crowdfunding Platform Model
In this section, the author proposes a concept of an Islamic donation-based crowdfunding platform model that can be the potential for supporting financing program MSMEs in Indonesia, especially in times of COVID-19 pandemic situation. Parties involved in this type of Islamic crowdfunding arrangement include: (1) Micro small and medium-sized enterprises (MSMEs)/Entrepreneurs; (2) Fund providers, including individual and institutional donors; (3) A crowdfunding operator (CFO); and (4) Shariah supervisory board.
Source: Authors' Illustration As illustrated in Figure 1, the scheme of the Islamic donation-based crowdfunding platform model is: • CFO plans various financing services/programs such as to finance entrepreneurship training, to provide basic capital, to develop digital applications, to provide the procurement of raw materials or equipment production, and other projects for supporting MSMEs. • Next, CFO will be offered in the form of a written prospectus, video presentation, infographic, and other forms of publication to the system which is known as a web-based platform and social networks. • Or MSMEs/Muslim entrepreneurs also can propose the necessity project that will be funded by donors using the platform. • Donors browse the Web and finally choose the projects that they are willing to support. If the donors select the zakat as the type of support then the list will contain the information for the zakat project or if the donors select the waqf support then the list will contain the information for the waqf project, and similarly if the donors select the sadaqah/other donation charities. • Donors transfer/send funds through payment channels such as LinkAja Syariah, PayTren, Mobile banking, and another channel. CFO can have its payment channels through collaboration with existing financial institutions (Islamic banks). • After the target amount of funds from donors is reached, the received funds are ready to be distributed to the proposed projects earlier for support MSMEs. • MSMEs/Muslim entrepreneurs must register and must provide the need document on the platform to support the verification of the needs and classify them into valid or invalid categories project. • To ensure transparency, CFO must up to date the progress regularly and updates the progress into the system until the particular projects are completed. • A Shariah supervisory board needs to be established to ensure that the entire crowdfunding process complies with shariah principles.

The Potential of Utilizing of Islamic Charity Donation Funds for MSMEs in the Current of COVID-19 Situation
In this section, the author discusses the potential of utilizing Islamic charity donation funds in the Islamic donation-based crowdfunding platform model for MSMEs in times of Covid-19 pandemic.
Three possible instruments i.e. Hibah (grant), Qard-Hasan (benevolent loan), and Murabahah (deferred payment sale) can be applied to the platform model such as suggested by Marzban et al., (2014). Furthermore, the platform model is divided into two components, which are: (1) the zakat and other charities fund like sadaqah or infaq, and (2) cash waqf fund. Where Zakat and other charities fund will be utilized for several purposes: • To finance entrepreneurship training for MSMEs to enhance their capability (e.g. digital marketing skill). • To provide basic capital for MSMEs after entrepreneurship training. The basic capital can be provided based on hibah or qard al-hasan. Where the scheme of qard al-hasan is specifically for MSMEs that can still be affected but still carry out production, it is just constrained by the difficulty of access to capital. Meanwhile, the scheme of hibah, this scheme is especially for micro-entrepreneurs that are difficult for the needs of daily life. • To provide and to fulfill basic need "sembako" for the MSMEs to maintain their life, especially for micro-enterprises due to directly impacted Covid-19. • To stimulate for debt repayment for MSMEs particularly micro-enterprises who are still in debt to Islamic microfinance institutions (Baitul Maal wat Tamwil (BMT), cooperatives (Koperasi Jasa Keuangan Syariah (KJKS)) or Islamic financial institutions (e.g. rural banks, commercial banks). • Other charities fund (i.e. shadaqah, infaq, or the like in small amounts) can be accepted from donors. Then, the funds will be channeled to reserve funds and reserve risk funds. Hence, the main objective of reserve funds will be covered the operational expenses such expenses may include staff salaries, utility bills, office rents, and others. While, the function of risk reserve funds is as back up funds in case of any losses from mudharabah or murabahah scheme.
Meanwhile, the cash waqf fund by a manager will be channeled to investment, either real investment or low-risk shariah-compliant financial instruments, to generate returns. Thus, the returns of cash waqf fund will be utilized for several purposes: • To expand the business of MSMEs. The possible instruments to use would be to use the mudharabah scheme. Where this scheme is for MSMEs affected but still able to survive and able to adapt during the Covid-19. pandemic but require additional capital. In this mudharabah scheme, MSMEs (as mudharib) will be guaranteed with reserve risk funds from other charities fund channeled in the form of debt which means will be used to cover losses. • To provide the procurement of raw materials or equipment production for MSMEs sustainable, the possible instruments to use would be murabahah. • To subsidize profit-margin for MSMEs on Islamic microfinance institutions (Baitul Maal wat Tamwil (BMT), cooperatives (Koperasi Jasa Keuangan Syariah (KJKS)) or Islamic financial institutions (e.g. rural banks, commercial banks). The cash waqf returns will subsidize the profitmargin, while the MSMEs will pay only the principal, like in qard al-hasan. However, the subsidy from cash waqf returns only applicable for MSMEs due to directly impacted Covid-19.. • To provide online commerce, the return of cash waqf could be used in the development of online commerce for MSMEs while maintaining physical distancing and a new normal era.

An Empirical Study
In this section, the author discusses the results of the online survey about acceptance of the concept of the Islamic donation-based crowdfunding model from the perspective of the donors who represented by respondents ever participate in the type of donation-based crowdfunding such as kitabisa.com, ayopeduli.id, or other like. The discussion is divided into two main subsections: Research methods and results and discussion.

Research Methods
This study used an online survey questionnaire to test the acceptance practicality of the idea about the concept of the Islamic donation-based crowdfunding platform model. The questionnaire contains five constructs variables: Perceived usefulness (6 question statements), perceived usefulness of model (6 question statements), use of social media (4 question statements), Islamic crowdfunding information (3 question statements), and donors' intention to use (2 question statements). In total, 21 question statements were distributed in May 2020 which were in Bahasa Indonesia. And the question statements are measured by a five-point Likert scale, where 1 = strongly agree, 2 = agree, 3 = neutral, 4 = disagree, and 5 = strongly disagree. The respondents were selected 193 donors/fund providers using the purposive sampling with boundaries according to the respondents' characteristics (see Appendix I the distribution of respondents); The sampling criterion in this study was people who can access FinTech services, especially crowdfunding like KitaBisa.com as donation-based crowdfunding in Indonesia, with a smartphone in the various demographics, geographic areas in Indonesia. Furthermore, this study used both secondary data and primary data. Where Secondary data are obtained from various existing sources such as books, reports, journals, and other publications. Meanwhile, the primary data are obtained directly from the sources through the questionnaire (Hendratmi et al., 2019). After the data collection, the obtained data were analyzed using descriptive analysis.

Results and Discussion
The results of the online survey are analyzed descriptively. There were five constructs for discussion in this paper, namely: (1) Perceived usefulness, (2) Perceived easy to use, (3) Use of social media, (4) Islamic crowdfunding model, and (5) Donors' intention to use of the Islamic donation-based crowdfunding platform model. From Table I, we can see a summary of the results from the online survey.

Perceived Usefulness
The first construct is perceived usefulness. According to Darmansyah et al. (2020) defines that perceived usefulness is the degree to which a person believes using a particular system will improve his/her work performance and will effect on the intention to adopt financial technology (fintech) products and services (Huei et al., 2018). Meanwhile, Ratri (2016) perceived usefulness has a strongly significant impact and important variable to influence attitude, behavior, and intention to accept the new concept in financial technology products and services. There were six indicator items to measure perceived usefulness in this study i.e. donate more quickly, donation performance, increase donation productivity, effectiveness, make donation easier, and useful (all indicators are duplicated from Davis (1989) and Ratri (2016)).
In Figure 2, the results of the online survey show that most of the respondents have strongly agreed and agreed with using the Islamic donation-based crowdfunding model that would be useful for supporting donation activities. Thus, the model would help them to donate more quickly (

Perceived Ease to Use
The second construct is perceived ease to use. Same as perceived usefulness, perceived ease to use has a positive effect on intentions to adopt financial technology (fintech) products and services (Huei et al., 2018). Where Davis (1989) stated perceived ease to use is a belief individually that using a certain technology would be easier. He said also perceived ease to use influences the intention, usefulness, attitude, and actualization of using technology. Hence, there were six indicator items to measure perceived usefulness in this study i.e. easy to use, controllable, clear and understandable, flexibility, easy to become skillful, and also easy to learn of the Islam donationbased crowdfunding platform model (all indicators are duplicated from Davis (1989) and Ratri (2016)).
Empirically, Figure 3 shows the results of the online survey which almost all respondents have agreed with using financial technology especially the Islamic donation-based crowdfunding platform model would be easier in donation activities. The respondents believe that the platform model would be easy to use (82/193 agreed), controllable (73/193 agreed), clear and understandable (83/193 agreed), flexibility (83/193 agreed), easy to become skillful (77/193 agreed), and also easy to learn (80/193 agreed). Particularly, the model provides the financing program for MSMEs in times of Covid-19. pandemic.

Use of Social Media
The third construct is the use of social media. Social media has a direct impact on the behavioral intention of using the fintech concept. For the Islamic donation-based crowdfunding platform model to work effectively, the model must be engaged in using social media, i.e. Facebook, Instagram, Twitter, and so on. This is because of the key driver of crowdfunding success in any country. The results of the online survey, in Figure 4, almost all respondents (strongly) agreed with using social media would help them to get more information (where 75/193 strongly agreed and 72/193 agreed) and also to know about the donation programs in the platform (where 81/193 agreed and 71 strongly agreed). Furthermore, they also strongly agreed that using social media would help them to increase their interest in donation programs (where 81/193 agreed), and using social media would be easy to collect donation funds (73/193 agreed). Similarly, Choy and Schlagwein (2016) mentioned that crowdfunding takes advantage of social networking to raise funds globally. Therefore, social media would help to promote and campaign about the financing programs for MSMEs in times of Covid-19. pandemic.

Islamic Crowdfunding Information
The fourth construct is Islamic crowdfunding information. The information on Islamic crowdfunding would influence individual participation in social programs. Nonetheless, low information also could affect the adoption of the fintech concept (Pikkarainen et al., 2004), because the lack of information is the major obstacles that hinder its adoption. Therefore, information about Islamic crowdfunding is very important, and the campaign positively influences the donors to use the Islamic donation-based crowdfunding platform. Based on the results from an online survey, most respondents stated strongly agreement (agreed) which Islamic donation-based information would help them to donate safely (78/193 agreed), and increase their awareness (82/193 agreed), as well as increase their trust to donate (76/193 agreed) in the platform especially to support the financing program for MSMEs in times of Covid-19. pandemic in Indonesia (see Figure 5).
Source: Author's Computation (2020) Figure 5. The Result of the Online Survey for Islamic Crowdfunding Information

Donors' Intention to Use
The last construct is donors' intention to use the Islamic donation-based crowdfunding platform model and also planned to utilization in the future. Ratri (2016) stated that planned utilization in the future is one of the indicators to the intention of individuals to the actual use of the technology. The results of the online survey show that most of the respondents agreed and strongly agreed, where 81/193 agreed and 40/193 strongly agreed. They would use the Islamic donation-based crowdfunding platform model as a priority platform in the future. Therefore, respondents have the intention to donate (where 71/193 agreed and 41/193 strongly agreed) in the program of financing for MSMEs by using the Islamic donation-based crowdfunding platform model (see Figure 6).
In summary, the majority of all respondents accepted to use the Islamic donation-based crowdfunding platform model based on an online survey and they have the intention to donate using this platform. However, there were still existing respondents who answered with disagreeing/strongly disagree and even the neutral. They still have favored doing donation as normal ways (without using technological concept) to participate in the financing program for MSMEs in time of the COVID-19 pandemic.
Source: Author's Computation (2020) Figure 6. The Result of the Online Survey for Donors'Intention to Use

Conclusion
As a global pandemic today, the negative impact of Covid-19. has been affecting many sectors especially MSMEs in Indonesia. There need for solutions that will help to alleviate and resolve the problems from the effects of the Covid-19. pandemic in Indonesia. This paper presents the potential of Islamic donation funds (zakat, waqf, sadaqah, and other charities) and the concept of the Islamic crowdfunding. Hence, the author discussed proposing the concept of the Islamic donation-based crowdfunding platform model. The platform that can be potentially adopted to provide financial services for the MSMEs especially during the crisis like Covid-19. in Indonesia. Furthermore, the platform model will open the opportunity for more optimum and impactful utilization of zakat or sadaqah, and the like and will help the government and policymakers to plan appropriate intervention strategies to minimize the damages of the Covid-19. pandemic on MSMEs in Indonesia.
Furthermore, an empirical study has been conducted to this study that used an online survey questionnaire to test the acceptance practicality of the idea about the concept of the Islamic donation-based crowdfunding model. Overall, the majority of all respondents accepted to use the Islamic donation-based crowdfunding platform model. Where the respondents have strongly agreed to donate through the platform model because the platform model would be a usefulness and easier. Social media and Information about Islamic crowdfunding also would help to promote and campaign all the financing programs as well as influence individual participation. Additionally, the respondents have an intention to donate in the program of financing MSMEs by using the Islamic donation-based crowdfunding platform model in times of Covid-19. pandemic in Indonesia. Additionally, this study will add to the existing literature in the areas of the Islamic donation-based crowdfunding platform model as an alternative strategy to minimize the negative impact of the Covid-19. pandemic on MSMEs in Indonesia.

Recommendation
In this study, the recommendations are made by the author, which are: (1) For a Crowdfunding Operator (CFO), they must be a task force institution that is pointed directly by the government and focused on the utilize of Islamic donation funds for MSMEs in times of Covid-19. pandemic. CFO also could under supervised by BAZNAS (Badan Amil Zakat Nasional or the National Board of Zakat) as the highest government zakat institution or other possible institutions in Indonesia.
Moreover, CFO should collaborate with Islamic FinTech providers to create the system more secure of its online platform. This is because of the risk exposure for the online platform should be minimized by enhancing the security of virtual transactions. Besides that, to make the system more effective and transparent, the model could use the Artificial Intelligence (AI) and Natural Language Process (NLP) such as recommended by Haider and Khan (2020). Furthermore, CFO also should promote to enhance awareness on the use of the platform model in Indonesia. (2) Finally, for government, policymakers, zakat institutions, waqf institutions, and other relevant authorities, they should synergize togetherly to realize the concept of the Islamic donation-based crowdfunding platform model into the real-world.